Oil Surge Fuels Brunei’s Economic Revival – But Is It Sustainable?

October 3, 2024:

Brunei’s economy soared by 6% in Q2 2024, driven by a booming oil and gas sector. However, with global energy markets in turmoil and the nation's heavy reliance on oil, can this growth be sustained? As non-oil sectors struggle to keep pace, what does the future hold for Brunei’s economy—and its people? MHO

 

By Malai Hassan Othman

 

BANDAR SERI BEGAWAN, OCTOBER 2024: Brunei Darussalam’s economy saw significant growth in the second quarter of 2024, marking a recovery fueled largely by its oil and gas sector.

 

The country’s Gross Domestic Product (GDP) rose by 6.0% year-on-year, reaching BND 5.2 billion compared to BND 4.8 billion in the same quarter of 2023.

 

This growth, while promising, raises critical questions about its sustainability and whether the benefits will extend beyond the oil and gas industry to other sectors and the lives of ordinary Bruneians.

 

Oil and Gas: The Backbone of Growth

Brunei’s oil and gas sector continues to be the foundation of the economy, contributing over 50% of the total GDP.

 

The sector grew by 7.7% in Q2 2024, driven by increased production of crude oil and liquefied natural gas (LNG).

 

Crude oil production rose from 77.9 thousand barrels per day in 2023 to 81.0 thousand barrels per day in 2024, while LNG production jumped from 586.9 to 656.3 thousand Million British Thermal Units per day (MMBtu/d).

 

Despite global LNG prices softening, oil prices for Brunei surged by 6%, largely due to geopolitical instability in the Middle East and Europe.

 

This has helped cushion Brunei from global market fluctuations, but it highlights a familiar narrative - an economy heavily reliant on external factors, particularly energy prices.

 

Beyond Oil: Modest Non-Oil Sector Growth

While the oil and gas industry thrives, Brunei's non-oil sector also recorded a positive, albeit modest, 4.5% growth.

 

Leading this charge was the manufacturing of petroleum and chemical products, which saw a remarkable 52.8% increase.

 

However, other non-oil industries, such as agriculture, forestry, and fisheries, experienced downturns, with the fisheries sector shrinking by a staggering 16.7%.

 

Brunei’s move to diversify its economy is reflected in its growing downstream activities and manufacturing capacity, yet these figures reveal how fragile this growth can be.

 

The country’s long-term economic health depends on balancing its oil revenues with more sustainable, broad-based growth from sectors like technology, manufacturing, and services.

 

Mixed Results in Industry and Services

The industrial sector experienced mixed fortunes, with LNG production boosting growth by 9.7%.

 

Gains in apparel manufacturing and electricity generation contributed positively; however, some manufacturing sectors, such as food and beverages, experienced a decline during the same period.

 

The services sector showed a slight 1.3% improvement, with transportation, business services, and healthcare seeing growth.

 

However, declines in the finance and restaurant industries offset some of these gains. These variations suggest that Brunei’s broader economy is still struggling to find solid footing outside of oil and gas.

 

Is Growth Reaching Everyone?

Despite positive GDP numbers, public commentary suggests doubts about how much this growth is felt on the ground.

 

Concerns have been raised about the sustainability of this oil-driven boom and whether it will translate into job creation and improved living standards for ordinary Bruneians.

 

For instance, some have noted a lack of improvement in retail, and unemployment remains a challenge.

 

Public sentiment also questions the heavy reliance on oil sales and whether it truly reflects broader economic health.

 

“If it’s from oil sales, then there’s nothing to be proud of,” commented one observer, hinting at the deeper structural weaknesses that may be masked by high GDP growth.

 

The Road Ahead: What Happens After the Boom?

As Brunei looks to the remainder of 2024 and beyond, the key question is: Can the current momentum be sustained?

 

Major projects like the Hengyi petrochemical plant, slated for completion in 2028, and the expansion of Brunei Muara Port by 2025 are critical to supporting future growth.

 

However, these projects remain tied to the oil and gas sector, signalling the need for diversification into other areas to safeguard the economy from potential shocks.

 

In addition, while Brunei’s oil reserves - at 1.1 billion barrels - could last 188 years at current consumption levels, reliance on this finite resource carries inherent risks.

 

As the global energy landscape transitions towards renewables, Brunei faces a ticking clock to adapt.

 
Conclusion: A Boom with Caution

Brunei’s economic growth in Q2 2024 is certainly worth celebrating. The 6% increase in GDP, largely powered by oil and gas, showcases the nation’s resilience and potential for further gains.

However, the lingering question is how sustainable this growth will be in the long run.

 

Will Brunei’s economy evolve beyond its dependence on oil, or will it remain vulnerable to external price shocks and market dynamics?

