[Congressional Record Volume 144, Number 139 (Wednesday, October 7, 1998)]
[Extensions of Remarks]
[Pages E1936-E1939]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


 RELATIVE ECONOMIC STABILITY OF BRUNEI DARUSSALAM AMONG ASIAN ECONOMICS

                                 ______
                                 

                          HON. EDOLPHUS TOWNS

                              of new york

                    in the house of representatives

                       Wednesday, October 7, 1998

  Mr. TOWNS. Mr. Speaker, I would like to bring to my colleagues' 
attention the attached article from Euronmoney October 1998, ``Brunei 
Darussalam: The Abode of Peace.''

                 Brunei Darussalam: The Abode of Peace

       Asia is caught in recession. No country in the region can 
     expect to escape from at least part of the consequences of 
     the turnmoil that has swept Asian economies. That said, the 
     Sultanate of Brunei Darussalam is better placed than most 
     regional states to weather the challenges ahead.
       With the August 1998 inauguration of HRH Prince Haji Al-
     Muhtadee Billah as Crown Prince and future 30th Sultan in a 
     direct royal line that reaches back over 500 years, Negara 
     Brunei Darussalam truly reaffirmed its position as ``The 
     Abode of Peace.''
       The spectacular and traditional ceremony held in the heart 
     of the capital Bandar Seri Begawan, a modern and forward-
     looking city, served to underline Brunei Darussalam's 
     fortunate and enduring ability to combine the very best of 
     the past with the very best of the new.
       Brunei Darussalam has changed hugely with the flow of oil 
     wealth, but His Majesty Sultan Haji Hassanal Bolkiah 
     Mu'izzaddin Waddaulah, his government and his people have all 
     striven to maintain the traditional standards of the country.
       On the resumption of independence in 1984, His Majesty the 
     Sultan proclaimed the country a sovereign, democratic Sunni 
     Moslem monarchy. From the 14th to the 16th centuries Brunei 
     Darussalam was the centre of a substantial empire with strong 
     trading links, which covered much of Borneo and the 
     neighbouring islands. However, by the end of the 19th century 
     the Sultanate had lost much of its territory and influence as 
     the result of European colonial expansion throughout south-
     east Asia.
       In these difficult circumstances, Brunei Darussalam agreed 
     to become a British protectorate and in 1888 accepted a 
     British resident who advised the Sultan on all matters except 
     the Islamic faith and Malay custom.
       The discovery of oil in the western part of the country 20 
     years later initiated a long period of economic development, 
     which was accelerated when the first offshore discoveries 
     were made in the 1960s and given a further boost by the 
     increase in oil prices in the 1970s.
       The Brunei Darussalam constitution was drawn up in 1959, at 
     the same time that the Sultanate became self-governing, 
     although the British maintained responsibility for the 
     country's foreign affairs, security and defence.
       In 1967, Sultan Haji Omar `Ali Saifuddin Sa'adul Khari 
     Waddien, who had reigned for 17 years, voluntarily abdicated 
     in favour of his eldest son, His Majesty Sultan Haji Hassanal 
     Bolkiah, who ascended the throne in 1968, becoming the 29th 
     Sultan.
       Since then, His Majesty the Sultan has built upon the 
     foundations laid by his late father, HM Sultan Omar Ali 
     Saifuddin, III, who  is remembered as the architect of modern 
     Brunei Darussalam. But the old Sultan never lost his links 
     with his country's past. When he knew he was dying in 
     1986, he left his modern palace and returned to the old 
     palace near the Kampong Ayer stilt village on the Brunei 
     River, from which his family had first moved at the start 
     of the century.
       The 1979 Treaty of Friendship and Cooperation reinterpreted 
     the long-standing relationship between Britain and Brunei 
     Darussalam and paved the way for Brunei Darussalam to 
     reassume full responsibility for its own destiny as an 
     independent state in January 1, 1984.
       Since that date, Brunei Darussalam has joined and supported 
     the aims of all the principle international organizations. 
     Upon independence, it joined the Association of South East 
     Asian Nations (Asean). Most of Brunei's trade is conducted 
     with the other members of Asean, with Singapore being the 
     leading trading partner within the grouping. Participation 
     within Asean projects has also given Brunei an interest in 
     the economic development of the region.
       In October 1991, the member states of Asean formally 
     announced the establishment of the Asean Free Trade Area 
     (Afta), which was to be implemented over a period of 15 
     years, later reduced to 10.
       Brunei is also a member of Asia-Pacific Economic 
     Cooperation (Apec) whose heads of government will be the 
     guests of Brunei Darussalam during the Apec 2000 meeting, to 
     be held in Bandar Seri Begawan.
       Brunei Darussalam is also a member of the Islamic 
     Development Bank, the World Bank and the International 
     Monetary Fund.
       In October 1993, the idea of a ``growth quadrangle'', 
     encompassing Mindanao and Palawan (the Philippines), Sarawak, 
     Labuan and Sabah (Malaysia), East and West Kalimantan and 
     Sulawesi (Indonesia) and Brunei, was mooted, aiming to 
     emulate the Singapore-Johore-Riau ``growth triangle''. At a 
     meeting in Mindanao in November 1994, it was agreed to 
     establish the ``growth triangle'' as the Brunei - Indonesia - 
     Malaysia - Philippines - East Asean Growth Area (BIMP-EAGA). 
     The area has since been expanded with the announcement of the 
     incorporation of additional provinces in Indonesia, including 
     North and South Kalimantan. Maluku Islands and Irian Jaya, in 
     July 1996. It was also decided to locate the secretariat 
     of the East Asean Business Council (EABC) in Brunei. The 
     provision of an office and the pledge to fund one half of 
     the secretariat's operating expenses on a three-year 
     renewable basis, are seen as part of Brunei Darussalam's 
     commitment towards the development of BIMP-EAGA.
       Brunei Darussalam is on the northern coast of the island of 
     Borneo. It covers an area of 5,765 square kilometres. Malays 
     form the majority of the population with a Chinese minority. 
     There are also small expatriate communities, particularly 
     from Britain, the Netherlands, the United States and 
     Australia.
       Brunei Darussalam is divided into two parts by Sarawak, a 
     part of eastern Malaysia. The western side of the country is 
     made up of two main districts, Brunei-Muara, Tutong and 
     Belait while the eastern side contains the Temburong 
     district. The climate is tropical and the average daytime 
     temperatures range between 26 degrees centigrade (80 degrees 
     Fahrenheit) and 35C (95F), with the evenings generally being 
     a little cooler.
       The annual rainfall varies from 200 inches a year in the 
     interior to 100 inches annually on the coast. Brunei 
     Darussalam has 130 kilometres of coastline and over 85% of 
     the population lives in the coastal area.


