Brunei is a state.
Brunei ( [ bruːˈnaɪ ] , ) , officially the Nation of Brunei , the Abode of Peace ( Negara Brunei Darussalam , Jawi : ) , is a sovereign state located on the north coast of the island of Borneo in Southeast Asia . Apart from its coastline with the South China Sea , the country is completely surrounded by the state of Sarawak , Malaysia . The maritime state was visited by Spain 's Magellan Expedition in 1521 and fought against Spain in the 1578 Castille War .