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Congressional Research Servic
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Updated August 18, 2023


Brunei Darussalam


The State of Brunei Darussalam (Brunei) is located on the
northwest coast of the Island of Borneo, and is bordered
and bifurcated by eastern Malaysia. Brunei has a land mass
of 2,226 square miles (slightly smaller than Delaware). It
possesses substantial oil and natural gas reserves and is
located along the strategically and economically important
sea lanes of the South China Sea (SCS). Brunei is a
predominately Sunni Muslim state with a population of
around 485,000, consisting of mostly ethnic Malays and a
substantial ethnic Chinese minority. The capital city is
Bandar Seri Begawan. Congress oversees U.S. trade and
security relations with Brunei, and monitors Brunei's
disputes in the SCS.

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 and the Economy,
Defense, and Foreign Affairs. The Sultan is one of the
world's wealthiest people. He is advised by the Council of
Ministers, which he reshuffled in June 2022, as well as a
Religious Council, Privy Council, and Legislative Council,
all of which are appointed by the monarch. Brunei's legal
system is based on a combination of British common law
and Indian penal code; this legal system was amended in
2014 to include Islamic law (Sharia or locally, Syariah).

The U.S. State Department cites restricted press, weak civil
society, and repression of marginalized groups as
challenges in Brunei that stymie U.S. attempts to promote
human  rights in the country. Some Members of Congress
have expressed concern with human rights conditions in
Brunei, including reported human rights violations
associated with the country's 2014 imposition of Sharia
law.

Brune    s  Economy
According to its Department of Economic Planning and
Statistics (DEPS), Brunei's gross domestic product (GDP)
in 2022 was approximately $17.1 billion. Its per capita
GDP  in 2022 was approximately $38,400. Brunei's
economy  is dominated by the extraction and export of oil
and gas, which provide about 50% of the country's GDP.
The government uses revenue from the state energy
company, Brunei Energy Services and Trading (formerly
known  as Brunei National Petroleum Corp.), to subsidize
infrastructure development and social programs. Declining
offshore oil reserves, combined with lower oil prices,
present a challenge for the country's development. In 2021,
the Brunei government launched the Brunei Economic
Blueprint, which provides guidelines for developing the
country's economy. The Blueprint recommends
strengthening five priority sectors to reduce the country's
economic dependence on oil and gas: downstream oil and


gas, food, tourism, information-communications and
technology (ICT), and services.

The DEPS  states Brunei's merchandise exports in 2022
totaled around $14.6 billion; merchandise imports were
worth $9.7 billion. Brunei's leading trading partners are
Singapore, the People's Republic of China (PRC, or China),
and Japan. Major sources of foreign direct investment in
Brunei are China, Malaysia, Singapore, and the United
Kingdom;  these investments are mostly in Brunei's natural
resources sector.

Brunei has a history of advocating in favor of trade and
investment liberalization in the region. It was a founding
member  of the 2006 Trans-Pacific Strategic Economic
Partnership (P4), the forerunner of the 12-country Trans-
Pacific Partnership (TPP), from which the United States
withdrew in 2017. It is a member of the 2018
Comprehensive  and Progressive Agreement for Trans-
Pacific Partnership (CPTPP), and the 2020 Regional
Comprehensive  Economic Partnership (RCEP).


Figure I. Map of Brunei Darussalam


Sources: CIA World Factbook, World Bank.


Brunei's Regional Role
Brunei has played a role in regional diplomacy on a number
of issues. It was the Chair of the Association of Southeast
Asian Nations (ASEAN)  in 2021, the year that a coup d'etat
installed a military junta in Burma (also known as
Myanmar),  and it coordinated ASEAN's initial response to
the crisis that followed. In addition to ASEAN, it is a
member  of the Asia Pacific Economic Cooperation (APEC)
forum, as well as ASEAN-centered bodies such as the East
Asia Summit (EAS), ASEAN   Regional Forum (ARF), and
ASEAN   Defense Ministers Meeting-Plus (ADMM+). It is

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