                      Cautious economic management

       In 1997, GDP per head, in Brunei Darussalam measured at 
     current prices was Br$25,600 ($14,712). After some years of 
     gentle decline, between 1990 and 1997 GDP increased by an 
     annual average of 2.2%. In 1997, Brunei's GDP, at current 
     prices was estimated at Br$8,051 million. The economy is 
     based largely on wealth from natural gas and petroleum and 
     from the Brunei Investment Agency managed funds of short and 
     long-term assets.
       The proportion of GDP contributed by the petroleum sector 
     has however declined steadily from 83.7% in 1980 to 72.8% in 
     1985 to 62.9% in 1990 and 35.6% in 1997. Based on the current 
     rate of production, Brunei Darussalam's petroleum and natural 
     gas reserves are expected to last for another 20 and 30 years 
     respectively.
       The diversification of the economy into non-petroleum-
     related activities, which is expected to reduce income 
     disparity (with wealth concentrated hitherto in the petroleum 
     sector) remains a major challenge.
       The proportion of GDP contributed by the non-oil sector has 
     increased annually since 1986. Between 1990 and 1996, the GDP 
     of the non-oil sector rose at an average of 5.7% per annum. 
     In 1997 this relatively high growth continued, particularly 
     in service-related areas.
       The petroleum sector was adversely affected by depressed 
     prices on the world oil market in the late 1980s. Export 
     earnings from petroleum and natural gas declined by about 
     Br$9.7 billion in 1980 to Br$3.6 billion in 1997, although 
     the latter figure still represented 91.1% of the total export 
     revenue.

