Many of us tend to imagine that countries with a high standard of living are synonymous with large cities, high taxes, and a fast-paced lifestyle. Brunei, however, offers a narrative that is almost the opposite.
In this small country located on the northern coast of the island of Borneo, prosperity takes a simpler form, the state covers most of its citizens’ living needs. Education is free, healthcare is nearly costless, and there is no personal income tax.
With a population of fewer than 500,000 people and abundant oil and gas wealth, Brunei has built a system often described as approaching a “total welfare state.”
The government not only provides basic services but also ensures a high quality of life through subsidies for energy, food, and even housing. In many ways, life in Brunei resembles a modern version of a classic welfare state—yet with the enduring influence of a strong absolute monarchy.
A Small Country with Extensive Facilities
Imagine a country with two fully equipped main hospitals, supported by a network of clinics, health centers, and even mobile and air medical services to reach remote villages. In Brunei, this ideal scenario is an everyday reality.
Citizens pay only nominal fees for healthcare services, with the rest covered by the state. This system places Brunei’s healthcare among the best in Asia.
The story is similar in the education sector. The state covers the cost of education up to the university level, which helps explain why the country’s literacy rate reaches nearly 95%.
Remarkably, all of this operates without imposing income tax on citizens. Not only are residents tax-free, but they also benefit from extensive subsidies for essential needs such as fuel, electricity, water, as well as staple goods like rice and sugar. In some cases, the government even provides land and housing for its citizens.
It is no surprise, then, that Brunei’s standard of living ranks among the highest in the world, especially for a country with a land area of only about 2,200 square miles.
Luxury Dependent on a Single Resource
Yet behind this comfort lies a reality that cannot be ignored. Almost the entire engine of Brunei’s economy is driven by a single sector: oil and gas. This sector accounts for around 90% of exports and 95% of Gross Domestic Product.
This means that the prosperity enjoyed today is heavily dependent on non-renewable resources. When oil prices declined starting in 2013, the impact was immediately felt—economic growth slowed and fiscal pressures began to mount. Over the past decade, Brunei’s economic growth has tended to stagnate.
The government is aware of this risk. Through its Vision 2035 strategy, Brunei has begun promoting economic diversification into sectors such as tourism, technology, the halal industry, and financial services. However, shifting the economic foundation from natural resources to other sectors is not a quick process.
A System That Must Adapt
Politically, Brunei is a monarchy that has endured for more than 600 years under the same ruling family. This stability has been a key factor in maintaining policy consistency.
However, not all policies have been free from criticism. The implementation of strict Sharia law since 2014 triggered international reactions, including boycotts of royal-owned assets abroad. Nevertheless, the government has emphasized a moratorium on the death penalty.
At the same time, changes are beginning to appear in domestic policy. Starting in 2025, free healthcare no longer applies to certain non-citizens and expatriates, who are now required to cover their own costs or obtain insurance.
This policy marks a subtle shift in what has long been an extensive welfare system.
If any of you are considering becoming a citizen of Brunei, you may need to be prepared for disappointment. The process of obtaining citizenship or even permanent residency is extremely strict and requires high-level approval, making it nearly impossible for many foreigners.
In the end, Brunei is a paradox: a small country with no external debt, a stable currency, and a high quality of life—yet deeply reliant on a single source of wealth.
Perhaps it is true that Bruneians are among the most fortunate people in the region. But like many stories of fortune, the real question is not only how it is attained, but how it can be sustained when conditions begin to change.
