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Competitive Global Management- Brunei
PREPARED BY: ALJON DAGALA
BRUNEI
DARUSSALAM.
YOUR FRIENDLY,
ACCESSIBLE & SAFE
GATEWAYTO
SOUTHEAST
ASIA.
V I E T N A M
M A L A Y S I A
I N D O N E S I A
S I N G A P O R E
B O R N E O I S L A N D
P H I L I P P I N E S
C A M B O D I A
M Y A N M A R
T H A I L A N D
L A O S
● Geographical Location: Brunei is a
small sovereign state on Borneo
island in Southeast Asia, bordered
by the South China Sea to the north
and Malaysia to the west and south.
● History: It had a powerful empire
dating back to the 7th century, but
declined due to colonialism. It
gained independence in 1984 and is
now ruled by Sultan Hassanal
Bolkiah.
● Culture: Brunei's culture is
influenced by Islam and Malay
customs, with a central role for the
royal family.
● Economy: It has a prosperous
economy, mainly from oil and gas
reserves, investing in diversification
into tourism and finance.
● Local Currency: The local currency
of Brunei is the Brunei Dollar
(BND).
BND PhP USD
1.00 41.56
(Disclaimer: as of Sept 29, 2023)
0.73
(Disclaimer: as of Sept 29, 2023)
Rank 11- GDP- PPP per Capita all over the world…
SOUTHEASTASIA IS THE 5TH
LARGEST MARKETINTHE WORLD
BRUNEI IS IN
THE HEART OF
SOUTHEAST ASIA.
3
HOURS FLIGHT TO
THE WHOLE REGION
FLIGHT SERVICES
TO MAJOR CITIES
S H I P P I N G SERVICE
L I N E S F R O M MUARA
PORT
CONNECTED
P O RT S REGIONALLY
16
13
15
BRU N EI
DARU SSAL AM
HANOI
PHNOM PENH
BANGKOK
KUALA LUMPUR
JAKARTA
SINGAPORE
VIENTIANE
YANGON
HONG KONG
MANILA
A SAFE SANCTUARYIN SOUTHEASTASIA.
BRUNEI PROVIDES A POLITICALLY STABLE AND SAFE ENVIRONMENT FILLED
WITH LUSHGREENERY AND BOASTING THE 3RD
CLEANEST AIR IN THE WORLD.
BORNEO, THE WORLD'S THIRD
LARGEST ISLAND, ACCOUNTS FOR JUST 1% OF
THE WORLD'S LAND YET HOLDS
ROUGHLY 6% OF GLOBAL BIODIVERSITY IN
ITS RICH, TROPICAL FORESTS.
75% STILL COVERED IN
PRISTINE RAINFOREST
AND OTHER ECOHABITATS
58%
OF TOTAL LAND AREA TO BE CONSERVED
UNDER “HEART OF BORNEO” INITIATIVE
A FRIENDLY
MUSLIM NATION.
BRUNEI IS A MEMBER OF ASEAN, WTO & APEC, AND HAS
MULTIPLE TRADE AGREEMENTS IN THESE BODIES AND BEYOND../
8 TRADEAGREEMENTSWITH
24 COUNTRIES, WITH A REACH
OF MORETHAN 3BILLION PEOPLE.
BRUNEIANS ARE
EDUCATED AND
CONNECTED PEOPLE.
BRUNEI HAS A YOUNG, HIGHLY
EDUCATED, MULTILINGUAL AND TECH
- SAVVY WORKFORCE.
75% OFPOPULATION
IS OF WORKING AGE
#1 FACEBOOK USAGE IN
ASIA
“#1 Facebook usage i n Asia” is 2012 d a t a
0%
PERSONAL INCOME TAX
PAYROLL TAX
GOODS AND SERVICES TAX
CAPITAL GAINS TAX
INVESTORS ARE WELCOME TO HAVE 100% OWNERSHIP.
CO-INVESTMENT PARTNERSHIP WITH THEBRUNEI
GOVERNMENT IS ALSO AVAILABLE.
LOWTAX REGIME AND
STRATEGICPARTNERS.
18.5%
CORPORATE TAX
NO. 2 LOWEST IN
SOUTHEAST ASIA
PREMIUM,
HIGH QUALITY
STANDARDS.