[[Page E1937]]

       The downward movement in oil prices has, however, been 
     somewhat balanced by the appreciation of the US dollar as 
     well as the improvement in the non-oil sectors, helped to 
     sustain the recovery of the overall economy, with GDP growth 
     rising from -1.1% in 1992 to 4.1% in 1997.
       Brunei's dependence on imports renders it susceptible to 
     external inflationary pressures. Subsidies on essential 
     foodstuffs and petrol however play a part in controlling 
     inflationary pressure. The average annual rate of inflation, 
     as measured by the consumer price index (CPI), was 4% during 
     the decade to 1990 and 2.4% between 1990 and 1994. The index 
     increased by 6.5% in 1995, largely owning to the stiff import 
     tariff announced by the government early in the year, 
     although this rise was mitigated somewhat by a tariff 
     reduction on some 700 other items in the course of the year.
       In 1997 the CPI stood at a low of 1.7%, further improving 
     from the 2% recorded the previous year when the government 
     implement further tariff cuts on imported consumer items, 
     some tariffs being abolished altogether. In October 1987, the 
     government began a year long survey of household expenditure 
     to help it formulate a new base for the calculation of the 
     CPI.
       Brunei Darussalam has always sought to organize and direct 
     its economic growth. There have been seven National 
     Development Plans, covering the periods 1953-58, 1962-66, 
     1975-79, 1980-84, 1986-90, 1991-95 and 1996-2000 
     respectively. These plans, although they were far from 
     comprehensive, delineated proposals for government investment 
     in infrastructure, services and incentives, all aimed at 
     diversifying the economy and at increasing private-sector 
     participation in the economic life of the country.
       In 1995, the Brunei Industrial Development Plan (IDP) was 
     commissioned to reactivate the non-oil sector. The IDP has 
     since produced several policy recommendations, including the 
     development of ``niche strategy'' for industrial activities 
     and the creation of an environment that is more conducive to 
     promoting investments.
       The government allocated Br$5.5 billion ($3.16 billion) for 
     various sectors of the economy in the Sixth National 
     Development Plan (1991-1995). Industry and commerce were 
     slated to receive 10% of the total plan budget, of which 
     Br$100 million was to be set aside for industrial promotion 
     and development. The social-services sector, which includes 
     government and national housing, public facilities, education 
     and health, was again to receive the largest allocation, at 
     29.3% of the total planned budget. The transport and 
     communications sector and the public utilities sector were 
     each to receive 20% of the total development allocation. 
     Particular emphasis was to be placed on communications, 
     electricity and water-supply programmes and the treatment of 
     waste products. The remaining funds were allocated to public 
     buildings, defense and security and miscellaneous items.
       During the Sixth Plan about 5,100 houses were built under 
     the Housing Development Programme and the Landless Indigenous 
     Housing Scheme, in addition to a number of other 
     institutional and private housing developments.
       Under the health programme, the establishment of rural 
     clinics to complement the private clinics and private 
     hospital contributed significantly to the improved provision 
     of medical and health-care services.
       In the education sector, various government secondary and 
     religious schools were completed. Also under the Sixth Plan a 
     total of 40 kilometres of new roads were completed, 12km of 
     suburban roads widened and a total of 180 kilometres of 
     existing roads either upgraded or rehabilitated.
       The telecommunications sector was also able to diversify 
     its services, which resulted in a marked increase in the 
     number of subscribers. During this period BruNet, an 
     information network, was established to provide access to the 
     internet.
       Other infrastructural projects were undertaken such as the 
     deepening of Muara Port and the completion of the Maura 
     Export Zone (MEZ). Civil aviation benefited from an expansion 
     of cargo and passenger handling at Brunei International 
     Airport. Royal Brunei Airlines, the national carrier, 
     operates a modern fleet of aircraft and now flies to some 25 
     international and regional destinations with more being 
     negotiated.
       Of nearly 1,000 programmes and projects approved for the 
     Sixth National Plan, 58% were completed, 28% were approaching 
     completion at the end of the plan and 11% were under way when 
     the plan ended, leaving only 3% of the projects cancelled or 
     suspended for various reasons.
       In terms of actual expenditures, of the original Br$5.6 
     billion, Br$5 billion or 89% of the total allocation had been 
     or was in the process of being spent.
       The Seventh National Development Plan (1996-2000) forms the 
     third stage of the implementation of a 20-year long-term 
     development strategy that began in 1985, one year after 
     independence. This plan aspires further to improve the 
     quality of life for the people of Brunei Darussalam, while at 
     the same time seeking to widen and further enhance the 
     country's economic base. The overall aims of the plan 
     include: the achievement of a balanced and sustained 
     socioeconomic development through a more outward looking 
     economic diversification strategy; the continued development 
     of physical infrastructure and public facilities; the 
     implementation of effective human resource development; the 
     implementation of social development projects, the deployment 
     of appropriate technologies and the continuing protection of 
     the environment.
       The government approved a sum of Br$7.2 billion. The 
     sectoral breakdown is as follows: industry 12.6% (up from 10% 
     in the previous plan); transport and communications 19.5%; 
     social services 27.5%; public utilities 21.9%; public 
     building 8.8%; security (civilian projects for the police and 
     army) 7.3%; and miscellaneous items, which included 
     feasibility studies and local plans, 2.4%.


