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Brunei Geography - 2004: Map References
Brunei Geography - 2004: Map References
http://www.immigration-usa.com/wfb2004/brunei/brunei_geography.html
SOURCE: 2004 CIA WORLD FACTBOOK
Location:
Southeastern Asia, bordering the South China Sea and Malaysia
Geographic coordinates:
4 30 N, 114 40 E
Map references:
Southeast Asia
Area:
total: 5,770 sq km
water: 500 sq km
land: 5,270 sq km
Area - comparative:
slightly smaller than Delaware
Land boundaries:
total: 381 km
border countries: Malaysia 381 km
Coastline:
161 km
Maritime claims - as described in UNCLOS 1982 (see Notes and
Definitions):
territorial sea: 12 NM
exclusive economic zone: 200 NM or to median line
Climate:
tropical; hot, humid, rainy
Terrain:
flat coastal plain rises to mountains in east; hilly lowland in west
Elevation extremes:
lowest point: South China Sea 0 m
highest point: Bukit Pagon 1,850 m
Natural resources:
petroleum, natural gas, timber
Land use:
arable land: 0.57%
permanent crops: 0.76%
other: 98.67% (1998 est.)
Irrigated land:
10 sq km (1998 est.)
Natural hazards:
typhoons, earthquakes, and severe flooding are rare
Environment - current issues:
seasonal smoke/haze resulting from forest fires in Indonesia
Environment - international agreements:
party to: Endangered Species, Hazardous Wastes, Law of the Sea, Ozone Layer
Protection, Ship Pollution
signed, but not ratified: none of the selected agreements
Geography - note:
close to vital sea lanes through South China Sea linking Indian and Pacific
Oceans; two parts physically separated by Malaysia; almost an enclave of
Malaysia
General Overview
Land, Labour and Capital
Primary Resources
External Trade
Banking
Employment
Brunei Darussalam is still very much dependent on revenues from crude oil and natural gas to
finance its development programmes. Aside from this, Brunei Darussalam also receives income
from rents, royalties, corporate tax and dividends. Due to the non-renewable nature of oil and
gas, economic diversification has been in Brunei Darussalam's national development agenda. In
the current Seventh national Development Plan, 1996-2000, the government has allocated more
than $7.2 billion for the implementation of various projects and programmes.
Brunei Darussalam is the third largest oil producer in Southeast Asia and it produced 163,000
barrels per day. It is also the fourth largest producer of liquefied natural gas in the world.
Economic Indicators
Although Brunei Darussalam is no giant when it comes to landmass, it has been blessed with rich
natural resources and a strategic location within the region. The majority of the country is
covered in tropical rainforests teeming with exotic flora and fauna. Anxious to promote the
conservation of its lush surroundings, eco-tourism has gained importance in the country's
economic activities.
Human resources are central to the successful transformation of Brunei Darussalam into a
diversified industrial economy. As in most developing nations, there is a shortage of skilled
workforce in the country. Therefore, greater emphasis is placed upon education. The main areas
of interest in human resources development are managerial and industrial skills, with particular
emphasis on entrepreneurial skills as well as vocational and technical training.
Brunei Darussalam's main exports consist of three major commodities - crude oil, petroleum
products and liquefied natural gas - sold largely to Japan, the United States and ASEAN
countries. The Government's move to promote non-oil and gas activities has been largely
successful with figures showing 64% of GDP in 1996 compared to only 24.3% in 1991.
Agriculture
Rice Production
Various efforts have been made by the government to encourage rice production during the last
decade and the yield per acre has increased due to the introduction of better agricultural methods.
Approximately 290 tones of 1 percent of the nation's rice needs are produced locally from 613
hectares of rice fields scattered around the country.
As a first step towards the attainment of self-sufficiency in rice, the government launched in
1978 an experimental large scale mechanized rice planting project at Kampong Wasan. Covering
an area of 400 hectares, the project was a joint undertaking between the Agriculture Department
and the Public Works Department.
The Public Works Department was responsible for providing the required infrastructure, clearing
the land and giving other basic provisions. The Agriculture Department was responsible for
actual planting, maintenance, harvesting and processing. The project is also aimed at planting
padi twice a year, from April to September and from October to March.
Fruit Farming
Fruit farming is largely performed on a small scale. There is a vast range of locally produced
tropical fruits, which supply some 11% of domestic requirements of more than 14,000 tones. In
1975, the Agriculture Department initiated a fruit-farming scheme to encourage fruit cultivation
in the country. In an effort to increase the production of local fruits, the government through the
agricultural stations in Batang Mitus, Tanah Jambu and Lumapas, planted seedlings of various
fruit trees including rambutan, durian and oranges.
