October 22, 2018
Brunei Darussalam
The State of Brunei Darussalam (Brunei) is located on the
Trans-Pacific Partnership (CPTPP) in 2018, and the
northwest coast of the Island of Borneo, and is bordered
proposed Regional Comprehensive Economic Partnership
and bifurcated by eastern Malaysia. Brunei is a small
(RCEP), Brunei has a history of advocating trade and
country with a land mass of 2,226 square miles (slightly
investment liberalization in the region.
larger than Delaware), but possesses substantial oil and
natural gas reserves, and is located along the strategically
Figure 1. Map of Brunei Darussalam
and economically important sea lanes of the South China
Sea. Brunei is a predominately Sunni Muslim state with a
population of more than 420,000, consisting of mostly
ethnic Malays and a substantial ethnic Chinese minority.
The capital city is Bandar Seri Begawan.
Brunei is a constitutional monarchy, headed by Sultan Haji
Hassanal Bolkiah, who is both head of state and Prime
Minister, as well as Minister of Finance, Defense, and
Foreign Affairs and Trade. The Sultan is one of the world’s
wealthiest men. He is advised by a 13-member cabinet,
which underwent a major reshuffling in January 2018, as
well as a Religious Council, Privy Council, and Legislative
Council, all of whom are appointed by the monarch.
Brunei’s legal system is based on a combination of British
common law and Indian penal code. Its legal system was
amended in 2014 to include Islamic law (sharia or locally,
syraiah).
Brunei’s GDP in 2017 was 16.7 billion Bruneian dollars, or
approximately US$15.4 billion. Its per capita GDP (PPP) in
2013 was US$54,800, the 12th highest in the world.
Source: CRS, adopted from ArcGIS and National Geographic
Brunei’s economy is dominated by the extraction and
Brunei is a member of several multilateral organizations of
export of crude oil and natural gas, which provide about
interest to the U.S. government, including:
60% of the country’s gross domestic product (GDP). The
government uses revenue from the state energy company,
Asia-Pacific Economic Cooperation (APEC)—the 21-
Brunei National Petroleum Corp., to subsidize
member forum was founded in 1989 for the purpose of
infrastructure development and extensive social programs,
promoting trade and investment liberalization in the
but declining offshore oil reserves, combined with lower oil
Asia-Pacific as a means of fostering sustainable
prices, present a challenge for the country’s development.
economic growth and prosperity in the region;
In recent years, the Brunei government has tried to promote
international tourism and domestic food production to
The Association of Southeast Asian Nations
diversify its economy and reduce its reliance on imported
(ASEAN)—the 10-member association was established
food.
in 1967 to foster regional peace and stability, and
promote economic growth, social progress and cultural
Brunei’s merchandise exports in 2017 totaled 7.7 billion
development in Southeast Asia;
Bruneian dollars (US$7.1 billion); merchandise imports
were worth 4.3 billion Bruneian dollars (US$3.9 billion).
The ASEAN Regional Forum (ARF)—the 27-member
The top destinations for Brunei’s exports in 2017 were (in
group was created in 1993 to foster constructive
order): Japan, Malaysia, Singapore, and India; the leading
dialogue and consultation on political and security
sources for its imports in 2017 were (in order): China,
issues of common interest and concern;
Malaysia, Singapore, and the United States. Major sources
for inward foreign direct investment in Brunei are China,
The East Asia Summit (EAS)—the EAS is a head-of-
Malaysia, Singapore, and the United Kingdom, mostly in
state summit that first met in 2005 to discuss strategic,
Brunei’s natural resources sector. A founding member of
political and economic issues of common interest and
the Trans-Pacific Strategic Economic Partnership (P4) in
concern with the aim of promoting peace, stability and
2006, the Comprehensive and Progressive Agreement for
economic prosperity in East Asia; it currently has 18
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Brunei Darussalam
members (Russia and the United States officially joined
South China Sea
in 2011); and
Brunei is one of four Southeast Asian nations that has
territorial disputes with China in the South China Sea.
The Organization of Islamic Cooperation (OIC)—the
Brunei makes claim to a 200 nautical mile continental shelf
57-member organization was established in 1969 to
extending from its mainland, which encompasses some land
“safeguard and protect the interests of the Muslim world
features in the Spratly Islands and which overlaps with the
in the spirit of promoting international peace and
nine dash line that China uses to demark its own claims.
harmony among various people of the world.”
