UNIVERSITY OF SAN CARLOS

P. del Rosario St., Cebu City

An Economic Research Project on ASEAN Nations:

BRUNEI DARUSSALAM
____________________________________

A Research Project
Presented to the
Faculty of the Department of Accountancy
School of Business and Economics
University of San Carlos
Cebu City, Philippines
____________________________________

In Partial Fulfillment
of the Requirements for the course
Economic Development (AC 2203)
____________________________________

By

GROUP 5(?) TTh 9:00-10:30 AM

Bianzon, Elaine Joyce C.

Juntilla, Gerard Jakob
Lavador, Maeri Lynelle P.
Quidato Jr., Freddie B.

May 2020
 ACKNOWLEDGMENTS

The researchers would like to acknowledge, with deep appreciation and gratitude, the
invaluable help of the following who contributed to the success and completion of this study:

To their advisor, Jovelyn Q. Yu, for the continuous support of the research paper, for her
consideration, motivation, and immense knowledge. She was always there to give them the right
directions, correct their errors and provide them with brilliant insights. Her guidance helped them
in making a better output. Without her, the researchers would have never made this work come
to a good end.

To all the members who cooperatively and willingly did their assigned tasks to their full
potential.

To their fellow block mates and friends for imparting their knowledge and ideas in
helping the researchers construct the study.

To the authors of the different researches that gave them various different ideas in
conducting the research. They allowed the researchers to explore cohesively about their ideas
similar to the topics assigned.

To the ever-supportive and loving parents and guardians for their untiring love and
encouragement to achieve greatness in the course of their lives. They have made immeasurable
sacrifices to help them attain their goals. The efforts of the researchers have made are all for you.

Lastly, the researchers would like to express their gratitude to the Father Almighty who
gave them the strength to continue, the patience for every dismantled schedule of activities, the
ideas they were able to put in this study, and the spiritual guidance He has bestowed upon them
throughout the completion of this output.

To the Lord and Savior Jesus Christ, this is all for you.
 CHAPTER I – COUNTRY DEMOGRAPHICS

A. Location

Brunei Darussalam, also known as the Abode of Peace, is a small state in

South-East Asia on the north-west coast of the island of Borneo, in the Indonesian
Archipelago. Its 161 km coastline faces the South China Sea. It is enclosed by the
Malaysian state of Sarawak, which divides it in two.

Figure 1.1
source:
https://thecommonwealth.org/our-member-countries/brunei-darussalam?fbclid=IwAR3nS
e0lMNe62aFltmIMwiMXTFxzCMl5l5WDxm5Ao3R1Xwf5CQJWP_QIvFs

B. Land Area

Brunei occupies an area of 5,765 km² which is slightly larger than twice the size
of Luxembourg, or slightly smaller than the U.S. state of Delaware. Brunei has claimed a
continental shelf/exclusive economic zone stretching 200 nautical miles from its coast,
which extends Brunei territorial waters deep into the middle of the South China Sea.
 Figure 1.2
source:​https://www.nationsonline.org/oneworld/brunei.htm?fbclid=IwAR3o8oR4uuR7Z
ZtplZ4L1OW458eYtvGzFeVMqBu41Ef5aIr3TuXPyldiSzk

C. Number of provinces, cities, states, prefectures

Brunei Darussalam comprises four districts namely Belait, Brunei Muara, Temburong,
and Tutong with their respective Cities and provinces as shown in the table below.

DISTRICTS ABBR AREA POPULATION MAJOR CITIES PLACES

km² ESTIMATE
2018

Belait BEL 2,724 73,200 Kuala Belait Kuala Belait

Lumut Lumut
Seria Panaga
Seria
Sungai Teraban

Brunei BRU 571 307,000 Bandar Seri Bandar Seri

Muara Begawan(Brunei Begawan(Brunei
City) City)
Sengkurong Batong
Jerudong Batu Marang
Mentiri Bebatik
Muara Jerudong
Junjongan
Kapok
Kasat
Kuala Lurah
Kulapis
Lumapas
Lupak Luas
 Masin
Mentiri
Muara
Pengkalan Batu
Sengkurong
Sungai Buloh
Tanah Jambu

