Brunei is a small country on the west coast of North Borneo. The people are mainly Malays. The country has developed rapidly through the export of petroleum and natural gas. However, because Brunei is sandwiched between Sabah and Sarawak, they have tried not to get involved in the dispute over the South China Sea. They have therefore refrained from occupying any of the reefs, but have declared that Lousia Reef lies within their territorial sea.