Kofi Annan -Secretary-General of the United Nations 16 February 2000

The founders of the Association of Southeast Asian Nations (ASEAN) envisioned it as eventually bringing together all the countries of Southeast Asia and getting them to cooperate in securing the region's peace, stability and development. At the time all region was in tumult; several countries were struggling for national survival of independence. Thus, only five countries - Indonesia, Malaysia, the Philippines, Singapore and Thailand - signed the ASEAN Declaration of 8 August 1967.

Thirty-two years later, on 30 April 1999, ASEAN encompassed all ten countries of Southeast Asia by admitting Cambodia (Brunei Darussalam had been admitted in 1984, Viet Nam in 1995, and Lao and Myanmar in 1997). Not only has the association achieved the inclusion of all of Southeast Asia within its fold, a goal that it had set for itself at its birth. It has also evolved into one of the most influential regional associations in the world.

As the 21^st century dawns, ASEAN is embracing a new vision of itself as "a concert of Southeast Asian nations, living in peace, stability and prosperity, bonded together in partnership in dynamic development and in a community of caring societies."

ASEAN's success is all the more remarkable because it began at a time of poverty and conflict, and because as recently as two years ago, the region was in deep financial crisis. The crisis, which began in July 1997, threatened to reverse the region's economic and social gains of two decades. That the ASEAN economies have bounced back after two years of crisis vividly shows their fundamental strength and resilience.

Today, the ASEAN region stretches across three time zones and incorporate a key part of Asia's continental landmass and several archipelagos. Economically, it belongs to the developing world, but some of its member countries have joined the world's top 20 most competitive economies. Its population of about 500 million constitute a huge, increasingly middle-class market, half the size of China's. One of every ten persons in the world today is a Southeast Asian.

Besides its economic importance and the natural resources its marine territories are believed to hold, Southeast Asia is also of global strategic importance. It is the bridge between the Indian and Pacific Ocean. It straddles some of the busiest sea-lanes in the world.

The history of ASEAN may be told as a series of important events or milestones, which reflect the steady growth of the association, the expansion of its agenda, and the decisions it has taken that have veritably changed the history of Southeast Asia. From a regional grouping that initially had to define itself by what it was not a regional association that was not a military alliance - ASEAN had become at the end of the 20^th century a dynamic community of nations.

• 8 August 1967: ASEAN is founded. The founding document, the ASEAN Declaration, also known as the Bangkok Declaration of 1967, is signed by the Foreign Ministers of the five founding countries.

• 27 November 1971: The ASEAN Foreign Ministers issue the Zone of Peace, Freedom and Neutrality Declaration in Kuala Lumpur.

• 24 February 1976: The First ASEAN Summit takes place in Bali, Indonesia. During this Summit, the ASEAN leaders sign the Treaty of Amity and Cooperation in Southeast Asia. They also sign a programme of action on ASEAN cooperation called the Declaration on ASEAN Concord. They establish an ASEAN Secretariat in Jakarta.

• 4 August 1977: The Second ASEAN Summit convenes in Kuala Lumpur, commemorating the tenth anniversary of ASEAN's founding. For the first time, the ASEAN leaders as a group meet the heads of government of Australia, Japan and New Zealand.

• 7 January 1984: Brunei Darussalam is formally admitted.

• 15 December 1987: The Third ASEAN Summit meets in Manila. The ASEAN leaders sign the Manila Declaration of 1987, which speeds up ASEAN cooperation in the political, economic, social and human development fields.

• 23 October 1991: The International Conference on Cambodia in Paris, chaired by France and Indonesia as interlocutor of ASEAN, reaches a political settlement that paves the way for elections under the supervision on the United Nations, the rebirth of the Kingdom of Cambodia and its eventual membership in ASEAN in 1999.

• 28 January 1992: The Fourth ASEAN is held in Singapore. The ASEAN leaders establish an ASEAN Free Trade Area (AFTA) through a schedule of accelerated tariff reduction - the Common Effective Preferential Tariff scheme. They decide that ASEAN should move to a higher plane of economic and political cooperation.