Temburong TEM 1,304 10,900 Bangar

Rataie

Tutong TUT 1,166 51,300 Tutong Binturan

Bukit Beruang
Bukit Udal
Keramut
Keriam
Kiudang
Kupang
Lamunin
Luagan Dudok
Pangkalan Mau
Sinaut
Tutong
Figure 1.3
https://www.citypopulation.de/en/brunei/cities/

D. Population and gender profile

Brunei is divided into four districts, the largest of which is Brunei-Maura, with more than
half of the country's population. Nearly 97% of Brunei's population lives in the larger western
area (including Brunei-Muara, Tutong and Belait) while just 10,000 people live in the mountains
of the east. As shown in the graph below, as of 2020, the total population of Brunei Darussalam
is 453,449. 228,992 of which is male and the female population comprises 224,458
 Figure 1.2 Population of Brunei according to gender

Source: United Nations Department of Economic and Social Affairs:

Population Division

As seen in the figure below, Brunei Darussalam's population growth has increased since
2008 through 2013. The country has experienced a downward trend. However, in 2008, the
country's annual population growth rate was 1.18%, but 2018's annual population growth rate is
just 1.05%.
 ​ opulation Growth Rate of Brunei from 2008 to 2018
Figure 1.3. P

The age group of Brunei can be subdivided into three groups namely population ages
0-14, 15-64, and 65 and above. According to the figure below, there is a decreasing trend for the
population of ages 0-14 and an increasing trend for the population of ages 15-64 and 65 and
above. In 2008, 26.66%, 70.06%, and 3.28% of the total population belonged to the 0-14, 15-64,
and 65 and above age range, respectively. However, in 2018, 23.0%, 72.10%, and 4.87% of the
total population belong to the 0-14, 15-64, and 65 and above age group, respectively.

​ ercentage of​ p
Figure 1.4. P ​ opulation according to age groups of Brunei

Source: United Nations Department of Economic and Social Affairs: Population Division
https://countrymeters.info/en/Brunei_Darussalam

E. National Capital

The capital of Brunei is Bandar Seri Begawan, formerly known (until 1970) as Brunei
Town (until 1970). The town lies near its mouth on Brunei Bay along the Brunei River, an inlet
of the South China Sea on the northern coast of Borneo Island. Bandar Seri Begawan used to be
primarily a center of agricultural trade and river port. It was largely restored after sustaining
significant damage during World War II, and became the administrative and financial hub of the
country, with a port at the nearby mouth of Muara River. Notable buildings include the Istana
Nurul Iman (royal palace), the Hassanal Bolkiah National Stadium, and the Sultan Omar Ali
Saifuddien Mosque, one of Southeast Asia's largest mosques. Bandar Seri Begawan is the
location of Brunei's only international airport, situated on the main road running southwest along
Borneo's coast to Seria and Kuala Belait. It also has ferry terminals offering service to
neighboring ports. Pop. (2001) city, 27,285; (2004 est.) urban area, 81,500.

https://www.britannica.com/place/Bandar-Seri-Begawan

F. Currency

Brunei Darussalam is a small Asian island, with the Brunei dollar as its official currency.
The Brunei dollar, first issued in 1967, is represented by BND and the symbol "$" or sometimes
"B$." The Monetary Authority of Brunei Darussalam is responsible for issuing the currency. The
Bruneian dollar is divided into 100 subunits called cents. The Bruneian Dollar is issued in both
banknotes and coins. Coins are available in 1, 5, 10, 20 and 50 cent denominations. Currency
notes in Brunei are usually issued in denominations of 1, 5, 10, 50, and 100 dollars, while notes
of 20, 25, 500, 1000, and 10,000 dollars are produced but much less common. The Brunei dollar
is interchangeable with the Singapore dollar and is often used in Singapore as a customary
tender.

https://www.worldatlas.com/articles/what-is-the-currency-of-brunei-darussalam.html

G. Political / Government System

In Brunei's absolute monarchy, the Sultan of Brunei is both the head of state and head of
government of the country. Under the 1959 constitution, the Sultan is the Head of State with full
executive authority and is accompanied and guided by five councils –the Religious Council, the
Privy Council, the Cabinet Ministers Council, the Legislative Council and the Succession
Council.

