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    Beb q12012 Beb q12012 Document Transcript

    • Brunei Economic Bulletin Quarter 1 2012 Highlights: Contents: Page Gross Domestic Product 2 Consumer Price Index 7 Gross Domestic Product The growth in the economy in Q1 2012 was propelled by domestic demand, particularly personal consumption expenditure (PCE) which expanded by 3.5 per cent y-o-y. The oil and gas sector contracted by 1.3 per cent y-o-y in Q1 2012, External Trade 10 Public Finance 14 Special Articles 18 following a contraction of 3.5 per cent y-o-y in Q4 2011. Meanwhile, the non-oil and gas sector registered a 2.6 per cent y-o-y growth in Q1 2012. Consumer Price Index Brunei Darussalam’s average consumer price index (CPI) in Q1 2012 was recorded at 107. 0 with an average y-o-y inflation rate of 0.6 per cent. Between Q1 2011 and Q1 2012, the highest quarterly inflation was in Q3 2011 at 2.4 per cent y-o-y. The price of Food and Non-Alcoholic Beverages grew by 1.4 per cent y-o-y in Q1 2012; from a 2.8 per cent y-o-y growth in Q4 2011. External Trade Total exports posted a lower growth rate with a 26.8 per cent y-o-y increase in Q1 2012. Total imports in Q1 2012 surged up by 33.0 per cent y-o-y; after registering a 17.6 per cent growth in Q4 2011. Trade surplus was at 62.5 per cent of GDP in Q1 2012; up from 61.8 per cent of GDP in Q4 2011. Oil and LNG exports in Q1 2012 accounted for 94.0 per cent of total exports. Public Finance In Q1 2012, Brunei Darussalam recorded a fiscal surplus of BND1,163.2 million, which was about 21.1 per cent of GDP. In comparison to Q4 2011, the oil and gas revenues in Q1 2012 were lower mainly due to the lower levels of production and exports of crude petroleum. Special Articles: Department of Economic Planning and Development, Prime Minister’s Office, Brunei Darussalam 1. Consumer Protection in Brunei Darussalam 2. The Tenth National Development Plan
    • Gross Domestic Product Brunei Darussalam’s gross domestic product (GDP) at constant prices grew Brunei Darussalam’s GDP at constant prices grew by 0.7 per cent y-o-y in the first quarter of 2012 by 0.7 per cent year-on-year (y-o-y) in the first quarter of 2012 (Q1 2012), down from a 1.3 per cent y-o-y growth in the fourth quarter of 2011 (Q4 2011). As a result, constant prices GDP in Q1 2011 went up to BND3,042.6 million in Q1 2012. During the same period, GDP in current prices was BND5,364.4 million. (Table 1.1). The real GDP growth was contributed primarily by the non-oil and gas sector at 1.3 percentage points (pp). This sector registered a 2.6 per cent y-o-y growth in Q1 2012, after a 5.1 per cent y-o-y growth in Q4 2011. The oil and gas sector, in the meantime, contributed -0.6 pp to the real GDP growth and contracted y-o-y by 1.3 per cent in Q1 2012. In the previous period, this sector contracted by 3.5 per cent y-o-y. In terms of distribution, the oil and gas sector constituted 48.1 per cent of real GDP; up from 42.3 per cent in the preceding period. In nominal terms, the oil and gas sector’s share in the economy was 69.4 per cent of GDP in Q1 2012. In Q4 2011, its share was 66.3 per cent. Table 1.1: Gross Domestic Product (Summary) Levels (BND million) Q4 2011 Q1 2012 3,298.2 3,042.6 Oil and gas 1,394.9 Non-oil and gas Growth rates (y-o-y % change) GDP at current prices Q1 2012 Q4 2011 Q1 2012 1.3 0.7 - - 0.7 1,464.2 -3.5 -1.3 42.3 48.1 -0.6 1,903.3 GDP at constant (2000) prices Q4 2011 Growth contributions (pp) Distribution (% of GDP) 1,578.4 5.1 2.6 57.7 51.9 1.3 Q1 2012 5,521.4 5,364.4 - - - - - Oil and gas 3,658.2 3,724.8 - - 66.3 69.4 - Non-oil and gas 1,863.2 1,639.6 - - 33.7 30.6 - Source: Department of Economic Planning and Development, Prime Minister’s Office. Between Q1 2011 and Q1 2012, GDP was highest in Q1 2011, growing at 2.8 per cent y-o-y (Chart 1.1). The growth rate in Q1 2012 is the lowest in the last five quarters. Non-oil and gas GDP contributed more towards growth for all five periods with the exception of Q3 2011. In the previous two periods, the oil and gas sector contracted and the relatively good performance of the non-oil and gas sector prevented the overall growth rates to be even lower or negative. 2
    • Chart 1.1: GDP Growth Rates and Contributions (Q1 2011 to Q1 2012) Total GDP Total GDP % change and pp Non gas GDP Non-oil andoil and gas GDP Source: Oil and gas GDP Oil and gas GDP Department of Economic Planning and Development, Prime Minister’s Office. The growth in the economy in Q1 2012 was propelled by domestic demand, particularly personal consumption expenditure (PCE) which expanded by 3.5 per cent y-o-y. The corresponding rate in Q4 2011 was 8.8 per cent y-o-y (Table 1.2). This expansion was partly brought about by a 2.9 per cent real improvement in the wholesale and retail sector. The growth in the economy in Q1 2012 was propelled by domestic demand, particularly PCE which expanded by 3.5 per cent y-o-y Gross fixed capital formation (GFCF) recorded a y-o-y growth rate of 0.6 per cent, following a 3.2 per cent y-o-y growth in Q4 2011. The expansion was supported by a 2.8 per cent y-o-y rise in investment in machinery and equipment. Other charges special expenditure (OCSE) which principally consisted of the government’s procurement of capital goods, increased by 10.7 per cent. On the other hand, government consumption expenditure (GCE) posted a reduction of 0.2 per cent y-o-y in Q1 2012 after growing by 3.3 per cent y-o-y in Q4 2011. This was caused by the 23.2 per cent decrease in the government’s other charges annually recurrent (OCAR) expenditure in Q1 2012. The period of Q1 2012 also saw a fall in exports of goods and services by 1.6 per cent y-o-y, following a drop of 17.5 per cent y-o-y in Q4 2011. This was primarily due to the 11.7 per cent y-o-y contraction in the export of services in Q1 2012. Despite the positive y-o-y growth of merchandise exports of 0.3 per cent; an improvement from the 20.3 per cent y-o-y contraction in the previous period, the overall external demand still contracted. The main reason for the expansion in The period of Q1 2012 also saw a fall in exports of goods and services by 1.6 per cent y-o-y, following a drop of 17.5 per cent y-o-y in Q4 2011 merchandise trade was the increase in the export of methanol from 175,693 tonnes in Q1 2011 to 259,526 tonnes in Q1 2012, a 47.7 per cent rise. 3
