Brunei's Non-Oil and Gas Sectors: A Growing Market for Investors

The Department of Economic Planning and Statistics (JPES) reported that Brunei's economy grew by 0.8% in the first three months of 2023, compared to the same period last year. This growth was mainly driven by industries that are not related to oil and gas.

 

The non-oil and gas sector, which includes sectors such as transportation, finance, and other services, grew by a significant 6.2%. This was a positive trend. However, the oil and gas sector, which is usually a big part of Brunei's economy, actually shrank by 5% during this time.

 

The increase in the non-oil and gas sector was thanks to specific areas like air travel, finance, and other transport services. More people were using airplanes for travel, and the financial sector also did well. The production of petroleum and chemical products in the non-oil and gas sector declined a bit because some equipment needed maintenance. However, the creation of new chemical products, especially urea fertilizer, increased significantly.

 

On the other hand, the oil and gas sector faced challenges. The production of crude oil, natural gas, and liquefied natural gas decreased due to the impact of the COVID-19 pandemic. The pandemic caused delays in various activities related to exploring, developing, producing, and maintaining oil and gas resources.

 

Looking at where the value comes from in the economy, the largest contributor was the industry sector, followed by services and then agriculture, forestry, and fishing. In terms of money, the total value of everything produced in Brunei during this time was around BND4.9 billion, a bit less than the BND5.1 billion from the same period last year.

 

The oil and gas sector still played a big role, making up almost half of the total value. But the non-oil and gas sector, which includes things like making petroleum products and chemicals, also made up a significant portion.

 

When we think about how people spent their money, the growth in the economy was mainly due to people spending more on things for themselves and their families. However, the overall increase was balanced out by decreases in things like government spending, investment in businesses, and the export of goods and services, particularly mineral fuels.

 

This report indicates a mixed performance of Brunei's economy in the first quarter of 2023. Here is a breakdown of how it might impact different aspects:

 

Positive Growth:

 

The overall economy grew by 0.8% compared to the same period last year. While this growth might seem small, any positive growth is generally seen as a good sign, as it means the economy is expanding rather than contracting.

 

 

Potential Benefits:

 

Economic growth can lead to improved job opportunities, increased income, and enhanced quality of life for the community. The growth in the non-oil and gas sector indicates a diversification of economic activities, potentially creating more job options in industries beyond oil and gas.

Caution for Oil Sector Workers:

 

The decline in the oil and gas sector might have implications for those employed in this industry, as decreased production could lead to job losses or reduced income for workers in this sector.

 

Business Sector:

 

The growth in sectors like air travel, finance, and transportation services can benefit related businesses. Businesses providing these services might see increased demand and revenue. On the other hand, the decline in the oil and gas sector might negatively affect businesses associated with it, such as suppliers and service providers to the industry.

 

Challenges for Government Revenue:

 

The decrease in the oil and gas sector's contribution to the GDP could impact government revenues. Brunei heavily relies on revenue from the oil and gas sector to fund its public services and projects. A decline in this sector might mean less revenue for the government to spend on various initiatives.**

 

Export Challenges:

 

The decrease in exports of goods and services, particularly mineral fuels, could impact Brunei's trade balance. If the country earns less from exports, it might have to rely more on other sources of income or adjust its trade strategies.**

 

Investment and Development:

 

The decrease in gross capital formation (investment in businesses and infrastructure) suggests that there might be less investment activity. This could potentially slow down the development of new projects and initiatives that require funding.**

 

COVID-19 Impact:

 

The report highlights that the oil and gas sector's decline was due to the ongoing impact of the COVID-19 pandemic. Delays in exploration, production, and development caused by the pandemic affected the sector's performance. This emphasizes that even as the economy recovers, the pandemic's effects can still influence certain sectors.

 

In summary, the economy showed growth, albeit at a modest rate, with the non-oil and gas sector being the main driver. This diversification is generally positive, as it can create resilience in the economy by reducing its dependence on a single sector.

 

However, challenges remain, especially in the oil and gas sector, which historically has been a major contributor to the country's economy. The report suggests a need for ongoing monitoring and strategic planning to ensure a balanced and sustainable economic development that benefits all segments of society.

 

 

 

Economic Challenges and Overseas Opportunities Spark Discussion on Brunei's Future

An online discussion forum has shed light on the concerns and aspirations of Bruneians regarding the future of their country, as the nation navigates economic challenges and pursues its ambitious national development plan, Wawasan 2035.

