Trade & Investment

One of the largest exporters of oil and gas in South-east Asia, Brunei Darussalam has long benefitted from its strong trade relationships with Japan, China and its ASEAN neighbours, building a robust trade surplus in the years to 2014 on the back of rising exports and elevated petroleum prices. The oil market’s mid-2014 turnaround has had a dramatic impact on the Sultanate’s trade balance, however, with export revenues tumbling after oil lost two-thirds of its value on global markets between June 2014 and February 2016. Although Brunei Darussalam maintains a trade surplus, exports contracted significantly in 2015, and the outlook for 2016 is subdued as a result of a rising global oil glut. This has underscored efforts to reduce oil export dependency through new diversification measures, which should see manufacturing and industrial exports continue increasing their contribution to total trade in the coming years. This chapter contains an interview with Cecilia Malmström, European Commissioner for Trade.