PM MODI'S VISIT TO BRUNEI MARKS THE BEGINNING OF A NEW ERA OF STRONG RELATIONS BETWEEN THE TWO COUNTRIES

                                     Courtesy: PM Photo Gallery

Prime Minister Narendra Modi visited Brunei in September 2024 at the invitation of King Hassanal Bolkiah. This is the first bilateral visit of an Indian Prime Minister to Brunei. To date, no Prime Minister of India has visited Brunei. This historic visit of the PM is taking place on the occasion of the 40th anniversary of the establishment of diplomatic relations between India and Brunei.

Crown Prince Haji Al-Muhtadee Billah gave him a red carpet-welcome at the airport. After this, he was given a guard of honor. People of the Indian community also welcomed him at the hotel in Bandar Seri Begawan, the capital of Brunei. On the first day, PM Modi arrived at Istana Nurul Iman in Bandar Seri Begawan, where he was warmly welcomed by Brunei Sultan Haji Hassanal Bolkiah.

                                      Courtesy: Dainik Bhaskar    

                                              Istana Nurul Iman is the largest palace in the world. The dome of this palace is studded with 
                                              22-carat gold

During his historic visit, he also visited the Omar Ali Saifuddien Mosque in Bandar Seri Begawan. This mosque is modeled on the Taj Mahal and is one of the most beautiful mosques in South-East Asia. Although the Taj Mahal is a mausoleum built by Humayun in memory of his Begum, this is a mosque. He was welcomed at the mosque by Brunei's Minister of Religious Affairs Pehin Dato Ustaz Haji Awang Badruddin.

                                         Courtesy: Dainik Bhaskar     

                                            There is a stone boat in the lagoon in front of the mosque which is connected to the mosque by 
                                            a marble bridge.  This boat is inspired by the 16th-century Brunei Royal Boats.

PM Modi's visit to Brunei is a part of India's "Act East Policy." Modi is visiting Brunei at a time when the country is celebrating the 10th anniversary of its "Act East Policy." India wants to maintain its commitment to this policy. This special year of the Act East Policy also includes visits by the Prime Ministers of Vietnam and Malaysia in the first 100 days of the government.

 

What is India's 'Act East' policy?

PM Narendra Modi launched the 'Act East' Policy during the ASEAN-India Summit. The aim of this policy is to strengthen India as a regional power and counter the strategic influence of China. This policy was launched in the year 2014. India's Act East policy is an effort to enhance economic, strategic, and cultural ties with the countries of Southeast Asia.

Brunei is an important partner in India's 'Act East' policy and Indo-Pacific vision. India and Brunei enjoy friendly relations, based on mutual respect and understanding on bilateral and multilateral issues. The two countries are linked by a millennia-old history, culture and tradition. This year marks the completion of ten years of India's 'Act East' policy.

This 'Act East' policy of India will give a new path to the development of Indian economic diplomacy and India will be able to work actively with East Asia.

 

Under the Act East policy, India's efforts focus on:

  • Countering China's growing influence in Southeast Asia and the Indian Ocean region.
  • Maintaining freedom of navigation and the rule of law in the Indo-Pacific region.
  • Establishing India as an alternative to China amid growing tensions in the South China Sea.
  • Focusing on the economic integration of ASEAN countries.
  • Increasing security cooperation with East Asian countries.
  • Promoting connectivity, trade, and cultural ties.

 

During the last ten years, India's Act East Policy has not only increased India's importance in Southeast Asia but also strengthened India's relations with other countries in the Indo-Pacific region and has played a guiding role in this direction.

 

Why tiny Sharia-compliant Brunei has become important to India?

India gives a lot of importance to the South-East Asian region. Last year, Secretary East of the Ministry of External Affairs Saurabh Kumar visited Brunei with a delegation where he participated in a meeting of the Foreign Ministries. Then it was decided between the two countries that India and Brunei would celebrate the anniversary of the completion of 40 years of their diplomatic relations. This is why Prime Minister Modi has gone to Brunei.

The two leaders discussed enhancing cooperation on a wide range of issues, including defense, connectivity, trade and investment, energy including renewable energy, space, ICT, health and pharmaceuticals, education and capacity building, culture, tourism, youth, and people-to-people contacts, as well as regional and international issues of mutual interest.