H. The Legislature

The Brunei Legislative Council consists of 33 members all appointed by the Sultan.
Brunei's Legislative Council is a parliament which is unicameral. The speaker is the legislature's
leader, and his chief role is to direct parliamentary proceedings. Every March, the Legislative
Council holds its sessions to review different government policies and to pass motions. In 2004
the Sultan made a declaration that representatives should be elected to the 15 representatives of
the Legislative Council.

I. The Judiciary

Brunei follows a dual system of law where one system of law practices English Common
Law and the other system of law practices Islamic Sharia law. Much of the English Common
Law is codified and includes most of the laws of Brunei.

J. Brunei Religious Council

The Religious Council is a body set up by the Sultan whose primary function is to advise
the Sultan on all Issues based on Islam. The Religious Council comprises multiple ministers,
among others the Attorney General, the Chief Justice and the Mufti. The Religious Council
comes up with policies on Islamic religious practices which the Ministry of Religious Affairs
then implements.

K. The Privy Council

The Privy Council is composed of royal family members and senior government officials,
all appointed by the Sultan. The Privy Council is required to advise the Sultan on the revocation
and modification of the Melayu Islam Beraja laws, as well as customary rank and title
conferment decisions.

L. The Executive

As head of government, the Sultan is the leader of the executive and the head of
government. He is also responsible for the appointment of all members of the cabinet. Brunei's
Cabinet comprises the prime ministers (the Sultan), senior ministers, attorney general, Mufti, and
members of cabinet who run their respective ministries. Beyond being the prime minister and
head of the cabinet, the sultan is also the defense minister, finance minister, and international
affairs and trade minister. The Sultan appoints five bodies that serve an advisory role to the
monarch, including the Succession Council, the Religious Council, the Council of Ministers
(Cabinet), the Privy Council, and the LegislativeCouncil.
M. The Council of Succession

The Council of Succession was established by the Sultan and has the primary role in
determining the succession of the monarchy when such need arises. All judgments and decisions
made by the Council of Succession are based on provisions of the Melayu Islam Beraja.

https://www.worldatlas.com/articles/what-type-of-government-does-brunei-have.html​ ;
https://thecommonwealth.org/our-member-countries/brunei-darussalam/constitution-polit
ics​ ;

N. Sector Distribution

Brunei has been a known exporter of oil, specifically petroleum and crude oil, within the
southeast region of asia. It is attributable to approximately 65% of the country's gdp under the
industry sector and 95% of its exports. Brunei mainly focuses its output of industry and services.
Industry contributing to half of the country’s GDP. Agriculture on the other hand only makes up
1.20% of its GDP.
https://www.cia.gov/library/publications/resources/the-world-factbook/geos/bx.html
https://theodora.com/wfbcurrent/brunei/brunei_economy.html

Figure 1.5 GDP Rate by Sector

 CHAPTER II – ECONOMIC PROFILE

A. GDP and GNP

Gross Domestic Product is considered as the pecuniary worth of all the finished
goods and services produced within a country's boundaries in a specific period of time
which includes anything produced by the citizens of such country and foreigners within
its borders. GDP plays an important role as an indicator for its economic power. The
figure below shows that in 2018, Brunei Darussalam's amounted to around 13.57 billion
U.S. dollars.

Figure 2.1. GDP of ASEAN Countries

As shown in the figure below, the statistics indicate gross domestic product
(GDP) in Brunei Darussalam from 1985 to 2018, with estimates up to 2024. The gross
domestic product (GDP) reflects the aggregate value of all services and products
produced within a country in any given year. GDP is a significant measure of the
economic power of a country.

https://www.statista.com/statistics/796245/gdp-of-the-asean-countries/
 Figure 2.2. Gross Domestic Product (GDP) of Brunei Darussalam

Figure 2.3. below displays the GDP capita of Brunei Darussalam from 1985 to
2018, including the estimates up to 2024. GDP is the aggregate value of goods and
services generated in one country in a year, in 2018, the GDP per capita of Brunei
Darussalam has reached to around 30,668.37 U.S. dollars. A positive shift is an
indication of economic growth and GDP is known as a significant measure to a country’s
economic strength.

https://www.statista.com/statistics/526762/gross-domestic-product-gdp-in-brunei-darussa
lam/
 Figure 2.3. GDP per capita of Brunei Darussalam

