The story dates back to the late 1800s when a series of ayau (raids) threatened the safety of Kampong Sengkarai's residents.

To escape these dangers, the villagers convened a meeting and unanimously decided to construct an enormous boat, approximately 4–5 chains (260–330 ft; 80–101 m) in length.

The boat was named Sang Garai, after a fearsome and powerful mythical creature that inspired both awe and terror at the time.

On 30 October 1994, Awang Haji Mohamad bin Seruddin briefly assumed the role of village head for about five months.

This palace was built by Sultan Omar Ali Saifuddien III for the royal family to rest during visits to the Tutong District.

The original building, constructed on government land, featured basic materials such as round timber columns, wooden walls, and a zinc roof.

As enrolment increased, the government funded the construction of a permanent school building on 11.7 acres (4.7 ha), completed on 1 March 1981.

[7] The proposal for the new surau was initiated by the village head at the time, Haji Badaruddin bin Seluddin, who suggested relocating it to Temporary Occupation Licence land near the balai raya (community hall).

The villagers approved the proposal and formed a construction committee, which sought government permission to collect public donations for funding.

Further improvements were made, including the construction of a new kitchen and toilets in 1991 and a roof replacement in 1992, funded by the Department of Sharia Affairs.

The surau now has a permanent muezzin, Mohamad Shahirwandy bin Samsudin, who previously served at Kampong Penabai Mosque in Tutong.

[8] The surau has organised religious activities such as nightly tadarus sessions, Quran completion ceremonies, memorial prayers, and celebrations of Islamic and national events.