 

The Sultanate must navigate this complex terrain carefully, ensuring that the benefits of growth are felt more broadly across sectors and the population.

 

Only then can Brunei build a more resilient and inclusive future, one that isn’t just defined by oil booms but by sustainable, diversified prosperity. (MHO/10/2024)

Your Money at Risk? Cybercrime Soars in Brunei

October 1, 2024

"With cybercriminals now targeting your bank account instead of your home, how safe is your money in Brunei’s increasingly digital world? Discover the new wave of crime that’s changing everything."

 

By Malai Hassan Othman 

 

BANDAR SERI BEGAWAN, OCTOBER 2024: Brunei Darussalam, long regarded as a haven of peace and safety, is now grappling with an unsettling new wave of crime. Cybercriminals are increasingly shifting their focus from traditional crimes like property theft to digital fraud, targeting unsuspecting citizens through online scams.

 

The consequences have been devastating, with some victims losing over BND 100,000 in a single scam.

 

For decades, property crime was the primary concern for Bruneians. This category of crime includes offences such as theft, burglary, vandalism, and car theft — essentially any crime involving the illegal taking or damaging of someone’s physical property.

 

Property crimes have long caused anxiety for homeowners and business owners, who feared break-ins, stolen goods, or vandalised properties.

 

In the early 2000s, property crime rates in Brunei were alarmingly high, with over 3,500 cases reported annually.

 

This translates to an average of 9 to 10 property crime cases every single day during that period. Families were concerned about the safety of their homes and possessions, and property theft, burglary, and car break-ins were common worries.

 

Families were often concerned about protecting their homes and valuables, installing security systems and taking other precautions to prevent theft.

 

However, the tide has turned in recent years, and Brunei has seen a significant decline in property crimes, with just 1,344 cases reported in 2023. This drop is due to a combination of improved security, public awareness, and likely an evolving economic landscape.

 

But while fewer people are now worried about thieves breaking into their homes, a much more insidious threat has emerged: cybercrime.

 

Criminals have shifted from physical theft to digital fraud, taking advantage of the increasing number of people using online platforms for banking, shopping, and investing.

 

 

Sophisticated Scams: The New Tools of Criminals

Cybercriminals are evolving rapidly, using increasingly sophisticated methods to prey on their victims. They exploit platforms like Telegram and Instagram, creating fake business profiles and fraudulent investment opportunities that lure victims with promises of quick and substantial returns.

 

In one case that shook the community, a local woman, Miss L, fell victim to a scam while attempting to buy a pre-loved luxury handbag on Instagram.

 

The account, boasting thousands of followers and showcasing high-end products, appeared legitimate.

 

After transferring BND 2,000 to the supposed seller, Miss L realised too late that she had been scammed.

 

Her money was gone, the seller vanished, and Miss L was left with nothing but a hard lesson about the dangers lurking online.

 

These types of scams are part of a broader trend. Instead of breaking into homes to steal valuable items, criminals now infiltrate bank accounts and personal information from the safety of their computers.

 

Victims often don’t realise they’ve been targeted until it’s too late when their money is gone, and the criminals are nowhere to be found.

 

Six-Figure Losses and Postal Scams

 

While many scams involve relatively small sums of money, some victims in Brunei have lost staggering amounts. In one case, individuals were tricked into investing in a fraudulent scheme, collectively losing over BND 100,000.

 

The scammers used false business credentials and professional-looking websites to convince their victims that the investment was legitimate.

 

Once the money was transferred, the fraudsters disappeared, leaving the victims with massive financial losses and little hope of recovery.

 

On another front, Brunei has also faced a postal scam that prompted an urgent warning from the Postal Services Department.

 

Text messages claiming to be from Brunei Post requested recipients to pay bogus “fees” for package deliveries, tricking them into providing personal and financial information.

 

This scam alarmed many, as it exploited the public’s trust in a familiar and reliable institution.

 

In response, the Postal Services Department made it clear that they would never request such information via text, and they encouraged the public to remain vigilant.

 

These cases illustrate the diversity of cybercrimes in Brunei. From high-value investment fraud to low-tech postal scams, criminals are exploiting every possible avenue to defraud unsuspecting individuals.

 

High-Tech Crimes, High-Stakes Consequences

 

The sophistication of these scams is a growing concern for Brunei’s authorities. Cybercriminals are constantly adapting their methods, using platforms like Telegram, Instagram, and other digital channels to promote fake investment opportunities and e-commerce deals.

 

Many create fraudulent websites or use official-looking logos to make their offers appear legitimate, which further confuses and deceives victims.

 

Victims are often enticed by promises of quick returns or deep discounts. What might begin as an innocent transaction can quickly spiral into a financial disaster?

 

With cybercriminals increasingly employing artificial intelligence and other cutting-edge technology, tracking them down becomes more complex for authorities.

