c



 
Area: 5,765 sq. km. (2,226 sq. mi.), slightly larger than Delaware.
Cities: °
  andar Seri egawan.
Terrain: East
lat coastal plain rises to mountains; westhilly lowland with a
ew mountain ridges.
Climate: Equatorial; high temperatures, humidity, and rain
all.

c
Nationality: ^
   runeian(s).
Population (2009 est.): 406,200.
Annual population growth rate (2009 est., Government o
runei): 2.1%.
Ethnic groups: Malay, Chinese, other indigenous groups.
Religion: Islam.
Languages: Malay, English, Chinese; Iban and other indigenous dialects.
Education:  

 9.   (2006)94.7%.
Health: 


 men 76.6 years, women 79.8 years. 
    (2008, Government o

runei)7.0/1,000.



Type: Sultanate (Malay Islamic Monarchy).
Independence: January 1, 1984.
Constitution: 1959.
ranches: Y

Sultan is both head o
state and Prime Minister, presiding over a 14member
cabinet.  a Legislative Council has been reactivated a
ter a 20year suspension to play an
advisory role
or the Sultan. 
  (based on Indian penal code and English common law)magistrate's
courts, High Court, Court o
Appeals, Judicial Committee o
the Privy Council (sits in London).
Subdivisions: 
 runeiMuara, elait, Tutong, and Temburong.


GDP (2009, Government o
runei): U.S. $12.0 billion ( ND 15.6 billion; 2009 GDP
igures released by
Department o
Economic Planning and Development).
Growth rate (2008, Government o
runei): 1.9%.
Natural resources: Oil and natural gas.
Trade: Y

oil, lique
ied natural gas, petroleum products, garments.   Japan, Korea,
Indonesia, India, Australia. 
machinery and transport equipment, manu
actured goods.  



ASEAN, United States, European Union, Japan, China.

c
c
Many cultural and linguistic di

erences make runei Malays distinct
rom the larger Malay populations
in nearby Malaysia and Indonesia, even though they are ethnically related and share the Muslim
religion.
 runei has hereditary nobility, carrying the title Pengiran. The Sultan can award to commoners the title
Pehin, the equivalent o
a li
e peerage awarded in the United Kingdom. The Sultan also can award his
subjects the title Dato, the equivalent o
a knighthood in the United Kingdom, and Datin, the equivalent
o
damehood.

runeians adhere to the practice o
using complete
ull names with all titles, including the title Haji (
or
men) or Hajah (
or women)
or those who have made the Haj pilgrimage to Mecca. Many runei Malay
women wear the tudong, a traditional head covering. Men wear the songkok, a traditional Malay cap.
Men who have completed the Haj can wear a white songkok.

The requirements to attain runei citizenship include passing tests in Malay culture, customs, and
language as well as the national Malay Islamic Monarchy (MI ) philosophy. Stateless permanent
residents o
runei are given International Certi
icates o
Identity, which allow them to travel overseas.
The majority o
ethnic Chinese in runei are permanent residents, and many are stateless. An
amendment to the National Registration and Immigration Act o
2002 allowed
emale runeian citizens
to trans
er their nationality to their children. In May 2006, the law changed to allow citizenship to
permanent residents who have contributed to the country's economic growth, to women married to a
citizen
or 2 years, to women married to permanent residents
or 5 years, and to children o
permanent
resident
athers a
ter the age o
2 years and 6 months. According to uno

icial sources there are
approximately 20,000 "stateless" persons in the country, including persons born and raised in the
country who were not automatically accorded citizenship and its attendant rights but were granted
permanent resident status. In July 2009, the Land Code Strata Act, which allows permanent residents to
own units o
multistory property
or a maximum o
99 years, came into
orce.

Oil wealth allows the runei Government to provide the population with one o
Asia's
inest health care
systems. Malaria has been eradicated, and cholera is virtually nonexistent. There are
ive general
hospitalsin andar Seri egawan, Tutong, Kuala elait, angar, and Seriaand there are numerous
health clinics throughout the country.