    • Imports of goods and services registered a 5.0 per cent y-o-y growth in Q1 2012, after a 17.4 per cent y-o-y growth in the previous quarter. This was attributed to the 12.3 per cent y-o-y growth in the imports of goods. In the preceding period, it rose by 25.8 per cent y-o-y. In Q1 2012, total aggregate demand was up by 0.2 per cent y-o-y, with domestic demand being the principal contributor at 0.8 pp. (Table 1.2). Within domestic demand, PCE registered a growth contribution of 0.8 pp to the growth in total demand, while GCFC also contributed positively to growth, at 0.1 pp. On the other hand, GCE reduced the overall growth by 0.04 pp. The positive contribution of the domestic economy was undermined by external demand, which shaved 0.7 pp off the overall growth. Current prices (BND million) Q1 2012 Q1 2012 Q4 2011 Q1 2012 3,042.6 5,364.4 1.3 0.7 - Personal consumption expenditure (PCE) 968.8 998.6 8.8 3.5 0.8 Government consumption expenditure (GCE) 774.6 667.4 3.3 -0.2 -0.04 Capital formation 587.1 638.2 3.2 0.6 0.1 587.0 638.1 3.2 0.6 0.1 Construction 392.5 410.6 5.6 -0.5 -0.0 Machinery and equipment 194.4 227.5 -1.3 2.8 0.1 0.1 0.1 - - - 1,725.0 4,757.4 -17.5 -1.6 -0.7 1,486.8 4,422.7 -20.3 0.3 0.1 238.3 334.7 1.7 -11.8 -0.8 1,448.8 1,598.8 17.4 5.0 1.7 1,008.8 1,073.5 25.8 12.3 2.7 Imports of services 440.0 525.3 1.3 -8.7 -1.0 Statistical discrepancy 435.8 -98.3 - - - Total aggregate demand 4,055.6 7,061.6 -4.6 0.2 0.2 Domestic demand 2,330.6 2,304.2 5.1 1.5 0.8 External demand 1,725.0 4,757.4 -17.5 -1.6 -0.7 Types of expenditures Gross domestic product Gross fixed capital formation (GFCF) Change in stocks Exports of goods and services Exports of goods Exports of services Imports of goods and services Imports of goods Source: 4 Growth contributions (pp) Constant (2000) prices (BND million) Table 1.2: GDP by Expenditure Growth rates (y-o-y % change) Department of Economic Planning and Development, Prime Minister’s Office. Q1 2012
    • The oil and gas sector contracted by 1.3 per cent y-o-y in Q1 2012, following a contraction of 3.5 per cent y-o-y in Q4 2011 (Table 1.3). The fall was due to a y-o-y contraction of 1.6 per cent in the oil and gas mining sub-sector; brought about by a 3.5 per cent decrease in the production of crude petroleum from 170,700 barrels per day (bpd) in Q1 2011 to 164,736 bpd in Q1 2012. Manufacture of liquefied natural gas (LNG) and methanol sub-sector also The oil and gas sector contracted by 1.3 per cent y-o-y in Q1 2012, following a contraction of 3.5 per cent y-o-y in Q4 2011 contracted by 0.4 per cent y-o-y after a 1.0 per cent y-o-y growth in Q4 2011 mainly as a result of the decrease in the production of LNG from 1,130,757 million British thermal units (MMBtu) in Q1 2011 to 1,064,490 MMBtu in Q1 2012; a 5.9 per cent y-o-y drop. Meanwhile, the non-oil and gas sector registered a 2.6 per cent y-o-y growth in Q1 2012, maintaining its good momentum in growth after a 5.1 per cent y-o-y growth in the previous period. Having recorded a 3.6 per cent y-o-y growth in Q4 2011, the government services sector’s growth in Q1 2012 stood at 3.9 per cent y-o-y. Private sector services also registered an expansion of 1.9 per cent y-o-y; following a 6.2 per cent y-o-y growth in the previous quarter. Q1 2012 saw strong growth in several non-oil and gas sub-sectors particularly forestry, vegetable, fruits & other agriculture and electricity and water. The forestry sub-sector’s growth greatly improved by 185.7 per cent y-o-y in Q1 2012, following a growth of 41.7 per cent y-o-y in Q4 2011. The vegetable, fruits & other agriculture sub-sector also grew significantly at 42.3 per cent y-o-y in Q1 2012; having recorded a growth of 15.8 per cent y-o-y in Q4 2011. The growth was brought about by the increases in the production of fruits and vegetables. The production of fruits shot up by 160.9 per cent y-o-y from 649.6 metric tonnes (mT) in Q1 2011 to 1,695.0 mT in Q1 2012. Vegetable production increased by 29.0 per cent y-o-y from 2,812.1 mT in Q1 2011 to 3,627.5 mT in Q1 2012. The electricity & water sub-sector grew by 7.5 per cent y-o-y in Q1 2012; higher than the previous quarter’s growth of 1.5 per cent y-o-y. The growth was a result of the increase in electricity production by 9.7 per cent y-o-y to 951.0 gigawatt hour (gWh) in Q1 2012 from 866.8 gWh in Q1 2011. 5 odd pages
    • Current prices (BND million) Q1 2012 Q1 2012 Q4 2011 Q1 2012 Q1 2012 Gross domestic product 3,042.6 5,364.4 1.3 0.7 0.7 Oil and gas sector Oil and gas mining Manufacture of liquefied natural gas (LNG) & methanol Non-oil and gas sector Government services Private sector Vegetables, fruits & other agriculture Livestock & poultry Forestry Fishery Manufacture of wearing apparel & textile Other manufacturing Electricity & water Construction Wholesale & retail trade Water transport Air transport Other transport services Communication Finance Real estate & ownership of dwellings Hotels & restaurants Private health & education services Business services Domestic services Other private services 1,464.2 1,080.6 3,724.8 3,188.7 -3.5 -5.1 -1.3 -1.6 -0.6 -0.6 383.7 536.2 1.0 -0.4 -0.1 1,578.4 569.1 1,009.3 10.4 15.7 1.9 9.9 10.9 21.9 26.5 113.2 169.8 64.3 18.3 38.5 22.5 107.5 