         Oil and gas, the twin pillars of economic development

       Brunei Darussalam is south-east Asia's third-largest oil 
     producer and has the world's fourth-largest production of 
     liquified natural gas (LNG). In 1997 oil output averaged 
     163,000 barrels a day (b/d), while gas production was running 
     at 1,070 million standard cubic feet a day (MMscf/d).
       As long ago as 1981, the Sultanate introduced an oil and 
     gas conversation policy, with the aim of guaranteeing the 
     sound management of all hydrocarbon reservoirs, and ensuring 
     that with the very best enhanced recovery techniques, 
     production will be sustained for the maximum time period 
     possible. Japan and other Asean nations take between them 
     some 70% of Brunei Darussalam's oil production. South Korea 
     is also an important customer. Further crude oil exports go 
     to Australia, China, Taiwan and the United States. The 
     domestic market refines and uses only 3% of total crude 
     production.
       The on-shore Seria oil field was discovered by Shell in 
     1929, only weeks after other oil companies had given up the 
     search for commercial deposits and surrendered their 
     exploration licenses. The Seria field, which had not then 
     been fully developed, was badly damaged during World War II. 
     However by 1956 it was producing 114,700 barrels a day.
       Off-shore discoveries led to production at sea in 1964 and 
     there are now around 182 off-shore structures in the South-
     West Ampa, Fairley, Fairley-Baram (a field which is shared 
     with Malaysia), Magpie, Gannet, Iron Duke and Champion 
     Fields. The Champion field is the Sultanate's most prolific 
     and holds some 40% of the country's proven reserves.
       All the producing fields in Brunei Darussalam, both on-
     shore and off-shore are operated by the Brunei Shell 
     Petroleum Company (BSP), which is jointly owned by the 
     government of Brunei Darussalam and Royal Dutch Shell 
     Petroleum.
       BSP is a fully integrated operation which is responsible 
     not only for exploration and production but also oil refining 
     and crude oil trading. In studying complex local geological 
     structures BSP regularly deploys the most technically 
     advanced three-dimensional imaging equipment.
       Brunei Darussalam's LNG is produced by a separate company, 
     Brunei LNG, which liquifies product that it purchases from 
     BSP. Brunei LNG, then sells that product to a third company, 
     Brunei Coldgas, which markets the gas and organizes its 
     transport to overseas customers. Brunei owns and operates a 
     fleet of state-of-the-art LNG tankers. Both Brunei LNG and 
     Coldgas are 50% owned by the government. In each company 
     Royal Dutch Shell Petroleum and Mitsubishi hold a 25% stake.
       A further company, Brunei Marketing, again jointly owned by 
     the government and Royal Dutch Shell, is responsible for 
     marketing a range of petroleum products, including gasoline, 
     diesel, lubricants and jet fuel within Brunei itself.
       When Bruneian LNG was first exported to Japan in 1974 under 
     a 20 year contract, the technology used for the liquifaction 
     and transport was new and ground breaking. The plant has 
     since undergone regular upgrades, to keep abreast of advances 
     in both in production efficiency and safety. The latest 
     modernization programme cost in the region of $370 million 
     and came at a time when the Japanese supply contract had been 
     successfully renegotiated.
       Brunei Darussalam's main Japanese customers are the Tokyo 
     Electric Power Company and the gas utilities of Tokyo and 
     Osaka. The successful renegotiation of the LNG supply 
     contracts to these customers was based upon the secure and 
     reliable supply of gas throughout the first contract period. 
     Thus the LNG Tanker fleet operated by Brunei Shell Tankers 
     has benefited from an evergreen programme of maintenance and 
     technical upgrading, which means that the still represent a 
     modern and highly efficient fleet.
       Brunei Darussalam enjoys one of the most unpolluted 
     environments in the world. To keep it that way the government 
     decided to invest in gas as an efficient and environmentally 
     clean fuel for local power generation.


