The North Borneo Federation
, also known as Kalimantan Utara
or North Kalimantan
was a proposed political entity which would have comprised the British Colonies
, British North Borneo
(now known as the Malaysian
state of Sabah
) and the protectorate of Brunei
By 1956, the governments of Sarawak
, North Borneo
, and the State of Brunei
announced that they would abandon the Malayan dollar and adopt a common currency of their own,G.M. Watson and S. Caine, Report on the Establishment of a Central Bank in Malaya
(Kuala Lumpur, 1956), 1 but that never came into being.
The idea of the North Kalimantan
was originally proposed by A. M. Azahari
, who had forged links with Sukarno
's nationalist movement, together with Ahmad Zaidi, in Java
in the 1940s. The idea supported and propagated the unification of all Borneo territories under British rule to form an independent leftist North Kalimantan state.
Azahari personally favoured Brunei's independence and merging with British North Borneo
to form the federation with the Sultan of Brunei
as the constitutional monarch.
However, the Brunei People’s Party
was in favour of joining Malaysia on the condition it was as the unified three territories of northern Borneo with their own Sultan, and hence was strong enough to resist domination by Malaya, Singapore, Malay administrators or Chinese merchants.
The North Kalimantan
(or Kalimantan Utara
) proposal was seen as a......