 

Participants engaged in a thought-provoking dialogue, discussing the impact of the oil and gas industry, rising costs of living, and the appeal of overseas job opportunities.

 

 

Oil and Gas Reliance Raises Concerns

 

Brunei's dependence on oil and gas as the main source of income has been a topic of concern for participants. The non-renewal of contracts with major energy companies and the potential decline in demand for fossil fuels have led to uncertainty about the nation's economic future.

 

Many forum members questioned whether Brunei could achieve its Wawasan 2035 development goals without diversifying its economy beyond the energy sector.

 

 

Rising Costs and Income Disparities

 

The rising cost of living in Brunei has also been a major concern. Many participants noted that while prices of goods are increasing, salaries have remained stagnant. This disparity has sparked frustration and led some participants to question the sustainability of the current economic model.

 

 

Youth Perspectives and Employment Challenges

 

Younger participants voiced their concerns over limited job opportunities and challenges in securing well-paying jobs despite higher qualifications. Some participants expressed disappointment that their educational achievements did not necessarily translate into promising employment prospects within Brunei.

 

The minimum wage for certain sectors, such as IT and finance, also drew criticism as inadequate.

 

 

Desire to Work Overseas

 

The allure of better job opportunities, higher salaries, and increased exposure abroad was a recurring theme in the discussion. However, participants also highlighted the challenges of finding employment overseas, including visa requirements, language barriers, and cultural adjustments.

 

Several shared their experiences of attempting to secure jobs abroad and the difficulties they encountered during the process.

 

 

Realistic Views of Overseas Opportunities

 

Forum members who have already moved overseas shared both positive and negative aspects of working abroad. They emphasized the need for language skills, relevant experience, and qualifications to compete in competitive job markets. Additionally, participants discussed the financial implications of moving abroad, including cost of living and taxation considerations.

 

 

Impact of COVID-19 and Economic Recovery

 

The ongoing effects of the COVID-19 pandemic were not overlooked, as participants acknowledged the challenges it brought to businesses, job markets, and economic recovery efforts. Many shared their personal experiences of job loss and the difficulties in finding new employment opportunities during the pandemic.

 

 

Local vs. Overseas Job Prospects

 

While some emphasized the importance of contributing to Brunei's development and remaining part of the solution, others advocated for seeking international experience and employment opportunities overseas. The tension between contributing locally and pursuing global exposure was evident throughout the discussion.

 

 

Skills and Attitude for Employability

 

The significance of possessing relevant skills and a positive attitude for employability resonated with participants. Success stories were shared, where individuals started with low-paying jobs and worked their way up through dedication and perseverance.

 

 

Brain Drain and Government Policies

 

The potential brain drain from Brunei due to skilled individuals seeking opportunities overseas was a prominent concern. Participants called for government policies that address economic challenges, such as diversification, education enhancements, and measures to retain talent within the country.

 

Conclusion

 

As the discussion forum highlighted the diverse perspectives and opinions on Brunei's future, it showcased the complexities of economic challenges, employment prospects, and personal aspirations faced by its citizens. As the nation strives to navigate these complexities, it remains to be seen how Brunei will address these concerns and chart a path forward toward its development goals. (MHO/08/23)

Brunei's Economy: A Cause for Concern?

The economic situation in Brunei is raising concerns. The country has experienced a decrease in trade, a decline in foreign investment, and a shrinking development budget. 

 

These factors have led experts to question whether Brunei might face challenges in maintaining its development momentum.

 

Decrease in Trade

 

The total trade value of Brunei declined by 53.9% year-on-year in April 2023. This decline was driven by a 56.2% drop in export value and a 50.7% drop in import value. 

 

The decrease in export value was mainly attributed to liquified natural gas (LNG) and other petroleum products.

 

The declining trade figures are likely to negatively impact Brunei's economy. 

 

As a small country with a narrow export base, Brunei heavily relies on trade to generate revenue. 

 

This trade decline could lead to reduced government revenue, potentially affecting the government's ability to provide essential services. 

 

Additionally, it could result in job losses within the export-oriented sectors of the economy.

 

 

Decline in Foreign Investment

 

Brunei has also witnessed a decline in foreign investment in recent years. 