          Foreign investment: a big story for a small country

       In September 1997 Brunei Darussalam signed a deal with an 
     American communications company to permit the Sultanate to be 
     used as an earth hub to link broadcasting satellites in 
     geostationary orbit over the United States and Europe. The 
     facility reinforces Brunei Darussalam's ambition to establish 
     itself as a regional service hub and centre for 
     communications and broadcasting.
       This contract is typical of the type of high-technology 
     investment that Brunei Darussalam is encouraging along with a 
     range of targeted ``pioneer industries'' which include 
     pharmaceuticals, cement, aluminum,

[[Page E1938]]

     wall tiles, aircraft catering, steel rolling and chemical 
     engineering.
       Brunei Darussalam's position as a stable location with 
     excellent infrastructure and communications in the heart of 
     the Asean region recommends it to foreign investors, who wish 
     to establish a regional operation in a country that enjoys 
     excellent relations with its neighbours.
       To attract these foreign investors, Brunei Darussalam has 
     created a liberal legislative and fiscal regime which does 
     not discriminate between local and overseas investment. The 
     value for the Sultanate of the creation of new businesses, 
     more often than not as joint ventures with local partners, 
     (though in many instances 100% ownership is possible), is the 
     opportunity such operations represent for technology transfer 
     and the spread of business and administrative skills.
       Tax breaks of up to eight years are available for new 
     ventures, which include the waiving of duty on imported 
     capital equipment and all production inputs that cannot be 
     sourced in Brunei Darussalam itself. Established businesses 
     in Brunei Darussalam that choose to expand their operations 
     can in their turn enjoy tax breaks of up to five years and 
     similar incentives relating to import duties.
       Among other incentives is the provision that interest paid 
     to non-resident lenders of an approved foreign loan, is 
     exempt from withholding tax. There is no personal income tax, 
     nor sales, payroll, manufacturing or export taxes and wages 
     are subject only to a 5% pension contribution from both the 
     employer and employee.
       Brunei Darussalam being a small and cohesive society, 
     foreign businessmen are never far away from decision makers 
     and informed analysis. The Ministerial Economic Committee, 
     established to examine the consequences and solutions of the 
     current economic down-turn includes foreign businessmen and 
     bankers on its working groups.
       Indeed, it is generally agreed that the Ministerial 
     Economic Committee and its working groups have produced an 
     invaluable opportunity for leading businessmen and bankers to 
     come together with ministers and senior officials and discuss 
     existing ideas and new approaches to the challenges that are 
     facing the economy at this time.
       However while they may be a novelty in terms of the 
     business world, they are typical of the way in which His 
     Majesty the Sultan and his government seek out the opinion of 
     citizens. During 1997 government ministers and officials held 
     a series of meetings all around the Sultanate, to which every 
     citizen was invited to come with grievances about and 
     suggested improvements to any government service or agency. 
     Complaints were taken up speedily and, if justified, remedied 
     immediately. Of equal importance was that these meetings 
     enabled the official party to explain government policies and 
     actions.
       Business start-ups in the Sultanate may attract special 
     finance. The Economic Development Board is responsible for 
     directly assisting local businessmen by providing loans at 
     favorable rates of interest for new ventures or the expansion 
     of their existing businesses. The scheme currently provides 
     loans for up to a maximum of Br$1.5 million ($862,000) at 4% 
     interest, repayable up to a maximum period of 12 years.
       The cost of utilities and services are among the lowest in 
     the region and there is a full range of international banking 
     and accounting services. There are no restrictions on foreign 
     exchange. Banks permit non-resident accounts to be maintained 
     and there are no restrictions on borrowing by non-residents.
       Brunei Darussalam has one of the best telecommunications 
     systems in south-east Asia and there are major plans for 
     improving it even further. The rate of telephone availability 
     is currently one telephone for every three persons.
       There are two earth satellite stations providing direct 
     telephone, telex and facsimile links to most parts of the 
     world. Several systems currently in operation include an 
     analogue telephone exchange, fibre optic cable links with 
     Singapore and Manila, a packet-switching exchange for access 
