Introduced in 1906
The result of the Supplementary Protectorate Agreement signed on 31 December 1905 and 3 January 1906 by Sultan Hashim for Brunei and John Anderson for the British government
British Resident was appointed to advise the Sultan on all matters of administration except those touching on Islam.
The first Resident was Malcolm McArthur
Took office in May 1906.
Changes under the Residential System
Before the Resident system
-Land governed according to traditional land right.
- Holder to Tulin and Kuripan territons rarely paid taxes to the Sultan.
After the Resident system
- these traditional land right according to Resident system.
-Monopoly Rights were mainly controlled by Chinese businessmen.

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