 

In 2022, the country saw foreign investments totaling B$403 million exiting the country, which represents a significant capital outflow not being offset by replacements.

 

The dwindling foreign investment is a major concern for Brunei. Foreign investment plays a pivotal role in the country's economic development by fostering job creation, boosting economic growth, and attracting new technologies. 

This decline suggests waning investor confidence in the Bruneian economy.

 

 

Shrinking Development Budget

 

The development budget of Brunei has also undergone contraction in recent years. 

 

In 2023, the development budget stands at B$0.5 billion, a notable drop from B$1.5 billion in 2012. 

This substantial reduction in government spending on development projects raises alarms.

The diminishing development budget poses challenges for Brunei's future. 

 

Development projects are pivotal in fostering the country's economic growth. They contribute to infrastructure development, job creation, and the attraction of new businesses. 

 

The shrinking budget could impede Brunei's ability to achieve its economic goals.

 

 

Maintaining Development Momentum

 

Experts are questioning whether Brunei might face challenges in maintaining its development momentum. 

 

The economic trends do not paint a positive picture. The Bruneian government must take proactive measures to address investor concerns and stimulate economic growth. 

Successful implementation of such measures can help secure Brunei's prosperity in the future.

 

 

Conclusion

 

In conclusion, the economic situation in Brunei raises concerns. 

 

The country faces a decline in trade, reduced foreign investment, and a shrinking development budget. 

 

To safeguard its future, the Bruneian government must take measures to tackle these issues and stimulate economic growth. With effective actions, Brunei can ensure its continued prosperity in the times ahead. (MHO/08/23)

 

 

Disclaimer:

 

The views and opinions expressed in this article, "Brunei's Economy: Cause for Concern," are solely those of the author and do not necessarily reflect the official stance of any organisation, institution, or government body. The information in this article is based on publicly available sources as of the time it was published. While every effort has been made to ensure accuracy, the author does not make any representations or warranties regarding the completeness, accuracy, reliability, or suitability of the information.

 

This article is intended for informational and educational purposes only and should not be construed as professional financial or economic advice. Readers are advised to consult with qualified professionals and experts before making any financial or economic decisions. The author disclaims any liability for any actions taken or not taken based on the information provided in this article.

 

Readers are encouraged to independently verify any information presented in this article and to consider various perspectives before forming their own opinions. The author and the publisher are not responsible for any errors or omissions, or for any actions taken based on the information presented in this article.

Brunei's LNG Plant Back Online, But Challenges Remain

    Brunei's LNG plant, which was shut down on June 12 due to an "unforeseen external event," has resumed operations after three days.

 

    The plant is a major contributor to Brunei's economy, and its brief shutdown raised concerns about the country's ability to meet its LNG export commitments.

 

    The government confirmed that the aforementioned "unforeseen external event" caused the shutdown. The event has now been resolved, but the company has not released any further details about it.

 

    The prompt resolution of the issue and the resumption of operations at the LNG plant are positive signs for Brunei's economy. 

 

    However, the nation must remain proactive in addressing the challenges posed by the volatile LNG market and the need to ensure sustainable economic development in the future.

    In light of the recent incident, Brunei is likely to redouble its efforts to secure new contracts and stabilise its position in the competitive LNG market. 

 

    Tokyo Gas's decision not to renew its contract with Brunei LNG, alongside the country's territorial disputes with neighbouring Malaysia, underscores the need for Brunei to diversify its energy sources and explore new ventures to maintain production levels and revenue.

 

    Additionally, Brunei LNG will begin supplying liquefied natural gas to Japan Petroleum Exploration Co. (JAPEX) in April. 

 

    The company aims to explore mutually beneficial opportunities for future contracts in Japan beyond the new one with JAPEX.

 

    While details of the new contract between Brunei LNG and JAPEX, including duration and sales volume, have not been revealed, the move signifies Brunei's proactive efforts to secure new contracts and maintain a steady supply of LNG to its crucial export destination.

 

    As Brunei seeks to expedite the ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to diversify its economy, international cooperation and innovative policies, along with securing new LNG contracts, will be vital in shaping the country's future economic outlook. (MHO/08/23)

Debate Over Emigration in Brunei

    The social media landscape in Brunei has become a focal point for a spirited debate about the possibility of leaving the country. 

