6.1 What is the Traditional Economic System of Brunei?




 Brunei’s Trade:

Important Traders in Brunei
Trading Partners
Trading Items
Exports Items
(Things sold to other country)
Imports Items
(Things brought from other country)
·         Sultan
·         Important Officials








·         China
·         India
·         Arabia
·         Cambodia
·         Siam
·         Pahang
·         Java
·         Sumatera
·         The Moluccas
·         Mindanao
·         Malacca
·         Jungle products:
-        Camphor
-        Rattan
-        Sandalwood
-        Gums
-        Birds’ nests
-        Feathers
-        Hornbills
·         Brassware
·         Cloth
·         Luxury (expensive) items:
-        Ceramics
-        Textile
-        Brassware









In the 17th and 18th centuries, the English and Dutch arrived and begn colonising much of Southeast Asia including Brunei. In 1906, Brunei became a British Protectorate where export trade system based on shipping out raw materials from one to another European countries.







Economic Development

Coal industry
Rubber Industry
Cutch Industry
·         In 1883, coal concession was granted to William Cowie.
·         William Cowie later sold his rights to Charles Brooke.
·         Two areas for coal mining were at:-
1.       Brooketon (Muara Town)
2.       Buang Tawar
·         Effects of Coal Mining:-
1.       Provided employment opportunities for the local.
2.       Economic activity in Muara Town increased.
3.       More shops were opened.
·         After First World War, Brunei increased its coal exports due to the increase of the price of coal.
·         Coal price fell when petrol was widely used.
·         Two reasons why Muara Town coal mine was closed in 1924 were because of mismanagement and low coal prices.
·         By 1925, all coal mining activities in Brunei stopped.
·         In the first half of the 20th century, rubber was the main cash crop for export in Brunei.
·         In 1908, rubber seedlins was first introduced in Brunei by Haju Mohammad Daud (a Johore Malay)
·         Reason for the growth of rubber:-
1.       In 1890s, the world demand for rubber increased because of the invention of motorcar.
·         Result- More rubber plantations were opened. In Brunei, rubber was grown in both large estates (owned by European companies) of over 1000 acres and small holdings of about one acre.
·         In the early years of rubber cultivation, the Temburong District produced the highest output.
·         Brunei first exported its rubber in 1914 mainly to Britain and the United States of America.
·         Reason for the decline (fell) of rubber:-
1.       Fell in the demand of motorcar industry led to the decrease demand for rubber.
·         In the early 20th century, Cutch was the main export of Brunei.
·         Cutch was used mainly by fishermen.
·         During Sultan Hashims’s reign, The Island Trading Syndicate was given the monopoly for the manufacture of cutch. It opened its factory in 1901 at Subok.
·         Most of the workers came from Kg Ayer and around Brunei Town.
·         Cutch became the main product of Brunei Town.
·         Cutch was sold to Britain, the United States of America, Japan and China.
·         Reasons for the decline of cutch in the earl 1930s:-
1.       Inconsistent world demand for cutch.
2.       Insufficient supply of the bark.
3.       Difficulties in transporting the barks to the factory.
4.       Shortage of labour.
5.       Government restrictions on production.
·         In 1938, cutch production was drastically reduced because it was no longer profitable.
·         When the Japanese occupied Brunei in 1941, the cutch factory was partially closed down.

Cutch made from boiling the bark of the mangrove tree

The entrance of a coal mine in Muara town



Sap from the rubber tree is used to make latex or rubber