BRUNEI IS KNOWN FOR ITS GOOD
STANDARD OF LIVING, FROM WORLD
CLASS EDUCATION AND HEALTH
SYSTEM TO PREMIUM BRANDS SUCH AS
THE DORCHESTER GROUP.
STRONG
& COMMITTED
GOVERNMENT
SUPPORT.
THE BRUNEI GOVERNMENT IS COMMITTED TO
FIND WAYS TO IMPROVE THE BUSINESS
ENVIRONMENT THROUGH INTRODUCTION
OF NEW PROCESSES, REGULATIONS AND
SYSTEM CHANGES.
No. 1
MOST IMPROVED
COUNTRY IN THE WORLD
WORLD BANK’S DOING BUSINESS 2017 REPORT
2 YEARS IN A ROW
BRUNEI OFFERS ATTRACTIVE
INCENTIVES...
P I O N E E R TAX
STATUS
U P TO 5+3+3 YEARS EXEMPTION
ON CORPORATE INCOME TAX AND
IMPORT DUTIES
100%
FOREIGN OWNERSHIP
READILY
AVAILABLE
INFRASTRUCTURE
FASTTRACK
FDI SYSTEM
DEDICATED
SUPPORT
FOR INVESTORS
COMPETITIVE
UTILITY RATES
INTERNATIONAL COMPANIES
ESTABLISHEDINBRUNEI DARUSSALAM
AND MANY MORE...
DEDICATED
INDUSTRIALSITES
AVAILABLE FOR FDI
BEL AIT
DISTRICT
TEMBURONG
DISTRICT
TUTONG
DISTRICT
BRUNEI - MUARA
DISTRICT
DESIGNATED INDUSTRIAL SITES
UNDERDARUSSALAM ENTERPRISE
BIO INNOVATION
CORRIDOR
Halal-Related
Industries
DIGITAL
JUNCTION
ICT & High Tech
ANGGEREK DESA
TECH PARK
ICT & High Tech
SALAMBIGAR
INDUSTRIAL PARK
Light Industries
PULAU MUARA
BESAR (PMB)
Oil & Gas Downstream
BATU APOI
INDUSTRIAL PARK
Light Industries
TELISAI
INDUSTRIAL PARK
Mixed Industries
BUKIT PANGGAL
INDUSTRIAL PARK
Mixed Industries
SUNGAI LIANG
INDUSTRIAL PARK
Oil & Gas Downstream
RELIABLE
FOREIGN DIRECT
INVESTMENT
( FDI) SYSTEM
1
2
3
BRUNEI ECONOMIC
DEVELOPMENT BOARD
• Works guides investors to
an investment proposal
• Introduces potential
JV partners
FDI WORKING
COMMITTEE
(SUPPORTED BY FAST)
• Sources Solution
• Facilitation
FDI STEERING
COMMITTEE
• Committee of 5
Cabinet Ministers
• Recommends
final decision on
investment proposal
PRIORITY
BUSINESS CLUSTERS
HALAL
Pharmaceutical
and Health
Supplements
Aquaculture
Agriculture
Food Processing,
Manufacturing
and Distribution
Cosmetics
BUSINESS
SERVICES
Transportation
and Logistics
Financial Services
Business Process
Outsourcing
TECHNOLOGY &
CREATIVE
INDUSTRY
Data
Centre
Digital Media
Internet of Things
Biotechnology
TOURISM
Eco-Tourism
Medical
Tourism
Cultural
Tourism
Hospitality
DOWNSTREAM
OIL & GA
Downstream
Oil & Gas
Petrochemicals
SOME SELECTED DETAILS...