In December 2018, Brunei’s Gross National Product was reported at 13.779 USD
bn. This report gives an increase from the previous number of 12.849 USD bn for Dec
2017. Gross National Product data is updated yearly, with an average of 7.215 USD bn
from Dec 1989 to 2018. The data reached an all-time high of 18.591 USD bn in 2012
and a record low of 2.985 USD bn in 1989. Brunei’s Gross National Product data
remains active in CEIC and is reported by CEIC Data.

https://www.statista.com/statistics/526777/gross-domestic-product-gdp-per-capita-in-bru
nei-darussalam/
 Figure 2.4. Gross National Product (GNP) of Brunei Darussalam

B. Disposable Personal Income

Disposable income or disposable personal income is the difference between Net

personal Income and personal income tax which varies in each country. Disposable income
indicates the buying power of the citizens in a particular country and is essential information
regarding the economy thereof.

https://www.investopedia.com/terms/d/disposableincome.asp

Figure 2.5. Gross National Disposable Income of Brunei Darussalam

There was a significant spike of the country’s disposable income experiencing a

18% increase from the initial disposable income at the beginning of the decade to the year after.
With respect to the data provided in figure 2.5, up to the point of the sudden spike, Brunei’s
disposable income has remained relatively high averaging at 22,162.966 from 2011-2013. It
should be noted that Brunei Darussalam does not levy any personal income tax to its citizens
with the exception of a 5% contribution for a provident fund. Therefore, it is conclusively
presumed that the actual GDP based on personal income is equivalent to its disposable income.

https://www.heritage.org/index/country/brunei
https://www.businesstimes.com.sg/asean-business/guides/at-a-glance-taxes-in-brunei
https://www.ceicdata.com/en/brunei/sna08-gdp-by-expenditure-current-price-annual
https://home.kpmg/content/dam/kpmg/pdf/2016/08/country-tax-profile-brunei.pdf

Figure 2.6. Final Consumption Expenditure: Household

Figure 2.6 provides a more comprehensive presentation of the movement of

household final consumption from 2007 - 2018. A decrease occurred in 2010 from 4.988
in the previous year to 1.809. From there an increase to 5.413 in 2011, another increase
in 2012 at 8.658, and a decrease to 6.032 in 2013. It is evident that the fluctuations of
final consumption expenditure are relative to the movement in household income with
respect to the data provided Figure 2.5.
 https://www.ceicdata.com/en/brunei/gross-domestic-product-annual-growth-rate/bn-gdp-
growth-final-consumption-expenditure-household

C. Inflation and Unemployment

As shown in Figure2.7, Brunei's annual inflation rate jumped from 0.3 per cent in
the previous month to 1.1 per cent in January 2020. It was the highest rate of inflation as
of December 2014. The inflation rate was very volatile and unpredictable in the early
months of 2019. During the last month of 2019, rates stabilized as they fell above 0 but
not more than 1.5 percent.

https://tradingeconomics.com/brunei/inflation-cpi

Figure 2.7. Inflation Rate of Brunei Darussalam for 2019-2020

The figure below shows the rate of inflation for consumer prices in selected Asian
countries in 2018. It reports that Brunei Darussalam has the lowest inflation rate of 0.2
percent relative to other Asian countries.
https://www.theglobaleconomy.com/compare-countries/
 Figure 2.8. Consumer Price Inflation Rate of Selected Asian Countries

As shown below, the World Bank provides data for Brunei from 2009 to 2019.
The minimum value for Brunei during that period was 6.42 percent in 2009 and a
maximum of 9.32 percent in 2017. The latest value from 2019 is 9.24 percent.

https://www.theglobaleconomy.com/Brunei/unemployment_rate/

Figure 2.9. Total Unemployment Rate of Brunei Darussalam

 As seen in Figure 2.10, the primary affected by unemployment was the workforce with
basic education. On the other hand, the least affected have been the workforce with advanced
education. This is because the skills expected of the basic education labor force is unnecessary
compared with those with intermediate or advanced education. Most businesses will most likely
hire those who are well-trained and have enough expertise and experience, even though higher
wages and salaries would be demanded.

