Updated October 21, 2020
Brunei Darussalam
The State of Brunei Darussalam (Brunei) is located on the
Pacific Partnership (CPTPP) in 2018, and the proposed
northwest coast of the Island of Borneo, and is bordered
Regional Comprehensive Economic Partnership (RCEP),
and bifurcated by eastern Malaysia. Brunei is a small
Brunei has a history of advocating trade and investment
country with a land mass of 2,226 square miles (slightly
liberalization in the region.
larger than Delaware), possesses substantial oil and natural
gas reserves, and is located along the strategically and
Figure 1. Map of Brunei Darussalam
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).
According to its Department of Economic Planning and
Statistics (DEPS), Brunei’s GDP in 2019 was 18.4 billion
Bruneian dollars, or approximately US$13.5 billion. Its per
Source: CRS, adopted from ArcGIS and National Geographic
capita GDP in 2019 was 40,000 Bruneian dollars, or
Brunei is a member of several multilateral organizations of
approximately US$29,400. Brunei’s economy is dominated
interest to the U.S. government, including:
by the extraction and export of crude oil and natural gas,
which provide about 60% of the country’s gross domestic
Asia-Pacific Economic Cooperation (APEC)—the 21-
product (GDP). The government uses revenue from the
member forum was founded in 1989 for the purpose of
state energy company, Brunei National Petroleum Corp., to
promoting trade and investment liberalization in the
subsidize infrastructure development and extensive social
Asia-Pacific as a means of fostering sustainable
programs. Declining offshore oil reserves, combined with
economic growth and prosperity in the region;
lower oil prices, present a challenge for the country’s
development. In recent years, the Brunei government has
The Association of Southeast Asian Nations
tried to promote international tourism and domestic food
(ASEAN)—Brunei joined the now 10-member
production to diversify its economy and reduce its reliance
association in 1984. ASEAN was established in 1967 to
on imported food.
foster regional peace and stability, and promote
economic growth, social progress and cultural
The DEPS states Brunei’s merchandise exports in 2019
development in Southeast Asia;
totaled 9.9 billion Bruneian dollars (US$7.3 billion);
merchandise imports were worth 7.0 billion Bruneian
The ASEAN Regional Forum (ARF)—the 27-member
dollars (US$5.2 billion). Brunei’s leading trading partners
group was created in 1993 to foster constructive
are (in alphabetical order): Japan, the People’s Republic of
dialogue and consultation on political and security
China (China), and Singapore. Major sources for inward
issues of common interest and concern;
foreign direct investment in Brunei are China, Malaysia,
Singapore, and the United Kingdom, mostly in Brunei’s
The East Asia Summit (EAS)—the EAS is a head-of-
natural resources sector. A founding member of the Trans-
state summit that first met in 2005 to discuss strategic,
Pacific Strategic Economic Partnership (P4) in 2006, the
political and economic issues of common interest and
Comprehensive and Progressive Agreement for Trans-
concern with the aim of promoting peace, stability and
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Brunei Darussalam
economic prosperity in East Asia; it currently has 18
joint Cooperation Afloat Readiness and Training (CARAT)
members (Russia and the United States officially joined
exercise in Brunei.
in 2011); and
South China Sea
The Organization of Islamic Cooperation (OIC)—the
Brunei is one of four Southeast Asian nations that has
57-member organization was established in 1969 to
territorial disputes with China in the South China Sea.
“safeguard and protect the interests of the Muslim world
Brunei makes claim to a 200-nautical-mile continental shelf
in the spirit of promoting international peace and
extending from its mainland, which encompasses some land
harmony among various people of the world.”
features in the Spratly Islands and which overlaps with the
nine-dash line that China uses to demark its own claims.
Brunei is also a member of the United Nations, World
Trade Organization (WTO), the International Monetary
Brunei has not been involved in the frequent incidents at
Fund (IMF), the World Bank, and many other multilateral
sea that some other claimants have, particularly the
organizations.