• 22 July 1992: The ASEAN Foreign Ministers issue the ASEAN Declaration on the South China Sea. The Declaration calls on the disputants over territories in the South China Sea to exercise self-restraint and resort to peaceful means to resolve their differences.

• 25 July 1994: The ASEAN Regional Forum holds its inaugural meeting in Bangkok.

• 28 July 1995: Viet Nam is admitted as a member of ASEAN.

• 15 December 1995: The Fifth ASEAN Summit takes place in Bangkok. The heads of government of all ten Southeast Asian nations sign the Treaty on the Southeast Asia Nuclear Weapon-Free Zone. The ASEAN leaders decide to raise their cooperation in human and social development, called Functional Cooperation, to the same level as their Economic and Political Cooperation.

• 1997: Laos and Myanmar are admitted as members of ASEAN.

• 15 December 1997: The Second Informal Summit is held in Kuala Lumpur. The ASEAN leaders adopt the ASEAN Vision 2020, defining what the ASEAN region will be after two decades of the new millennium.

• 30 April 1999: Cambodia is admitted into ASEAN. All ten Southeast Asian nations are now members of ASEAN.

• 30 November 1999: The Third Informal ASEAN Summit is held in Manila. The ASEAN leaders decide to speed up efforts to achieve AFTA, to initiate a Troika of ASEAN Foreign Ministers as a useful means of attending to urgent regional peace and security concerns, and to intensify cooperation with ASEAN's Northest Asian neighbours: China, Japan and the Republic of Korea within the ASEAN + 3 framework of East Asian cooperation.

Although it was initially muted on ASEAN's agenda, political and security cooperation was an important goal of the member states from the beginning. Some of the most important accords adopted by ASEAN concern political and security issues, such as the 1971 declaration designating Southeast Asia as a Zone of Peace, Freedom and Neutrality (ZOPFAN), the Treaty of Amity and Cooperation in Southeast Asia and the Declaration of ASEAN Concord in 1976, and the Southeast Asia Nuclear Weapon-Free Zone Treaty of 1995. With the establishment of the ASEAN Regional Forum, ASEAN created a major consultation process and confidence-building mechanism for peace and stability in the Asia-Pacific region.

In aiming to become a "concert of nations" in the new century, ASEAN does not mean to transform itself into a political union under any form of central supranational authority. Each ASEAN country will continue to preserve its national government and identity in accordance with the ideals and aspirations of its people. However, all ASEAN members are legally bound by the code of conduct embodied in the Treaty of Amity and Cooperation in Southeast Asia, among the other agreements. Neither the Treaty of Amity and Cooperation nor any other agreement, however, requires ASEAN members to change their political system into any specific homogenised system. ASEAN has never assigned itself the mission of converting its members to a uniform political set-up. Unlike the European Union, ASEAN did not set any political criterion for its prospective members to fulfill before admission.

At the 1992 Singapore Summit - the first meeting of ASEAN leaders after the end of the Cold War - ASEAN decided to promote external dialogue on enhancing security in the region. This policy direction paved the way for the establishment of the ASEAN Regional Forum (ARF) in 1994. ASEAN envisaged a multilateral consultative forum aimed at building confidence among the countries with security interests in East Asia.

Besides the ten ASEAN countries, ARF's membership includes the ten dialogue partners ASEAN (Australia, Canada, China, the European Union, India, Japan, Republic of Korea, New Zealand, Russia and the United States), Papua New Guinea, Mongolia and the Democratic People's Republic of Korea, which participated in ARF for the first time on 27 July 2000.

ASEAN's programme for economic cooperation has evolved since its founding in 1967. Initially, economic cooperation dealt with programmes for joint venture and complementation schemes among ASEAN governments or companies, such as the 1976 ASEAN Industrial Projects plan, the 1981 ASEAN Industrial complementation scheme, and the 1983 ASEAN Industrial Joint-Ventures scheme. By the eighties and nineties, however, as countries all over the world began to dismantle economic barriers, ASEAN countries realised that the best way for them to cooperate for their development in the era of globalization would be to open up their economies to one another, and eventually to integrate them.