     to high-speed computer bases overseas and a cellular mobile 
     telephone and paging system. Direct telephone links are 
     available to the remotest parts of the country through 
     microwave and solar-powered telephones.
       For manufacturers especially, the local market, while 
     small, boasts high disposable incomes which could offer a 
     lucrative domestic business base, with little or no 
     competition, while firms also concentrate on exporting to 
     Brunei's neighboring markets. There are regular flights with 
     Royal Brunei Airlines to all major regional cities and a 
     sophisticated cargo-handling facility at the ultra-modern 
     Brunei International Airport, which is designed to handle 1.5 
     million passengers and 50,000 tonnes of cargo a year.
       The country's two main ports at Muara and Kuala Belait 
     provide direct shipping links to Hong Kong, Singapore and 
     several other Asian destinations. Muara, a deep-water port 29 
     kilometers from the capital, was opened in 1973 and has since 
     been considerably developed. There are 12,542 square meters 
     of warehouse space and 6,225 square meters of transit sheds. 
     Container yards have been increased in size and container 
     freight station handles unstuffing operations.
       The 2,000 kilometre road network serving the entire country 
     is being expanded and modernized. A main highway runs the 
     entire length of the country's coastline. It conveniently 
     links Muara, the port entry at one end with Belait, the oil 
     production centre at the western end of the state.
       The official language of Brunei Darussalam is Malay but 
     English is widely spoken and is also used in the education 
     system. Half the population of the Sultanate is under the age 
     of 20 and the education service has, not surprisingly, seen a 
     massive expansion in recent years. Education is provided free 
     from the age of five for all citizens. The government also 
     provides scholarships for Bruneians to undertake further 
     studies overseas, in subjects where facilities are not 
     available locally.
       There are currently two prime higher education 
     establishments, the University of Brunei Darussalam and the 
     Brunei Institute of Technology. The University, which was 
     established 1985, has in recent years been receiving growing 
     numbers of overseas students from the surrounding region. 
     There are also various other technical and vocational 
     institutes aimed at producing graduates who will meet the 
     skill shortages in both the public and private sectors.
       However, with such a limited population, the government 
     recognizes that foreign investors will probably not be able 
     to source all the skilled workers and managers they need from 
     the local economy. There are therefore liberal regulations 
     allowing companies based locally to hire foreign workers, 
     from laborers to managers.
       The quality of health care in Brunei Darussalam is better 
     than that in many developed countries and all major disease 
     have been eradicated. Malaria has been eliminated since 1970 
     and cholera and smallpox have also been stamped out and the 
     Ministry of Health carries out regular immunization 
     programmes. Moreover, Brunei Darussalam has substantially met 
     the health requirements laid down by the World Health 
     Organization in its Health for All by the Year 2000 
     programme.
       Health care is free for Brunei Darussalam's citizens and is 
     available to permanent residents, foreign citizens and their 
     dependants for a nominal charge.
       The final attraction for foreign investors is that Brunei 
     Darussalam is an extremely pleasant place in which to live 
     and do business. The quality of life is high, the streets of 
     the capital are safe and the crime rate is negligible. 
     Excellent housing is available and the children of foreign 
     nationals have a choice of schools, including the outstanding 
     new International School at Jerudong. Brunei Darussalam's 
     equatorial weather may come as a surprise to new arrivals but 
     it quickly becomes an interesting part of the pattern of life 
     in the Sultanate, which has been fortunate in never 
     experiencing the typhoons, earthquakes or severe floods that 
     occasionally descend elsewhere in the region.
        Brunei Darussalam is proud of its strong Islamic 
     tradition, which is evidenced by the outstanding and 
     impressive mosques that have been built in recent decades. 
     Though some contend that Islam first came to the Sultanate as 
     early as the seventh century, modern scholarship believes 
     that it probably spread to Brunei Darussalam sometime in the 
     13th century. The constitution guarantees religious freedom.
       For business trips, Brunei Darussalam is truly the regional 
     hub of Asean with the flying time to Bangkok, Jakarta, Kuala 
     Lumpur, Manila and Singapore between one-and-a-half and three 
     hours flying time away.


