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 and Sabah, Malaysia, on the other. All three territories were then ruled by Britain. The powers for the order in council were derived from the British Colonial Boundaries Act of 1895. Brunei and Malaysia still adhere to the British Orders in Council to define their territorial waters, where it was referred to in the Joint Statement made after the 18th Annual Leaders' Consultation between the Sultan of Brunei and Prime Minister of Malaysia on 3 November 2014 when reference was made to the Sarawak (Definition of Boundaries) Order in Council 1958 No 1518 as part of the boundary definition process