107.6 21.0 44.8 177.6 13.7 13.2 1,639.6 586.7 1,052.9 9.7 13.4 1.9 12.7 14.1 19.5 36.1 122.5 183.2 44.0 34.2 51.8 20.8 117.2 109.2 19.6 45.6 166.1 14.1 17.1 5.1 3.6 6.2 15.8 24.7 41.7 1.0 -8.5 0.8 1.5 6.7 9.2 3.1 6.7 11.5 8.8 1.3 5.7 14.0 4.9 7.4 7.9 13.2 2.6 3.9 1.9 42.3 -1.4 185.7 4.2 -7.0 3.3 7.5 -0.8 2.9 -0.4 -0.4 -0.4 -0.4 0.5 0.1 3.5 3.5 3.5 3.5 3.9 1.3 0.7 0.6 0.1 -0.0 0.0 0.0 -0.0 0.0 0.1 -0.0 0.2 -0.0 -0.0 -0.0 -0.0 0.0 0.0 0.0 0.1 0.2 0.0 0.0 Type of economic activities Source: In Q1 2012, the non-oil and gas sector continued to be the leading contributor to the country’s real GDP growth at 1.3 pp Growth (y-o-y % change) Growth contributions (pp) Constant (2000) prices (BND million) Table 1.3: GDP by Production Department of Economic Planning and Development, Prime Minister’s Office. In Q1 2012, the non-oil and gas sector continued to be the leading contributor to the country’s real GDP growth at 1.3 pp (Table 1.3). Within this sector, the government services sector contributed relatively more at 0.7 pp in comparison to the private sector’s contribution of 0.6 pp. Within the private sector, the highest contributions came from the business services and wholesale & retail trade sub-sectors at 0.2 pp each, followed by the vegetables, fruits & other agriculture, electricity & water as well as private health & education services sub-sectors at 0.1 pp each. On the other hand, the oil and gas sector contributed negatively to GDP growth in Q1 2012, reducing 0.6 pp from the overall growth rate. This was due to the negative contribution of both the oil and gas mining, and manufacture of LNG and methanol sub-sectors. 6
    • Consumer Price Index Brunei Darussalam’s average consumer price index (CPI) in Q1 2012 was recorded at 107.0 (Table 2.1). This translated into an average y-o-y inflation rate of 0.6 per cent. The inflation rate for Food and Non-alcoholic Beverages was 1.4 per cent y-o-y in Q1 2012; down from 2.8 per cent y-o-y in Q4 2011. For non-food items, average inflation rate was 0.4 per cent y-o-y in Q1 2012; lower than the 1.8 per cent y-o-y recorded in Q4 2011. Table 2.1: Consumer Price Index and Inflation (Summary) Consumer price index (CPI) levels Q4 2011 Overall Q1 2012 Inflation rates (y-o-y % change) Q4 2011 Q1 2012 107.3 107.0 2.0 0.6 Food and Non-alcoholic Beverages 114.4 115.1 2.8 1.4 Non-food 105.6 105.1 1.8 0.4 Source: Department of Economic Planning and Development, Prime Minister’s Office. Between Q1 2011 and Q1 2012, the highest quarterly inflation was in Q3 2011 at 2.4 per cent y-o-y (Chart 2.1). The lowest rate of inflation in the five quarter period was recorded in in Q1 2012, when the inflation rate was 0.7 per cent. For the food and alcoholic beverages, the highest was recorded in Q2 2012. Chart 2.1: Between Q1 2011 and Q1 2012, the highest quarterly inflation was in Q3 2011 at 2.4 per cent y-o-y Overall, Food & Non-alcoholic Beverages and Non-food Inflation 4.5 4.0 3.5 y-o-y % change 3.0 Food & Non-alcoholic Beverages 2.5 2.0 Overall 1.5 Non-food 1.0 0.5 0.0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 (Q1 2011 to Q1 2012) Source: Department of Economic Planning and Development, Prime Minister’s Office. 7
    • In Q1 2012, four major groups; Health, Education, Communication and Transport experienced a y-o-y decline by 1.4 per cent, 0.8 per cent, 0.7 per cent and 0.1 per cent, respectively (Table 2.2). Other groups recorded a y-o-y increase; with Recreation and Culture showing the highest y-o-y increase at 3.3 Based on contribution to inflation, Food and Non-alcoholic Beverages contributed the most at 0.3 pp per cent in Q1 2012. Based on contribution to inflation, Food and Non-alcoholic Beverages contributed the most at 0.3 pp (Table 2.2). Recreation and Culture came second at 0.2 pp. These are followed by Clothing and Footwear and Miscellaneous Goods and Services at 0.1 pp each. Consumer Price Index and Inflation Major Groups Overall Food and Non-Alcoholic Beverages Tobacco Clothing and Footwear Housing, Water, Electricity, Gas and Other Fuels Furnishings, Household Equipment and Routine Household Maintenance Health Transport Communication Recreation and Culture Education Restaurants and Hotels Miscellaneous Goods and Services Weights (%) Table 2.2: CPI levels Inflation rates (y-o-y % change) 100.0 19.1 0.4 4.3 107.0 115.1 246.6 104.8 Q4 2011 2.0 2.8 23.9 3.8 10.7 101.1 1.1 0.1 10.3 106.2 0.4 0.1 0.9 22.5 6.4 7.4 5.7 7.2 103.9 104.0 97.6 105.3 99.8 105.9 -2.9 1.8 0.4 2.9 -1.8 0.8 -1.4 -0.1 -0.7 3.3 -0.8 0.3 0.0 0.0 0.0 0.0 0.2 0.0 0.0 5.3 117.4 6.7 2.0 0.1 Q1 2012 Q1 2012 0.6 1.4 0.0 1.3 Contribution to inflation (pp) 0.6 0.3 0.0 0.1 0.0 Note: 0.0 means less than 0.05 . Source: Department of Economic Planning and Development, Prime Minister’s Office. The price of Food and Non-alcoholic Beverages grew by 1.4 per cent y-o-y in Q1 2012, from a 2.8 per cent y-o-y growth in Q4 2011 The price of Food and Non-alcoholic Beverages grew by 1.4 per cent y-o-y in Q1 2012, from a 2.8 per cent y-o-y growth in Q4 2011 (Table 2.2). This was mostly generated by the 9.9 per cent y-o-y increase in the price of Chicken. In Q1 2012, the price of Clothing and Footwear grew by 1.3 per cent y-o-y after a 3.8 per cent y-o-y growth in Q4 2011. This was mainly attributed to the higher prices of Women’s Outer Clothing (1.1 per cent y-o-y). The cost of Housing, Water, Electricity, Gas and Other Fuels increased by 0.1 per cent y-o-y in Q1 2012; down from a y-o-y growth of 1.1 per cent in Q4 2011. The price of Materials for the Maintenance and Repair of the Dwelling rose the highest; by 3.6 per cent y-o-y. 8