The most important move towards this new model was made at the Fourth ASEAN Summit in 1992, at which member countries agreed to create the ASEAN Free Trade Area (AFTA). A free-trade area-a market of close to half a billion people-would allow corporations in ASEAN to take advantage of economies of scale. These companies would also have access to the best prices for the raw materials they require, even as competition among them stimulates their productivity and efficiency. An integrated ASEAN economy would thus be a potent attraction for investors from outside the region who prefer large, intergrated and efficient markets to small,fragmented and inefficient ones.

The Second ASEAN Summit, held in Kuala Lumpur in 1997, called for expanding cooperation on human resource development,integrating women and youth in human resource development, eliminating poverty, disease and illiteracy, integrating population with rural development policies, providing productive jobs for low-income groups, especially in the rural areas, and taking concerned action to curb the abuse and traffic narcotics and drugs. The ASEAN leaders officially call cooperation in these fields "functional cooperation."

ASEAN's commitment to develop its external relations was enunciated at the first meeting of the ASEAN head of government in 1976, which "expressed ASEAN's readiness to develop fruitful and mutually beneficial cooperation with order countries in the region." This policy was upheld at the second summit, in 1977, when the ASEAN heads of government agreed that economic cooperation with other countries or groups of countries should be further intensified and expanded.

As a first step, ASEAN granted dialogue--partner status to its major trading partners-Australia, Canada, Japan and European Union, New Zealand and the United States-and the United Nations Development Programme. In the nineties ASEAN expanded its dialogue relations to include the Republic of Korea, India, China and Russia. It granted Pakistan sectoral dialogue partnership in 1997. ASEAN has also forged ties with international organizations and regional and subregional organizations such as UNESCO, the Asian Development Bank, South Pacific Forum, Gulf Cooperation Council, South Asian Associations for Regional Cooperation Organization and the Andean community.

Most ASEAN member countries have been at the core of the Asia-Pacific Economic Cooperation, the Asia-Europe Meeting and the East Asia-Latin America Forum, in which they actively participate.

At the height of the East Asian financial crisis of 1997-98, it had seemed as though the ASEAN countries, like the rest of East Asia, had no future at all, and that the ASEAN idea of community had come to nothing. The economic impact of the crisis was severe; it returned millions into poverty and cut down the emerging Southeast Asian middle class. The prognosis of many was that it would take a decade for ASEAN economies to recover, and that the member countries would eventually go their separate ways.

To the surprise of many, however, the ASEAN countries drew closer together in the fire of crisis. And together they have bounced back and returned to growth.

One reason for the quick recovery and endurance of ASEAN is that the highly diverse countries of Southeast Asia have become more cohesive throughout ASEAN's 33 years. Across the division of geography, politics, economies and cultures, the ASEAN countries have become to experience a sense of community and regional identity. They are diverse and yet they are also one.

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Since 1967, ten ASEAN Summit have been held in ASEAN member countries on a rotational basis in alphabetical order as follows:

1. 1^st ASEAN Formal Summit, Bali, Indonesia, on 23-24 February 1976
2. 2^nd ASEAN Formal Summit, Kuala Lumpur, Malaysia on 4-5 August 1977
3. 3^rd ASEAN Formal Summit, Manila, the Philippines on 14-15 December 1987
4. 4^th ASEAN Formal Summit, Singapore on 28 January 1992
5. 5^th ASEAN Formal Summit, Thailand on 14-15 December 1995
6. 1^st ASEAN Informal Summit, Jakarta, Indonesia on 30 November 1996
7. 2^nd ASEAN Informal Summit, Kuala Lumpur, Malaysia on 14-16 December 1977
8. 6^th ASEAN Formal Summit, Hanoi, Vietnam on 15-16 November 1998
9. 3^rd ASEAN Informal Summit, Manila, the Philippines on 27-28 November 1999
10. 4^th ASEAN Informal Summit, Singapore on 24 November 2000

In 1987, the ASEAN leaders decided to meet every three to five years. They felt that regular consultations would forge closer relations among ASEAN members and promote peace, stability and prosperity in the region.

