New Energy for China—Brunei Relations

By Zhong Xinmin

On a sunny November day in Bandar Seri Begawan， capital of Brunei Darussalam， more than 4，000 local elementary and middle school students lined up on both sides of the road leading to the royal palace， waving the national flags of both Brunei and China. From November 18 to 20， Chinese President Xi Jinping made a state visit to Brunei， the first by a Chinese head of state in 13 years.

President Xi held talks with members of the Brunei royal family. He remarked that he was deeply impressed by the warmth and hospitality of the Bruneian people on his first visit to the country， adding that he sincerely congratulated Brunei on its achievements in economic and social development. He also expressed belief that through joint efforts from both sides， the traditional friendly relations between the two countries will continue to strengthen and mutually beneficial cooperation will yield more fruitful results.

Strategic Alignment

On November 17， the day before his visit to Brunei， President Xi published a signed article titled “Jointly Write a New Chapter of China-Brunei Relations” in local mainstream newspapers.

President Xi pointed out in the article that for China， Brunei is a friendly neighbor across the sea as well as an important link along the ancient Maritime Silk Road. He also noted that China-Brunei relationship has been as strong as ever as of late. In 1991， with the establishment of formal diplomatic relations， China and Brunei renewed a millennium-old friendship. Since the two countries developed a strategic cooperative relationship five years ago， they have deepened political mutual trust， steadily advanced practical cooperation， and supported and collaborated with each other on regional and international issues.

In the article， Xi affirmed that Brunei has warmly embraced and strongly supported the Belt and Road Initiative （BRI） and noted that the two sides have signed a memorandum of understanding to build synergy between the BRI and Brunei Vision 2035， lending fresh impetus to the bilateral relations.

“President Xis visit to Brunei has created broad prospects for the development of China-Brunei relations， and cooperation between the two sides will certainly be brought to a higher level，” proclaimed Chinese Ambassador to Brunei Yang Jian. “Leaders of both countries have conducted in-depth discussions on upgrading the bilateral relations， which will tremendously promote future cooperation in the fields of economics， culture， education， youth and tourism.”

Brunei was among the first group of 21 prospective founding members of the Asian Infrastructure Investment Bank. President Xi stressed in his article that it is important that China and Brunei enhance mutual understanding， deepen friendship and strengthen cooperation to develop an even stronger relationship.

“This year marks the fifth anniversary of China-Brunei strategic cooperative relationship， and President Xis visit to Brunei will uplift bilateral relations to new heights，” opined the first Chinese Ambassador to Brunei， Liu Xinsheng. He also noted that Brunei Vision 2035， a strategy proposed a decade ago to diversify the countrys economy away from heavy dependence on oil and gas， is highly complementary to Chinas BRI.

Since the beginning of this year， economic cooperation and trade between China and Brunei has expanded rapidly with China becoming one of Bruneis most important partners. Two flagship projects， the Hengyi Petrochemical Project on Bruneis Pulau Muara Besar （PMB） and the Guangxi-Brunei Economic Corridor， are making good progress. More and more Chinese companies are investing in and doing business in Brunei， contributing to the diversification of Bruneis economy. Chinese companies are actively involved in infrastructure development in Brunei， including the Pulau Muara Besar Bridge， the Telisai-Lumut Highway and the Ulu Tutong Dam. These projects have improved local connectivity and become attractive “brand names” of China in Brunei.

Upgraded Relations

During his visit， President Xi held talks with Bruneis Sultan Haji Hassanal Bolkiah and the two sides agreed to upgrade their relations to a strategic cooperative partnership. After the talks， the two heads of state witnessed the signing of a cooperation plan on jointly promoting the BRI and other bilateral cooperation documents. A Joint Statement Between the Peoples Republic of China and Brunei Darussalam was issued.

The outcome of Xis visit has won applause from the Bruneian public. Public opinion has swayed heavily towards the visit playing a significant role in promoting bilateral relations and helping expand both scale and scope of Brunei-China cooperation while enhancing mutual understanding between the two peoples.