Brunei is exceptional for India for four important reasons: defense, trade, energy, and space technology. As far as space technology is concerned, Brunei is a major partner of India. India has established ground stations at several locations for tracking its satellite launches. In view of this, India signed a MoU with Brunei in 2018. It was named Cooperation in Elementary Tracking and Command Station for Satellite.

At present, this station is working well for India. In this respect, the importance of Brunei increases. In return, India is giving training related to space technology to the people of Brunei.

Brunei is an important partner of India in the field of energy also. Brunei exports oil to India. However, in recent times, oil purchases with Brunei have declined due to India's increasing oil imports from Russia.

Both countries discussed long-term agreements on LNG (liquefied natural gas). India is trying to increase the current share of gas in its economy from 7 percent to 15 percent. For this, it will have to import a lot of LNG from abroad.

On the other hand, Indian naval ships keep visiting Brunei in the field of defense. Now India is going to take this partnership forward and establish a Joint Working Group on Defense with Brunei. This group will also be established during this visit.

India and Brunei have demanded complete freedom of navigation in the entire region. Like other Southeast Asian countries located around the South China Sea, Brunei too has a dispute with China. China also has similar disputes with the Philippines, Malaysia, Indonesia and Taiwan. In recent weeks, PM Modi has discussed China's expansionist policies in the Indo-Pacific region with Malaysian PM Anwar Ibrahim and Vietnam's PM Pham Minh Chinh.


Brunei is a major player in the regional politics of Southeast Asia due to its stable economy.

Brunei's economy is stable. It is a major player in the regional politics of Southeast Asia. Brunei is called a tax haven because of its tax policy and confidential laws. Due to this, business investors are attracted to Brunei. There is no tax on personal income in Brunei. This rule applies to both citizens and expatriates living in the country. Therefore, it becomes special for those who want to avoid paying income tax.

On the other hand, the corporate tax here is only 18.5%. Also, companies involved in international trade and shipping get exemption in corporate tax or pay very little tax. Because of this, it is beneficial for foreign companies to set up their business in Brunei.

There is also no tax on gains from investments and inheritance in the country. Apart from this, Brunei has made strict laws regarding banking confidentiality. This protects the confidentiality of account holders. Due to this, foreign tax agencies are not able to get information about the accounts in Brunei. Because of this, people consider it safe to keep money in accounts here.

Currency exchange is not monitored in Brunei. This makes it easy to move capital out of the country and bring it into the country.

 

The backbone of Brunei's economy is oil and natural gas production

Oil was discovered in the Seria area of ​​Brunei in 1929. The first oil well in Brunei was dug by the British Malayan Petroleum Company, which was named Seria-1. This well is now known as Royal Dutch Shell. The discovery of oil made Brunei an important oil-producing country.

Brunei has invested the income from oil in different sectors. Due to this, its economy is no longer dependent on oil. However, a large part of the economy still comes from oil. Brunei's total GDP is US $ 1668.15 crore. More than half of it comes from selling oil and gas.

Oil exports have made Brunei one of the top per capita income countries in the world. Brunei's per capita income in 2023 is $29,133 (about Rs 24.46 lakh). India's per capita income is $2,239 (about Rs 1 lakh 87 thousand). While India is among the top 5 economies of the world.

 

Some important facts about Brunei

There is an island 7,486 km away from India, Borneo. There are 3 countries settled on it, one of which is Brunei. This is an Islamic country, where only 4 lakh people live. This island has the South China Sea on one side and Malaysia on the other. Due to the strong economy of the country, Brunei provides free education and treatment to the people without levying taxes.

There are around 14,000 Indian expatriates living in Brunei. A large number of them are doctors and teachers who have earned a name for themselves in that country for their contribution to Brunei's economy and society. There is steady progress in the field of trade and investment between the two countries. There is a strong defense, cooperation, and cultural exchange between the two countries. This is very important for the relationship between the two countries to become stronger.

This visit of the Prime Minister will prove to be very important for India's Act-East policy. The Indian government has always been trying to reduce the growing influence and bullying of China in this region.

Prime Minister Modi himself expressed his gratitude to the people and government of Brunei for their hospitality and affection and described his visit as productive. He said this is the beginning of a new era of India-Brunei relations. Friendship between the two countries will contribute to building a better planet. PM Modi's visit to Brunei was especially important in terms of India's relations with ASEAN (Association of Southeast Asian Nations, an inter-governmental organization) countries.

 

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