At the FOURTH ASEAN Summit in Singapore in 1992, the Leaders agreed to meet formally every three years with informal meetings in between. The concept of Informal Summit was only adopted during the Fifth ASEAN Summit in Bangkok in 1995 when the Leaders agreed to meet informally every year between the formal summits that are held every three years. The Informal summit was intented as a forum for ASEAN Leaders to meet regularly and informally to discuss issues of common concern without a structured agenda.Thus, the First Informal Summit was held in Kuala Lumpur on 15-16 December 1997, which was also the commemorative summit for 30^th Anniversary of ASEAN. In accordance with ASEAN traditions, which rotates the privilege of hosting ASEAN Summits in alphabetical order, it would have been Myanmar’s turn to host the Third Informal Summit in 1999. However, Myanmar deferred the privilege because it had only just joined ASEAN in 1997. Thus the Philippines hosted in Third ASEAN Informal Summit in Manila on 27-28 November 1999.

At the Fourth Informal Summit in Singapore on 24-25 November 2000, the Leaders agreed to remove the distinction between formal and informal summits and the future ASEAN Summits would become "Working Summits" with less ceremony.

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 3-4 November ASEAN SOM/DGs Meeting

ASEAN + 3 SOM Meeting

ASEAN + 1 SOM with China,Japan and Republic of Korea

5 November 7^th ASEAN Summit

ASEAN + 3 Summit

 6 November ASEAN + China Summit

ASEAN + Japan Summit

ASEAN + Korea Summit

All meetings will take place at International Convention Centre (ICC), Bandar Seri Begawan, Brunei Darussalam.

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AREA

The total land area of the archipelago is approximately 300,000 square kilometers. The three largest island groups are Luzon with an area of 141,395 square kilometers, Visayas with 56,606 kilometers, and Mindanao with 101,999 square kilometers.

The archipelago is further subdivided into regions, provinces, cities, municipalities and barangays. There are 16 regions, including the National Capital Region (NCR), the Cordillera Administrative Region (CAR), CARAGA and the Autonomous Region In Muslim Mindanao (ARMM). Metropolitan Manila has been designated as the National Capital Region and is composed of the cities of Manila, Quezon, Pasay, Mandaluyong, Caloocan, Makati, Pasig, Muntinlupa, Las Pinas, Marikina, Valenzuela and Paranaque and the municipalities of Malabon, Navotas, Pateros, San Juan, and Taguig.

There are 79 provinces, 113 cities, 1,496 municipalities and 41,943 barangays.

CAPITAL

Manila

CLIMATE

The climate is tropical. The rainy season is from June to October, the cool dry season is from November to February, and the hot dry season is from March to May. Temperatures range from 21°C to 32°C, with the average at 27°C. Average humidity year round is 77%. All regions are exposed to typhoons, which are prevalent during the rainy season.

POPULATION

The Philippines has total population of 76.4M as of May 1, 2000. Population density is 255 persons per square kilometer.

LANGUAGE

The national language is Pilipino, derived mostly from Tagalog. There are about 70 other local languages and dialects spoken. The major ones are Cebuano, Ilocano, Hiligaynon, Bicol, Waray, Pangasinense, Pampango and Maranao. English is widely spoken and understood. Spanish and Chinese are still spoken by a minority.

BRIEF HISTORY

Filipino society and culture were fairly well developed prior to contacts with other countries as documented from archeological artifacts recovered.

Some 500 years before Ferdinand Magellan set foot in the Philippines, the Filipinos had commercial relations with China, Indo-China, Malaysia, India and Arabian countries. Chinese silk, porcelain, jars, gold, ivory, and beads were traded for wax, bird's nest, teakwood, rattan, pearls, precious stones and other marine and forest products.

