Economy
From The Report: Brunei Darussalam 2016
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A high-income country with vast petroleum wealth, robust fiscal reserves and a small, highly- educated population, Brunei Darussalam is unique among the ASEAN community. Oil and gas resources have generated high per-capita income, although the economy has contracted in recent years as a result of falling oil and gas prices, which account for more than 90% of export revenues. Although historically high energy prices and prudent policy making have left the Sultanate well-positioned to weather short-term market shocks, productivity has been sluggish and the economy’s dependency on oil and gas production is a concern for the government. As such, Brunei Darussalam has launched a number of reforms in recent years aimed at attracting new foreign direct investment; developing the high-tech, agricultural and manufacturing industries; supporting small and medium-sized enterprises; and encouraging private sector growth. This chapter contains an interview with Mohd Amin Liew Abdullah, Deputy Minister, Ministry of Finance and Chairman, Brunei Economic Development Board (BEBD); and a viewpoint from Andrew Robb, the Australian Government’s Special Envoy for Trade.

Articles from this Chapter

Overview

Diversity drive: Two mega-projects and investment in non-energy sectors aim to broaden the economy and impact GDP growth
OBG
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A high-income country with vast petroleum wealth, robust fiscal reserves and a small, highly-educated population, Brunei Darussalam is unique among the ASEAN community. Oil and gas resources have generated high per-capita income, although the economy has contracted in recent years as a result of falling oil and gas prices, which account for more than 90% of export revenues. Although historically high energy prices and prudent policymaking have left the Sultanate well-positioned to weather short-term…

Analysis

Effective measures: Reforms in the Sultanate saw its ranking in the World Bank’s ease of doing business index rise in 2016
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After a sharp slide on the World Bank’s ease of doing business index in the “Doing Business 2015” report, Brunei Darussalam launched a host of new reforms aimed at making the country’s investment climate more attractive and competitive. New businesses in low-risk sectors are now able to receive a licence and begin operations in a tenth of the time, while ongoing efforts to bolster foreign direct investment (FDI) and streamline investment procedures will offer further long-term benefits. This…

Interview

Meaningful opportunities: OBG talks to Dato Mohd Amin Liew Abdullah, Deputy Minister, Ministry of Finance; and Chairman, Brunei Economic Development Board (BEDB)
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Interview:Dato Mohd Amin Liew Abdullah What are your expectations in terms of long-term inflows of foreign direct investment (FDI)? DATO MOHD AMIN LIEW ABDULLAH: Over the last few years we have attracted interest from various international firms to invest in Brunei Darussalam, notably from Canada, China, Japan, Malaysia, Taiwan and Turkey. These FDI projects, mainly in export-oriented industries, have been successfully implemented and are currently in commercial operations. There are a further…

Viewpoint

Ties that bind: Andrew Robb, the Australian Government’s Special Envoy for Trade, on the impact of regional trade deals
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The economic fortunes of Australia and Brunei Darussalam are both heavily dependent on the goods and services we export and on our ability to attract foreign investment to develop and expand our productive sectors. Greater trade and investment flows are fundamental to creating jobs for our people and ensuring our nations’ prosperity. Our shared commitment to global trade liberalisation is reflected in the low tariffs and minimal other barriers to trade and investment we maintain. Australia and…

Analysis

Rationalising costs: With reduced oil and gas revenues, the Sultanate is reforming the public sector and diversifying its economy
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Government revenues have declined significantly in Brunei Darussalam as a result of the global oil market slowdown, leading authorities to float a number of new policies aimed at rationalising spending. The 2016/17 budget reflects these challenges, with funding cut at nearly every department and a strong emphasis on improving efficiency and productivity. Moves to increase foreign investment and support economic diversification also factored strongly into the government’s spending plans, and non-oil…