    An online thread titled "Will Bruneians ever think of leaving the country?" has sparked a wide array of responses, reflecting diverse opinions on the matter.    

 Participants in the discussion have engaged in a casual yet engaging exchange of ideas, generated by succinct questions seeking simple answers. 

    The conversation has allowed individuals to share their thoughts and feelings about the prospects of emigration from Brunei.
 
    Among the participants, a group of individuals has expressed their inclination to depart the nation, citing various reasons for their desire to leave. 

    Some have mentioned limited opportunities as a reason, while others point to a perceived lack of personal freedom and dissatisfaction with government policies.
 
    On the other side of the spectrum, another segment of participants advocates for staying in Brunei and contributing to the country's growth and development. 

    These individuals emphasize the importance of developing their homeland and preserving its unique cultural identity.
 
    The debate has touched upon several critical factors that influence the decision to emigrate, including job prospects, access to quality education, healthcare facilities, and overall quality of life. 

    These aspects play a crucial role in shaping the perspectives of those who are contemplating leaving Brunei.

    In an interesting juxtaposition, while some Bruneians consider leaving, foreign migrant workers from countries like India and Bangladesh see Brunei as a land of opportunity to pursue their dreams and start businesses. 

    Various retail shops, vegetable mini markets, hardware stores, and construction ventures are thriving with the entrepreneurial spirit of these expatriates.
 
    Amidst the ongoing online conversation, His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah addressed the nation during the 18th National Youth Day celebration, delivering a titah on August 1. 

    In his address, the Sultan encouraged Brunei's youth to step out of their comfort zones and explore opportunities beyond the country's borders. 

    He emphasized the importance of broadening horizons and gaining exposure to diverse cultures and experiences, highlighting how such international exposure can ultimately benefit the country.
 
    The Sultan's call garnered mixed responses from the public. Some individuals supported his encouragement, arguing that gaining international exposure would enhance Bruneians' competitiveness in the global marketplace and contribute to the country's development. 

    Conversely, others expressed concerns about potential brain drain resulting from individuals seeking opportunities abroad.

    They advocated for balancing the two goals of encouraging youth to explore opportunities overseas while also investing in their development at home.

     Overall, the online discussion has shed light on a spectrum of perspectives, providing a platform for a meaningful exchange of ideas among Bruneians with a keen interest in the country's future growth and development. 

    It is evident that the decision of whether to pursue opportunities abroad remains a deeply personal one, and individuals must carefully weigh the pros and cons before making their choices. 

    As the conversation continues, the importance of balancing the two goals of encouraging citizens to explore opportunities abroad while also investing in the country's development remains paramount. 

    Bruneians are engaging in thoughtful discussions about the potential benefits and challenges of embracing opportunities beyond their homeland, with the ultimate goal of charting the best path forward for themselves and their nation as a whole. (MHO/08/2023)

Mohammad Gadafi Haji Mokti and his wife, Siti Norsuhaila, have opened a halal butcher shop in Palmerston, Darwin. The shop, opened in 2019 is called Lakim Halal Butcher, and is located in the Oasis shopping centre.

The couple are originally from Brunei, but they have been living in Australia for the past few years. They decided to open the butcher shop after seeing a growing demand for halal meat in the Darwin area.

Readers Respond to the Issue of Over-education in Brunei

The issue of overeducation in Brunei has sparked widespread discussion among readers, highlighting the need for a balanced approach between attitude, skills, and knowledge (ASK).

 

In response to an article addressing this concern, readers have emphasized the importance of aligning the supply and demand sides of the equation while also considering the enabling factors that contribute to a well-functioning education system.

 

Supply:

 

Balancing the Educational Pipeline

 

·      Readers emphasize the significance of aligning the supply of education with the needs and demands of the workforce.

 

·      It is crucial to strike a balance between producing graduates with the necessary skills and knowledge required by the job market.

 

·      This requires a comprehensive understanding of the industries and sectors that are thriving in Brunei, enabling educational institutions to tailor their programs accordingly.

 

·      By aligning the supply of education with the demands of the job market, Brunei can effectively reduce the issue of overeducation.

 

Demand: 

 

Fostering Vocational Education and Practical Skills

 

·      Readers recognize the need for a shift in perception regarding vocational education and practical skills.

 

·      While academic qualifications hold their value, there is a growing demand for individuals who possess practical expertise and skills that directly contribute to the economy.