 

In many cases, these criminals are part of international syndicates, making it even harder for Brunei’s law enforcement to act swiftly.

 

International Crime Syndicates and Postal Scams: A Global Problem

 

Many of these scams have international roots, with syndicates operating across borders. 

 

The RBPF has been working closely with INTERPOL and ASEANAPOL to combat these threats, but the complexity of tracking down international criminals means that investigations often take months or even years.

 

In the case of the postal scam, authorities suspect that it was part of a larger network of international fraudsters targeting unsuspecting victims globally.

 

Although the Postal Services Department acted swiftly to alert the public, many victims had already provided sensitive information, exposing themselves to further risks of financial theft.

 

Financial and Emotional Toll on Victims

 

The financial losses in these cases are staggering, but the emotional toll is equally profound.

 

Many victims feel embarrassed or ashamed, believing that they should have recognised the scam before it was too late.

 

This shame often prevents them from coming forward, allowing scammers to continue their operations undetected.

 

In one particularly egregious case, victims of a fraudulent investment scheme were pressured to recruit friends and family.

 

The scheme operated like a pyramid scam, with initial investors being paid using the money from recruits.

 

When the scheme eventually collapsed, it left many participants not only financially ruined but also grappling with guilt for involving their loved ones.

 

A Growing Need for Vigilance

 

In response to the rise in cybercrime, the RBPF has ramped up its efforts to educate the public.

 

Authorities are conducting roadshows, school seminars, and community briefings to raise awareness about the tactics scammers use.

 

These efforts are crucial in helping Bruneians understand the dangers of online fraud and how to protect themselves.

 

The government is also working to strengthen international partnerships to combat cybercrime.

 

Cyber Security Brunei has teamed up with Cyber Security Malaysia and other regional bodies to share intelligence and develop strategies for tracking down cybercriminals.

 

However, these criminals are becoming more sophisticated, and the technology they use is advancing rapidly.

 
Conclusion: Brunei’s Crime Landscape Is Changing

 

The rise in cybercrime in Brunei signals a profound shift in the nation’s crime landscape.

 

Once dominated by physical theft and property crimes, the focus has now moved to digital fraud and online scams.

 

As more Bruneians embrace online banking, shopping, and investment platforms, the risk of cybercrime grows.

 

For many, the battle against these faceless criminals is a deeply personal one.

 

Some have lost not only their life savings but also their trust in online platforms.

 

The BND 100,000 scams and the postal fraud are reminders that no one is safe from cybercrime and that vigilance is more important than ever.

 

The government and law enforcement are taking steps to combat this growing threat, but it is clear that Brunei is facing a new type of crime—one that is complex, far-reaching, and deeply damaging.

 

The question now is whether the nation can adapt quickly enough to protect its citizens from the next wave of attacks. (MHO/10/2024)

Sexual Harassment Cases Double: Brunei Victims Demand Action

By: Malai Hassan Othman

 

BANDAR SERI BEGAWAN, SEPTEMBER 2024 – Three years after former Legislative Council (LegCo) member YB Khairunnisa Hj Ash’ari called for a zero-tolerance policy on sexual harassment in Brunei workplaces, victims continue to feel abandoned.

 

Despite the rising number of complaints - doubling to 23 in 2023 - the government’s response has largely been limited to referencing existing legislation without taking substantive actions, such as providing clear reporting mechanisms or launching the long-promised national survey.

 

In the March 2024 LegCo session, YB Hjh Safiah Sheikh Hj Abd Salam reported a sharp increase in sexual harassment cases, noting that 23 complaints were lodged in 2023, compared to 13 cases in 2022.

 

She emphasised that many victims remain silent due to fear of retaliation or a lack of confidence in the existing reporting systems. YB Hjh Safiah also underscored that the true number of cases is likely much higher, as the majority of victims do not come forward.

 

"We are witnessing a significant rise in harassment complaints, but we know this is just the tip of the iceberg. The government must act swiftly to protect women in the workplace, or we will continue to see these numbers rise," YB Hjh Safiah stated during the session.

 

She also reiterated the urgent need for a national survey to gather comprehensive data on workplace harassment and better understand the extent of the problem.

 

However, as of 2024, the survey has yet to be launched.

Stronger Victim Voices: Real-Life Stories of Fear and Silence

The lack of government action has left many victims feeling they have no choice but to remain silent.

 

One anonymous victim shared her story of enduring harassment during an internship: "I experienced harassment at one of my internships, but I did nothing. I was too scared that speaking up would ruin my career before it even started. Looking back, I wish I had known where to go for help."

 

Another woman described being harassed by her supervisor, who repeatedly sent her inappropriate messages and made advances.

 

Despite reporting the issue to HR, she was told her case would not affect the company because it was a "private matter" between her and her boss.