Education starts with preschool,
ollowed by 6 years o
primary education and up to 7 years o

secondary education. Nine years o
education are mandatory. Most o
runei's college students attend
universities and other institutions abroad, but approximately 3,669 (2008) study at the University o

runei Darussalam. Opened in 1985, the university has a
aculty o
more than 300 instructors and is
located on a sprawling campus overlooking the South China Sea. A second university, Sultan Shari
Ali
Islamic University, was established in 2007 and o

ers programs such as Islamic Finance and Law. As o

December 2009, the university had about 300 students. Institut Teknologi runei (IT ) was upgraded to
the status o
a university as o
October 2008. The institute still o

ers several "Higher National Diploma"
programs.

The o

icial language is Malay, but English is widely understood and used in business. Other languages
spoken are several Chinese dialects, Iban, and a number o
native dialects. Islam is the o

icial religion.
ohile religious
reedom is guaranteed under runei͛s constitution, nonIslamic
aiths
ace a variety o

restrictions, including con
iscation o
religious materials intended
or distribution and sale, and
prohibitions on religious teachings in private nonIslamic schools. Christmas and other nonIslamic
holidays are widely recognized in runei and many
aiths are permitted to be practiced in private.

[

Historians believe there was a
orerunner to the present runei Sultanate, which the Chinese called Po
ni. Chinese and Arabic records indicate that this ancient trading kingdom existed at the mouth o
the
runei River as early as the seventh or eighth century A.D. This early kingdom was apparently conquered
by the Sumatran Hindu Empire o
Srivijaya in the early ninth century, which later controlled northern
orneo and the Philippines. It was subjugated brie
ly by the Javabased Majapahit Empire but soon
regained its independence and once again rose to prominence.

The runei Empire had its golden age
rom the 15th to the 17th centuries, when its control extended
over the entire island o
orneo and north into the Philippines. runei was particularly power
ul under
the
i
th sultan, olkiah (14731521), who was
amed
or his sea exploits and even brie
ly captured
Manila; and under the ninth sultan, Hassan (160519), who
ully developed an elaborate Royal Court
structure, elements o
which remain today.

A
ter Sultan Hassan, runei entered a period o
decline due to internal battles over royal succession as
well as the rising in
luences o
European colonial powers in the region that, among other things,
disrupted traditional trading patterns, destroying the economic base o
runei and many other
Southeast Asian sultanates. In 1839, the English adventurer James rooke arrived in orneo and helped
the Sultan put down a rebellion. As a reward, he became governor and later "Rajah" o
Sarawak in
northwest orneo and gradually expanded the territory under his control.

Meanwhile, the ritish North orneo Company was expanding its control over territory in northeast
orneo. In 1888, runei became a protectorate o
the ritish Government, retaining internal
independence but with ritish control over external a

airs. In 1906, runei accepted a
urther measure
o
ritish control when executive power was trans
erred to a ritish resident, who advised the ruler on
all matters except those concerning local custom and religion.

In 1959, a new constitution was written declaring runei a sel
governing state, while its
oreign a

airs,
security, and de
ense remained the responsibility o
the United Kingdom. An attempt in 1962 to
introduce a partially elected legislative body with limited powers was abandoned a
ter the opposition
political party, Parti Rakyat runei, launched an armed uprising, which the government put down with
the help o
ritish
orces. In the late 1950s and early 1960s, the government also resisted pressures to
join neighboring Sabah and Sarawak in the newly
ormed Malaysia. The Sultan eventually decided that
runei would remain an independent state.

In 1967, Sultan Omar abdicated in
avor o
his eldest son, Hassanal olkiah, who became the 29th ruler.
The
ormer Sultan remained as De
ense Minister and assumed the royal title Seri egawan. In 1970, the
national capital, runei Town, was renamed andar Seri egawan in his honor. The Seri egawan died in
1986.