Vegetables
Locally grown vegetables constitute about 6,700 tones or just over 65 percent of the country's
needs. The amount increases gradually as more people are taking up vegetable farming.
Livestock
The country produces about 1,000 head of cattle and bufaloes for the market annually at about
six percent of its own beef consumption, The Government assists local stock farmers with calves,
machinery, feed, seedlings, fertilizers and veterinary care. The country requires 3,000 to 5,000
tones of meat annually, with per capita consumption of betweeen 9 and 17 kg. To meet demand,
it has to import an average of between 4,000 and 7,000 head of live cattle from its Wileroo
Ranch in the Northern of Australia. Local fresh milk production contributes about 199 thousand
litters annually.
Research has been carried out to ascertain the best possible way to increase the buffalo
population. Towards this end, the agriculture Department has launched a research project
covering 4000 hectares in the Batang Mitus area in the Tutong District. So far, over 200 hectares
have already been initiated. The farm's main aim will be to assess local and imported stock
towards producing highbred buffaloes for commercial purposes.
Forestry
About three quarters of Brunei Darussalam's total land area are covered by forests. However,
their contribution to the economy is minimal. Logging, limited to 100 thousand cubic meters
annually, is confined to meeting local needs only.
Fisheries
With the proclamation of the 200 nautical miles Brunei Fisheries Limits in 1983 and the
identification of potential areas for fisheries activities, the value of fisheries industry is estimated
to be worth more than B$200 million. At the present exploitation and utilization, the fisheries
sector of Brunei Darussalam, comprising capture, aqua-culture and seafood processing
contributed about 0.5% of the total Gross Domestic Product (GDP), or about B$37.2 million, at
current prices. It provides work to more than 1,500 involved in this sector.
With realistic potential for export, however lacking in relevant resources, including associated
technology, the development of fisheries industry needs involvement of foreign investment. The
government, through the Fisheries Department therefore has been actively promoting suitable
foreign involvement, either in the form of joint partnership or other forms of strategic alliances,
aimed at developing the fisheries sector towards a competitive, efficient and commercially
lucrative venture.
Crude oil and liquefied natural gas are the main exports of Brunei Darussalam. From January to
June 1998 it exported 134.77 trillion BTU or 88.94 percent to Japan and 16.75 trillion BTU or
11.06 percent to the Republic of Korea.
Under a Sale and Purchase Extension Agreement signed by BLNG and the Japanese Buyers in
1993, the LNG Plant at Lumut exports annually about 5.54 million metric tons of LNG to Japan.
In June 1998, a further amendment made known as the Sale and Purchase Extension Agreement
Amendment had been signed which increased the sales for an additional 14 cargoes per annum to
Japan starting from 1999 till the year 2013.
In October 1997, a sale and purchase agreement had been signed to deliver 0.7 million metric
tons of LNG to the Republic of Korea until the year 2013. In total, 200 'B' class LNG cargoes
equivalent will be delivered annually to the buyers in Japan and the Republic of Korea from the
year 1999 to 2013.
In March 1998, the Government of His Majesty the Sultan and Yang Di-Pertuan of Negara
Brunei Darussalam formed a Joint-venture company the Brunei Gas Carriers Sendirian Berhad
(BGC) with Shell International Gas and Mitsubishi Corporation.
Currently, Brunei LNG Plant processes natural gas supplied from offshore gas fields owned by
the Brunei Shell Petroleum Company Sendirian Berhad. From 1st April, 1999 LNG will receive
additional natural gas from a non-Brunei Shell owned Maharajalela Jamalulalam Field.
Oil and Gas accounted for about 36% of the country's Gross Domestic Product in 1996.
Brunei Darussalam is well served by several commercial banks with branches throughout the
country. The first banking was opened more than fifty years ago when the Government set up the
Post Office Savings Bank (POSB) in 1935.
Brunei Darussalam operates a Currency Board system and has no Central Bank. The
Government under the Banking Acts and Finance Companies Act regulates the banking industry.
The Ministry of Finance through the Financial Institutions Division closely regulates all banking
activities to ensure a stable and fiscally sound business environment. The Brunei Currency Board
is responsible for issuing and managing the currency.
The Brunei Dollar is at par with the Singapore Dollar and are both freely traded in the respective
countries. There are currently no exchange controls in Brunei. Money changer facilities are also
available.
