Brunei Darussalam

International agencies and local officials are warning that Brunei Darussalam must remain firmly focused on diversifying its economy away from a declining energy sector and on improving its human capital if it is to achieve sustainable growth in the medium term.

Greater investment and an increased pace of new project launches should see Brunei Darussalam’s transport and logistics reinforced over the next few years, building on recent improvements to the Sultanate’s infrastructure.

Territorial disputes in the South China Sea have highlighted the ongoing tensions between China and countries including the Philippines, Vietnam, Taiwan, Malaysia and Brunei Darussalam, with the US also weighing in recently with its proposals for a bigger military presence in the region.

With a growing population and expanding economy heaping the pressure on Brunei Darussalam’s water supply, the Sultanate has upped investment in storage and processing infrastructure, while also calling on its people to reduce consumption.

Brunei Darussalam has proven to be fertile ground for international food chains entering the domestic market, with an increasing number using franchising as a means to extend their roots and reach out to an enthusiastic clientele. As a result, their success is prompting calls for local businesses to use the same franchising vehicle to drive expansion overseas.

Efforts are under way to direct greater focus to Brunei Darussalam’s agriculture sector, in order to both improve food security and create a niche in the global market. Crude oil and natural gas production comprise 60% of GDP and more than 90% of exports, while the agriculture sector’s share of GDP is only 0.72% and employs just 1.4% of the population. To overcome its dependency on food imports, which account for 80% of the national food supply, the sultanate aims to achieve self-sufficiency by increasing capacity while continuing to specifically target halal foods.