On January 4, 1979, runei and the United Kingdom signed a new treaty o

riendship and cooperation.
On January 1, 1984, runei Darussalam became a
ully independent state.


 c



Under runei's 1959 constitution, the Sultan is the head o
state with
ull executive authority, including
emergency powers since 1962 which is renewed every 2 years. The Sultan is assisted and advised by
ive
councils, which he appoints. A Council o
Ministers, or cabinet, which currently consists o
14 members
(including the Sultan himsel
), assists in the administration o
the government. The Sultan presides over
the cabinet as Prime Minister and also holds the positions o
Minister o
De
ense and Minister o

Finance. His son, the Crown Prince, serves as Senior Minister. One o
the Sultan's brothers, Prince
Mohamed, serves as Minister o
Foreign A

airs. In May 2010, the Sultan appointed the
irst
emale
Deputy Minister and elevated the position o
both State Mu
ti and Attorney General to ministerial rank.

runei's legal system is based on English common law, with an independent judiciary, a body o
written
common law judgments and statutes, and legislation enacted by the Sultan. The local magistrates'
courts try most cases. More serious cases go be
ore the High Court, which sits
or about 2 weeks every

ew months. runei has an arrangement with the United Kingdom whereby United Kingdom judges are
appointed as the judges
or runei's High Court and Court o
Appeal. Final appeal can be made to the
Judicial Committee o
the Privy Council in London in civil but not criminal cases. runei also has a
separate system o
Islamic courts that apply Sharia law in
amily and other matters involving Muslims.

The Government o
runei assures continuing public support
or the current
orm o
government by
providing economic bene
its such as subsidized
ood,
uel, and housing;
ree education and medical
care; and lowinterest loans
or government employees. In 2004 the Sultan issued amendments to the
constitution and reintroduced an appointed Legislative Council with minimal powers. Currently,
our o

the 29 seats on the Council are indirectly elected by village leaders.

runei's economy is almost totally supported by exports o
crude oil and natural gas, which account
or
over 90% o
GDP and over 50% o
exports. The government uses its earnings in part to build up its

oreign reserves. The runei Investment Agency manages the bulk o
the nation's
oreign investments,
which are reported to have reached more than $30 billion. The country's wealth, coupled with its
membership in the United Nations, Association o
Southeast Asian Nations (ASEAN), the Asia Paci
ic
Economic Cooperation (APEC)
orum, and the Organization o
the Islamic Con
erence give it an in
luence
in the world disproportionate to its size.

c


!
Sultan and Yang diPertuan, Prime Minister, Minister o
De
ense, and Minister o
FinanceSultan
Hassanal olkiah
Senior MinisterCrown Prince illah
Minister o
Foreign A

airsPrince Mohamed olkiah
Ambassador to the United StatesYuso

Hamid
Ambassador to the United NationsLati
Tuah

runei Darussalam maintains an "!! in the United States at 3520 International Court, No,
oashington, DC 20008; tel. 2022371838.




runei's economy enjoyed moderate growth in the mid2000s, primarily due to high world oil and gas
prices. However, runei's growth has
allen sharply in recent years. In 2009, GDP shrank
rom U.S. $15.6
billion ( ND 20.4 billion) to U.S. $12 billion ( ND 15.6 billion). runei continues to have one o
the
lowest GDP growth rates o
any ASEAN nation; however, runei is also ranked as having one o
the
highest rates o
macroeconomic stability in the world and the highest in Asia. runei͛s conservative
economic policies insulated it
rom much o
the global
inancial crisis in 20082009.

runei is the
ourthlargest oil producer in Southeast Asia, averaging about 175,000 barrels a day in
2008. It also is the ninthlargest exporter o
lique
ied natural gas in the world (according to the runei
Economic Development oard). Like many oilproducing countries, runei's economy has
ollowed the
swings o
the world oil market. Economic growth has averaged around 2.8% in the 2000s, heavily
dependent on oil and gas production. Lique
ied natural gas output averages 895 million cubit
eet/day.
Overall oil production has declined in recent years, and growth rates have
allen signi
icantly. runei͛s oil
reserves are expected to last 25 years, and natural gas reserves 40 years. However, potential new
onshore
ields may add to the li
espan o
the reserves.

