PIP: Brunei's population characteristics, geographical features, history, form of government, and political and economic situation were briefly described. Brunei is a small country on the northwest coast of the island of Borneo. Estimated population size is 214,000 (1983), and the annual population growth rate is 0.35% (1971-81). Ethnically, the population is 65% Malay, 20% Chinese, and 15% other. The major religion is Islam, and a variety of languages are spoken, including Malay, English, Chinese, and Iban. Education is compulsory through the primary grades, and the literacy rate among the young is 95%. Between the 1500s and the 1800s, the country was a Buddhist kingdom, then a Hindu kingdom, and finally an Islamic kingdom. In 1847 the Sultan of Brunei entered into a trade agreement with Great Britain, and in 1888 the country was placed under British rule. In 1929 the discovery of oil lead to the economic development of the country. During World War II, the country was occupied by the Japanese. In 1984, after resisting pressure to unite with Sarawak and Malaysia, Brunei was granted independence. At that time it adopted the official name of Brunei Darussalam. The country remains a hereditary sultanate, and the current sultan is Sir Muda Hassanal Bolkaih Mu'izzaddin Waddaulah. The sultan has supreme executive authority and is assisted in administering the country by a 6-person cabinet which includes 3 members of the royal family. 46% of the work force is employed by the government, and government workers are provided with an extensive array of economic benefits, ranging from free medical care to low interest loans. The economy is based primarily on the production of oil and gas, which is produced by Brunei Shell, a consortium owned jointly by the government and Shell Oil. Brunei Shell is the country's 2nd largest employer next to the government, accounts for 72% of the gross domestic product (GDP), and is the primary source of government revenue. Oil accounts for 99% of the country's total exports. Imports consist primarily of manufactured items, machinery, transport, food, and chemicals. The country imports 80% of its food supply. Agricultural production is low because of a shortage of labor and the poor quality of the country's soils. In 1984 the GDP was US$4.0 billion, and per capita income was US$20,000. Development plans for 1985-90 stress economic diversification. Currently 35% of the labor force is made up of foreign workers, and most of these workers are employed by the oil industry. Foreign workers are granted only 1-year work permits. Foreign investment is encouraged but carefully controlled by the government. Brunei is a member of the UN, the Association of South East Asian Nations, the Organization of the Islamic Conference, and the Commonwealth. Brunei seeks to maintain friendly relations with its Asian neighbors and has diplomatic relations with the US.