    • Despite noticeable y-o-y declines in the costs of Household Utensils (Non-electrical) and Other Household Textiles; by 8.0 per cent and 7.4 per cent respectively in Q1 2012, the overall cost of Furnishing, Household Equipment and Routine Household Maintenance recorded a lower growth of 0.1 per cent y-o-y following a 0.4 per cent y-o-y growth in Q4 2011. Cleaning and Maintenance Products registered the highest rate of inflation with 6.3 per cent. The Recreation and Culture price grew by 3.3 per cent y-o-y in Q1 2012; following a 2.9 per cent y-o-y growth in Q4 2011. This was mainly due to the higher price for Television and Radio Broadcasting; which grew by 7.6 per cent y-o-y. As for Restaurants and Hotels, the cost rose by 0.3 per cent y-o-y from a positive y-o-y growth of 0.8 per cent in Q4 2011; mainly as a result of inflationary pressure in the Restaurant and Cafes sub-class, which increased by 0.7 per cent y-o-y. The prices of Miscellaneous Goods and Services increased by 2.0 per cent y-o-y in Q1 2012 from a positive y-o-y growth of 6.7 per cent in Q4 2011. This was primarily caused by the higher price of Jewellery, Made of Precious Stone which increased by 19.4 per cent y-o-y. After a negative growth of 2.9 per cent y-o-y in Q4 2011, the cost of Health continued to fall by 1.4 per cent y-o-y in Q1 2012. The fall in the prices of Medical Preparations and Patent Medicines, by 2.9 per cent y-o-y contributed to the decline. Education cost also continued to fall by 0.8 per cent y-o-y in Q1 2012 following a 1.8 per cent y-o-y decline in Q4 2011. This was principally due to the drop in price of Primary Education (1.9 per cent y-o-y). The cost of Communication, fell by 0.7 per cent y-o-y in Q1 2012 following a positive growth of 0.4 per cent y-o-y in Q4 2011.This was mainly due to the fall in the Telephone and Telefax Services (0.2 per cent y-o-y). For Transport, the cost fell by 0.1 per cent y-o-y in Q1 2012 after a 1.8 per cent y-o-y growth in Q4 2011. This was due to the lower cost of Passenger Transport by Air; which dropped by 5.9 per cent y-o-y. 9
    • External Trade Trade balance (surplus) in Q1 2012 was at 62.5 per cent of GDP up from 61.8 Trade surplus was at 62.5 per cent of GDP in Q1 2012; up from 61.8 per cent of GDP in Q4 2011 per cent of GDP in Q4 2011 (Table 3.1). In absolute terms, this translated to a quarterly trade surplus of BND3,505.1 million. In terms of y-o-y growth rates, trade surplus increased by 25.0 per cent; lower than the 39.7 per cent recorded in Q4 2011. Total exports of goods was 83.3 per cent of GDP in Q1 2012; higher than the corresponding figure in Q4 2011 (79.5 per cent). Imports in Q1 2012 constituted In Q1 2012, total exports and imports were 83.3 per cent and 20.8 per cent of GDP respectively about 20.8 per cent of GDP; which was also higher than the 17.7 per cent registered in Q4 2011. In terms of growth, total exports posted a lower growth rate with a 26.8 per cent y-o-y increase in Q1 2012, after a 34.1 per cent growth in Q4 2011. Total imports in Q1 2012 surged up by 33.0 per cent y-o-y; after registering a 17.6 per cent growth in Q4 2011. Table 3.1: External Trade (Summary) Levels (BND million) Q4 2011 3,411.9 4,387.6 Q1 2012 3,505.1 4,578.6 Q4 2011 39.7 34.1 Q1 2012 25.0 26.8 Q4 2011 61.8 79.5 Q1 2012 62.5 83.3 4,280.8 4,415.8 36.1 26.6 77.5 82.4 106.8 162.8 -16.6 32.3 1.9 0.9 1,073.5 17.6 33.3 17.7 20.8 Imports of goods The highest trade surplus during the last five quarters was recorded in Q1 2012 Distribution (% of GDP) 975.7 Trade balance Exports of goods Domestic exports of goods Re-exports of goods Source: Growth rates (y-o-y % change) Department of Economic Planning and Development, Prime Minister’s Office. In terms of per cent of GDP, the highest amount of trade surplus in the last five periods was recorded in the latest quarter (Chart 3.1). The lowest trade surplus was registered in Q2 2011; at 53.8 per cent of GDP. Chart 3.1: Exports, Imports and Trade Balances (Q1 2011 to Q1 2012) % of GDP Exports Trade Balances Imports Source: 10 Department of Economic Planning and Development, Prime Minister’s Office.
    • The Q1 2012 export proceeds of BND4,578.6 million were mainly generated by two main commodities; crude oil and LNG. These two export products constituted about 94.0 per cent of total exports. Oil exports, the largest source of foreign exchange receipts in Q1 2012 (48.7 Oil and LNG exports in Q1 2012 accounted for 94.0 per cent of total exports per cent in terms of share) increased by 19.5 per cent y-o-y to BND2,231.4 million (Table 3.2). The increase was attributed to a higher weighted average crude oil price (WACOP); which was estimated at USD125.84 per barrel in Q1 2012 compared to USD105.50 per barrel in Q1 2011. LNG, which accounted for 45.3 per cent of total exports in Q1 2012, was the second biggest source of foreign exchange earnings. Export of this commodity in Q1 2012 expanded by 33.7 per cent y-o-y due to higher prices of LNG in that period by 23.5 per cent y-o-y which was estimated at USD17.71 per million British thermal unit (MMBtu). Methanol ,in Q1 2012, only made up of 2.3 per cent of total exports as its first production only started in the second quarter of 2010. However during Q1 2012, methanol exports went up by 67.2 per cent y-o-y. The US dollar depreciated against the Brunei dollar by about 1.9 per cent from an exchange rate of 1.29 in Q4 2011 to 1.26 in Q1 2012. Despite this, the overall merchandise export earnings still increased. Re-exports, accounted for 3.6 per cent of total exports; of which machinery and transport equipment made up the biggest share; 76.2% of total re-exports . Table 3.2: Major Exports of Goods *Note: Methanol’s first shipment was at the end of May 2010. Total exports of goods Crude oil Liquefied Natural Gas (LNG) Methanol Source: Levels (BND million) Q1 2012 4,578.6 2,231.4 Q4 2011 34.1 32.0 Q1 2012 26.8 19.5 2,074.8 106.7 43.6 -8.1 33.7 67.2 Growth rates (y-o-y % change) Distribution (% of total exports) Q4 2011 Q1 2012 51.5 48.7 44.7 1.3 45.3 2.3 Department of Economic Planning and Development, Prime Minister’s Office. Brunei Darussalam’s top four export destinations in Q1 2012 were Japan, South Korea, India and Australia (Table 3.3). Altogether, they accounted for almost three-quarters of Brunei Darussalam’s total exports during that period. Mineral fuels were the major exports commodities; which accounted for almost 100 per cent of the total exports to these countries. 11