Brunei has not been involved in the frequent incidents at
Brunei is also a member of the United Nations, World
sea that some other claimants have, particularly the
Trade Organization (WTO), the International Monetary
Philippines and Vietnam. It does not have a large fishing
Fund (IMF), the World Bank, and a many other multilateral
fleet that operates extensively in disputed waters, and its
organizations.
claimed Exclusive Economic Zone (EEZ) does not overlap
with any of the features where China has constructed
U.S. Relations with Brunei
artificial islands in recent years. However, it is an active
The United States established diplomatic relations with
participant in negotiations between ASEAN and China over
Brunei in 1984, following its independence from the United
these issues and over a possible Code of Conduct for parties
Kingdom. In 1994, the two nations signed a memorandum
in the region. It has also negotiated bilateral territorial
of understanding (MOU) on defense cooperation. More
agreements with neighboring Malaysia. In 2009, the two
recently, U.S. relations with Brunei have focused on
nations exchanged letters settling the demarcation of their
Brunei’s role in addressing maritime territorial and
respective territorial waters and establishing a committee to
sovereignty disputes in the South China Sea, Brunei’s role
determine their shared maritime borders. The agreement
in ASEAN, and the implementation of sharia law.
included a pact that gave each side authority over energy
exploration and development in certain areas of the sea—a
One of the largest cooperative U.S.-Brunei initiatives of
deal that some experts say could be a model for other
recent years was the Brunei-U.S. English Enhancement
negotiations in the area.
Programme for ASEAN, a Brunei-funded joint program run
by the Universiti Brunei Darussalam and the Hawaii’s East-
Some analysts argue that Brunei’s economic vulnerability
West Center. The program, launched in 2012, provides
and extensive Chinese investment in the country in recent
English-language education to government officials,
years has made Brunei more reluctant to make strong public
diplomats, and teachers from other ASEAN nations.
assertions against Chinese behavior than other Southeast
Asian claimants. A $3.4 billion refinery and petrochemical
According to the State Department, the United States
complex is under construction by Hengyi Enterprises, a
provides no foreign assistance to Brunei.
private Chinese company, which some characterize as the
largest foreign investment ever in the country.
Defense Cooperation
Brunei and the United States have engaged in military-to-
Sharia Law
military cooperation for many years. A bilateral
On May 1, 2014, Brunei began the implementation of the
memorandum of understanding on defense cooperation was
first phase of a new sharia penal code that, unless specified
signed on November 29, 1994. Brunei’s armed forces
in the code, applies to everyone in the nation, regardless of
engage in joint exercises, training programs, and other
religion. Some aspects of the new penal code have been
military activities with the United States. Brunei cadets
subjected to international condemnation from various
attend U.S. military academies. In August 2018, Brunei and
sources. The United Nations cited the code’s provision for
the United States held their first bilateral Army exercises,
death by stoning for blasphemy, rape, sodomy,
focusing on areas of potential cooperation such as jungle
homosexuality, and extra-marital sex as evidence that the
warfare and combat in urban terrain.
code violates international human rights standards.
U.S. security interests in Brunei focus on two issues. The
Some Members of Congress have expressed concern at the
first is the maintenance of safe passage through sea lanes in
code’s restrictions on the practice of Christianity, and its
the South China Sea, and the prevention of attacks by
implications for the LGBT community. According to World
pirates and terrorists. The second is international efforts to
Watch Monitor, a Christian advocacy organization, in
address multilateral territorial and sovereignty disputes in
March 2018, Brunei’s Sultan and his Islamic Religious
the South China Sea.
Council reportedly approved a draft Criminal Code that
would facilitate the introduction of harsher punishments for
Brunei has increased its military spending, and has been
serious crimes, such as the amputation of limbs for theft.
actively promoting ties with several nations, including
Russia, Singapore, and Vietnam. In March 2018, Brunei
Michael F. Martin, Specialist in Asian Affairs
raised its annual military budget to $375 million, an
Ben Dolven, Specialist in Asian Affairs
increase of nearly 13% over the previous year. Brunei’s
Commander of the Navy visited Russia in July 2018.
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Brunei Darussalam
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