Magdalene Teo， former Bruneian ambassador to China， opined that President Xis visit was crucial for the future development of Brunei-China relations. The two countries enjoy a long historical link and deep mutual trust， and now bilateral cooperation is in full force in the fields of politics， economics and trade as well as people-to-people and cultural exchanges， she added.

Firdaus Rahman， president of the Brunei-China Friendship Association， believes that the two sides are deepening their cooperation and jointly building a cooperation mechanism for win-win results. He also suggested Brunei learn from Chinas development experience and that the two countries conduct in-depth cooperation in e-commerce and tourism， which would benefit people of both sides.

Awang Haji Mohamad Jefri bin Haji Sabli， acting director of the Museum Department under the Ministry of Culture， Youth and Sports of Brunei， expressed delight that Brunei and China would be enhancing their cultural exchanges. He asserted that the support of both nations in this area would contribute greatly to the development of Bruneis cultural undertakings.

Wang Xiaolin， president of Chinese Enterprises Association in Brunei and governor of the Bank of China （BOC） Brunei Branch， had a chance to meet with President Xi as a representative of the business community. It was a great honor， he said， adding that Xis visit to Brunei will surely deepen political trust， enhance economic and trade cooperation and promote people-to-people exchanges between the two countries. Wang also noted that the BOC Brunei Branch hopes to make a greater contribution to the traditional friendly relations between the two sides and their common development in the financial sector.

Flagship Project on PMB

A flagship project of China-Brunei cooperation， the Hengyi Petrochemical Project is located on PMB， an island connected to the mainland of Brunei by the Pulau Muara Besar Bridge. Bustling docks anchor one end of the bridge， while huge oil tanks and large petrochemical devices are lined up on the other side. A once deserted island is now being transformed into a world-class petrochemical production center.

Oil and gas represent a pillar industry of Bruneis economy. The country is the third-largest producer of oil in Southeast Asia and the fourth-largest exporter of liquefied natural gas in the world. As Bruneis largest project funded by foreign direct investment in recent years， the Hengyi petrochemical plant on PMB is expected to yield an output value of US$5.5 billion by 2020 and provide nearly 1，000 jobs for the local community. Borneo Bulletin， an English-language daily newspaper in Brunei， called the project a “catalyst for economic development” for PMB and its surrounding areas.

The flagship project on PMB started from scratch. After the Pulau Muara Besar Bridge opened to traffic and tap water became available in June of this year， construction machinery started to run day and night， and workers could be seen everywhere. PMB will soon realize self-sufficiency in electricity when a power generation station begins operation along with four substations. China Construction Industrial & Energy Engineering， a subsidiary of Chinas construction giant China State Construction Engineering Corporation， is responsible for the construction work of power supply and distribution system on the island.

Project Manager Lin Sen has overseen several major petrochemical projects in China. “Construction and management teams for overseas projects need to tackle all kinds of unpredictable problems，” remarked Lin. “As a manager， I am committed to working shoulder-to-shoulder with my colleagues to ensure project quality and construction safety.” He admitted that poor living conditions on the island persisted for quite a while， and coupled with the stress of the job， it took some dedication for him and his teammates to persevere.

Covering an area of 375 hectares， the first phase of Hengyi Petrochemical Project is beginning to take shape， with oil and gas tanks lining up and various types of pipelines passing through the plant area. Construction work on a supportive power plant and waterworks and sewage treatment plants are near completion. According to Chen Liancai， chief executive officer of Hengyi Industries Sdn Bhd， with an investment of US$3.46 billion， the first phase of the plant will produce 8 million tons of oil per year.

“Chinese enterprises are working wonders here，” exclaimed Siti Nornazirah Binti Hj Md Jamaluddi， a local employee of the project. “My colleagues and I have witnessed a deserted island transform into an advanced petrochemical production base. This is a miracle！”