Figure 2.10. Unemployment Rates for Different Educational Levels

of Brunei Darussalam

https://www.ceicdata.com/en/brunei/employment-and-unemployment

D. Monetary and Fiscal Policy / Monetary System Adopted

The monetary system in Brunei Darussalam is based on the Currency Board

Arrangement supporting the Currency Interchangeability Agreement between Brunei
Darussalam and Singapore.
 In the Currency Board Arrangement, the total amount of currency issued in the
economy is backed up by the currency boards with the equivalent amount held in reserve
if it is in a fixed exchange rate system. Under the 2004 Currency Order, only the AMBD
is permitted to issue notes and coins to Brunei. In addition, the 2004 Currency Order also
allows us to back up every note and coin issued with foreign exchange reserves. It is to
ensure trust and security in the dollars of Brunei, and therefore to improve trade and
investment.

Brunei Darussalam and Singapore have become a special board situation due to
the currency interchangeability agreement.

Under the Currency Interchangeability Agreement, the monetary authorities and

approved banks of both countries are obliged to recognize and exchange the currencies of
each other on a par and free of charge in their own currency. Therefore, the Brunei
Dollars is the customary tender to Singapore and the Singapore Dollar is a customary
tender to Brunei Darussalam.

The agreement reduces exchange rate to fluctuate between the two countries,
which would usually create confusion and endanger business operations and investment.
It also lowers the cost of doing business between Brunei Darussalam and Singapore and,
in effect, eases tourism, trade and investment.

In the Currency Interchangeability Agreement, currency repatriation was agreed

by the authorities which basically let the Monetary Authority of Brunei Darussalam
return Singapore Currency to Monetary Authority of Singapore and the Monetary
Authority of Singapore returns to Monetary Authority of Brunei Darussalam the Brunei
Currency. This unique agreement has been mutually beneficial to both countries.
 h​ ttps://www.ambd.gov.bn/monetary-policy
E. Current Account Balance

Brunei's current account had a surplus of USD 386.4 million in December 2018
compared to a deficit of USD 120.8 million in the previous quarter. Brunei's Current Account
Balance: USD mn data is revised quarterly, available from March 2001 to December 2018, by an
average value of USD 848.2 mn. The data recorded an all-time high of USD 2.5 billion in
March 2014 and a record low of USD-120.8 billion in September 2018. The International
Monetary Fund provides quarterly Current Account Balance in USD. Foreign Direct Investment
(FDI) decreased by USD 289.5 million in December 2018. Brunei's Direct Investment Abroad
decreased by USD 84.7 million in December 2017. The country's nominal GDP was recorded at
USD 3.5 billion in December 2018.

Figure 2.11. Current Account Balance of Brunei Darussalam

 CHAPTER III – ECONOMIC PROBLEMS AND ISSUES

A. Poverty, inequality, and development (ang first na link kay whole paragraph)

th
Brunei is ranked the 5​ wealthiest nation in the whole world but despite the

title. The country is not invulnerable to economic problems such as poverty and
inequality. The poverty line is recorded at merely 5% with respect to its total population
(6)​. ​Despite the small percentage it should be noted that Brunei is known to provide
high paying salaries to its public officials ​(3)​. Furthermore, the country is significantly
dependent on its oil reserves and the income attributed to the exports thereof, Brunei
has not been able to strengthen its private sector focusing its efforts more towards the
former ​(5)​. This inequality provides minimal opportunities to its citizens. With respect to
the data provided in Figure 2.9, it is evident that the country’s unemployment rate has
been significantly increasing in the previous decade with a 35% growth rate and
experiencing its peak in 2019 at 9.3%.

The minimal efforts in diversifying its economic sectors is offset by the welfare
provided by the government to its people. Half of the entire population rely on this
provided welfare and the income generated from oil exports is significantly attributable
to the country's capacity to support it ​(3)​. The Industry and services sector dominates
the economy as provided in figure 1.5, oil and petroleum being a significant contributor
to the industry sector.
 Figure 3.1 - Brent Crude oil prices from 2014 - 2021

The second quarter of the decade experienced an exponential dip in oil prices,
deducing from 98.89 USD to 52.32 USD per barrel, spanning from 2014 - 2015. Oil prices
remained relatively low for the rest of the quarter. It Is evident that this occurrence had
significantly affected Brunei Darussalam’s economy as provided in Figure 2.2, the
country’s GDP relatively dropped around the same period ​(4)​.