 

"They even said I should pity him because he’s old and has a family. I felt helpless," she said.

 

The emotional toll of these experiences weighs heavily on victims, who often feel trapped between losing their jobs or enduring continued harassment.

 

Many fear that reporting harassment will lead to retaliation, as one employee recalled: "After I rejected my supervisor’s advances, his attitude toward me changed. He kept finding faults in everything I did, and I had no one to turn to."

 

For many victims, the experience is not just about the harassment itself but also the trauma of being ignored and feeling unprotected.

 

The "Me Too" Movement: A Global Voice for Brunei?

In the face of government inaction, discussions are growing about whether Brunei might see the rise of its own "Me Too" movement.

 

Globally, the movement has empowered victims of sexual harassment to share their stories, break their silence, and push for systemic change.

 

On social media, victims and advocates have begun discussing the possibility of creating a Brunei-specific version of the movement, allowing victims to speak up anonymously without fear of retaliation.

 

One social media user commented, "We need to make sure that harassers face real consequences. The time for silence is over—maybe it’s time for our own ‘Me Too.’"

 

PM’s Office and the Legal Framework: What Happened to the Code of Conduct?

In March 2021, the Prime Minister’s Office (PMO), through Minister YB Dato Seri Setia Hj Awg Abdul Mokti Hj Mohd Daud, announced that it was preparing guidelines to prevent sexual harassment in the workplace.

 

These guidelines aimed to introduce a formal code of conduct for both public and private sectors, establishing a framework for reporting and addressing workplace harassment.

 

However, as of 2024, the code of ethics has yet to be fully published or circulated, raising concerns about the government’s commitment to its implementation.

 

Pehin Orang Kaya Laila Setia Bakti Diraja Dato Laila Utama Haji Awang Isa, the Special Adviser to His Majesty the Sultan, also referenced existing laws addressing sexual harassment during earlier LegCo discussions.

 

He pointed to: -

 

• Penal Code Chapter 22 Section 59, which addresses words, gestures, or acts intended to insult the modesty of women,

• Syariah Criminal Law Chapter 4 Section 197, which addresses inappropriate behaviour.

 

While these laws provide a legal framework, many advocacy groups, including Project Women and the Women Graduates Association (PSW), have called for clearer reporting mechanisms and stronger enforcement to ensure victims feel protected when coming forward with complaints.

 
Startling Data: Most Victims Stay Silent, Unaware of Protections

One of the most alarming revelations came during a LegCo meeting, where it was reported that 74 per cent of those who experienced sexual harassment did not lodge a report, and 84 per cent of victims were unaware of existing laws that could protect them.

 

This lack of awareness about legal protections, combined with fears of retaliation, prevents many victims from coming forward.

 

Nur Judy Abdullah, founder of Project Women, highlighted this issue, stressing the need for public awareness campaigns and legal education so that women know their rights and understand how to seek help.

 

"We must do more to educate women about their rights and provide them with safe channels to report harassment," she said.

 

Zero-Tolerance Policies: An Unmet Call Since 2021

In her 2021 LegCo speech, YB Khairunnisa Hj Ash’ari emphasised the need for a zero-tolerance policy on sexual harassment, urging both the public and private sectors to adopt a firm stance against harassment.

 

She pointed to Brunei Shell Petroleum as a model for enforcing zero-tolerance in its workplace, encouraging other organisations to follow suit.

 

However, despite her call, the zero-tolerance policy remains unmet as of 2024, leaving many victims vulnerable in their workplaces.

 

YB Khairunnisa has since completed her 5-year term, but her call for action continues to resonate among victims and advocates.

 

A Call to Action: Zero Tolerance Is the Only Way Forward

Advocates argue that the only way forward is to adopt zero-tolerance policies that ensure swift and clear consequences for offenders.

 

Pg Zabaidah and Nur Judy Abdullah, founder of Project Women, have been calling for new legislation similar to Brunei’s Women and Girls Protection Act, which would provide specific avenues for victims to lodge complaints and guarantee protection from retaliation.

 

"Sexual harassment must not be tolerated anywhere, and the government must lead the way in ensuring that all workplaces adopt a culture of respect and safety," said Nur Judy Abdullah.

 

Conclusion: Victims Demand Action Now

The time for action is now. With sexual harassment complaints on the rise and victims increasingly frustrated, the government must deliver on its promises.

 

Zero-tolerance policies, clear reporting mechanisms, and the immediate publication of the code of conduct are essential for making workplaces safe for everyone.

