Brunei Darussalam

An overhaul of driving regulations and the launch of a national transportation master plan are hoped to improve links in Brunei Darussalam as the country aims to play a central role in a regional trade grouping. However, convincing Bruneians to choose public transport, rather than their vehicles, appears to be a major challenge.

High-speed internet services should act as a key driver in Brunei Darussalam’s bid to attract investment and transform itself into a knowledge-based economy, although industry experts say further regulatory reform will accelerate ICT uptake and boost penetration.

Retailers in Brunei Darussalam are being urged to step up their role in the battle against piracy as reforms targeting the sale of illegal counterfeits gain pace. The Sultanate hopes a nationwide crackdown, together with an anti-piracy awareness campaign, will prove instrumental in improving both the investment environment and retailers’ bottom lines. However, critics say there is still room to strengthen legislation and the enforcement drive.

The launch of a major seafood processing plant highlights the progress the Sultanate is making in its plans to diversify from oil and resources and position itself as a centre of value-added industry. However, a shortage of available land to further develop the industry sector has been identified as a limiting factor.

The Islamic banking segment strengthened its position within Brunei Darussalam’s financial services industry last year on the back of rising demand that led to the launch of a new bank and major bond issuances. Having moved early to establish sharia-compliant services, the Sultanate is now well placed to carve out a niche for itself as an international Islamic banking centre. However, the industry will need to address a number of challenges, led by a shortage of skilled workers, if it is to fully support the segment’s development.

While overall growth in Brunei Darussalam’s economy slowed in 2012, expansion in the non-oil and gas sector suggested that some of the Sultanate’s diversification efforts are gaining traction and should pave the way for government plans to target value-added production.