HALAL PHARMACEUTICALS, FOOD & COSMETICS
Available guidelines for certification of Halal Food, Halal Pharmaceuticals and
Halal Cosmetic
LOGISTICS & BUSINESS SERVICES
Logistics & Distribution services and Business Process Outsourcing services that
leverage on Brunei’s strategic location
TECHNOLOGY & CREATIVE INDUSTRY
Data Centre, Flight Schools, Multimedia industries that can capitalize on
available excess bandwidth and human resource
TOURISM
Eco-Tourism, Medical, Cultural and Hospitality that can capitalize on long
history cultural heritage and luxuriant rainforest
DOWNSTREAM OIL & GAS
Downstream Oil & Gas and Petrochemicals that utilize the available resources for
the development of higher-value-added downstream derivatives
BUSINESS
OPPORTUNITIES
OPPORTUNITIES :
HALAL FOOD INDUSTRY
INVESTMENT OPPORTUNITIES
AQUACULTURE AND AGRICULTURE
S E M AU N MARINE RESOURCES ,
GOLDEN CORPORATION, HI SEAT ON FISHERIES
FRESH SEAFOOD
EXISTING ACTIVITIES
GELATIN PALM OIL COCOA BEANS
DAIRY
PRODUCTS
CONFECTIONARIES
INDUSTRY
DETERGENT
AND SOAP
CANNING AND
REPACKAGING
REFRIGER ATED
CONTAINER
TRANSSHIPMENT
AND PROCESSING HUB
JE R A M BAK,
M U L AU T
ABATTOIRS
BMC,P D S ,
SABLI’S
FRESH AND
PROCESSED MEAT
WESTERN
FOODS
INDUSTRIAL
MARGARINE AND
SHORTENING
INFANT
POWDER
NUTRITIONAL
DRINKS, SHAKES
FOR ELDERS
H A N A SOY
SOY MILK
FOOD PROCESSING
OPPORTUNITIES:
HALAL PHARMACEUTICALS INDUSTRY
''
I N V E S T M E N TO P P O R T U N I T I
E S
EXISTING ACTIVITIES
RAW MATERIALS FROM OVERSEAS
E.G. GELATIN, FISH OIL
ASTAXANTHIN
PHARMACEUTICALS
CHEMICAL
WASTE
MANAGEMENT
PACKAGING
AND BOTTLING
ACCREDITED TESTING,
LABORATORIES AND
STERILISATION SERVICES
GELATIN DETERGENT
AND SOAP
WAREHOUSE
MANAGEMENT
OPPORTUNITIES:
TECHNOLOGY & CREATIVE INDUSTRY
SERVICE PROVIDERS
LOCAL EDUCATIONAL INSTITUTIONS
SUBMARINE CABLE
TELECOMMUNICATIONS
EDUCATION AND KNOWLEDGE CREATION
FLIGHT
SIMULATION
TRAINING
CENTRE
MEDIA
AND
IN-SERVICE
CENTRE
HOSPITALITY
SCHOOL
MULTIMEDIA
CONTENT
CREATION
BIODIVERSITY
R&D
NATIONAL
AND REGIONAL
DATA CENTRE
BUSINESS
NETWORK
IN
AVIATION
FLIGHT
SCHOOL
EXISTING ACTIVITIES INVESTMENT OPPORTUNITIES
OPPORTUNITIES:
LOGISTIC INDUSTRY
CONTAINER LINE
LAND, SEA & AIR
AIR CARGO
WAREHOUSING HALAL MEAT
TRANSSHIPMENT AND
PROCESSING HUB
SHIP
MAINTENANCE
AND REPAIR
CONTAINER
MAINTENANCE
AND REPAIR
SUPPLY CHAIN
MANAGEMENT
EXISTING ACTIVITIES INVESTMENT OPPORTUNITIES
OPPORTUNITIES:
OIL & GAS DOWNSTREAM INDUSTRY
FORMALDEHYDE
METHANOL AMMONIA AND UREA
JET FUEL, DIESEL, GASOLINE,
LPG AROMATIC HYDROCARBON
Melamine, Urea Formaldehyde
Melamine Formaldehyde
SPECIALTY
CHEMICALS
PLASTICS TEXTILES
FIBRE BOARD WOODEN FURNITURE TABLEWARE
EXISTING ACTIVITIES INVESTMENT OPPORTUNITIES
“BRUNEI DARUSSALAM’S ECONOMIC STRENGTH,
GEOGRAPHIC LOCATION, STABILITY, FOCUS ON SAFETY, LOW
TAX RATES AND STRONG RELATIONSHIP WITH ITS ASEAN
NEIGHBOURS ALL CONTRIBUTED TO CAE’S
DECISION TO MAKE A SIGNIFICANT INVESTMENT
IN ESTABLISHING A WORLD-CLASS MULTI-PURPOSE
TRAINING CENTRE IN BRUNEI DARUSSALAM.”
- Rozman Junaidi, Training Centre Manager, CAE Brunei MPTC Sdn Bhd
“ WE CHOSE BRUNEI DARUSSALAM BECAUSE OF
ITS POLITICAL STABILITY, SOLID IP PROTECTION LAWS
AND AVAILABILITY OF HIGHLY EDUCATED YOUNG PEOPLE.”