 

Until the government takes these steps, victims of sexual harassment in Brunei will continue to suffer in silence, waiting for the protection they deserve. (MHO/09/2024)

As Investments Fall, Brunei Faces Call for Reform and Efficiency

 

Brunei is experiencing a significant drop in foreign investments, leading to frustrations among businesses and citizens. Is the country’s red tape driving away foreign funds? With key sectors like mining and manufacturing struggling and investors seeking opportunities elsewhere, Brunei’s future is uncertain. Can the nation reform its bureaucracy in time, or will it continue to lose ground to more competitive neighbours? Explore the obstacles hindering Brunei’s economic potential and the calls for urgent change. MHO

 

 

 

BANDAR SERI BEGAWAN, SEPTEMBER 2024: Brunei Darussalam’s foreign direct investment (FDI) has seen a notable decline in the first quarter of 2024, sparking concerns among both the public and the business community. 

 

According to recent figures from the Department of Economic Planning and Statistics, the country’s total FDI stock now stands at BND 8.266 billion, down from BND 8.960 billion at the end of 2023. 

 

As the country grapples with this downturn, citizens are increasingly voicing concerns about the factors driving these numbers, with many pointing to bureaucratic hurdles as a significant barrier to progress. 

 

One of the most significant declines has been in equity investments —the direct injection of foreign capital into Brunei’s economy—which fell from BND 7.728 billion to BND 7.450 billion over the first quarter. 

 

More concerning, perhaps, is the sharp drop in debt instruments, or foreign loans and credit, which plummeted to BND 815.9 million from BND 1.232 billion in the previous quarter. 

 

This decrease in foreign financial support suggests that businesses may be finding it harder to access the credit needed for growth and expansion, leaving many projects in limbo. 

 

Public sentiment has become increasingly critical, with many citizens taking to social media to voice their frustrations over the slow pace of government processes. 

 

One individual commented, “Red tape, red tape, and more red tape. Investors are getting scared off because it takes forever to get anything approved!” 

 

This reflects a growing perception that Brunei’s regulatory environment is not keeping up with the needs of modern businesses and is hindering potential growth. 

 

Beyond regulatory concerns, there are also complaints about inefficiencies within government agencies, particularly regarding tender processes. 

 

“My company has been waiting for a government tender decision for over a year and a half now for a relatively small and straightforward project,” one business owner shared online. 

 

Others reported similar experiences, with delays in decision-making causing projects to stall and leading to lost opportunities. Such challenges, if not addressed, may further deter potential investors from entering the market. 

 

The sectors hardest hit by the FDI decline include mining and quarrying —a key pillar of Brunei’s economy—which saw its foreign investments fall from BND 3.422 billion to BND 3.069 billion in the first quarter of 2024. 

 

The manufacturing sector, which Brunei has been trying to develop in recent years as part of its economic diversification efforts, also saw foreign investment drop, shrinking to BND 3.065 billion from BND 3.444 billion. 

 

These industries are crucial for Brunei’s economic stability, and their struggles reflect broader concerns about the country’s long-term economic health. 

 

Despite these challenges, there are still some positive signs. Hong Kong remains a key foreign investor, contributing BND 2.154 billion to Brunei’s FDI stock, even as other regions, such as ASEAN and Europe, reduce their involvement. However, reliance on a small number of major investors leaves the economy vulnerable. 

 

One Bruneian commented, “If Hong Kong pulls out, we’re finished,” reflecting the anxiety that many feel about the country’s future. 

 

At the heart of the public’s concerns is a growing demand for reform. 

 

Citizens are calling for a reduction in red tape, faster decision-making, and greater transparency in government processes. 

 

Some have expressed doubts about whether these changes are possible within the current system, but there is still hope that improvements can be made. 

 

“This could be the wake-up call we need,” one optimistic commenter noted. 

 

“If we fix the system and make it easier to do business here, we could attract new industries and get back on track.” 

 

The question now is whether Brunei’s government can respond quickly enough to address these concerns and restore confidence in its ability to attract foreign investment. 

 

Without meaningful reforms, the country risks further alienating investors, making it harder to recover from this downturn. 

 

For now, the future remains uncertain, but with the right approach, Brunei may still be able to turn the tide and secure a more prosperous future for its people. (MHO/09/2024)

 

Brunei’s Retail Slump Boosts Malaysia’s Economy

BANDAR SERI BEGAWAN, SEPTEMBER 2024: While Brunei’s retailers are left counting their losses, businesses in neighbouring Sarawak and Sabah are laughing all the way to the bank, thanks to a surge in spending from Bruneians crossing the border. 

 

The latest report from Brunei’s Department of Economic Planning and Statistics (DEPS) paints a sobering picture of falling retail sales, but there’s an elephant in the room that wasn’t addressed: the billion-dollar leak as Bruneians flock to Malaysia for better deals.

 

In the second quarter of 2024, Brunei’s retail sector experienced a 6.1% drop in sales, with revenue shrinking from BND 446.1 million in Q2 2023 to BND 418.9 million. 