    • Japan remained the dominant export market for Brunei Darussalam Japan remained the dominant export market with a 39.7 per cent share in Q1 2012 accounting for 39.7 per cent of total exports, followed by South Korea (18.0 per cent), India (8.3 per cent), and Australia (7.5 per cent). Table 3.3: Top Four Export and Import Markets Exports Imports Levels (BND million) Distribution (% of total exports) Distribution (% of total exports) Levels (BND million) Distribution (% of total imports) Distribution (% of total imports) Q1 2012 Countries Q4 2011 Q1 2012 Q1 2012 Q4 2011 Q1 2012 Export markets Japan 1,816.4 South Korea India Australia 41.7 39.7 - - - 823.1 379.8 342.2 17.4 6.0 9.3 18.0 8.3 7.5 - - - - - - 316.6 23.7 29.5 - - - 163.5 19.9 15.2 - - - 93.3 93.2 8.6 9.0 8.7 8.7 Import markets Singapore Peninsular Malaysia United States China Source: Department of Economic Planning and Development, Prime Minister’s Office. Brunei Darussalam’s total imports in Q1 2012 stood at BND1,073.5 million. Accounting for 26.8 per cent of the aggregate imports bill was payment for Machinery and transport equipment formed the largest import commodity group with a 26.8 per cent share machinery and transport equipment; which in Q1 2012 increased by 1.9 per cent y-o-y (Table 3.4). In the previous period, it fell by 4.4 per cent. Manufactured goods, contributed 25.3 per cent to Brunei Darussalam’s total imports. In Q1 2012, it increased by per cent 54.3 y-o-y. In comparison, the Q4 2011 figure was 33.2 per cent. Imports of mineral fuels, lubricants and related materials in Q1 2012 rose further by 210.8 per cent y-o-y, after a 171.5 per cent increase in Q4 2011. This group of commodity accounted for 17.1 per cent of total imports. Food and live animals accounted for 12.3 per cent of total imports. The imports of this commodity group recorded a lower growth rate of 12.0 per cent y-o-y compared to a 12.5 per cent y-o-y growth in Q4 2011. 12
    • Table 3.4: Imports of Goods Levels (BND million) Q1 2012 Growth rates (y-o-y % change) Distribution (% of total imports) Q4 2011 Q1 2012 Q4 2011 Q1 2012 Total imports of goods 1,073.5 17.6 33.3 - - Food & live animals 132.0 15.1 12.5 12.0 14.6 12.3 13.5 42.1 1.7 1.4 16.8 44.0 48.7 1.6 1.6 184.0 171.5 210.8 13.4 17.1 5.0 69.6 272.0 288.1 85.2 16.7 42.0 0.4 0.5 5.7 Beverages & tobacco Crude materials, inedible except fuels Mineral fuels, lubricants & related materials Animal & vegetable oils & fats Chemicals Manufactured goods Machinery & transport equipment Misc. manufactured articles Misc. transactions & commodities, n.e.c Source: -2.2 -2.6 7.9 6.5 33.2 54.3 22.7 25.3 -4.4 1.9 28.0 26.8 -4.4 27.2 8.7 7.9 50.0 9.0 1.0 0.5 Department of Economic Planning and Development, Prime Minister’s Office. In Q1 2012, Singapore retained its position as the biggest source of imports with a 29.5 per cent share (Table 3.3). Since Q1 2011, Brunei Darussalam Singapore was the biggest import market with a 29.5 per cent share in Q1 2012 imported more mineral fuels from Singapore rather than machinery and transport equipment. Peninsular Malaysia was the second biggest source of imports in Q1 2012; accounting for 15.2 per cent share. Brunei Darussalam’s imports from Peninsular Malaysia constituted mostly of food items. The next biggest source of imports in Q1 2012 was the United States with an 8.7 per cent share. The biggest import commodity from that market was machinery and transport equipment. 13
    • Public Finance In Q1 2012, Brunei Darussalam recorded a fiscal surplus of BND1,163.2 million; which was about 21.1 per cent of GDP (Table 4.1). In the previous quarter, fiscal surplus was BND1,839.6 million (33.3 per cent of GDP). In Q1 2012, Brunei Darussalam recorded a fiscal surplus of BND1,163.2 million, which was about 21.1 per cent of GDP In terms of y-o-y growth, the fiscal balance increased by 12.1 per cent in Q1 2012; while the corresponding figures was 266.8 per cent in Q4 2011. The lower percentage increase was due to the relatively lower growth in total revenues in Q1 2012 compared with Q4 2011 (0.5 per cent versus 68.2 per cent). Total expenditures actually fell by 5.3 per cent y-o-y; compared to a 9.2 per cent y-o-y increase in Q4 2011. In terms of distribution, fiscal revenues and expenditures made up around 56.0 per cent and 35.0 per cent of GDP, respectively. In Q4 2011, fiscal revenues were 66.7 per cent of GDP, while fiscal expenditures were 33.4 per cent of GDP. Table 4.1: Public Finance (Summary) Value (BND million) Q4 2011 Q1 2012 Growth rates (y-o-y % change) Q4 2011 Distribution (% of GDP) Q1 2012 Q4 2011 Q1 2012 Fiscal balance 1,839.6 1,163.2 266.8 12.1 33.3 21.1 Total revenues 3,682.5 3,093.0 68.2 0.5 66.7 56.0 Total expenditures 1,842.9 1,929.8 9.2 (5.3) 33.4 35.0 Sources: Ministry of Finance. Department of Economic Planning and Development, Prime Minister’s Office. In the last five quarters, the highest fiscal surplus was registered in Q3 2011 at 35.0 per cent of GDP (Chart 4.1). In contrast, Q1 2011 recorded the lowest fiscal balance in terms of per cent of GDP at 20.8 per cent. Chart 4.1: Revenues, Expenditures and Fiscal Balances (Q1 2011 to Q1 2012) % of GDP Revenues Expenditures Fiscal balances Sources: 14 Ministry of Finance Department of Economic Planning and Development, Prime Minister’s Office.