On March 16, 1521, Ferdinand Magellan claimed the Philippines for the Spanish crown and brought great changes in the political, social and cultural life of the people. Christianity was introduced and centralized government was established. By the beginning of the 17th century, Spain's sovereignty over the Philippines had been fully established. Spain's rule for over three centuries was marked by sporadic revolts.

The first Filipino revolt was led by Lakandula, the last King of Manila, in 1574 to castigate the Spaniards because of their reneged promise to exempt the Filipinos from tribute and forced labor. The revolt was terminated when the Filipinos were promised better treatment. Many of the revolts were caused by the people's desire to win back their freedom and others were prompted by Spanish oppression.

The bloody climax of Filipino struggle for freedom was the Revolution of 1896, which was also the culmination of revolts against Spanish rule. The national hero Dr. Jose Rizal led a reform movement in the 1880s which eventually led to the 1896 revolution. Dr. Rizal was tried in Manila and was sentenced to die by musketry.

His death fuelled the fires of revolution and on June 12, 1898, leaders of the revolution declared the country a sovereign state and proclaimed the first Republic of the Philippines.

While the revolution embroiled the country, Spain declared war against the United States because of the latter's intervention over Cuba's fight for independence. Cuba was then a colony of Spain. Spain was defeated and on December 10, 1898, the Philippines was formally ceded to the United States by virtue of the Treaty of Paris. The occupation of the American was resented by the Filipinos and the outcome was the Filipino-American War which lasted for three years.

After several attempts of Filipino patriots to secure an act to grant independence from the United States, the Philippines was able to obtain the approval of the Tydings-McDuffie Independence Act, which provided for the establishment of a Commonwealth government to end after a ten-year period, and the adoption of a Constitution. A Constitutional Convention drafted the Constitution which was ratified on May 14, 1935. The election of Commonwealth officials followed, with Manuel L. Quezon as President, and Sergio Osmena as Vice President. On November 15, 1935, the new officials assumed office and thus began the ten-year period of self-government.

This was interrupted when the Philippines was drawn into a war in the Pacific as an ally of the Americans against the Japanese. Japanese troops occupied Manila in 1942 and for three years, the Filipinos suffered the ravages of war.

The liberation of the country was fully attained in February 1945, marking the start of the country's massive rehabilitation and rebuilding out of the devastation brought about by the war.

On July 4, 1946, a year after the end of the war, the American flag was lowered and the Philippine flag was hoisted, signaling the recognition of Philippine Independence from the U.S.

GOVERNMENT

The Republic of the Philippines, a democratic and republican state, has a presidential form of government under a new Constitution promulgated in 1986 and ratified by the people on February 2, 1987

The 1986 Constitution provided for a tripartite system: the Executive, represented by a President elected by direct vote of the people for a six-year term; the Legislative, represented by a bicameral Congress, composed of the Senate and the House of Representatives; and a Judiciary, with the power of judicial review.

Executive power is vested in the President, who is assisted by the Cabinet. The President is the head of the Cabinet, which is responsible for formulating key policies and carrying out executive functions. The President is the Commander-in-Chief of the Armed Forces.

The Congress has exclusive lawmaking powers. The Senate has 24 Senators elected at large and the House of Representatives has 219 Congressmen elected by district and by party list. The Judiciary is composed of the Supreme Court, the Court of Appeals and other inferior courts. The Supreme Court has a Chief Justice and 14 Associate Justices appointed by the President.

RELIGION

The predominant religion is Roman Catholicism. Roman Catholics make up nearly 85 percent of the population. The other religions are Protestantism and Islam.

CURRENCY

The official monetary unit is the peso. The exchange rate varies from day to day. As of July 27, 2001, one US dollar fetched P 53.50

ECONOMY

For the first quarter of 2001, Gross Domestic Product grew by 2.5%, slower than last year's first quarter growth of 3.3%. The political developments in the country likewise significantly affected investments, which rose a mere 0.1% in the first quarter. The slowdown in the world economy led to a fall in Philippine net exports by 65.9%.

The industrial sector continued to post weak growth of 0.1%. Manufacturing held up a bit with a growth rate of 2.4%, compared to 6.0% in the same period last year. Construction contracted by 10.6% as both public and private construction fell.