Johan Poole-Johnson, Commercial Director, Sengenics (B) Sdn Bhd
“UNLIKE OTHER PARTS OF THE MUSLIM REGION,
BRUNEI HAS A SAFE AND HEALTHY ENVIRONMENT
FOR US TOMAKE SIMPOR PHARMA AN INTERNATIONALLY
RECOGNIZED HOUSEHOLD NAME. WE AIM TOBOOST
BRUNEI DARUSSALAM’S GDP & CONTRIBUTE TOWARDS THE
DIVERSIFICATION OF THE ECONOMY.”
Edward Ko, Managing Director, Simpor Pharma Sdn Bhd
TESTIMONIALS
W H Y
BRUNEI DARUSSALAM
STABLE
ENVIRONMENT
• Political stability
• Low crime rates
• No history of
significant natural
disasters
• Clean & green
environment
FAVORABLE
TAX CLIMATE
• No tax on:
• Personal Income
• Payroll
• Goods and Services
• Capital Gains
ACCESS
TO MARKETS
• Strategically located
• Good connectivity
• International agreements
are in place
• Access to Raw Materials
from the BIMP-EAGA
region
• Access to Halal Markets:
Guidelines on Halal Food,
Pharmaceuticals and
Cosmetics are in place
DEDICATED
INDUSTRIAL
PARKS
• Land rates: B$7.00/ sqm
• Maintenance: varies
• Power: B$0.10/kWh (avg)
• Water (Potable): B$0.66/m³
Competitively priced
• Low Corporate
Income Tax of 18.5%
FRIENDLY
BUSINESS
ENVIRONMENT
• Ease of doing business
• Brunei laws are pro-business
and pro-investor including
a comprehensive Intellectual
Property (IP) law
CO-INVESTMENT
PARTNERSHIP
• Investors may own 100%
of a company established
in Brunei Darussalam;
nonetheless credible
co-investment partnership
is available
• Potential partners:
• Strategic Development Capital Fund
(SDC)
• Government Linked Companies
(GLCs)
under the Ministry of Finance
INVESTMENT
INCENTIVES
• Corporate Income
Tax
• Taxes on Imported Duties on Machinery,
Equipment, Component Parts, Accessories or
Building Structures
• Taxes on imported Raw Materials
• Pioneer Service Companies,
exemption From Corporate
Income Tax
• Period of exemption is up to 5
years + further extensions
W H Y
BRUNEI DARUSSALAM
• Pioneer
Industries,
exemption from:
WHY IS
BRUNEI DARUSSALAM
COMPETITIVE?
POLITICALLY STABLE
ATTRACTIVE TAX INCENTIVES
STRONG GOVERNMENT SUPPORT
GREAT ACCESS TO ASIAN’S GROWING MARKET
FRIENDLY, TRUSTABLE PARTNER
CONCLUSION
(global perspective)
From a global perspective, Brunei's stability and wealth are
notable, especially considering its small population. Its
economy's heavy reliance on oil and gas, however, exposes it
to global energy market fluctuations. The country's strict
legal system and limited political freedoms may be a
concern from a human rights standpoint.
RECOMMENDATIONS
● Economic Diversification: Brunei should consider diversifying its economy to reduce its
dependence on oil and gas. Investing in other sectors such as tourism, technology, and renewable
energy could help ensure long-term economic stability.
● Tourism Promotion: To compete with neighboring countries in tourism, Brunei could focus on
promoting its unique natural attractions, cultural heritage, and eco-friendly tourism. Improving
infrastructure and marketing efforts could boost its tourism industry.
● Human Rights and Political Reform: Brunei may want to consider reforms that enhance
political freedoms and human rights, aligning with global norms and expectations.
● Global Partnerships: Establishing strategic partnerships and collaborations with other countries,
especially in the ASEAN region, could open up new opportunities for trade, investment, and
regional stability.
● Environmental Conservation: Given its rich biodiversity, Brunei should continue to prioritize
environmental conservation and sustainable practices to protect its natural resources for future
generations.
TERIMA KASIH!