runei Shell Petroleum ( SP), a joint venture owned in equal shares by the runei Government and the
Royal Dutch/Shell group o
companies, is the chie
oil and gas production company in runei. It also
operates the country's only re
inery. SP and
our sister companiesincluding the lique
ied natural gas
producing
irm LNGconstitute the largest employer in runei a
ter the government. SP's small
re
inery has a distillation capacity o
10,000 barrels per day. This satis
ies domestic demand
or most
petroleum products.

The French oil company Total (
ormerly ELF Aquitaine) became active in petroleum exploration in runei
in the 1980s. The joint venture Total E&P orneo  currently produces approximately 35,000 barrels
per day and 13% o
runei's natural gas. As the operator o
the recently resolved runeiMalaysia
deepwater block CA1, Total's production o
oil and gas will be signi
icantly increased in the
uture.

In 2003, Malaysia disputed runeiawarded oil exploration concessions
or o

shore blocks J and K (Total
and Shell respectively), which led to the runei licensees ceasing exploration activities. The two
countries have stated they have reached a joint production resolution to the con
lict. Two onshore
blocks are being explored
ollowing awards to two consortiaboth Australianled operations. Australia,
Indonesia, India, and Korea were the largest customers
or runei's oil exports, consuming more than
70% o
runei's total crude exports. Other countries, including New Zealand and China, each purchased
more than 7% o
runei͛s total crude exports (2009 runei DarussalamExternal Trade Statistics).

Almost all o
runei's natural gas is lique
ied at runei Shell's Lique
ied Natural Gas ( LNG) plant, which
opened in 1972 and is one o
the largest LNG plants in the world. Some 90% o
runei's LNG produced is
sold to Japan under a longterm agreement renewed in 1993. According to LNG, the agreement calls

or runei to provide over 6 million tons o
LNG per year to three Japanese utilities, namely to TEPCo,
Tokyo Electric Power Co. (J.TER or 5001), Tokyo Gas Co. (J.TYG or 9531) and Osaka Gas Co. (J.OSG or
9532). The Japanese company, Mitsubishi, is a joint venture partner with Shell and the runei
Government in runei LNG, runei Coldgas, and runei Shell Tankers, which together produce the LNG
and supply it to Japan. Since 1995, runei has supplied 700,000 tons o
LNG annually to the Korea Gas
Corporation (KOGAS) as well. In the second quarter o
2008, total natural gas production reached 0.855
billion cubic
eet per day. A small amount o
natural gas is used
or domestic power generation. Since
2001, Japan remains the dominant export market
or natural gas. runei is the
ourthlargest exporter o

LNG in the world (according to the runei Economic Development oard) behind Indonesia, Malaysia,
and Australia.

The government sought in the past decade to diversi
y the economy with limited success. Oil and gas
and government spending still account
or most o
runei's economic activity. runei's nonpetroleum
industries include agriculture,
orestry,
ishing, aquaculture, and banking. The garment
orexport
industry has been shrinking since the United States eliminated its garment quota system at the end o

2004. However, with 75% o
total garment exports valued at U.S. $66 million, the United States remains
the largest export market
or garments. The runei Economic Development oard ( ED ) announced
plans in 2003 to use proven gas reserves to establish downstream industrial projects. In 2006, the runei
Methanol Company, a joint venture between Petroleum runei, Mitsubishi, and Itochu, was established.
The $400 million methanol plant,
ed by natural gas, came on line in 2010. The plant has the capacity to
produce 2,500 metric tons o
methanol per day. The government has plans to build a power plant in the
Sungai Liang region to power a proposed aluminum smelting plant that will depend on
oreign investors.
A second major project depending on
oreign investment is in the planning stage: a giant container hub
at the Muara Port
acility. ED appointed a port operator, International Container Terminal Services
Inc. (ICTSI)
rom the Philippines.

