Indonesia–Malaysia confrontation become self-governing in 1959). In May 1961, the UK and Malayan governments proposed a larger federation called Malaysia, encompassing the states of Malaya, North Borneo, Sarawak, Brunei, and Singapore. Initially, Indonesia was mildly supportive of the proposed Malaysia, although the PKI (Partai Komunis Indonesia — Indonesian Communist Party) was strongly opposed to it. In Brunei, it was unclear whether the Sultan Omar Ali Saifuddien III would support Brunei joining the proposed Malaysian state because of the implied reduction of his political office, and Brunei's oil revenues ensured Brunei's financial viability were it to choose independence. Furthermore, a Brunei politician, Dr.
Brunei–Malaysia border (Definition of Boundaries) Order in Council, 1958. It asserts that its eastern boundary extends from the 100 fathom isobath at to while the western boundary extends from the 100 fathom isobath at to . The EEZ outer limit runs between the two distant points parallel to the coast. Brunei's EEZ claim would include waters surrounding the Spratly Islands in the South China Sea. The area claimed by Brunei however does not include any islands but includes Louisa Reef, which is currently occupied by Malaysia. Until 2009, Malaysia did not recognise Brunei's EEZ claim and stated that Brunei's maritime territories ended