DAGALA, ALJON M., MBA STUDENT
REFERENCES:
Moving Away from Oil: How Can Brunei Diversify its Economy?
https://www.aseanbriefing.com/news/moving-away-from-oil-how-can-brunei-diversify-its-economy/
Facts about Brunei
https://borgenproject.org/10-facts-about-life-expectancy-in-brunei-darussalam/
Business in Brunei
https://www.mfa.gov.bn/jordan-amman/SitePages/businessinbrunei.aspx
Others:
https://www.youtube.com/watch?v=dc4A_6t_NeY
https://www.youtube.com/watch?v=2drgxcB1Xvo&t=66s
The government of Brunei official website
http://www.tourism.gov.bn/SitePages/Statistic.aspx

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COMPETITIVE-GLOBALMANAGEMENT-BRUNEI.pptx.pdf

  • 1. Competitive Global Management- Brunei PREPARED BY: ALJON DAGALA
  • 2. BRUNEI DARUSSALAM. YOUR FRIENDLY, ACCESSIBLE & SAFE GATEWAYTO SOUTHEAST ASIA. V I E T N A M M A L A Y S I A I N D O N E S I A S I N G A P O R E B O R N E O I S L A N D P H I L I P P I N E S C A M B O D I A M Y A N M A R T H A I L A N D L A O S
  • 3. ● Geographical Location: Brunei is a small sovereign state on Borneo island in Southeast Asia, bordered by the South China Sea to the north and Malaysia to the west and south. ● History: It had a powerful empire dating back to the 7th century, but declined due to colonialism. It gained independence in 1984 and is now ruled by Sultan Hassanal Bolkiah. ● Culture: Brunei's culture is influenced by Islam and Malay customs, with a central role for the royal family. ● Economy: It has a prosperous economy, mainly from oil and gas reserves, investing in diversification into tourism and finance.
  • 4. ● Local Currency: The local currency of Brunei is the Brunei Dollar (BND). BND PhP USD 1.00 41.56 (Disclaimer: as of Sept 29, 2023) 0.73 (Disclaimer: as of Sept 29, 2023) Rank 11- GDP- PPP per Capita all over the world…
  • 5.
  • 6. SOUTHEASTASIA IS THE 5TH LARGEST MARKETINTHE WORLD
  • 7. BRUNEI IS IN THE HEART OF SOUTHEAST ASIA. 3 HOURS FLIGHT TO THE WHOLE REGION FLIGHT SERVICES TO MAJOR CITIES S H I P P I N G SERVICE L I N E S F R O M MUARA PORT CONNECTED P O RT S REGIONALLY 16 13 15 BRU N EI DARU SSAL AM HANOI PHNOM PENH BANGKOK KUALA LUMPUR JAKARTA SINGAPORE VIENTIANE YANGON HONG KONG MANILA
  • 8.
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  • 11. A SAFE SANCTUARYIN SOUTHEASTASIA. BRUNEI PROVIDES A POLITICALLY STABLE AND SAFE ENVIRONMENT FILLED WITH LUSHGREENERY AND BOASTING THE 3RD CLEANEST AIR IN THE WORLD. BORNEO, THE WORLD'S THIRD LARGEST ISLAND, ACCOUNTS FOR JUST 1% OF THE WORLD'S LAND YET HOLDS ROUGHLY 6% OF GLOBAL BIODIVERSITY IN ITS RICH, TROPICAL FORESTS. 75% STILL COVERED IN PRISTINE RAINFOREST AND OTHER ECOHABITATS 58% OF TOTAL LAND AREA TO BE CONSERVED UNDER “HEART OF BORNEO” INITIATIVE
  • 12. A FRIENDLY MUSLIM NATION. BRUNEI IS A MEMBER OF ASEAN, WTO & APEC, AND HAS MULTIPLE TRADE AGREEMENTS IN THESE BODIES AND BEYOND../
  • 13. 8 TRADEAGREEMENTSWITH 24 COUNTRIES, WITH A REACH OF MORETHAN 3BILLION PEOPLE.
  • 14. BRUNEIANS ARE EDUCATED AND CONNECTED PEOPLE. BRUNEI HAS A YOUNG, HIGHLY EDUCATED, MULTILINGUAL AND TECH - SAVVY WORKFORCE. 75% OFPOPULATION IS OF WORKING AGE #1 FACEBOOK USAGE IN ASIA “#1 Facebook usage i n Asia” is 2012 d a t a
  • 15. 0% PERSONAL INCOME TAX PAYROLL TAX GOODS AND SERVICES TAX CAPITAL GAINS TAX INVESTORS ARE WELCOME TO HAVE 100% OWNERSHIP. CO-INVESTMENT PARTNERSHIP WITH THEBRUNEI GOVERNMENT IS ALSO AVAILABLE. LOWTAX REGIME AND STRATEGICPARTNERS. 18.5% CORPORATE TAX NO. 2 LOWEST IN SOUTHEAST ASIA
  • 16. PREMIUM, HIGH QUALITY STANDARDS. BRUNEI IS KNOWN FOR ITS GOOD STANDARD OF LIVING, FROM WORLD CLASS EDUCATION AND HEALTH SYSTEM TO PREMIUM BRANDS SUCH AS THE DORCHESTER GROUP.