There, however, were resilient sectors such as agriculture and services. Agriculture posted a 2.3% growth rate, boosted by crops, livestock, fishery and poultry. The services sector benefited from the strong growth in communication (24.9%); retail trade (5.6%) and private services (7.0%)

Beginning in the second quarter, however, some indications of a pick-up growth are seen. On the demand side, a strong rebound of public investments is noted as national government capital expenditures expanded in April and May by 47.8% following the 24.6% contraction in the first quarter. Approved investment projects in the first six months of the year also improved: BOI-approved projects rose 205.4% while PEZA approved projects increased by 19.4%.

Merchandise exports rose by 6.5% in April after several months of decline. What is noteworthy is the growth in raw materials and intermediate goods for two consecutive months (March - April) after more than a year of decline. Imports of office and EDP machines were also robust.

In April, the volume of industrial production exhibited a strong growth of 12.7% while sales volume growth rose 6.2%.

In agriculture, the Bureau of Agriculture Statistics forecast palay production to grow by 7.5% in the second quarter.

The pick-up in real sector recovery beginning in the second quarter is evident in the labor market data for April. Almost 2 million jobs were created compared to a loss of about 1 million jobs over the same period last year. As a result, unemployment rate fell from 13.9% in April 2000 to 13.3% in April 2001. (April unemployment rate is normally the highest due to seasonality factors: new graduates and school - age workers flock to the labor market during the month.)

Given these indicators, a GDP growth of about 2.8 - 3.0% is expected in the second quarter. While this is slightly lower than the 4.3% growth for the same quarter a year ago, it nonetheless rules out the onset of a recession.

The recent volatility of the peso is partly global and partly due to real or demand factors. The peso has been dragged down by the global strengthening of the dollar. It is noteworthy, however, that the peso has been gaining against the Euro (3.22%) and the Yen (2.46%). This mitigates the impact on inflation of the peso depreciation against the US dollar. The peso is expected to gradually stabilize as monetary authorities continue to implement prudent policies.

The average inflation rate in the first two quarters of 2001 reached 6.7%, still within the government's target of 6.0 - 7.0%. Inflation is expected to slightly rise to 6.8% in July, given the impact of the recent typhoon on vegetable price and the oil prices hikes.

A GNP growth of 3.3 - 3.8% in 2001 can be expected, considering the early leading indicators and the expected impact of the package of policy measures being launched by President Gloria Macapagal Arroyo. Growth is projected to strengthen in 2002 following the global economic recovery.

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COUNTRY PROFILE: NEGARA BRUNEI DARUSSALAM

Brunei Darussalam, "Abode of Peace" is situated on the north coast of Borneo, about 450 kms. north of the equator. It is surrounded on three sides by Sarawak, South China Sea and Sabah. More than 80% of the total land area is still covered by forest, with much of its primary jungle never logged.

CAPITAL: Bandar Seri Begawan

5,765 sq. km. (2,226 sq. miles). It is divided into two parts by the Limbang Valley of Sarawak. The western portion comprises the Brunei-Muara, Tutong and Belait districts, and the eastern portion the mountainous district of Temburong.

Brunei Darussalam is one of the world’s smallest nations. The population of Brunei Darussalam in mid-year 1999, is estimated at 330,700 persons.

Ethnic Composition:

Malay and other

Indigenous 73.5%

Chinese 14.9%

Others 11.6%

Growth Rate: 2.1%

(2000 est.)

Tropical/Equatorial. The temperature range is from 23-32 Degree Celsius, while rainfall varies from 2,500 mm annually on the coast to 7,500 mm in the interior. There is no distinct wet season.

Islam (Official) 67%

Buddhism 13%

Christian 10%

Indigenous beliefs and others 10%

Definition: age 15 and over can read and write

Total Population: below 15 years 32.5%

between 15 & 64 64.1%

over 65 years 3.4%

Malay (Official), Chinese and English

1 January 1984

Brunei Darussalam is a Malay Monarchy ruled by His Majesty the Sultan and Yang Di - Pertuan of Brunei Darussalam, the 29^th monarch in succession to the throne. The Sultan is also the Prime Minister, heading a team of cabinet members. The Sultan is also the Defense and Finance Minister.