    • Total revenues in Q1 2012 were BND3,093.0 million; which was a y-o-y increase of 0.5 per cent. In Q4 2011, total revenues stood at BND3,682.5 million when it increased y-o-y by 68.2 per cent. Oil and gas revenues went up by 8.5 per cent y-o-y in this period, lower than the 72.0 per cent y-o-y increase recorded in Q4 2011. This component constituted about 94.0 per cent (BND2,934.1 million) of the total revenues; which was 0.9 per cent lower than that of Q4 2011 (Table 4.2). In comparison to Q4 2011, the oil and gas revenues in Q1 2012 were lower mainly due to the lower levels of production and export volume of crude petroleum as well as the weaker US dollar. Table 4.2: Government Revenues Types of revenues Value (BND million) Growth rates (y-o-y % change) Q4 Q1 2011 2012 68.2 0.5 Distribution (% of Total revenues) Q4 Q1 2011 2012 100.0 100.0 Q4 2011 3,682.5 Revenues from government operations Taxes Fees, charges and rent Other Returns from investments and savings 3,462.9 2,934.1 72.0 8.5 94.9 94.0 218.0 156.5 24.9 (15.2) 5.1 5.9 70.2 35.2 (16.9) 2.3 3.6 81.3 78.1 11.9 (7.1) 2.5 2.2 4.1 Oil and gas revenues Q1 2012 3,093.0 132.6 Total revenues Sources: The oil and gas revenues in Q1 2012 were lower mainly due to the lower levels of production and export volume of crude petroleum, as well as the weaker US dollar 8.2 7.1 (48.8) 0.3 0.1 1.6 2.5 96.0 (98.7) 0.1 0.0 Ministry of Finance. Department of Economic Planning and Development, Prime Minister’s Office. In Q1 2012, production and exports of crude petroleum were 164,736 bpd and 157,182 bpd, respectively. In Q4 2011, the corresponding figures were 167,058 bpd and 170,621 bpd, respectively. The WACOP was USD125.84 per barrel in Q1 2012; higher than the corresponding price in Q4 2011 (USD 117.34 per barrel). Unlike crude petroleum, the production and exports of LNG were higher in Q1 2012 compared to those in Q4 2011. The weighted average price of LNG was also higher. In Q1 2012, LNG production and exports were 1,064,490 million British thermal units (MMBtu) per day and 1,049,475 MMBtu per day, respectively. In Q4 2011, LNG production was 960,468 MMBtu per day, while exports were 923,566 MMBtu per day. The weighted average price for LNG in Q1 2012 was USD17.71 per MMBtu; higher than the price recorded in Q4 2011 (USD 17.14 per MMBtu ). Revenues from government operations fell by 15.2 per cent y-o-y after rising by 24.9 per cent y-o-y in Q4 2011. In Q1 2012, these constituted around 5.9 per cent of total revenues in Q1 2012; higher than 5.1 per cent share recorded in Q4 2011. 15
    • Out of this, taxes were the largest component (3.6 per cent); followed by fees, charges and rent (2.2 per cent) and other (0.1 per cent). All the components from government operations experienced drops in the revenue levels; with taxes falling by 16.9 per cent, fees, charges and rent by 7.1 per cent and other by 48.8 per cent. Despite the fall in absolute values, taxes from government operations actually grew in terms of the overall share in total revenues. The returns from investments and savings also fell in terms of its absolute value and share. In Q1 2012, it went down by 98.7 per cent y-o-y after growing 96.0 per cent y-o-y in Q4 2011. The value in Q1 2012 was BND2.5 million; which was about 0.04 per cent of total revenues. The government’s total expenditures in Q1 2012 fell by 5.3 per cent y-o-y after growing by 9.2 per cent y-o-y in Q4 2011 (Table 4.3). This brought the total expenditures figure to BND1,929.8 million in Q1 2012. The fall in total expenditures was attributed to the 7.5 per cent y-o-y decrease in current expenditures. In Q1 2011, current expenditures were BND1,383.8 million. Capital expenditures actually increased to BND546.0 million; a y-o-y increase of 0.8 per cent in the same period. In the previous period of Q4 2011, current expenditures rose by 13.3 per cent y-o-y, while capital expenditures dropped by 2.6 per cent y-o-y. Despite the fall in current expenditures, it was still the biggest component of government spending in Q1 2012 (76.9 per cent of total expenditures). By comparison, capital expenditures made up around 23.1 per cent. Table 4.3: Government Expenditures Types of expenditures Value (BND million) Growth rates (y-o-y % change) Distribution (% of total expenditures) Q1 2012 Q4 2011 Q1 2012 Q4 2011 Q1 2012 1,929.8 9.2 -5.3 100.0 100.0 1,383.8 13.3 -7.5 71.7 76.9 Charged expenditures 421.7 25.0 12.0 21.9 23.9 Personal emoluments (PE) 442.3 7.3 -0.3 22.9 30.7 519.8 10.8 -23.2 26.9 22.4 546.0 -2.6 0.8 28.3 23.1 Development expenditure (DE) 323.3 20.9 -5.1 16.8 16.7 Other charges special expenditure (OCSE) 222.6 -35.3 10.7 11.5 6.4 Total expenditures Current expenditures Other charges annually recurrent (OCAR) Capital expenditures Source: 16 Ministry of Finance. Department of Economic Planning and Development, Prime Minister’s Office.
    • In Q1 2012, personal emoluments (PE) was the biggest share of current expenditures with 30.7 per cent of total expenditures; despite experiencing a 0.3 per cent y-o-y decrease. OCAR was the smallest component of current expenditures making up 22.4 per cent of GDP after falling by 23.2 per cent y-o-y. In terms of capital expenditures, development expenditures (DE) for the implementation of infrastructural projects of the National Development Plan (RKN) fell by 5.1 per cent y-o-y in Q1 2012. By contrast, OCSE which was mainly made up of the government’s purchases of capital goods went up by 10.7 per In Q1 2012, personal emoluments (PE) was the biggest share of current expenditures with 30.7 per cent of total expenditures, despite experiencing a 0.3 per cent y-o-y decrease cent. Despite these, DE was the biggest component of the government’s capital spending with a 16.7 per cent share of total expenditures. OCSE made up 6.4 per cent of total expenditures in Q1 2012. 17
    • Special Article 1. Consumer Protection in Brunei Darussalam Introduction The subject of consumer protection can be seen as a relatively new area of development in Brunei Darussalam. The Consumer Protection (Fair Trading) Order 2011 (CPFTO 2011) was enacted on 10 November 2011 and was enforced on 1 January 2012. The Order was under the initiative of the Department of Economic Planning and Development (JPKE) which will also be the government agency sible for its implementation. Before the enforcement of the Order, responcomplaints have only been dealt with administratively. ASEAN Committee on Consumer Protection The ASEAN Committee on Consumer Protection (ACCP) was established in 2007 in the attempt to help implement and develop consumer protection policy in ASEAN. By 2015, ASEAN member states (AMSs) are expected to have consumer protection policy in place. It is also by the same year that the ASEAN goal of regional economic integration of becoming ASEAN Economic Community (AEC) is hoped to be achieved. Consumer interest and welfare are crucial elements to be considered in all measures implemented in order to achieve the goal of an integrated economic region. Since then, the ACCP have had major progress in promoting the importance of consumer protection around the region. The ACCP introduced and launched The ASEAN Consumer Complaints leaflet on 3 April 2012. The leaflet contains information on hotlines and/or national focal points in all AMSs for consumer complaints to ensure better regional awareness, understanding and information dissemination among both ASEAN and non-ASEAN consumers; and more generally, the regional and extra-regional public at large. Recently, the ACCP introduced and launched the ACCP website (www.aseanconsumer.org) at its Fifth Meeting on 2-4 May 2012 in Bali, Indonesia. This website will serve as the main reference point for consumers on matters pertaining to recalled/banned products (excluding food, pharmaceuticals, health supplements, traditional medicines, cosmetics and medical equipment), consumer redress mechanism, training and education information. 18
