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Growth of Brunei's economy were depended on domestic trade between Malay and the Natives, the export of forest product to foreign traders and the source of income of the Sultan and The Royal family
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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