  • 17. STRONG & COMMITTED GOVERNMENT SUPPORT. THE BRUNEI GOVERNMENT IS COMMITTED TO FIND WAYS TO IMPROVE THE BUSINESS ENVIRONMENT THROUGH INTRODUCTION OF NEW PROCESSES, REGULATIONS AND SYSTEM CHANGES. No. 1 MOST IMPROVED COUNTRY IN THE WORLD WORLD BANK’S DOING BUSINESS 2017 REPORT 2 YEARS IN A ROW
  • 18. BRUNEI OFFERS ATTRACTIVE INCENTIVES... P I O N E E R TAX STATUS U P TO 5+3+3 YEARS EXEMPTION ON CORPORATE INCOME TAX AND IMPORT DUTIES 100% FOREIGN OWNERSHIP READILY AVAILABLE INFRASTRUCTURE FASTTRACK FDI SYSTEM DEDICATED SUPPORT FOR INVESTORS COMPETITIVE UTILITY RATES
  • 20. DEDICATED INDUSTRIALSITES AVAILABLE FOR FDI BEL AIT DISTRICT TEMBURONG DISTRICT TUTONG DISTRICT BRUNEI - MUARA DISTRICT DESIGNATED INDUSTRIAL SITES UNDERDARUSSALAM ENTERPRISE BIO INNOVATION CORRIDOR Halal-Related Industries DIGITAL JUNCTION ICT & High Tech ANGGEREK DESA TECH PARK ICT & High Tech SALAMBIGAR INDUSTRIAL PARK Light Industries PULAU MUARA BESAR (PMB) Oil & Gas Downstream BATU APOI INDUSTRIAL PARK Light Industries TELISAI INDUSTRIAL PARK Mixed Industries BUKIT PANGGAL INDUSTRIAL PARK Mixed Industries SUNGAI LIANG INDUSTRIAL PARK Oil & Gas Downstream
  • 21. RELIABLE FOREIGN DIRECT INVESTMENT ( FDI) SYSTEM 1 2 3 BRUNEI ECONOMIC DEVELOPMENT BOARD • Works guides investors to an investment proposal • Introduces potential JV partners FDI WORKING COMMITTEE (SUPPORTED BY FAST) • Sources Solution • Facilitation FDI STEERING COMMITTEE • Committee of 5 Cabinet Ministers • Recommends final decision on investment proposal
  • 22. PRIORITY BUSINESS CLUSTERS HALAL Pharmaceutical and Health Supplements Aquaculture Agriculture Food Processing, Manufacturing and Distribution Cosmetics BUSINESS SERVICES Transportation and Logistics Financial Services Business Process Outsourcing TECHNOLOGY & CREATIVE INDUSTRY Data Centre Digital Media Internet of Things Biotechnology TOURISM Eco-Tourism Medical Tourism Cultural Tourism Hospitality DOWNSTREAM OIL & GA Downstream Oil & Gas Petrochemicals
  • 23. SOME SELECTED DETAILS... HALAL PHARMACEUTICALS, FOOD & COSMETICS Available guidelines for certification of Halal Food, Halal Pharmaceuticals and Halal Cosmetic LOGISTICS & BUSINESS SERVICES Logistics & Distribution services and Business Process Outsourcing services that leverage on Brunei’s strategic location TECHNOLOGY & CREATIVE INDUSTRY Data Centre, Flight Schools, Multimedia industries that can capitalize on available excess bandwidth and human resource TOURISM Eco-Tourism, Medical, Cultural and Hospitality that can capitalize on long history cultural heritage and luxuriant rainforest DOWNSTREAM OIL & GAS Downstream Oil & Gas and Petrochemicals that utilize the available resources for the development of higher-value-added downstream derivatives
  • 25. OPPORTUNITIES : HALAL FOOD INDUSTRY INVESTMENT OPPORTUNITIES AQUACULTURE AND AGRICULTURE S E M AU N MARINE RESOURCES , GOLDEN CORPORATION, HI SEAT ON FISHERIES FRESH SEAFOOD EXISTING ACTIVITIES GELATIN PALM OIL COCOA BEANS DAIRY PRODUCTS CONFECTIONARIES INDUSTRY DETERGENT AND SOAP CANNING AND REPACKAGING REFRIGER ATED CONTAINER TRANSSHIPMENT AND PROCESSING HUB JE R A M BAK, M U L AU T ABATTOIRS BMC,P D S , SABLI’S FRESH AND PROCESSED MEAT WESTERN FOODS INDUSTRIAL MARGARINE AND SHORTENING INFANT POWDER NUTRITIONAL DRINKS, SHAKES FOR ELDERS H A N A SOY SOY MILK FOOD PROCESSING