    • Consumer Rights The consumer rights under the United Nations Guidelines on Consumer Protection can be summed up as follows: 1. The right to satisfy basic needs 2. The right to safety 3. The right to information 4. The right to choose 5. The right to representation 6. The right to be redress 7. The right to consumer education 8. The right to a healthy environment Consumer Protection (Fair Trading) Order (CPFTO) 2011 Subsidiary Regulations and Objectives Consumer protection is an essential tool in safeguarding consumer rights, interests and welfare. It also helps to promote and ensure the existence of a fair trading environment. In Brunei Darussalam, the CPFTO 2011 objectives are to protect consumers’ interests and uphold their rights against any unfair practices by suppliers. It too aims in contributing to the economic growth and diversification by enhancing foreign investors’ confidence to invest in the country. Under the Order, there are 20 sections and two subsidiary regulations namely the Cancellation of Contracts Regulations 2011 and the Opt-Out Practices Regulations 2011. The Cancellation of Contracts Regulations 2011 allows consumers to cancel direct sales, time-share and time-share related contracts within a 5-day cancellation period, excluding Saturdays, Sundays and public holidays. Under the Opt-Out Practices Regulations, a consumer, unless he has acknowledged in writing his willingness to accept and pay for unsolicited goods and services, is allowed to treat all such goods and services as unconditional gifts from suppliers. 19
    • Excluded Transactions The CPFTO 2011 only covers consumer transactions that are related to personal, family and household matters. It does not cover any transaction made for commercial purposes. The Order also excludes any transactions related to areas that are already covered by other Acts or Orders in Brunei Darussalam. The excluded transactions can be summarize as follows: 1. Property 4. Banking 7. Contracts 2. Employment 5. Business 8. Criminal 3. Finance 6. Insurance 10. Halal 9. Fisheries Unfair Practices, Consumers and Suppliers The Brunei Darussalam consumer protection order focuses specifically on fair trading practices in relation to goods or services bought for personal use. There are 20 specific unfair practices under the Order which amongst others include deceiving or misleading consumers, making false claims regarding products and services, and taking advantage of consumers who have no knowledge about the products and services. Under the Order, a consumer refers to a person who receives or has the right to receive goods or services from a supplier. A consumer can also be seen as a person who has a legal obligation to pay a supplier for goods or services that have been or able to be supplied to another individual. Hence in general, any person who is residing or conducting a transaction in Brunei Darussalam; including foreign residents and tourists, can be considered a consumer. A supplier on the other hand, is a person who in the course of business, provides, manufactures, assembles or produces goods or services to consumers. A supplier is also a person who promotes the use of goods or services, or receives or is entitled to receive money or other consideration as a result of the provision of goods or services to consumers. Consumer Complaints A consumer aggrieved by an unfair practice can seek redress by lodging a consumer complaint at JPKE, provided that the claim is within the prescribed limit and limitation period. The prescribed limit under the order is below BND10,000. A consumer must file his/her complaint within two years from the occurrence of the unfair practice or the earliest date when the consumer can reasonably have discovered the unfair practice. 20
    • Standard Operating Procedures (SOP) The brief standard operating procedures are as follows: Complaint received Complaint recorded Complaint logged and entered into system Evaluation report Complaint forwarded to the relevant agencies Covered under the CPFTO No Yes Preliminary Investigation Consultation and negotiation Mediation Is it successful? No Yes Case resolved Small Claims Tribunal/court Case resolved 21
    • Challenges Ahead One of the major challenges of the CPFTO 2011 is to ensure the effective implementation and coordination of the Order. Strong and solid coordination and cooperation between JPKE, the relevant government agencies and the judiciary is very important in ensuring the enforcement and implementation of the Order are done in the most efficient and effective manners possible. Equally crucial is to carry out continuous consumer awareness and education programmes for the public. The significance of this is not only in having a better informed and well-aware public but also to create the much needed support from the public to the newly-enforced consumer protection order. Furthermore, in order to implement and enforce the CPFTO 2011 efficiently, adequate human and financial resources are necessary as well as advanced trainings for officers and staff such as in handling complaints, managing negotiations and mediation. Contact Details: Hotline/fax: 673-2230223 Email address: aduanpengguna@jpke.gov.bn consumercomplaint@jpke.gov.bn Facebook: www.facebook.com/AduanPenggunaJPKE Building address: Room 3.04, Level 3, West wing, , Block 2A, Jalan Ong Sum Ping, Bandar Seri Begawan, BA 1311 Written by: Haji Muhamad Azim bin Haji Abdul Hamid and Nurulizzati binti Haji Jahari, Price Control Division (Consumer Protection), Department of Administration and Info Communication Technology, Department of Economic Planning and Development, Prime Minister’s Office 22
    • References: Consumer Protection (Fair Trading) Order 2011, Available on: http://www.depd.gov.bn Consumer Protection in ASEAN, Available on: http://www.aseansec.org/Fact%20Sheet/AEC/AEC-07.pdf ASEAN Economic Community, Available on: http://www.aseansec.org/18757.htm ACCP Website, Available on: http://aseanconsumer.org The ASEAN consumer complaints leaflet, Available on: http://www.asean.org/26836.htm 23
    • Special Article 2. The Tenth National Development Plan (Excerpt from the Tenth National Development Plan publication of the Department of Economic Planning and Development) Introduction The Tenth National Development Plan, 2012-2017 (RKN10) is the second five -year national development plan under the Brunei Darussalam Long-Term Development Plan (2007-2035). Through the five-year national development plans, development programmes in the forms of physical infrastructure as well as non-physical infrastructure were planned and implemented. Such programmes have been one of the key drivers to economic prosperity, improvements in quality of life and political stability enjoyed by the citizens and people of this country. NDP10 Theme In line with the Outline of Strategies and Policies for Development (OSPD) in the Wawasan Brunei 2035, NDP10 will continue towards achieving the average annual economic growth target of 6.0 per cent. However, to achieve this growth target, significant structural changes in the economy are vital. Brunei Darussalam has to explore new frontiers in development that can transform it into a fast growing economy. In this respect, the theme for RKN10 has been formulated: Figure 1: NDP10 Theme In realising this theme, RKN10 will thus focus on the acceleration of economic growth. High economic growth will help the nation increase income and accelerate development. It will also create numerous job opportunities for its citizens and permanent residents and will enable the private sector to become more active as envisioned. 24
