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The ICT sector has been singled out as a priority in Brunei Darussalam’s long-term strategic development plan, Wawasan Brunei 2035, which has set an ambitious target for the sector to contribute 5-6% to national GDP by 2015, compared to an estimated 2% in 2013. Although dial-up internet connections continue to dwindle, broadband connections witnessed a dramatic resurgence starting in 2013. Strong investment in mobile and fixed telecoms infrastructure is providing a durable, capable and efficient backbone that will serve as a solid foundation to build upon for future public and private ICT growth opportunities. Private sector participation should pick up in the ensuing years as the technology becomes more widely accepted and utilised, and the expansion of home-grown ICT start-ups should provide an additional push through the creation of a more locally relevant context. This chapter contains interviews with Haslina Taib, CEO, BAG Networks; and Suhaimi Hussain, CEO, DST.

Islamic banking and insurance, or takaful, are becoming the dominant forms of banking and insurance, and inbound foreign investments are increasingly channelled into Islamic markets. The Sultanate’s largest bank is an Islamic lender, dominating the domestic market as well as developing into an international player in Islamic finance. The rise of takaful has been aided by strong support from the government and close relationships with local Islamic banks. This chapter contains an interview with Javed Ahmad, Managing Director, Bank Islam Brunei Darussalam.

Local conventional and Islamic banks as well as international bank groups are all active in the small and competitive Bruneian market. Sector growth has accelerated as authorities have eased up somewhat on restrictive regulations, and banks are looking forward to an improved climate as overall economic growth revives. While the climate for banking remains competitive and the scale of the market is small, credit growth rates in business lending are expected to remain strong as the government leans on local lenders to support development. With investment set to rise in offshore energy, downstream processing and infrastructure, banks could see more their credit portfolios grow. This chapter contains interviews with Dato Haji Mohd Rosli, Former Managing Director, Autoriti Monetari Brunei Darussalam; and Pierre Imhof, CEO, Baiduri Bank.

Plans to complement domestic production by undertaking international exploration support the Sultanate’s target of reaching an output of 650,000 barrels of oil equivalent per day by 2035. Downstream, the government is investing in development of its petrochemicals sectors. The country today is primarily an exporter of liquefied natural gas, which is shipped to Japan, South Korea and Malaysia, and is a significant oil supplier to the Asia-Pacific region. Its oil and gas output is likely to stabilise in the near to mid-term as investment in both exploration and the development and refurbishment of older fields has significantly accelerated. In the longer run, the country’s success will largely depend on the size of its deepwater resources and how well the government can rally the resources for their exploration and development. This chapter contains interviews with Pehin Dato Yasmin Umar, Minister of Energy; and Ken Marnoch, Managing Director, Brunei Shell Petroleum; along with a roundtable with Hj Awang Hj Ali, Executive Chairman, Belait Shipping; Supna Karwanamurthi, Managing Director, FLUX O.S.; Mohd Shafie Mohd Yusof, Managing Director, Petrokon Utama; and Amir Osman, Managing Director, PTAS Group.

With a wealth of oil and natural gas reserves beneath its territory, Brunei Darussalam has been able to maintain a comfortable trade surplus and ranks among the top-five countries in the world in terms of GDP per capita in spite of producing little else domestically. According to the World Bank, introduction of the ASEAN Economic Community could boost annual income growth by 0.5-1% of GDP and increase foreign direct investment stocks. Negotiations are also taking place on the Regional Comprehensive Economic Partnership, which includes ASEAN members and six regional free trading partners. Beyond the advantages of stronger economic, strategic and logistical ties within the region, an increase of Brunei Darussalam’s manufacturing base will help the country fully capitalise on the advantages afforded by ASEAN membership and other future multilateral FTAs. This chapter contains interviews with Le Luong Minh, Secretary-General, ASEAN; Pengiran Yura Kesteria PSN Yusuf, Executive Chairman, BIMP-EAGA Business Council; and Secretary Luwalhati R Antonio, Chair, Mindanao Development Authority.

Driven mainly by offshore oil and gas infrastructure, Brunei Darussalam had an estimated stock of $14.2bn of inward foreign direct investment as of the end of 2013, equal to around $35,000 per capita. The country actively recruits foreign investment, offering generous tax incentives to targeted projects that bring in high-paying jobs, help diversify the economy, add value to existing oil and gas production, or efficiently substitute for imports. Foreign investors are paying close attention to how Brunei Darussalam handles its transition into sharia law. Although the Sultanate is not believed to be aiming for a radical implementation, there is concern that any sharia case opened against a foreigner could potentially damage the sense of security to which foreign investors and experienced professionals have grown accustomed. This chapter contains interviews with Pehin Dato Lim Jock Seng, Minister of Foreign Affairs and Trade II; Jun Yanai, Senior Executive Vice-President and CEO, Energy Business Group, Mitsubishi Corporation; and Kevin Speed, Vice-President and Regional Business Leader, CAE Asia; as well as a viewpoint from Xi Jinping, President of China.