1 - ​https://www.researchgate.net/publication/317471633_Economic_Issues_in_Brunei_

Prior_to_2014_Oil_Crisis

2 - (wala)

3 - ​https://borgenproject.org/poverty-in-brunei/

4 - ​https://www.statista.com/statistics/409404/forecast-for-uk-brent-crude-oil-prices/

5 - ​https://theaseanpost.com/article/brunei-needs-move-away-dependency-oil

6 - ​https://borgenproject.org/development-and-poverty-in-brunei/
 B. Population growth and quality of life

Total ​Population within the country of Brunei has been continuously growing. A total
growth of 11% spanning from 2010 -2020, the total current population amounts to 436,742
Bruneian Citizens​ (1)​. The total population is classified and sub-divided by gender and age group
as provided in Figure 1.2, and 1.9.

Figure 3.2 - Brunei Population 2020

Despite this increase in population and the significant drop in gdp growth rate during
the second half of the decade provided in Figure 2.2, Brunei has been able to maintain it’s high
quality of living ​(5)​.
 Figure 3.3 - Brunei Human Development Index (1980-2018)

Figure 3.4 - Brunei Darussalam’s HDI trends based on consistent time series data and new
goalpost

The human development index of the country provides a gauge in examining the quality and
the general growth of an individual within the country. With respect to the data provided in
Figure 3.3, the HDI spanning from 1990 to 2018 has been constantly increasing ​(3)​. With a value
of .845, Brunei reached it’s HDI peak in 2018 . The data provided in Figure 3.4 on the other
hand provides a more comprehensive report on it, including data pertaining to life expectancy,
expected years and average years of schooling, and the gross national income ​(2)​.

As provided in the previous chapters, Brunei does not levy any sort of income tax other than
the 5% provident fund. In addition, The government provides sufficient welfare to its citizens
which supports more than their basic needs. The country ranked 2nd highest in the HDI among
all southeast Asian nations.

1 - ​https://worldpopulationreview.com/countries/brunei-population/

2​ -​ ​http://hdr.undp.org/sites/all/themes/hdr_theme/country-notes/BRN.pdf

3 -​ ​https://www.theglobaleconomy.com/Brunei/human_development/

4 -​ ​https://www.researchgate.net/figure/Status-of-human-development-index-of-

Southeast-Asia_tbl3_330554453

5 - ​https://www.numbeo.com/quality-of-life/country_result.jsp?country=Brunei

C. Urbanization and rural-urban migration

A significant percentage of the country was already urbanized upon gaining its
independence from Great Britain in 1984. Prior to which the country was already exporting oil
and petroleum products at the turn of the 20th century ​(2)​.
 Figure 3.5 - ​UNITED NATIONS DEPARTMENT OF ECONOMIC AND SOCIAL AFFAIRS, WORLD
URBANISATION PROSPECTS: THE 2005 REVISION

The country has been continuously urbanizing as provided in Figure 3.5, with a forecast
to reach 80% before the decade ends. Notwithstanding the current situation relating to the
drop in oil prices, and the countries inability to diversify its economic sectors ​(3)​.

Figure 3.6 - Brunei Darussalam: Urbanization from 2008 to 2018

 With respect to the data in Figure 3.6 providing a more comprehensive presentation,
Brunei’s urbanization efforts have been increasing with a 4% growth rate in the decade spanning
from 2008 - 2018. Reaching a peak in its final year with 77.63% ​(4)​. Relatively an increase in
urban sectors has a diminishing effect towards the rural population decreasing significantly
12.08% from 1984 to present day ​(1)​. Currently the total rural population is 22.37% with respect
to the country’s total population, this relatively small population is continuously decreasing over
the years as the country develops ​(1)​ .

Figure 3.7 - Rural Population ( % of total population)

1 - ​https://www.indexmundi.com/facts/brunei/indicator/SP.RUR.TOTL.ZS

2 -​ ​http://factsanddetails.com/southeast-asia/Brunei/sub5_10c/entry-3177.html

3 -​ ​https://www.csc.gov.sg/articles/human-development-and-urbanisation#notes

4 -​ ​https://www.statista.com/statistics/526829/urbanization-in-brunei-darussalam/

D. Human capital: Education and health

Hunger in Brunei is a growing government-inherently associated concern.
Sultan Hassanal Bolkiah, the country's leader, recently declared his plan to make Shari'a law the
nation's primary form of rule. This move arises from the fact that two-thirds of the population of
the world is Muslim. This policy change in accordance with increasing government corruption
led the United Nations to voice significant concern for the region.

