Brunei prepares for rude awakening after oil

Brunei's 370,000 citizens live a tax-free existence, with free health and education and heavily subsidised petrol prices - 51 Brunei cents a litre (USD $1.01 per gallon). But sleepy Brunei may soon have to wake up. The size of its oil and gas reserves is a state secret, but it is estimated they may last only another 20 years. In his birthday address on July 15, Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah warned that "an open attitude towards the diversification of our economy is important when it comes to ensuring the country's survival".

What will Brunei do when the state's resources run dry? Right now, the Government is looking for other ideas: tourism, creating a financial hub, and becoming a centre of halal food processing have all been mentioned. Can the sultan introduce taxes and still insist on continued absolute sovereignty? Time will tell whether Bruneians, when they finally have to pay market price for petrol, will see the future through their sovereign's eyes.

- It could be a bit late to also try to do the Dubai thing.

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