The banks continue to support local businessmen in their endeavor and thus help in the
development of Brunei Darussalam.
There are 9 banks (3 incorporated in Brunei) with branches throughout the country.
List of Banks:
Currency:
The unit currency is the Brunei dollar, divided into 100 cents.
Exchange Rate: US$1.00 = between B$1.43 and B$1.60
Brunei Darussalam's small population accounts for its limited labor force. With the
implementation of ambitious plans in recent years, the country has had to recruit both skilled and
unskilled labor from abroad.
There are about 36,345 (early 1998) workforce in the government sector and more than 106
thousand wage earners in the private sector. This figure, however, does not include members of
the Security Forces, daily-rated employees an domestic servants in private employment.
Nat gas
Economy of Brunei
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Economy of Brunei
Statistics [1]
edit
The small, wealthy economy is a mixture of foreign and domestic entrepreneurship, government
regulation and welfare measures, and village tradition. It is almost totally supported by exports of
crude oil and natural gas, with revenues from the petroleum sector accounting for over half of
GDP. 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 subsidizes food and housing. The government has shown
progress in its basic policy of diversifying the economy away from oil and gas. Brunei's leaders
are concerned that steadily increased integration in the world economy will undermine internal
social cohesion although it has taken steps to become a more prominent player by serving as
chairman for the 2000 APEC (Asian Pacific Economic Cooperation) forum. Growth in 1999 is
estimated at 2.5% due to higher oil prices in the second half.
Brunei is the third-largest oil producer in Southeast Asia, averaging about 180,000 barrels
(29,000 m³) a day. It also is the fourth-largest producer of liquefied natural gas in the world.
[edit] Macro-economic trend
This is a chart of trend of gross domestic product of Brunei Darussalam at market prices
estimated by the International Monetary Fund with figures in millions of Bruneian Dollars.
Yea Gross Domestic US Dollar Inflation Index
r Product Exchange (2000=100)
For purchasing power parity comparisons, the US Dollar is exchanged at 1.52 Bruneian Dollars
only. Average wages in 2007 hover around $161-195 per day.
The government regulates the immigration of foreign labor out of concern it might disrupt
Brunei's society. Work permits for foreigners are issued only for short periods and must be
continually renewed. Despite these restrictions, foreigners make up a significant portion of the
work force. The government reported a total work force of 122,800 in 1999, with an
unemployment rate of 5.5%.
Oil and natural gas account for almost all exports. Since only a few products other than
petroleum are produced locally, a wide variety of items must be imported. Brunei statistics show
Singapore as the largest point of origin of imports, accounting for 25% in 1997. However, this
figure includes some transshipments, since most of Brunei's imports transit Singapore. Japan and
Malaysia were the second-largest suppliers. As in many other countries, Japanese products
dominate local markets for motor vehicles, construction equipment, electronic goods, and
household appliances. The United States was the third-largest supplier of imports to Brunei in
1998.
Brunei's substantial foreign reserves are managed by the Brunei Investment Agency (BIA), an
arm of the Ministry of Finance. BIA's guiding principle is to increase the real value of Brunei's
foreign reserves while pursuing a diverse investment strategy, with holdings in the United States,
Japan, western Europe, and the Association of South East Asian Nations (ASEAN) countries.
The Brunei Government actively encourages more foreign investment. New enterprises that meet
certain criteria can receive pioneer status, exempting profits from income tax for up to 5 years,
depending on the amount of capital invested. The normal corporate income tax rate is 30%.
There is no personal income tax or capital gains tax.
One of the government's most important priorities is to encourage the development of Brunei
Malays as leaders of industry and commerce. There are no specific restrictions of foreign equity
ownership, but local participation, both shared capital and management, is encouraged. Such
participation helps when tendering for contracts with the government or Brunei Shell Petroleum.
Companies in Brunei must either be incorporated locally or registered as a branch of a foreign
company and must be registered with the Registrar of Companies. Public companies must have a
minimum of seven shareholders. Private companies must have a minimum of two but not more
than 50 shareholders. At least half of the directors in a company must be residents of Brunei.
The government owns a cattle farm in Australia that supplies most of the country's beef. At
2,262 square miles (5,859 km²), this ranch is larger than Brunei itself. Eggs and chickens are
largely produced locally, but most of Brunei's other food needs must be imported. Agriculture
and fisheries are among the industrial sectors that the government has selected for highest
priority in its efforts to diversify the economy.