The government regulates the immigration o

oreign labor out o
concern it might disrupt runei's
society. oork permits
or
oreigners are issued only
or short periods and must be continually renewed.
Despite these restrictions, the estimated 100,000
oreign temporary residents o
runei make up a
signi
icant portion o
the work
orce. The government reported a work
orce o
188,800 in 2008, with a
derived unemployment rate o
3.7% (2009 runei Darussalam Key Indicators DKI).

Oil and natural gas account
or almost all exports. Since only a
ew products other than petroleum are
produced locally, a wide variety o
items must be imported. Nonetheless, runei has had a signi
icant
trade surplus throughout the past decade. O

icial statistics show Singapore, Malaysia, the United
States, and China as the leading suppliers o
imports in 2009. The United States was the thirdlargest
supplier o
imports to runei in 2009.
 runei's substantial
oreign reserves are managed by the runei Investment Agency ( IA), an arm o
the
Ministry o
Finance. IA's guiding principle is to increase the real value o
runei's
oreign reserves while
pursuing a diverse investment strategy, with holdings in the United States, Japan, oestern Europe, and
the Association o
Southeast Asian Nations (ASEAN) countries.

The government encourages
oreign investment in runei. New enterprises that meet certain criteria
can receive pioneer status, exempting pro
its
rom income tax
or up to 5 years, depending on the
amount o
capital invested. The normal corporate income tax rate is 30%. There is no personal income
tax or capital gains tax. However,
oreign direct investment (FDI) outside the oil and gas industry
remains limited.

One o
the government's priorities is to encourage the development o
runei Malays as leaders o

industry and commerce. There are no speci
ic restrictions o

oreign equity ownership, but local
participation, both shared capital and management, is encouraged. Such participation helps when
tendering
or contracts with the government or runei Shell Petroleum.

Companies in runei must either be incorporated locally or registered as a branch o
a
oreign company
and must be registered with the Registrar o
Companies. Public companies must have a minimum o

seven shareholders. Private companies must have a minimum o
two but not more than 50
shareholders. At least hal
o
the directors in a company must be residents o
runei.

The government owns a cattle
arm in Australia through which the country's bee
supplies are
processed. At 2,262 square miles, this ranch is larger than runei itsel
. Eggs and chickens are largely
produced locally, but most o
runei's other
ood needs must be imported. Agriculture, aquaculture, and

isheries are among the industrial sectors that the government has selected
or highest priority in its
e

orts to diversi
y the economy. The Philippines and China are currently involved with the largest joint
projects with the Government o
runei to increase agriculture and
isheries production. American
irms
are consulting on aquaculture projects.

Since 2002, the government has worked to develop runei as an international o

shore
inancial center
as well as a center
or Islamic banking. runei is serviced by a large number o
banks given its size.
Islamic banking is growing, primarily in the Islamic bond (sukok) market. O

shore banking and business
incorporation remains a small sector in the overall
inancial services market. runei is keen on the
development o
small and medium enterprises and has established a technology incubator to encourage
the development o
an in
ormation technology industry. runei has also promoted ecotourism to take
advantage o
the over 70% o
runei's territory that remains primal tropical rain
orest. runei is a
participant and seeks to take a leadership role in the trilateral Heart o
orneo conservation initiative.
ohile ecotourism is growing, the overall impact
or economic diversi
ication is limited.


The Sultan is both Minister o
De
ense and Supreme Commander o
the Armed Forces (R AF). All
in
antry, navy, and air combat units are made up o
volunteers. There are three in
antry battalions
equipped with armored reconnaissance vehicles and armored personnel carriers and supported by
Rapier air de
ense missiles and a
lotilla o
coastal patrol vessels armed with sur
acetosur
ace missiles.
runei ordered three o

shore patrol vessels
rom the U.K. but is reportedly seeking to sell these to a
third country. The Royal runei Navy has ordered several "Itjihad" class patrol boats
rom German ship
manu
acturer Lurssen oer
t.