Each Minister heads a ministry and has one or two deputy ministers as well as several private secretaries under their purview. The deputy ministers assist them in some ministries and permanent secretaries in all ministries. The ministries are divided into various departments, each headed by a director.

Brunei’s four districts-Brunei-Muara, Belait, Tutong and Temburong are each under the supervision of a district officer who has a team of Mukim heads termed as Penghulus. A Mukim is a sub-division of a district. Each mukim is divided into various villages headed by ketua kampongs (village headmen).

His Majesty Paduka Seri Baginda Sultan Haji Hassanal Bolkiah Mu’izzadin Waddaulah

Primary Resources Natural Gas

Crude Oil

Timber

GDP (PPP) US$ 5.6 billion (1999 est.)

GDP Per Capita (PPP) US $ 17,400 (1999 est.)

Inflation 1% (1999 est)

Currency/Exchange Rate Brunei Dollar (US$ 1.00 =

Bet B$ 1.43 & B$ 1.60

Crude Oil

Liquefied Natural Gas

Petroleum Products

ASEAN

Japan

USA

Korea

Taiwan

Australia

Machinery and Transport

Equipment

Manufactured Goods

Food

Chemicals

Beverages and Tobacco

Singapore

UK

USA

Malaysia

Japan

Social Services  -  Education and health care are free. Many tropical diseases have been completely eliminated.

Value in US$

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OVERVIEW OF PHILIPPINE-BRUNEI DARUSSALAM RELATIONS

The Philippines and Brunei Darussalam enjoy close and beneficial relations. The Philippines warmly welcomed Brunei Darussalam to ASEAN in 1984. In the same year, full diplomatic relations between the two countries were established when the Philippine Consulate General in Bandar Seri Begawan was elevated to an embassy and the Embassy of Brunei Darussalam was opened in Makati.

Bilateral relations may be described as historically close, fraternal and excellent. Political, economic and socio-cultural ties have continued to vigorously expand in recent years. Opportunities for closer relations arise from the deepening of friendship and goodwill between the Sultan and the Filipino presidents, more active exchange of visits among government officials, greater economic and business cooperation and active participation in ASEAN, BIMP-EAGA, APEC and other international fora.

The two countries, together with ASEAN partners Indonesia and Malaysia, embarked on the development of the East ASEAN Growth Area. This initiative, known as the BIMP-EAGA (Brunei Indonesia Malaysia Philippines – East ASEAN Growth Area), hopes to spur growth through economic complementation projects.

Over the years, the two countries have concluded a number of bilateral agreements such as the Memorandum of Understanding (MOU) on Technical and Trade Cooperation in Fisheries (signed in Brunei on 14 November 2000); the MOU on the Establishment of RP-Brunei Joint Commission for Bilateral Cooperation (signed in Brunei on 17 August 1999), and the Air Services Agreement (signed in April 1992 and amended by a Confidential MOU signed in Brunei on 7 August 1999). The two countries are presently working out other bilateral agreements, e.g., Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (initiated by Brunei); Agreement on the Promotion and Reciprocal Protection of Investments (initiated by the Philippines); MOU on Defense Cooperation (initiated by the Philippines); Agreement on Social Security (initiated by the Philippines); Agreement on Maritime Transport (initiated by Brunei); MOA Relating to the Mobilization of Manpower (initiated by the Philippines); and Economic and Technical (ECOTECH) Agreement (initiated by the Philippines).

Brunei is a consistent supporter of the Philippine position on peace and development programs in Southern Philippines and the Philippines highly appreciates Brunei’s understanding of and support to the Philippine initiatives within the Organization of Islamic Conference (OIC).

