The Islamic Sultanate of Brunei Darussalam lies on the north-western
coast of the island of Borneo bordering
the South China Sea and Malaysia, with
a total land area of 5,769 square kilometers.
Brunei is close to vital sea lanes running
through the South China Sea linking
the Indian and Pacific Oceans.
Brunei Darussalam is known as “The Abode of Peace” and is renowned
for its beautiful landscape. The climate
is tropical. The capital is Bandar Seri
Begawan and there are 4 administrative
districts: Belait, Brunei and Muara,
Temburong, Tutong. The port town is
Muara and the oil producing areas are
Seria and Kuala Belait.
A flat coastal plain rises to mountains in the east; in the west
there is hilly lowland. The country
consists of two parts physically separated
by a finger of Malaysian territory.
97% of the population lives in the larger
western part, and only about 10,000
live in the mountainous eastern part,
the district of Temburong.
Brunei's major natural resources are petroleum, natural gas and timber.
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Brunei Population, Language and Culture
Brunei was trading with China during the 6th century, and, through
allegiance to the Javanese Majapahit kingdom
(13th to 15th century), it came under
Hindu influence. In the early 15th century,
with the decline of the Majapahit kingdom
and widespread conversion to Islam, Brunei
became an independent sultanate. It was
a powerful state from the 16th to the
19th century, ruling over the northern
part of Borneo and adjacent island chains.
In 1888, Brunei became a British protectorate. Japan occupied Brunei
during World War II; it was liberated
by Australia in 1945. The same family
has ruled Brunei for over six centuries.
The sultan regained control over internal
affairs in 1959, but Britain retained
responsibility for the state's defense
and foreign affairs until 1984, when the
sultanate became fully independent.
The population was estimated at 374,577 in July,
2007. It is 67% Malay, 15% Chinese,
6% indigenous and 12% other.
The official religion is Islamic. 67% of the population are Muslim,
13% Buddhist, and 10% Christian.
Malay is the official language; English and Chinese are also spoken.
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Brunei Government
Brunei
is a constitutional sultanate. The Sultan
and Prime Minister is Sir Hassnal Bolkiah
(since 5 October 1967).
In Aug. 1998, Oxford-educated Prince Al-Muhtadee Billah was inaugurated
as heir to the Sultan.
There
is a Council of Cabinet Ministers which
is appointed and presided over by the
monarch.
Civil law is based on English common law; for Muslims, Islamic Shari'a
law supersedes civil law in a number of
areas. There is a Supreme Court (the chief
justice and judges are sworn in by the
monarch for three-year terms).
All members of the (Brunei) Court of Appeal are distinguished Commonwealth
Judges. Final civil appeals are (by consent)
to the Privy Council in London.
The Legislative Council met on 25 September 2004 for first time in
20 years with 21 members appointed by
the Sultan; it passed constitutional amendments
calling for a 45-seat council with 15
elected members. The Sultan dissolved council on 1 September 2005 and appointed
a new council with 29 members as of 2
September 2005.
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Brunei Economy and Currency
Brunei has for many years been a significant player in the ASEAN
region. Its very strong ties with the
United Kingdom, Singapore and regional
countries have led to the build-up of
considerable commercial activity. The
economy has been dominated by the oil
and liquefied natural gas industries and
Government expenditure patterns. Crude
oil and natural gas production account
for nearly half of GDP.
Brunei Darussalam’s exports consist of three major commodities, namely:
crude oil, petroleum products and liquefied
natural gas. Exports are destined mainly
for Japan, Korea and ASEAN countries.
GDP at purchasing power parity was $9.557 billion
in 2006, and GDP per head at purchasing
power parity in 2005
was $25,600
- on a par with the GDP of the EU prior
to enlargement. Unemployment in 2003 was
3.2%; growth was also 3.2%.
Revenues in 2003 were $3.765 billion against expenditure of $4.5
billion.
While economic growth has been slow in recent years, it is expected
to strengthen. According to the International
Monetary Fund, growth was expected to
reach 3.75% percent in 2006 and 2.5% percent
in 2007 as capacity in the energy sector
is restored and the non-oil sector continues
to benefit from a stable macroeconomic
environment and high energy-related income
flows.
The currency is the Bruneian dollar, whose value has held steady
against the US dollar in recent years.
In 2004 1 Bruneian dollar was worth 1.6902
US dollars.
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Brunei The International Financial Centre
In 2000, Brunei instituted a tax-privileged International Financial
Centre.
Prior to formal establishment of the IFC in July, 2000, Brunei was
already a busy commercial centre, as witness
the existing active presences in the banking
sector of HSBC, Standard Chartered, Citibank,
Overseas Union Bank, RHB, Maybank, Baiduri
Bank, Islamic Bank of Brunei Berhad, Islamic
Development Bank of Brunei and The Brunei
Islamic Trust Fund.
Brunei intends to deploy its sovereignty, wealth and human resources
in a conservative but assertive manner.
Brunei IFC offers a range of international
legislation carefully crafted to permit
flexible, cost effective capabilities
which are right up-to-date. Such capabilities
will include the full range of facilities
necessary for the efficient conduct of
global business. There will be regular
liaison with regulatory bodies internationally.
Accordingly, Brunei will be a "dual jurisdiction", whereby the international
legislation offers "offshore" facilities,
alongside the usual range of "domestic"
legislation drawn from that of England
and Wales. The jurisdictional distinction
is thus jurisprudential rather than physical
and the judicial system will be common
to both domestic and international law.