runei has a de
ense agreement with the United Kingdom, under which a ritish Armed Forces Ghurka
battalion (1,500 men) is permanently stationed in Seria, near the center o
runei's oil industry. The
Royal runei Armed Forces (R AF) has joint exercises, training programs, and other military cooperation
with the United Kingdom and many other countries, including the United States. The United States and
runei signed a memorandum o
understanding (MOU) on de
ense cooperation in November 1994. The
two countries conduct the annual military exercise Cooperation A
loat Readiness and Training (CARAT).
R AF joined a peacekeeping mission in Lebanon under the United Nations Interim Force (UNIFIL) and
has been sending troops to the International Monitoring Team (IMT) in Mindanao to help sa
eguard the
cease
ire between the Philippines Government and the Moro Islamic Liberation Front (MILF). runei͛s
growing commitment to peacekeeping missions is in line with its de
ense white paper.


 

runei joined the Association o
Southeast Asian Nations (ASEAN) on January 7, 19841 week a
ter
resuming
ull independenceand gives its ASEAN membership the highest priority in its
oreign
relations. The chairmanship o
ASEAN will rotate to runei in 2013. runei joined the UN in September
1984. It also is a member o
the Organization o
the Islamic Con
erence (OIC) and o
the AsiaPaci
ic
Economic Cooperation (APEC)
orum. runei hosted the APEC Economic Leaders' Meeting in November
2000 and the ASEAN Regional Forum (ARF) in July 2002.

#$$%& # 


Relations between the United States and runei date
rom the 1800s. On April 6, 1845, the USS
Constitution visited runei. The two countries concluded a Treaty o
Peace, Friendship, Commerce and
Navigation in 1850, which remains in
orce today. The United States maintained a consulate in runei

rom 1865 to 1867.

The United States welcomed runei Darussalam's
ull independence
rom the United Kingdom on
January 1, 1984, and opened an Embassy in andar Seri egawan on that date. runei opened its
embassy in oashington in March 1984. runei's armed
orces engage in joint exercises, training
programs, and other military cooperation with the United States. Two Royal runei Armed Forces cadets
are attending the U.S. Air Force Academy and U.S. Naval Academy. R AF has a oest Point graduate in its
work
orce. A memorandum o
understanding on de
ense cooperation was signed on November 29,
1994. The Sultan visited oashington in December 2002 and visited the Paci
ic Command in Hawaii with
thenAmbassador oilliam E. Todd in November 2008. The Sultan also attended the U.S.ASEAN Leaders
meeting in September 2010 in New York.
c
#$$"!!
!
Ambassador '!
Deputy Chie
o
MissionAlexander arrasso
Management O

icerMatthew Miller

The #$$"!! in andar Seri egawan is located in the diplomatic enclave at Simpang 33652169,
Jalan Kebangsaan C4115; tel: 6732384616;
ax: 6732384603; email:"!!("!")!$ .

 &#


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State's Consular In
ormation Program advises Americans traveling and residing
abroad through Country Speci
ic In
ormation, Travel Alerts, and Travel oarnings. *
 
 
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or all countries and includes in
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about terrorist threats and other relatively shortterm conditions overseas that pose signi
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+
 ! are issued when the State Department recommends
that Americans avoid travel to a certain country because the situation is dangerous or unstable.

For the latest security in
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Department's ureau o
Consular A

airs Internet web site at ,--...$
$!$ , where the
current +
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!, and
+
 ! can be
ound. !*
 
!
c*"!, which contain in
ormation on obtaining passports and planning a sa
e trip abroad, are also
available at ,--...$
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The Department o
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Registration will make your presence and whereabouts known in case it is necessary to contact you in an
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The c!!

 

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ood and drinking water sa
ety
or regions and
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ormation
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ound
at ,--...$'$ -
-.&2$!1.

*
 

 


 +". Available on the Internet at ,--...$!$ , the Department o

State web site provides timely, global access to o

icial U.S.
oreign policy in
ormation,
including &2
*'! and '
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