Purchase OBG Publications

With a near-pristine environmental record and more than 70% of its territory covered by tropical rainforest, Brunei Darussalam has strong potential to capture a sizeable share of the growing Asian ecotourism and family holiday market. The country is host to an abundance of natural attractions, from rainforests to beaches, rare wildlife to the legacy of tribal cultures, and a rich vein of Islamic history. Despite these strengths, the industry remains relatively small as a share of the Sultanate’s overall economy. There is recognition by the government and various stakeholders that the current tourism model is unlikely to contribute much towards economic growth, and efforts moving forward will focus in particular on high-end and low-volume tourism with a minimum impact on the Sultanate’s environment and local culture. This chapter contains an interview with Mariani Haji Sabtu, Acting Director, Tourism Development Department.

With ample energy resources, Brunei Darussalam is working to build a stronger industrial base using its access to cheap power and petroleum products. Downstream industries have already seen significant successes, and efforts are also being made in unrelated sectors, specifically in halal products, where the Sultanate has resources and expertise. High-tech industries are also attracting significant attention. Moves to address skills gaps and support innovation are also playing their part in expanding industry. Industrial diversification is now delivering improved economic productivity and the realisation of national growth objectives. While petrochemicals remains the top industrial segment to date, the coming years should see a growth in investment and output from sectors considered nascent today. This chapter contains an interview with Edward Ko, General Manager, Viva Pharmaceutical Brunei.

Several years of strong investment, mainly driven by government initiatives to improve infrastructure and address a housing shortage, have boosted Brunei Darussalam’s construction industry. Major on-going projects include upgrades to the Brunei International Airport, as well as the construction of the Brunei Cancer Centre, the Prime Minister’s Office and several key roads and bridges. It is also likely that demand for the construction of homes, schools and hospitals that cater to the Sultanate’s growing population will remain strong in the years to come. If the Sultanate’s economic diversification project succeeds in attracting investments to the country, Brunei Darussalam will need modern and efficient policies and regulators oversee the development of its built environment. This chapter contains an interview with Marcelino Ugarte, General Manager, Heidelberg Cement Asia.

ASEAN is set to declare itself a common market at the end of 2015, in a move that will create new opportunities for investors in a region the boasts not only some of the world’s fastest-growing economies, but also an expanding middle class. Current estimates for the combines GDP of ASEAN nations have been put at around $2.3trn, with this figure set to rise to $10trn by 2030. Economic growth in the region over the past 10 years has progressed at about 7.5% per year. With Brunei Darussalam taking on the ASEAN chair in 2013 at a crucial moment for the 10-member organisation, the country with a population just a fraction of the size of most of the region’s capitals will need to marshal all of its skills in diplomacy and negotiation to ensure that member states advance further down the road to economic integration.

Despite having sufficient capacity at its Muara Port, Brunei Darussalam has carried out several upgrades and built three inland container depots that offer improved Customs processing and better refrigeration. While Brunei Darussalam’s infrastructure is modern, it is comparatively basic. The country’s ambition to serve as a centre for regional trade, however, is now motivating a number of investments and long-term strategic planning. Carefully planned investments can serve to make Brunei Darussalam’s transport sector, if not the catalyst of economic transformation, at least an enabling factor. This chapter contains interviews with Dato Abdullah Bakar, Minister of Communications; Pengiran Zain, Acting Director of Ports; and Dermot Mannion

The 2006 Insurance Order and Insurance Regulations began a process of sector consolidation by implementing new requirements, such as a higher paid-up capital of $6.2m, up from $778,800. The government’s concerted efforts to reduce overall levels of personal debt in the Sultanate are expected to help the insurance sector grow and develop. Fronting business makes up a large part of activity in the local insurance segment, especially for the major international oil companies operating in the Sultanate. Although growth within the sector is unlikely to be spectacular in the coming years, with prudent management, insurance firms in the country can expect a healthy profit. This chapter contains an interview with Helen Yeo, Chairperson, General Insurance Association of Brunei Darussalam.