  • 26. OPPORTUNITIES: HALAL PHARMACEUTICALS INDUSTRY '' I N V E S T M E N TO P P O R T U N I T I E S EXISTING ACTIVITIES RAW MATERIALS FROM OVERSEAS E.G. GELATIN, FISH OIL ASTAXANTHIN PHARMACEUTICALS CHEMICAL WASTE MANAGEMENT PACKAGING AND BOTTLING ACCREDITED TESTING, LABORATORIES AND STERILISATION SERVICES GELATIN DETERGENT AND SOAP WAREHOUSE MANAGEMENT
  • 27. OPPORTUNITIES: TECHNOLOGY & CREATIVE INDUSTRY SERVICE PROVIDERS LOCAL EDUCATIONAL INSTITUTIONS SUBMARINE CABLE TELECOMMUNICATIONS EDUCATION AND KNOWLEDGE CREATION FLIGHT SIMULATION TRAINING CENTRE MEDIA AND IN-SERVICE CENTRE HOSPITALITY SCHOOL MULTIMEDIA CONTENT CREATION BIODIVERSITY R&D NATIONAL AND REGIONAL DATA CENTRE BUSINESS NETWORK IN AVIATION FLIGHT SCHOOL EXISTING ACTIVITIES INVESTMENT OPPORTUNITIES
  • 28. OPPORTUNITIES: LOGISTIC INDUSTRY CONTAINER LINE LAND, SEA & AIR AIR CARGO WAREHOUSING HALAL MEAT TRANSSHIPMENT AND PROCESSING HUB SHIP MAINTENANCE AND REPAIR CONTAINER MAINTENANCE AND REPAIR SUPPLY CHAIN MANAGEMENT EXISTING ACTIVITIES INVESTMENT OPPORTUNITIES
  • 29. OPPORTUNITIES: OIL & GAS DOWNSTREAM INDUSTRY FORMALDEHYDE METHANOL AMMONIA AND UREA JET FUEL, DIESEL, GASOLINE, LPG AROMATIC HYDROCARBON Melamine, Urea Formaldehyde Melamine Formaldehyde SPECIALTY CHEMICALS PLASTICS TEXTILES FIBRE BOARD WOODEN FURNITURE TABLEWARE EXISTING ACTIVITIES INVESTMENT OPPORTUNITIES
  • 30. “BRUNEI DARUSSALAM’S ECONOMIC STRENGTH, GEOGRAPHIC LOCATION, STABILITY, FOCUS ON SAFETY, LOW TAX RATES AND STRONG RELATIONSHIP WITH ITS ASEAN NEIGHBOURS ALL CONTRIBUTED TO CAE’S DECISION TO MAKE A SIGNIFICANT INVESTMENT IN ESTABLISHING A WORLD-CLASS MULTI-PURPOSE TRAINING CENTRE IN BRUNEI DARUSSALAM.” - Rozman Junaidi, Training Centre Manager, CAE Brunei MPTC Sdn Bhd “ WE CHOSE BRUNEI DARUSSALAM BECAUSE OF ITS POLITICAL STABILITY, SOLID IP PROTECTION LAWS AND AVAILABILITY OF HIGHLY EDUCATED YOUNG PEOPLE.” Johan Poole-Johnson, Commercial Director, Sengenics (B) Sdn Bhd “UNLIKE OTHER PARTS OF THE MUSLIM REGION, BRUNEI HAS A SAFE AND HEALTHY ENVIRONMENT FOR US TOMAKE SIMPOR PHARMA AN INTERNATIONALLY RECOGNIZED HOUSEHOLD NAME. WE AIM TOBOOST BRUNEI DARUSSALAM’S GDP & CONTRIBUTE TOWARDS THE DIVERSIFICATION OF THE ECONOMY.” Edward Ko, Managing Director, Simpor Pharma Sdn Bhd TESTIMONIALS
  • 31. W H Y BRUNEI DARUSSALAM STABLE ENVIRONMENT • Political stability • Low crime rates • No history of significant natural disasters • Clean & green environment FAVORABLE TAX CLIMATE • No tax on: • Personal Income • Payroll • Goods and Services • Capital Gains ACCESS TO MARKETS • Strategically located • Good connectivity • International agreements are in place • Access to Raw Materials from the BIMP-EAGA region • Access to Halal Markets: Guidelines on Halal Food, Pharmaceuticals and Cosmetics are in place DEDICATED INDUSTRIAL PARKS • Land rates: B$7.00/ sqm • Maintenance: varies • Power: B$0.10/kWh (avg) • Water (Potable): B$0.66/m³ Competitively priced • Low Corporate Income Tax of 18.5%
