FACTS AND FIGURES ON BRUNEI DARUSSALAM
Brunei Darussalam is a monarchy with a national ideology based on Islam.
Brunei has a population of 350,000, of which 68% are Malays, 15% Chinese and the
remaining 17% is made up of indigenous groups, Indians and foreign workers.
The ruler, His Majesty Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah is also Prime
Minister, Minister of Defence and Minister of Finance.
The Sultan is assisted and advised by five constitutional councils: the Council of Ministers
(the cabinet), the Privy Council, the Legislative Council, the Council of Succession and the Religious Council.
RECENT HISTORY
1984 |
Brunei Darussalam proclaimed its independence from British protection on 1 January. Shortly thereafter, Brunei became an official member of the Commonwealth, the United Nations, and the Islamic Organisation Conference. |
1985 |
Brunei joined the Association of South-East Asian Nations (ASEAN) |
1996 |
Shariah courts that deal with Islamic law were established |
1998 |
Brunei hosted the 20th SEA (South East Asian) Games |
2000 |
Brunei hosted Asia-Pacific Economic Co-operation (APEC) 2000 |
2001 |
Brunei hosted the Seventh ASEAN Summit |
2002 |
Brunei hosted the ARF meeting |
2003 |
Brunei hosted the 15th PECC Forum |
2003 |
Brunei hosted the Commonwealth Finance Ministers Meeting |
ECONOMIC OVERVIEW
Brunei's economy is dominated by the oil and gas industries. In 2003, 40% of the nation's GDP and almost
90% of its exports were related to its oil and gas reserves. The mining, quarrying and
manufacturing sectors accounted for 41.2% of GDP.
The government is keen to diversify the Bruneian economy. Potential downstream oil and gas activities have been identified to expand the oil and gas industries.
Banking and finance and manufacturing are other areas that have been targeted for
development. Banking and finance accounted for 5.1% of GDP.
The International Offshore Financial Centre (IOFC) was established in 2000 to enhance
the country's position as one of the leading centres for offshore banking. Royal Bank of
Canada has obtained the first Offshore Banking license and has been operating since
August 2, 2002.
DEVELOPMENT PLANS
The Eighth National Development Plan (NDP) covering 2001 - 2005, is committed to
strengthening the country's private sector and stimulating additional foreign investment.
The government has projected that an estimated B$7.3 billion is needed to achieve the
NDP's developmental, economic and social goals, and has committed 40% of the amount.
The Eighth NDP proposes to stimulate growth in the country's small and medium-sized
enterprises (SMEs) sector, which plays an important role in generating employment and
revenue. Most noteworthy is the proposal to replace government-funded development
programmes with privately funded ones, putting the government in a stronger position to
balance its budget while also ensuring long-term support for local businesses.
MAJOR SECTORS
Oil and Gas
The oil and gas reserves that have fuelled Brunei's economic growth continue to be the
country's main source of revenue and provide the second largest source of employment,
after the civil service. It is currently estimated that Brunei's known reserves of oil and gas
will last for 25 and 40 years respectively.
At the end of 2004, the country was producing 205,000 barrels of crude oil per day. Daily production of natural gas measured 1,018 million cubic feet.
The country remains committed to expanding its oil and gas reserves through ongoing
exploration, both in existing areas and in new deep-sea locations. In January 2001, the
government released a further 10,000 square kilometres of ocean for prospecting.
The government is also seeking to increase the economic resilience of its oil and gas
industries through the creation of downstream activities, such as oil refineries and an
export-oriented petrochemical industry.
Manufacturing
The manufacturing sector currently plays a relatively minor role in Brunei's economy,
accounting for 3.9% of GDP.
Manufacturing has been identified by the government as an important area for economic
diversification. While Brunei already produces a number of products for export - including
construction materials, electrical products and furniture - the garment industry is recording
the fastest growth. The country exported BND$398.4 million of ready-to-wear garments in
2003.
Agriculture, forestry and fisheries
In 2003, the agricultural sector contributed 2.8% to total GDP. Brunei imports a significant
volume of food for domestic consumption.
A notable success story in the agricultural sector is the harvesting of vegetables, which has
risen by over 100% over the last 10 years, recording an estimated annual harvest of 10,360
metric tonnes.
The fisheries industry has been estimated by the government to have a potential value of
some BND$200 million per year. Despite this, Brunei's current consumption of fish is
predominantly import-dependent. http://www.fisheries.gov.bn/potentials/index.htm
Banking and Finance
As part of its economic diversification program, the government has made a commitment to expand the financial industry by promoting the country as an International Offshore Financial Centre (IOFC). Like its neighbour Malaysia, Brunei is also keen to strengthen its provision of regional Islamic banking and insurance services. Currently the Islamic banks in Brunei are Islamic Bank Berhad (IBB), and Tabung Amanah Islam Brunei (TAIB) and Islamic Development Bank Berhad.
There is no central bank in Brunei. Rather, its currency is issued and managed by the
Brunei Currency Board, which operates under the jurisdiction of the Ministry of Finance.
The Brunei Association of Banks sets interest rates.