 

Sales volume also fell by 5.9%, signalling a widespread reduction in domestic consumer spending. 

 

Key categories like furniture, household equipment, and electrical appliances were hit hardest, with furniture sales dropping by a staggering 19%. 

 

The DEPS report attributes these declines to reduced consumer demand, but many on the ground believe the real issue goes unmentioned — Brunei’s billion-dollar cross-border shopping habit.

 

For years, Bruneians have crossed into Miri and Kota Kinabalu in search of better prices and wider product variety. 

 

The favourable exchange rate and lower costs for everything from groceries to clothes have made Malaysia an irresistible shopping destination. 

 

Before the pandemic, Bruneians made over two million trips to Malaysia in 2019, and as restrictions eased, the trend returned in full force. In 2023 alone, 1.57 million trips were made across the border. 

 

Though the DEPS report doesn’t address this directly, the economic impact is undeniable. 

 

Sarawak has been one of the biggest beneficiaries. In January 2024 alone, Sarawak received 350,000 tourists, bringing in RM 900 million in revenue, a large chunk of which came from Bruneians. 

 

As businesses in Miri thrive, Bruneian retailers are struggling to compete. Supermarkets saw a 6.9% drop in sales, while department stores faced a 6.0% decline. For many local shop owners, the cross-border drain is impossible to ignore. 

 

“We just can’t compete with Miri’s prices,” lamented one shopkeeper. “Why would people spend here when they can get the same products for much less in Malaysia?”

 

The problem isn’t limited to retail alone. Brunei’s food and beverage sector is also feeling the pinch. Revenue fell by 1.0% in Q2 2024 compared to the previous year, with fast food outlets seeing a 3.2% drop and restaurants experiencing a 1.5% decline. 

 

While the DEPS report attributes this to reduced local demand, many Bruneians are opting to dine out in Malaysia, where food is often cheaper and the variety more appealing.

 

For many Bruneians, cross-border shopping and dining aren’t just about saving money — it’s about access to better quality goods and services. 

 

“The price difference is huge,” says a regular shopper from Brunei. 

 

“I can get everything I need in Miri for a fraction of what I’d pay back home. Why wouldn’t I go?” 

 

This sentiment reflects a broader issue facing Brunei’s retail landscape: the inability to compete with Malaysia on price, variety, and experience.

 

This cross-border drain is not just an annoyance for local businesses; it poses a serious threat to Brunei’s long-term economic ambitions. 

 

The country’s Wawasan 2035 vision aims to diversify the economy and reduce reliance on oil and gas, but the outflow of billions in consumer spending to Malaysia is undermining these efforts. 

 

A recent policy brief by Associate Professor Dr Khalid Ahmed from the Institute of Policy Studies at Universiti Brunei Darussalam, titled "Cross-Border Cash Drain," estimates that Brunei is losing over BND 1 billion annually due to cross-border shopping. 

 

That’s BND 1 billion that could be circulating within Brunei’s economy, supporting local businesses and creating jobs. Instead, it’s filling the pockets of retailers in Sarawak and Sabah, leaving Brunei to wonder how it can stem the tide.

 

As Sarawak’s economy booms — with its tourism industry employing nearly 20% of its population — Brunei’s businesses are left asking how they can keep their customers at home. 

 

Without intervention, the cross-border leak will continue to threaten the country’s economic stability, particularly as it strives to diversify and grow beyond its reliance on oil and gas.

 

So what can be done? 

 

Some experts believe that lowering shop rents and introducing incentives for local businesses could help make Brunei more competitive. 

 

Others suggest that expanding the variety of goods and services available locally is key to keeping Bruneians from crossing the border. 

“It’s not just about price,” says one economic analyst. “Bruneians want options. If we can’t offer them that, we’ll keep losing customers to Malaysia.”

 

At the heart of the issue is the question of national pride and economic self-reliance. 

 

As Brunei pushes towards Wawasan 2035, supporting local businesses has never been more important. Yet, the allure of cheaper prices and more choices across the border remains strong, pulling Bruneians away from their markets. 

 

In the end, the billion-dollar question is this: can Brunei plug the leak? 

 

As retailers struggle and cross-border spending continues to rise, the future of the country’s economy could depend on how quickly and effectively this issue is addressed. 

 

The next few quarters will be crucial in determining whether Brunei can find a way to reinvigorate its retail sector and keep its wealth at home or whether its neighbours will continue to prosper at its expense. (MHO/09/2024)

Economic Growth or Social Harmony: What Will Define Brunei’s Future?