Philippines and Vietnam. It does not have a large fishing
fleet that operates extensively in disputed waters, and its
U.S. Relations with Brunei
claimed Exclusive Economic Zone (EEZ) does not overlap
The United States established diplomatic relations with
with the theoretical EEZ of any of the features where China
Brunei in 1984, following its independence from the United
has constructed artificial islands in recent years. However,
Kingdom. In 1994, the two nations signed a memorandum
it is an active participant in negotiations between ASEAN
of understanding (MOU) on defense cooperation. More
and China over these issues and over a possible Code of
recently, U.S. relations with Brunei have focused on
Conduct for parties in the region. It has also negotiated
Brunei’s role in addressing maritime territorial and
bilateral territorial agreements with neighboring Malaysia.
sovereignty disputes in the South China Sea, Brunei’s role
In 2009, the two nations exchanged letters settling the
in ASEAN, and the implementation of sharia law in Brunei.
demarcation of their respective territorial waters and
establishing a committee to determine their shared maritime
One of the largest cooperative U.S.-Brunei initiatives of
borders. The agreement included a pact that gave each side
recent years was the Brunei-U.S. English Enhancement
authority over energy exploration and development in
Programme for ASEAN, a Brunei-funded joint program run
certain areas of the sea—a deal that some experts say could
by the Universiti Brunei Darussalam and the East-West
be a model for other negotiations in the area.
Center in Honolulu. The program, launched in 2012,
provides English-language education to government
Some analysts argue that Brunei’s economic vulnerability
officials, diplomats, and teachers from other ASEAN
and extensive Chinese investment in the country in recent
nations.
years has made Brunei more reluctant to make strong public
assertions against Chinese behavior than other Southeast
According to the State Department, the United States
Asian claimants. A $3.4 billion refinery and petrochemical
provides no foreign assistance to Brunei.
complex is under construction by Hengyi Enterprises, a
private Chinese company, which some characterize as the
Defense Cooperation
largest foreign investment ever in the country.
Brunei and the United States have engaged in military-to-
military cooperation for many years. A bilateral
Sharia Law
memorandum of understanding on defense cooperation was
On May 1, 2014, Brunei began the implementation of the
signed on November 29, 1994. Brunei’s armed forces
first phase of a new sharia penal code that, unless specified
engage in joint exercises, training programs, and other
in the code, applies to everyone in the nation, regardless of
military activities with the United States. Brunei cadets
religion. Some aspects of the new penal code have been
attend U.S. military academies. In August 2018, Brunei and
subjected to international condemnation from various
the United States held their first bilateral Army exercises,
sources. The United Nations cited the code’s provision for
focusing on areas of potential cooperation such as jungle
death by stoning for blasphemy, rape, sodomy,
warfare and combat in urban terrain.
homosexuality, and extra-marital sex as evidence that the
code violates international human rights standards.
U.S. security interests in Brunei focus on two issues. The
first is the maintenance of safe passage through sea lanes in
Some Members of Congress have expressed concern at the
the South China Sea, and the prevention of attacks by
code’s restrictions on the practice of Christianity, and its
pirates and terrorists. The second is international efforts to
implications for the LGBT community. According to World
address multilateral territorial and sovereignty disputes in
Watch Monitor, a Christian advocacy organization, in
the South China Sea.
March 2018, Brunei’s Sultan and his Islamic Religious
Council reportedly approved a draft Criminal Code that
Brunei has increased its military spending, and has been
would facilitate the introduction of harsher punishments for
actively promoting ties with several nations, including
serious crimes, such as the amputation of limbs for theft.
Russia, Singapore, and Vietnam. In March 2020, Brunei
raised its annual defense budget for FY2021 to $430
Michael F. Martin, Specialist in Asian Affairs
million, an increase of nearly 3% over the previous year. In
Ben Dolven, Specialist in Asian Affairs
October 2019, Brunei and the United States conducted a
IF11009
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Brunei Darussalam
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https://crsreports.congress.gov | IF11009 · VERSION 4 · UPDATED