DOMESTIC POLITICS: Brunei's sultan is expected to retain the right to rule as prime minister, and to appoint ministers and define their functions. He also holds the prerogative of mercy in judicial cases and the right to regulate the Muslim religion in Brunei. The government argues that Bruneian society is held together by three factors: the Malay language, the Islamic religion and support for the monarchy. There are signs that the sultan is contemplating a renewed bout of propaganda on the concept of Melayu Islam Beraja (Malay Islamic Monarchy), which is seen as the heart of local culture. Although traditional deference has not been discredited, a move towards a limited form of democracy could take place in 2009-10. The sultanate is unlikely to experience socioeconomic tensions, as its oil- and gas-backed economy provides a high degree of economic stability. Brunei has one remaining legal political party, the Parti Pembangunan (National Development Party), led by Muhammad Yasin, the former leader of the party that, in 1962, won the country's only full general election (the result of which was annulled). Despite the absence of political activity, the oil-rich sultanate is able to provide most Bruneians with jobs and healthcare without levying an income tax. However, the decision, in principle, to move towards partial democracy is a prudent one, in view of Brunei's diminishing reserves of oil and gas, which at current rates of production could be depleted in the next 20-30 years.

Source: Brunei: Country outlook