Economy of Brunei

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Brunei is a small country situated on North Western edge of Island of Borneo, a part of Indonesia
and Malaysia. Brunei occupies 5770 sq. Kms. with a population of around five lakhs.
It is the 3rd largest oil producer in South Eat Asia averaging about 1.80 million barrels of per day
and 9th largest producer of Natural gas in the world. It is a country with wealthy economy and is
mixture of foreign and domestic entrepreneurs, Govt. regulations, welfare measure and village
traditions. It is totally supported by exports of crude oil & gas with revenues for half of its GDP.
Substantial income from overseas investments supplements from domestic production. Govt. provides for all medical services at no charge and food and housing.There is no personal income
tax or Capital gains tax rather companies meeting certain criteria can have pioneer status getting
exemptions for income tax up to 5 years depending upon the amount invested.
After its independence in 1984, it became member of Commonwealth countries and ASEAN
in Jan. 1984 and joined U.N. in Sept. 1984. Islamic Sultanate was established and constitution
underwent significant amendment. Ultimate authority rests with Sultan who is both Head of
State and Govt. As Prime Minister, he is advised by his council of ministers appointed by him.
Judicial power is vested with Supreme Court. Its trading partners are Japan, South Korea,
Thailand, India and Australia. Its top imports are from Singapore, China, Malaysia, U.K.
and U.S.A.   
Govt. encourages actively Foreign investment. Brunei Shell Petroleum Co. is chief oil and gas
production company with equal share between the Govt. and Royal Dutch Group of Companies.
In western part of the country, a major Methanol plant is developed by the Govt. and two leading
Japanese companies.
Brunei Currency Board & Financial Institution are responsible for most Central Banking Services.
It issues Brunei Dollars. Several Islamic and foreign banks operate in the country. Much of the
State's financial activity is concentrated with managing its substantial foreign investments.
The return on these are important source of income. It has depended primarily on its rivers and
sea for transportation.
It is a safe country with local thefts uncommon and violent crime almost unheard of. It has
a mixed legal system based on English law and Sharia (Islamic ) law.Sunni Islam population
 is pre dominant with Buddhists and Christians                

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