As Brunei races toward its Wawasan 2035 vision, are we too focused on economic growth while ignoring deeper challenges that threaten our future? Beneath the surface of progress lies a hidden iceberg of social issues—poverty, corruption, and rising crime—that could derail the nation’s ambitions. Can the spiritual and ethical foundations of *Melayu Islam Beraja* and *Negara Zikir* guide Brunei toward a more balanced and just society, or will we miss the mark on genuine development? Explore the complexities of Brunei's future in this analysis. MHO

 

 

BANDAR SERI BEGAWAN, SEPTEMBER 2024: As Brunei forges ahead with its Wawasan 2035 vision, the nation’s path to sustainable progress rests on two fundamental concepts: Melayu Islam Beraja (MIB) and Negara Zikir. 

 

These guiding philosophies aim to balance the country’s spiritual and material development. 

 

However, the journey toward achieving this ambitious vision is fraught with challenges. From rising crime, unemployment, and mental health issues to deep-seated problems like poverty and corruption, Brunei faces a reality that necessitates more than just economic growth to achieve national success. 

 

A recent analysis from the Fakulti Usuluddin at Universiti Islam Sultan Sharif Ali, led by Rasinah Ahim, emphasises the importance of Negara Zikir as a philosophy that not only strengthens national stability but also reinforces the principles of MIB in governance. 

 

Yet, challenges in translating these ideals into practical policies become apparent as Brunei confronts social, economic, and administrative hurdles. 

 

The central question emerges: how effectively have MIB and Negara Zikir been integrated into governance and policy to address Brunei's pressing social issues?

 

An Iceberg of Challenges: Beyond Economic Metrics

 

In a decade-old video recording from a workshop on Wawasan 2035, a Bruneian government official offered a striking analogy, comparing the vision to an iceberg. 

 

The visible tip represents Brunei's economic ambitions—GDP growth and infrastructure development—but beneath the surface lie the more profound challenges of governance, societal well-being, and spiritual alignment with Islamic values. 

 

The official, who had only recently learned about these concepts despite not being Muslim, questioned whether Brunei's focus on economic metrics overshadowed the deeper values of Maqasid Syariah. 

 

This Islamic governance framework emphasises the protection of five essential elements: faith (din), life (nafs), intellect (aql), lineage (nasl), and wealth (mal). 

 

His reflections remain relevant today, as these core elements are critical to ensuring the holistic development of a nation beyond mere financial prosperity. 

 

For example, Brunei’s growing social issues—such as rising divorce rates, poverty, school dropouts, and unemployment—signal that the balance between material progress and societal well-being remains off-kilter. 

Divorce rates alone surged from 588 in 2022 to 735 in 2023, underscoring the stress on families and raising questions about the protection of lineage (nasl), a key goal of Maqasid Syariah.

 

Meanwhile, school dropouts and mental health issues among youth suggest gaps in safeguarding intellect (aql).

 

Measuring Progress: Is GDP the Right Metric? 

 

One of the key insights from the video and other reflections on Brunei’s development is the question of whether GDP is an adequate measure of national progress. 

 

The official noted that Bhutan, a small Himalayan nation, has adopted a different approach: using a Happiness Index to measure success rather than GDP alone. 

 

This index focuses on the well-being and happiness of its citizens, ensuring that economic growth does not come at the cost of social and spiritual fulfilment. 

 

Bhutan’s Gross National Happiness (GNH) index measures nine domains: psychological well-being, health, education, time use, cultural diversity, good governance, community vitality, ecological diversity, and living standards. 

 

This holistic approach ensures that national policies serve not only economic needs but also cultural, environmental, and social objectives. 

 

Similarly, Brunei’s guiding principles, particularly those embedded in Negara Zikir and MIB, offer an opportunity to rethink how the country measures its success. 

 

As Rasinah Ahim’s paper suggests, Brunei’s focus should be on developing a “Zikir Nation” where spiritual and material well-being is balanced. 

 

This philosophy calls for a holistic view of progress—one that goes beyond the surface of economic development and delves deeper into the nation's core values of Islamic ethics, environmental stewardship, and social harmony.

 

Corruption and Governance: A Tarnished Administration

 

Compounding Brunei’s challenges is the issue of corruption within its administration. 

 

Despite ranking second in the ASEAN region in corruption indices—behind only Singapore—Brunei has not escaped the negative impact of corruption. 

 

Since the Anti-Corruption Bureau (ACB) was established in 1982, 2,469 cases of alleged corruption have been investigated, leading to 284 individuals being brought to court and 231 convicted of offences such as bribery, criminal breach of trust, and submitting false financial claims. 

Beyond criminal charges, 260 public servants have faced administrative punishments for abusing their positions for personal gain or favouritism. 

 

These instances of corruption undermine public trust and stall the very policies that aim to build a prosperous and ethical nation. 

 

Tackling corruption and the abuse of power is critical to realising the full potential of Wawasan 2035 and ensuring that it aligns with the country's spiritual aspirations.

