Brunei Darussalam

Prosperity based on the buoyant oil prices has helped Brunei overcome the fear that had plagued it in the late 1990s, when lower oil prices and recession had reduced national expenditure. Another cause for rejoicing was the occasion of Sultan Hassanal Bolkiah's sixtieth birthday in mid-July 2006. The increased oil revenue allowed the Sultan to announce a pay rise for all civil servants. Some had not seen any salary increases for twenty years. Civil servants enjoy benefits such as heavily subsidized housing, free medical care, and no income tax and consumption tax. Being an Islamic state, the government charges no interests on loans extended to the people.

As the third-longest reigning monarch in the world after the Thai and British monarchs, the sixtieth birthday celebrations were organized elaborately from 1 July to 18 August 2006. The celebrations included all Bruneians as well as international heads of state and governments.

Brunei Darussalam has also been active in forging regional political ties. Foreign Minister Prince Mohammed visited China, while the Sultan himself visited Malaysia to attend the tenth annual consultation meeting with Prime Minister Abdullah Ahmad Badawi. Brunei increased its international profile by announcing that it will send a hundred soldiers with the Malaysian contingent to participate in the United Nations Interim Force in Lebanon (UNIFIL). This shows Brunei Darussalam's increasing confidence in engaging in international affairs. Brunei also held discussions with ASEAN leaders during the year.

The government focused vigorously on sustaining the local economy as well as slowly preparing Brunei to evolve its own representative form of government. The historical revival of the Legislative Council in 2004 and the reorganization of the Cabinet in May 2005 ushered in a new generation of leaders.