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 coastline next to the South China Sea, and it shares a border with Malaysia. It has of territorial waters, and a exclusive economic zone. About 97% of the population lives in the larger western part (Belait, Tutong, and Brunei-Muara), while only about 10,000 people live in the mountainous eastern part (Temburong District). The total population of Brunei is approximately 408,000 , of which around 150,000 live in the capital Bandar Seri Begawan. Other major towns are the port town of Muara, the oil-producing town of Seria and its neighbouring town, Kuala Belait. In Belait District, the Panaga area is home