 

Poverty: The Hidden Struggle in a Wealthy Nation

 

While Brunei is often perceived as a wealthy nation, the reality of poverty in the country presents a different picture. Brunei ranks 11th out of 78 countries in terms of the percentage of its population living in poverty, with a staggering 43.7% living below the poverty line. 

 

In 2012, over 20,790 individuals, or more than 5% of the population, were reported to be living in poverty. 

 

This stark reality highlights the gaps in Brunei's wealth distribution systems and raises questions about whether the nation’s policies, rooted in the principles of Negara Zikir and MIB, are being implemented effectively to address economic inequality. 

 

Poverty, along with rising crime and unemployment, threatens the nation’s stability and contradicts the Maqasid goal of protecting wealth (mal). 

 

Crime, Poverty, and Social Stability: An Emerging Concern 

 

In addition to poverty, crime remains an issue that tests the resilience of Brunei's social fabric. 

 

Data from the Royal Brunei Police Force and the Narcotics Control Bureau show fluctuating crime rates across categories. For instance, offences against persons—such as those harming individuals' physical or emotional well-being—reached 511 cases in 2023. 

 

Meanwhile, property crimes, although reduced from a peak of 3,854 in 2014 to 1,105 in 2022, continue to present challenges. 

 

More concerning is the rise in penal code offences, including cybercrime and fraud, which surged from 669 cases in 2012 to over 1,700 by 2023. 

 

This reflects not only local challenges but also global trends in technology-driven crimes. 

 

Drug-related offences have also seen a resurgence, with 2,161 cases reported in 2023, underscoring the need for stronger enforcement and rehabilitation efforts. 

 

These crime trends, coupled with issues such as poverty, school dropouts, unemployment, and mental health challenges, test the stability that MIB and Negara Zikir aim to protect. They highlight the need for governance that not only addresses economic progress but also tackles the root causes of crime, corruption, and social instability.

 

Bridging the Gap: Policy and Implementation 

 

The heart of the issue is not that Brunei lacks the values or philosophies to guide it forward. 

 

MIB and Negara Zikir are well-established as cornerstones of the nation's governance framework. 

 

However, the challenge lies in translating these ideals into actionable policies and implementing them effectively. 

 

Inefficiencies in Brunei’s zakat management and welfare systems are key examples. 

 

Zakat, designed to redistribute wealth and promote social equity, often fails to reach those most in need due to administrative delays. 

 

Similarly, the welfare system, while well-structured, struggles to provide timely assistance to the vulnerable. 

 

These systemic issues have persisted over the years, as highlighted in a 2020 workshop led by Professor Amin Abdul Aziz at Universiti Brunei Darussalam, where it was emphasised that execution, not philosophy, remains the primary challenge. 

 

Additionally, strengthening oversight and improving transparency in these systems could help ensure that the principles of Maqasid Syariah—particularly the protection of wealth (*mal*) and the well-being of society—are fully realised.

 

Moving Forward: A Balanced Approach for Wawasan 2035 

 

As Brunei continues its march toward Wawasan 2035, the nation must recalibrate its approach to balance spiritual well-being with material advancement. 

 

The reflections of officials, captured on video a decade ago, remind us that the real mission lies not just in economic growth but in creating a just and equitable society that aligns with Brunei’s Islamic values. 

 

Corruption must be rooted out, poverty alleviated, and social services strengthened to ensure that all citizens benefit from the nation’s development. 

 

Only then can Brunei fulfil the true aspirations of Wawasan 2035, building a nation that is both prosperous and blessed with spiritual harmony. 

 

Brunei’s future rests on its ability to bridge the gap between policy and practice, between tradition and modernity. To fully realise its vision, the nation must commit to strengthening its governance frameworks, prioritising the well-being of its people, and upholding the values that form the very foundation of its identity. (MHO/09/2024)

  

In a nutshell:

• Wawasan 2035 is Brunei’s goal for national prosperity, focusing on economic growth and development.

• The vision is built on Melayu Islam Beraja (MIB) and Negara Zikir, aiming to balance spiritual well-being, social harmony, and material advancement.

• However, Brunei faces challenges: rising crime, poverty, unemployment, school dropouts, and mental health issues.

• Corruption remains a critical issue, with over 2,469 cases investigated since 1982, undermining governance and public trust. 

• The article questions whether GDP is the right measure for progress, suggesting that Brunei could benefit from adopting Bhutan’s Happiness Index to prioritise well-being and social equity.

• Maqasid Syariah offers a holistic framework for governance, focusing on the protection of faith, life, intellect, lineage, and wealth—essential for true progress.

• Zakat and welfare systems face inefficiencies, with delays and mismanagement preventing wealth redistribution from reaching those in need.

• To fulfil Wawasan 2035, Brunei must address corruption, improve governance, and ensure social harmony while balancing material and spiritual progress.