In Brunei, food is scarce due to the region's rebel groups and arid temperatures, making it
impossible for the local farmers to grow crops. Because of its warm climate and proximity to the
ocean, the primary protein source comes from catches by the sea. Marine wildlife serves as a
primary source of food for the Brunei people, and the government has made an attempt to raise
fishers' yields to satisfy the national food supply requirements.

A majority of food products are exported domestically outside the fishing industry. Although the
Brunei government states that they have adequate policies to distribute food products to the
majority of citizens, data shows that this is not the case.The food delivery system distributes
sugar, rice and other essential food items, nonetheless. They get sold at "fair" food prices once
transported to the communities.

Political corruption started right after the country gained independence in the early 18th century
and has continued to influence the citizens of the world.The amount of hunger in Brunei has
increased substantially since the country's independence, due mainly to much of the food supply
being controlled by the government and extremist groups roaming the country confiscating the
small amount of food available to citizens.

In Brunei, malnutrition is widespread and children under the age of five are the most affected
group. This problem is further exacerbated by the high prevalence of underweight people. There
is an 8.5 percent chance of becoming underweight for females under the age of five, and 10.8
percent chance for males.

The great deal of hunger in Brunei arises from political corruption and the transition as the
primary form of government to Shari'a law. A pregnant mother would usually fail to find the
amount of food required to have babies born healthy.The average rate of babies born
underweight currently stands at 11.9 per cent, an improvement since the nation's Shari'a law was
introduced.

Far beyond problems with the government of the region, the food available to Brunei residents is
often of terrible quality or sometimes is infected with contaminants. This low food quality has
resulted in underdevelopment of children growing up in the country. As a direct impact of
malnutrition and unsafe products, approximately 22.8 percent of males and 16.7 percent of
females suffer from developmental problems.

The political climate in Brunei has considerably led to the failure of the nation to feed its people.
Even though the government has been trying to continue to make progress in better managing the
country's food, there are still people facing the issues caused by hunger in Brunei.

The EU's sustained efforts will ensure that the government continues to purchase food at
affordable prices and export the produce. However, as recent events show, this will not be
feasible until some of the country's political transition takes place.
https://borgenproject.org/hunger-brunei-linked-governmental-changes/

In another aspect, Education in Brunei reached a turning point when it was listed as part of
Education For All (EFA), a world-renowned organization. EFA is a program aimed at improving
early childhood education, growing adult literacy and encouraging leadership capabilities for
both adults and young people.
Brunei is grouping the education into three stages, based on the British education system. First,
the pre-primary level, is meant to educate children aged three to five years old. Pre-primary
education follows the adoption of curriculum through the EFA program as early as possible. The
primary level follows that of the pre-primary level. The second level of education is six years
long, which incorporates both Malay's native language and English. Secondary school, as a
final level, focuses on preparing students for an undergraduate school-like education. It can also
be conceived as a pre-university stage.
Brunei has a specific program of education that would appear to satisfy the people of the region.
The truth is that there is not just formal education and everything else that everybody can afford,
but there are various opportunities for students who would choose to pursue a not so
conventional career option. Vocational education is a special educational program that
incorporates vocational and craft colleges; in this stage of education, agriculture, nursing,
coaching, and more are taught.
Brunei education can also be divided into two categories: the first is nongovernmental
institutions, or private schools, and the second is state-based schools, or public schools.
Brunei does have an excellent system of education. Various opportunities, levels of education,
and a wide variety of universities, technical schools, institutes, and more offer a variety of
choices for Brunei citizens. Organizations like EFA are working hard to make a beneficial effect
on Brunei's education so it may change in the future.
The criticized way the Sultan rules the country has not had any significant adverse impacts on
Brunei's educational system and healthcare. In addition, during the last decade when the country
joined UNESCO in 2005, Brunei's education was positively affected.
https://borgenproject.org/education-in-brunei/

E. Environment and Climate Change

 CHAPTER IV
SUMMARY, CONCLUSION, AND RECOMMENDATIONS

Summarize I, II, III, and IV, and make a conclusion out of the report that you did.

A. What should the country do to achieve economic development?

B. What can developed countries do to help the country?