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Chapter 1

BRUNEI 1906 - 1941

“Allah increases the provision for whom He wills, and straitens (it for whom He wills)…” Surah Ar-Ra’d, Verse 26

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1.1 THE REIGN OF SULTAN MUHAMMAD JAMALUL ALAM II (1906 – 1924)

• He became Sultan in 1918• Had an interest in the progress of the country, encouraging advancement in agriculture, medicine and education• Encouraged the teaching and learning of Islam

1912: Islamic Law was officially introduced

1913: Marriage and Divorce Act introduced

Because of the Residential System, all executive power (except in religious matters) was in British hands.

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1.2 THE REIGN OF SULTAN AHMAD TAJUDDIN (1924 - 1950)

• Became Sultan in 1931, at the age of 18• He was concerned with the expansion and improvement of formal education • He encouraged religious education• He was also a writer

1949: At the Silver Jubilee ceremony, he was awarded the Officer of the Order of the British Empire by King George VI.

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1.3 THE RESIDENTIAL SYSTEM (1906 - 1959)

• Introduced in Brunei in 1906• Result of the Supplementary Protectorate Agreement signed on 31 December 1905 and on 3 January 1906• British Resident appointed to advise Sultan on all matters of administration except those touching on Islam.

Resident as advisers Resident acted as ruler and the Sultan was obliged to accept his advice

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1.3 THE RESIDENTIAL SYSTEM (1906 - 1959)

Advantages Disadvantages

Better Administration

Social Welfare

Economics

Political

Power of Sultan weakened

Traditional responsibilities disrupted

Resident did not make effort to understand locals

Resident did not work for Brunei’s interest

Locals could not head departments

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1.3 THE RESIDENTIAL SYSTEM (1906 - 1959)

Before Residential System

After Residential System

Holders of Tulin and Kuripan territories rarely paid taxes to the Sultan

Land governed according to traditional

land rights

Land Enactment Act of 1907

All personal income earned through payments

on territories became state revenue

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1.3 THE RESIDENTIAL SYSTEM (1906 - 1959)

Before Residential System

After Residential System

Monopolies mainly controlled by Chinese businessmen

Monopoly rights abolished (except for the Muara Concession)

Before Residential System

After Residential System

Sultan and chiefs as lawmakers

Police force began in Brunei

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1.4 ECONOMIC DEVELOPMENT

The Discovery of Oil

• F.F. Marriott and T.G. Cochrane• April 1929 – oil struck at Padang Berawa (now Seria)• 1930s – oil production increased• 1940s – oil export at 7.5 million dollars (51% of state revenue)

• British Malayan Petroleum Company formed in 1922 • Paid oil royalties to Brunei government• Created infrastructure and welfare programmes

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1.4 ECONOMIC DEVELOPMENT

Coal Industry

• Coal mining concentrated in Brooketon (Muara Town) and Buang Tawar.• From 1888 - 1924, more than 600,000 tons of coal were produced• 1917 – output began to decrease after closure of Buang Tawar mine • 1925 – coal mining activities stopped

With the use of petrol, demand for coal fell

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1.4 ECONOMIC DEVELOPMENTRubber Industry

• Rubber was most important cash crop for export in first half of twentieth century

•Rubber seedlings were first introduced in Brunei in 1908 by Haji Mohammed Daud.

• Rubber first planted in Labu area of Temburong District and Brunei District

• Rubber was first exported to Britain and the United States in 1914

• Export earnings rose during rubber boom at the end of World War I

1922: Rubber Enactment1933: Kilanas Agriculture Station

1936: Agriculture Department

Rubber estate

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1.4 ECONOMIC DEVELOPMENT

Cutch Industry (Ubar)

• Main export of Brunei in early twentieth century• Mainly used by fishermen, and as a colouring for leather• 1901 – Factory opened at Subok• Sold mainly to Britain, United States, Japan and China• 1911 – Highest recorded export (2,900 tons)

Early 1930’s – cutch production drastically

reduced

With emergence of oil, cutch industry never recovered

Sultan Hashim visits cutch factory

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CHAPTER 1: SUMMARY

Residential System

• In Administration• In Social Welfare• In Economics• In Politics

• Power of the Sultan weakened• Disrupted responsibilities and land rights of the Wazirs• Lack of commitment, sincerity and sensitivity to Brunei• Brunei’s interest not served• Locals not given opportunities

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CHAPTER 1: SUMMARY

Economic Development of Brunei 1906 - 1941

Discovery of oil

Set up of BMPC

Other economic resources

• CoalCoal

• RubberRubber

• CutchCutch