TRADE

From 1996 to 2000, the Philippines enjoyed a positive albeit fluctuating balance of trade with Brunei Darussalam. In 1996, total trade amounted to US$4.03B, increased to US$5.33B in 1997 but decreased to only US$4B in 1998. The following year, total trade reached a peak of US$6.75B but drastically decreased to only US$ 4.13B in 2000. For the first quarter of 2001, total trade amounted to US$1.09B. Exports during this period amounted to US$1.03B while imports were only US$58.3M, for a balance of trade of US$968.58M.

In 2000, Brunei ranked as the Philippines’ 77^th trading partner. During the same period, it also ranked as the country’s 67^th export market and 131^st import source. Major products exported to Brunei were: parts and accessories of machines of 752; newsprint in rolls/sheets; aviation fuel; mango juice other than concentrates; and other unmanufactured tobacco not stemmed/stripped other than Virginia type.

Major imports in 2000, on the other hand, were: flat rolled products of iron or non-alloy steel; other machinery & mechanical appliances having individual functions; filament yarn, textured of polyester not for retail sale; non-wovens of other textile materials weighing not more than 25g/n 12 whether or not impregnated; machinery for cleaning or drying bottles or other containers.

In the first quarter of 2001 (January – April), Philippine trade with Brunei Darussalam amounted to US$ 1.09B, making that country the Philippines’ 66^th export market and 108^th import source.

Exports to Brunei Darussalam during the same period, amounting to US$1.03B posted a 59.46% increase compared to the previous year’s (2000) total export of US$644M. Exports consisted mainly of: parts and accessories of other telephonic or telegraphic apparatus; aviation fuel; newsprint, in rolls/sheets; parts and accessories of machines of 752; mango juice; other than concentrates.

Imports of the Philippines from Brunei Darussalam increased by 27.78% which amounted to US$58.30M compared to the same period last year when total imports amounted to US$45.63M. Imports consisted mainly of other chemical preparation/unmix product for photographic uses, in form ready for use; motor vehicles for transport of persons; woven fabric, of polyester staple fibers less 85% with viscose rayon staple fibers; hermetically sealed compressors, used in refrigerating equipment; flat-rolled products of iron or non-alloy steel.

The balance of trade during the first quarter of 2001 was again in favor of the Philippines.

The Philippine products for promotion to Brunei Darussalam are basic manufactures, machinery, transport, chemicals, foodstuff and intermediate and consumer goods. These goods have good prospects as Brunei Darussalam produces very few items locally and is heavily dependent on international trade to supply many of its needs.

LABOR

Given the strategic and active partnership between the Philippines and Brunei Darussalam, the Philippines’ skilled workers can complement the latter’s shortfall in expertise and manpower. Brunei Darussalam, has in fact tapped Filipino expertise and manpower to help in its development projects.

Brunei Darussalam is host to more than 22,000 Filipino workers classified according to the following:

1. Professionals (teachers, engineers, accountants, architects, etc.)
2. Skilled Workers (mason, mechanics, heavy equipment operators, truck drivers, carpenters, seamen, computer technicians, secretaries, etc.)
3. Semi-Skilled Workers (clerks, salesladies, waiters, janitors, cleaners, etc.)
4. Unskilled Workers (laborers, general workers, etc.)
5. Household Workers (maids, family drivers, gardeners, etc.)

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The ICC complex was bult in four phases. The first phase was finished in 1989 in time for the 22^nd ASEAN Ministers Meeting (AMM) and the Post Ministerial Meeting (PMC). The second phase was finished in 1994 while third and fourth phases were started in 1997 and completed in 1999.

Today, the overall floor areas of the buildings of the ICC stands at approximately 40,000 square metres. The main buildings in the complex are The Main Conference Hall, the Plenary Hall and the Multipurpose Hall. The Plenary Hall is the largest, with a seating capacity of 5000 persons.

The ICC is a Brunei Government building under the management of the Ministry of Foreign Affairs. The use of facilities at the Centre is chargeable and the rental charges collected are returned as government revenue. The government officers from the Administration Department of the Ministry of Foreign Affairs administer the day to day running of the ICC.

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