    • Sustainable high growth rates can be achieved through continuous increases in productivity in the public and private sectors, including in existing industries and new ones. Such increases in productivity will help reduce costs, improve work quality continuously and ensure continuous increases in output. Efforts towards the generation of high productivity may not be a simple task and will require integrated efforts from all parties. This includes maintaining and strengthening existing efforts such as investments in human resources, research and innovation as well as encouraging the use of latest technologies. In this challenging era of globalisation and in realising the need for efforts that are more effective and relevant, NDP10 will give high priority in exploring approaches for increasing productivity through the use of knowledge and innovation. The concept of knowledge and innovation emphasised in NDP10 focuses on the generation of high productivity through increasing knowledge, skills and competency of the workforce in strategic areas; increasing research activities that have high commercial value; and instilling the culture of innovation and creativity among local youths. All of these will contribute to economic growth, particularly through the generation of high value-added industries. A highly skilled and competent workforce equipped with the latest technology will not only be able to increase their productivity but will also improve the nation’s competitiveness in the global market. Research activities that have high commercial values will boost productivity and also enhance the diversification of high value added non-oil and gas industries. Nevertheless, efforts in commercialising researches are expected to face numerous external challenges. Therefore it is necessary to have concerted efforts; not only from the public sector especially higher learning institutions but also commitment from the private sector to be active in research and development (R&D). A conducive environment will be put in place to further encourage research activities that can eventually produce commercially valuable research output. Innovation and creativity among youths are also important foundations for the development of a knowledge-based economy. The outcome of innovation and creativity can be transformed into intellectual property that will enhance the nation’s ability to compete globally. The contribution to the economy can be significantly increased if the locals are also equipped with entrepreneurial skills. 25
    • NDP10’s Strategic Development Thrusts In supporting the NDP theme, six strategic development thrusts have been outlined to provide directions in the selection of programmes and projects under NDP10 (Figure 2). With this, Brunei Darussalam will be able to achieve its desired development objectives and work towards realising the goals of Wawasan Brunei 2035. Figure 2: NDP10’s Strategic Development Thrusts Thrust One is Educated and Highly Skilled Population. Seven factors contributing to this thrusts are 1) Quality education infrastructure and facilities; 2) Quality teachers; 3) Professional and highly skilled workforce; 4) Life-long education; 5) Entrepreneurship education; 6) Science, technology and innovation; and 7) Private sector involvement. All these factors will focus on enhancing the levels of education and skills of the human workforce. Thrust Two is High Quality of Life, which includes seven factors: 1) Sustainable and inclusive development; 2) Quality and sufficient housing; 3) Comprehensive medical and health services; 4) Clean and healthy environment; 5) Public security; 6) Access to basic amenities: water, electricity, communication and transportation; and 7) Cultural, sports and recreational infrastructure. These factors aim to enhance the quality of life of the population of the nation and henceforth towards the achievement of better welfare. 26
    • Thrust Three is Conducive Business Environment. This thrust focuses on efforts that can flourish the nation’s private sector and further enhance its attractiveness as a destination for foreign direct investment, that is: 1) Fast and easy process for starting a business; 2) Strong business capacity and capability; and 3) Protection of intellectual property rights. Thrust Four is Progressive and Productive Economy Based on Knowledge and Innovation which focuses on the generation of high and sustainable economic growth through investments in knowledge and innovation, high technology, as well as non-oil and gas exports towards diversifying the economy. This thrust has five main factors: 1) Knowledge infrastructure and facilities; 2) R&D that has commercial value; 3) High technology private investments; 4) Entrepreneurship development; and 5) Non-oil and gas investment and exports. Thrust Five is Good Governance and Government Modernisation. This thrust concentrates on efforts that enhance the quality and productivity level of the public sector. Three factors identified in establishing and enhancing public sector productivity are: 1) Quality public infrastructure and facilities; 2) Professional public sector workforce; and 3) Laws and regulations that meet current needs. Thrust Six is High Quality and Sustainable Development Infrastructure. This thrust includes six factors that prepare the nation for the development of the private sector in general and in attracting foreign direct investment specifically: 1) Water supply, drainage and sewerage infrastructure; 2) Electric power infrastructure; 3) Communication and transportation infrastructure; 4) Info-communication network infrastructure; 5) Sustainable and environmental friendly growth and development; and 6) Industrial sites. Budget Allocation of NDP10 The government has allocated BND6.5 billion in implementing 682 projects of which BND2.7 billion is allocated to finance 202 new projects and BND3.8 billion is allocated to finance 480 carried forward projects from NDP 2007-2012. This allocation represents an increase of 25.1 per cent from RKN2007-2012’s allocation of BND5.2 billion. The social services sector received the biggest share with a total allocation of BND2.0 billion (Figure 3). 27
    • Several special funds have been provided in the NDP10. An amount of BND250 million has been allocated under the Human Resources Development Fund. Another BND200 million has been allocated to expand research activities and BND100 million has been allocated under the Small and Medium Enterprises Development Fund. Figure 3: Allocation of NDP10 by Sectors Source: Department of Economic Planning and Development, Prime Minister’s Office. Concluding remarks As a conclusion, NDP10 emphasizes and places priority on efforts to accelerate economic growth through continuous increases in productivity that is based on knowledge and innovation. High economic growth based on productivity, knowledge and innovation will not only contribute to high added value in economic sectors but will also improve Brunei Darussalam’s competitiveness in the global economic climate which is challenging, competitive and rapidly changing. 28
    • Brunei Economic Bulletin Editorial Team Contact Address: Department of Economic Planning and Development Editors Block 2A Jalan Ong Sum Ping Department of Economic Planning and Development Bandar Seri Begawan BA1311 Deputy Director General, Telephone: 673-2233344 Fax: 673-2230226 Director General, Department of Economic Planning and Development Directors, Department of Economic, Planning and Development Website: www.depd.gov.bn Contributors Haji Aminuddin bin Haji Mohamad Taib Asnawi Faisal bin Haji Kamis Hajah Zureidah binti Haji Abit Dayangku Norhanidah binti Pengiran Haji Masshor Nur Edzalina binti Haji Idris Mohamad Adi Hamdi bin Haji Aminuddin Lai Yea Liang Haji Muhamad Azim bin Haji Abdul Hamid Nurulizzati binti Haji Jahari National Statistics provided by the Department of Statistics Layout and Design Awangku Muhammad Hazwan bin Pengiran Haji Kamarulzaman