  • 32. FRIENDLY BUSINESS ENVIRONMENT • Ease of doing business • Brunei laws are pro-business and pro-investor including a comprehensive Intellectual Property (IP) law CO-INVESTMENT PARTNERSHIP • Investors may own 100% of a company established in Brunei Darussalam; nonetheless credible co-investment partnership is available • Potential partners: • Strategic Development Capital Fund (SDC) • Government Linked Companies (GLCs) under the Ministry of Finance INVESTMENT INCENTIVES • Corporate Income Tax • Taxes on Imported Duties on Machinery, Equipment, Component Parts, Accessories or Building Structures • Taxes on imported Raw Materials • Pioneer Service Companies, exemption From Corporate Income Tax • Period of exemption is up to 5 years + further extensions W H Y BRUNEI DARUSSALAM • Pioneer Industries, exemption from:
  • 33. WHY IS BRUNEI DARUSSALAM COMPETITIVE? POLITICALLY STABLE ATTRACTIVE TAX INCENTIVES STRONG GOVERNMENT SUPPORT GREAT ACCESS TO ASIAN’S GROWING MARKET FRIENDLY, TRUSTABLE PARTNER
  • 34. CONCLUSION (global perspective) From a global perspective, Brunei's stability and wealth are notable, especially considering its small population. Its economy's heavy reliance on oil and gas, however, exposes it to global energy market fluctuations. The country's strict legal system and limited political freedoms may be a concern from a human rights standpoint.
  • 35. RECOMMENDATIONS ● Economic Diversification: Brunei should consider diversifying its economy to reduce its dependence on oil and gas. Investing in other sectors such as tourism, technology, and renewable energy could help ensure long-term economic stability. ● Tourism Promotion: To compete with neighboring countries in tourism, Brunei could focus on promoting its unique natural attractions, cultural heritage, and eco-friendly tourism. Improving infrastructure and marketing efforts could boost its tourism industry. ● Human Rights and Political Reform: Brunei may want to consider reforms that enhance political freedoms and human rights, aligning with global norms and expectations. ● Global Partnerships: Establishing strategic partnerships and collaborations with other countries, especially in the ASEAN region, could open up new opportunities for trade, investment, and regional stability. ● Environmental Conservation: Given its rich biodiversity, Brunei should continue to prioritize environmental conservation and sustainable practices to protect its natural resources for future generations.
  • 36. TERIMA KASIH! DAGALA, ALJON M., MBA STUDENT
  • 37. REFERENCES: Moving Away from Oil: How Can Brunei Diversify its Economy? https://www.aseanbriefing.com/news/moving-away-from-oil-how-can-brunei-diversify-its-economy/ Facts about Brunei https://borgenproject.org/10-facts-about-life-expectancy-in-brunei-darussalam/ Business in Brunei https://www.mfa.gov.bn/jordan-amman/SitePages/businessinbrunei.aspx Others: https://www.youtube.com/watch?v=dc4A_6t_NeY https://www.youtube.com/watch?v=2drgxcB1Xvo&t=66s The government of Brunei official website http://www.tourism.gov.bn/SitePages/Statistic.aspx