1.4 Basis of Economy: Trade and Revenue system

Objectives

• Describe the factors that contributed to the growth of Brunei’s trade in 15th century-19th century

• Describe Brunei’s trading activities with other countries such as China

• Describe the Sultan and the royal family’s source of income

Brunei’s Economy

Brunei’s Trade

The incomes of the Sultan and the Royal

Family

Export of Brunei’s product

Brunei’s trade

• Brunei’s economy was supported by its conquered Negeris in Borneo and the Philippines which were rich in natural resources.

There were 2 types of Negeris:

•Protectorate•Feudal States

Protectorate

• Protectorate is a land or area under the protection of Brunei.

• Areas include negeris in the western and southern parts of Borneo and the island of Luzon, Mindanao and Sulu

• The people in this area paid taxes and they were allowed to use Brunei’s ports for trading purpose

Feudal States

• Feudal states is a land or area belong to the Sultan

• The negeris in the northern and southwestern part of Borneo, and the islands of Palawan, Banggi and Balak

• They paid taxes and provided forest product to Brunei’s market

Trading with foreign traders

• Natives collected forest product and sold them to the Malays at the river mouth

• The Malays then sent these products to the Chinese and European traders

• Each rivers mouth acted as trading centres. They functioned as feeders to Brunei’s trade as they fed money to Brunei’s economy

• Brunei’s trade continued to grow as the natives, the Malays and foreign traders continued to use Brunei’s ports to trade