Tourism
Brunei offers many attractions to visitors, particularly in the area of eco-tourism. With 80%
of the country being forest, including areas of virgin rainforest and primal swamp habitats,
Brunei is one of very few places in South-East Asia where visitors can explore and
experience the undisturbed fauna and flora of an equatorial wilderness.
http://www.brunei.gov.bn/about_brunei/tourism.htm
http://www.tourismbrunei.com
BALANCE OF PAYMENT
Trade
Although heavily reliant on imports, Brunei's small population has enabled the country to
enjoy a strong trade surplus for many years. Exports of oil and gas were worth BND$6.8
billion, far in excess of the country's total imports worth BND$2.3 billion during the same
period.
Japan remains Brunei's largest export market, accounting for over 40% of all exports,
followed by ASEAN (20%), Australia (8.3%) and Korea (11.2%).
ASEAN countries are the biggest import sources, providing 47.4% of total imports, with
20% from Malaysia and 20% from Singapore. Closely behind is the USA at 11.5%.
The European Union, mainly the United Kingdom, contributed 10.7%.
MAJOR OPPORTUNITIES FOR CANADA
Information Communication Technology (ICT)
The ICT sector has been targeted as a sector for growth to support further diversification
from over reliance on the oil and gas sector.
The government is investing heavily (approximately BND$1billion or C$850,000million) in
ICT in support of E-government, E-education, E-commerce, E-health and E-community. The following are some identified trade opportunities for Canadian companies:
- HRD - Training and re-structuring
- Hardware - To facilitate E - activities
- Software - Content providers to support new initiatives
- Telecom companies - To provide connectivity.
- Infrastructure - to provide backbone for connectivity
Education
Brunei has a literacy rate of 93.7. Forty percent of Brunei's population is under the age of
20 and education is of the highest priority for the government. At present there is 1
University and 8 colleges that offer A-Levels. Students could also choose to pursue technical and vocational education at:
- the Sultan Bolkiah Vocational School
- Sultan Saiful Rijal Technical College
- Jefri Bolkiah College of Engineering
- Brunei Arts & Handicrafts Training Centre
- Brunei Institute of Technology
- PAPRSB Nursing College
Pursuing higher education abroad is very common and popular with Bruneians. The United
Kingdom is the most preferred destination followed by Australia, Singapore, Malaysia and
then Canada.
Canada's recent successes in this sector include:
- Twinning programme between Universiti Brunei Darussalam and University of Windsor for Biotechnology (2+2)
- Twinning programme between Universiti Brunei Darussalam and University of Calgary for Medicine (Pre Med in Brunei)
- Twinning programme between Universiti Brunei Darussalam and University of Dalhousie for Medicine (Pre Med in Brunei)
- Double degree program between Universiti Brunei Darussalam and University of York
- In service training for a cohort of Brunei IT teachers at Simon Fraser University
Environment
The government has stipulated in its 8th National Development
Plan (2001 - 2005) that it will implement the following initiatives:
- ensuring sustainable utilisation of natural resources;
- preventing and reducing the negative impacts on the environment arising from
increase in population and human activities;
- ensuring a balance between socio-economic development objectives and the
importance of maintaining quality and sustainable environment;
- enhancing the appropriate use of the latest, effective and environmentally friendly
technology;
- strengthening the regulation and enforcement measures;
- enhancing public awareness and support; and
- improving the existing facilities and services.
Currently, Brunei does not have environmental legislation in place. With its limited
manpower resources and technical capabilities, the government will have to address a lot
of its outstanding environmental-related issues, thereby providing new opportunities for
Canadian exporters.
Following are some identified trade opportunities for Canadian companies:
- Incinerators for landfills; chemicals, oil based mud, industrial waste, compositing etc.; medical waste; and domestic waste
- Solid waste management - landfill consultancy
- Water / waste water management - eg. Water treatment plants upgrade, waste water disposal facilities
- Environmental consulting and contracting services
Canada's successes in this sector include:
- Joint venture between two Canadian companies, Inland Technologies Inc. and
Canora Inc., and a local company to operate a waste oil treatment centre, a long-term contract with Brunei Shell Petroleum Company. The contract is valued at
approximately C$3.5 million and was awarded in 1997. More details
- Joint venture between three Canadian companies, Jacques Whitford
Environment Ltd., Envirosoil Ltd., and Inland Technologies Inc. and a local
company to clean-up an oil sludge dump site in Brunei. The contract is valued at
over C$20 million and awarded in 1998.
- Jacques Whitford Environment Ltd. has been contracted by Brunei Shell in 2001
to assess the environmental impact of offshore drilling practices in Brunei. The
contract is worth C$350,000.
- Ecolo Odour Control Systems of Toronto was awarded the contract in 2001 to
provide C$200,000 worth of odour control equipment to Brunei Municipal Board.
- The Brunei Environment, Part & Recreation Department has awarded a contract to Gartner Lee Ltd. and its joint venture partner, Jurusy Perunding Sdn Bhd to design an environmental master plan for Brunei.
Other related links: http://www.brunet.bn/gov/modev/environment/neric/wc8.html;
http://www.un.org/esa/agenda21/natlinfo/countr/brunei
Information partly extracted from the 'Brunei Darussalam Business Profile' pubished by The Hongkong and
Shanghai Banking Corporation Limited in 2002 and the Department of Planning and Development published statistics.
|