                    A different holiday opportunity

       In a statement in 1996, the government gave details of a 
     plan to develop Brunei as a ``Service Hub for Trade and 
     Tourism'' (SHuTT) by 2003. Brunei Darussalam wants to see 
     itself as a bridge for the EAGA member countries to the 
     regional and global markets. At the same time, it aspires for 
     Brunei Darussalam to become that gateway to EAGA markets for 
     the rest of the world.
       Ports, airport services and tourism services are all being 
     upgraded as part of the move to build on Brunei's excellent 
     regional and international telecommunications network.
       Tourism is considered to be a key element in the SHuTT 
     plan. Initiatives include the Visit Brunei Year and the 
     production of the country's first Tourism Master Plan. A new 
     tourism division was established under the Ministry of 
     Industry and Primary Resources. Visa requirements have been 
     relaxed (72-hour visas are now available) and border 
     checkpoints have been upgraded.
       Brunei Darussalam's location on the north east coast of 
     Borneo, 450 kilometers north of the equator means it has a 
     climate that combines a great deal of sunshine with a lot of 
     rain, all of which contributes to the creation of the rich 
     and fantastic flora and fauna of the rain forest.
       Forestry and agriculture were the traditional productive 
     sectors before the Sultanate was able to enjoy the benefits 
     of its substantial hydrocarbon resources. The original 
     exploitation of the rain forest therefore dated from a time 
     when it had been managed on traditional, sustainable lines. 
     This environmentally sensitive approach has been maintained 
     because, unlike Brunei's neighbours, there has been no 
     imperative to exploit the wealth of the rain forest up to and 
     beyond supportable levels.
       Brunei Darussalam therefore offers tourists a unique 
     opportunity to visit large areas of unspoilt jungle which 
     cover 80% of the country's land area, with a extraordinary 
     range of biodiversity.
       There are three main reserves, the largest and most 
     striking of which is the Batu Apoi Forest Reserve covering a 
     massive 500 square kilometres of undisturbed rain forest in

[[Page E1939]]

     south Temburong. The Reserve contains the Kuala Belalong 
     Field Studies Centre. Visitors are presented with the 
     extraordinary chance to move around areas of the forest by 
     way of sensitively constructed walkways which include 
     sections that actually take them up into the canopy of the 
     trees, where a completely different range of flora and fauna 
     exist. The Belalong Centre is most easily accessed by water 
     and the up river journey is an outstanding way of 
     experiencing Borneo's jungle waterways, which cut through 
     steep valleys where the jungle towers several hundred metres 
     overhead.
       The other reserves are the Bukit Shahbandar Forest 
     Recreation Park and the Sungai Liang Recreation Park, which 
     features catwalks and tower tree houses in the tree canopy.
       Brunei Darussalam currently has some 1,200 hotel beds, 
     which are due to be increased to 3,000 by 2000. By that date 
     Brunei is hoping to have doubled the number of visitors to 
     one million a year. Besides its astonishing rain forests, 
     Brunei has its own attractions including the remarkable 
     Jerudong Play Park with a wide range of state-of-the-art 
     rides, all of which are completely free. The Bruneians have 
     also discovered golf in recent years and there is now a 
     series of excellent golf links including one floodlit course 
     for the cool evenings. There are also excellent gymnasia, 
     fitness centres and swimming pools as well as an impressive 
     range of sports stadia where it is planned to host the 
     upcoming Asean games. Bandar Seri Bagawan will also host to 
     meeting of Apec at the end of the millennium and in the first 
     year of the new century, will be mounting a 12-month-long 
     programme of cultural and sporting events as part of the 
     Visit Brunei Year 2001.
       Royal palaces, stunning mosques and miles of sandy beaches 
     complement the country's attractions. In a move that will 
     broaden the visitor's horizons yet further, the Brunei 
     Darussalam tourism authorities have also produced a campaign 
     to market the Sultanate as part of the island of Borneo as 
     well. A modern highway circling the whole island is under 
     construction, so that tourists with more time to spare can 
     plan much longer journeys in this fascinating part of the 
     world.
       There are also plans to market ``medical tourism'', whereby 
     visitors could be treated at the luxurious and fully equipped 
     and staffed Jerudong Medical Centre, whose rooms are better 
     appointed than those of a five star hotel.

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