The Unfinished Decolonisation of Brunei: Oil, Strategy, and British Withdrawal

Abstract

This paper examines Brunei’s protracted path to independence, achieved in 1984 after nearly two decades of negotiations with the United Kingdom. Although Britain sought to divest itself of colonial responsibilities, Brunei’s substantial oil wealth and investments in the Sterling Area gave the Sultan considerable leverage, including the ability to threaten unilateral withdrawal of Sterling holdings. This economic influence, combined with the Sultan’s resistance to joining Malaysia or embracing full independence, prolonged the decolonisation process. The paper highlights how Brunei’s strategic economic ties to Britain, including investments in Shell and contributions to the Sterling Area, allowed the Sultan to balance autonomy with continued British protection. It also explores the UK’s competing interests: reducing overseas commitments while maintaining financial benefits during a period of economic instability in the 1960s and 1970s. This research sheds light on the economic and political complexities of decolonisation in Southeast Asia. It argues that Brunei’s case illustrates the persistence of colonial ties well beyond the broader decolonisation wave of the 1960s, revealing how economic imperatives shaped the timing and nature of British disengagement from empire.