Brunei will avoid confrontation over South China Sea

Significance

Tensions between China and the South-east Asian claimants have increased considerably in the first half of this year. This has prompted some of those South-east Asian countries, along with stakeholders such as the United States, to step up their criticism of China’s behaviour.

Impacts

• Low oil prices will hurt Brunei’s economy.
• Economic problems will not result in political instability in the country.
• Brunei will continue to prioritise good relations with neighbouring Malaysia, Indonesia and Singapore.