The first tranche of IFC legislation included Money-Laundering and
Criminal Conduct (Recovery of Proceeds)
measures implemented to international
standards. Severe Drug Trafficking legislation
has been in place for some time. Moreover,
meaningful and enforceable regulation
of the Trust, Company Administration,
Securities, Insurance and Banking industries
was legislated for and established before
these activities commenced. From the outset
onwards Brunei IFC is in this regard fully
committed.
See other sections for descriptions of the commercial basis
of the IFC, its regulatory structure
and its corporate forms.
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Brunei Entry and Residence
Nationals of Austria, Germany, Malaysia, The Netherlands, New Zealand,
Sultanate of Oman, Singapore, South Korea,
the United Kingdon and the UAE are exempted
from the requirement to obtain a visa
for visits not exceeding 30 days.
Visas are also waived for visits of not more than 14 days for nationals
of Belgium, Canada, the Czech Republic,
Denmark, France, Hungary, Indonesia, Italy,
Japan, Laos, Luxembourg, Republic of Maldives,
Norway, Peru, Poland, The Philippines,
Slovakia, Spain, Sweden, Switzerland,
Thailand and The Principality of Liechtenstein.
Nationals of Australia and Qatar are issued visa on arrival upon
their arrivals at the Brunei International
Airport only for visits not exceeding
30 and 14 days respectively.
All other nationals entering Brunei Darussalam must have visas obtainable
from any Brunei Darussalam diplomatic
mission abroad.
Persons entering Brunei Darussalam to take up employment must arrange
with their employers to obtain employment
passes prior to their arrival. Their spouses
and children under 18 years of age of
pass holders are required to obtain dependents'
passes.
Every foreigner who intends to work in Brunei Darussalam must have
a valid Employment Visa authorised by
the Department of Immigration and National
Registration and is issued at the Brunei
Embassy or High Commisioner.
Maximum length of the validity of an employment visa is 3 months.
Processing takes 7 working days and costs
B$15.00.
The employer must have a quota license from the Labour Department
and needs an approval letter from the
work pass section of the Immigration and
National Registration Department. The
worker should have a valid passport/travel
document recognised by the Brunei Director
of Immigration and National Registration.
The passport must have a validity of 6
months before entering the country.
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Brunei Business Environment
The country is now in a new phase of development in its drive towards
economic diversification and maturity.
Per capita GDP is far above most other
Third World countries, and substantial
income from overseas investment supplements
income from domestic production. The government
provides for all medical services and
free education through the university
level and subsidizes rice and housing.
Brunei's leaders are concerned that steadily increased integration
in the world economy will undermine internal
social cohesion, although it became a
more prominent player by serving as chairman
for the 2000 APEC (Asian Pacific Economic
Cooperation) forum.
Plans for the future include upgrading the labor force, reducing
unemployment, strengthening the banking
and tourist sectors, and, in general,
further widening the economic base beyond
oil and gas. This small, well-to-do economy
encompasses a mixture of foreign and domestic
entrepreneurship, government regulation,
welfare measures, and village tradition.
Generally speaking, there is no restriction on the types of businesses
that may be set up. However, businesses
where the public interest is directly
affected such as banks, finance companies,
motor vehicle insurers, money lenders
and travel agents must obtain special
licences from the appropriate Government
agency.
Lawyers, auditors, doctors and other professionals also have to be
approved by the Government. A full range
of accounting and legal services is also
available with many law firms and major
accounting firms having significant presences
in Brunei.
Foreign land ownership is not allowed in Brunei Darussalam except
with prior approval in writing of His
Majesty in Council.
Industrial policies including manpower, ownership, government support
and facilities remain open and flexible
for all categories of industrial activities.
Brunei Darussalam maintains a realistic
approach where a variety of arrangements
are feasible. Policies relating to ownership
allow for full foreign ownership, majority
foreign ownership and minority foreign
ownership, as per the type of industry
and situation.
Brunei Darussalam offers vast land and a variety of facilities throughout
all four districts of the country. The
majority of the 12 industrial sites presently
developed are ready and available for
occupation. Large expanses for agroforestry
and aquaculture are also available. Rental
terms and tenancy agreements are competitive
and the sites offer a range of facilities,
infrastructure and resources.
Brunei Darussalam gives priority to ensuring the stability of the
natural environment. As such, all sites
are free from pollution and are ecologically
well balanced. The Government philosophy
is for sustainable development. Therefore,
all polluting industries are banned and
one of the continuing criteria for engaging
any industry's participation is the impact
on the environment.
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Brunei The Foreign Investment Regime
Brunei Darussalam welcomes foreign investment. Foreign investors
are invited to actively participate in
the current economic diversification programme
of the country. The programme hinges on
the development of the private sector.
The Ministry of Industry and Primary Resources
was formed in 1989 with the responsibility
of promoting and facilitating industrial
development in Brunei Darussalam. Brunei
Darussalam offers all investors security,
stability, continuity, confidence and
competitiveness.
Competitive investment incentives are ready and available for investors
throughout the business cycle of start
up, growth, maturity and expansion. The
Investment Incentive Act which was enacted
in 1975 provides tax advantages at start
up and ongoing incentives throughout growth
and expansion that are comparable if not
better than those offered by other countries
in the region.
The Investment Incentives Act makes provision for encouraging the
establishment and development of industrial
and other economic enterprises, for economic
expansion and incidental purposes.
Investment incentive benefits vary from one program to other. Amongst
the benefits are:
