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A powerhouse regional oil and gas producer, Brunei Darussalam has benefited significantly from a long history of hydrocarbons production in partnership with international oil companies. The energy sector continues to dominate the economy today, accounting for the majority of government revenues, GDP and exports. However, the sector is facing a host of concurrent challenges – production at Brunei Darussalam’s mature fields has been in decline for a decade, while oil and gas prices have fallen rapidly since mid-2014 – putting a significant strain on expenditure, investment and economic growth. Although the near-term forecast for energy sector growth is subdued, there have been a number of positive developments in recent years that will support long-term expansion.

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.

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.

This chapter gives an overview of Malaysia’s legal framework, focusing on key areas that include the Trans-Pacific Partnership, tariff agreements, reforms affecting the entry of foreign firms, and legislation to expand Islamic finance. This chapter contains viewpoints from Philip Teoh, Partner, Azmi & Associates; and Ahmad Lutfi Abdull Mutalip, Partner, Azmi & Associates.

As the world’s second-largest palm oil producer after Indonesia and a leading producer of natural rubber, Malaysia today also boasts increasingly sophisticated fruit and vegetable, rice, livestock and fisheries sectors. These building blocks are set to undergo some important changes in the years ahead, as the country seeks to implement the 11th Malaysia Plan (11MP). Under 11MP there is a strong focus on green, sustainable growth, coupled with increasing mechanisation, boosting human resources and enhancing technological and scientific inputs and outputs. This chapter contains an interview with Pang Teck Wai, CEO, Palm Oil Industrial Cluster Sabah.