 

·      Encouraging the development of vocational training programs and apprenticeships can bridge the gap between education and employment.

 

·      By promoting a diverse range of career paths and highlighting the importance of practical skills, Brunei can ensure that the demand for skilled workers is met without an excess of overeducated individuals.

 

Enablers:

 

Strengthening Collaboration and Partnerships

 

·      Readers emphasize the importance of collaboration and partnerships between educational institutions, the government, and industries.

 

·      Such collaborations can facilitate the exchange of information and insights, enabling educational institutions to stay updated with industry trends and demands.

 

·      Moreover, partnerships can lead to the creation of internship programs, job placements, and mentorship opportunities, thereby ensuring that graduates are well-prepared for the workforce.

 

·      By fostering a culture of collaboration and establishing strong partnerships, Brunei can enhance the effectiveness of its education system and mitigate the issue of overeducation.

 

Conclusion

 

The response of readers to the issue of overeducation in Brunei highlights the significance of the ‘ASK’approach: attitude, skills, and knowledge. 

 

By aligning the supply and demand sides of the equation and considering the enabling factors, Brunei can effectively address the issue of overeducation. 

 

This involves balancing the educational pipeline, fostering vocational education and practical skills, and strengthening collaboration and partnerships. 

 

Through these collective efforts, Brunei can create a well-functioning education system that meets the needs of the job market, ensuring a prosperous future for its graduates and the nation as a whole.

 

Additional Key Points Raised by Readers:

 

·      The importance of changing mindsets and attitudes towards education.

 

·      The need to update curriculum content regularly to keep up with the changing dynamics of the job market.

 

·      The importance of providing students with opportunities to develop practical skills and experience.

 

·      The need for better collaboration between educational institutions, employers, and government bodies.

 

By incorporating these valuable perspectives, Brunei can create a more balanced and relevant education system. 

Addressing the ‘ASK’ framework will not only reduce the prevalence of overeducation but also ensure that individuals are equipped with the right skills and knowledge to contribute meaningfully to the workforce and society as a whole.

Rising Over-education in Brunei Sparks Concerns, Calls for Comprehensive Reforms

    In Brunei, the number of unemployed university graduates is on the rise, with some holding Master's and Bachelor's degrees finding themselves employed in fast food restaurants, earning less than $500 per month. This concerning trend has triggered discussions on social media, shedding light on the issue of over-education and its implications for the nation.

 

    The problem of over-education has become a significant concern in Brunei, prompting debates on social media between citizens and experts. 

    Some argue that the government should take more proactive steps to match graduates' skills and qualifications with suitable job opportunities, while others contend that graduates should be more flexible and willing to explore jobs outside their chosen fields.

    Recognizing the severity of the issue, the government has acknowledged the growing unemployment among university graduates and has pledged to tackle the problem through various initiatives. These include providing enhanced job training and internship opportunities, and supporting graduates in their entrepreneurial endeavors.

 

    However, experts assert that the government needs to address the root causes of over-education comprehensively. One pressing issue is the lack of job opportunities in the private sector, which creates an oversaturated job market for highly educated individuals. Additionally, the mismatch between the skills possessed by graduates and the needs of employers is exacerbating the problem.

 

    As the nation grapples with this challenge, potential solutions have been proposed by concerned citizens and experts. Here are some of the key suggestions:

 

Financial support for entrepreneurship: 

    The government could offer increased financial support to graduates who wish to start their own businesses. By encouraging entrepreneurship, the country can create more job opportunities and alleviate the burden of over-education.

Collaboration with the private sector: 

    Working hand-in-hand with employers, the government can identify and develop job opportunities in the private sector that match the qualifications of university graduates. This collaboration can lead to more productive and satisfying employment options.

Enhanced job training and internships:

    The government's focus on providing more job training and internship opportunities can help bridge the gap between education and employment. These programs can equip graduates with the necessary skills demanded by the job market.

Curriculum alignment:

    Close cooperation between universities and industries can lead to a curriculum that aligns with the demands of the job market. By tailoring education programs to meet specific industry needs, the country can reduce instances of over-education.

    In conclusion, the rising over-education issue in Brunei is a matter of concern that demands prompt and comprehensive action. 

    The various perspectives presented in discussions reflect the complexity of the problem, and its implications span economic, individual, educational, and societal domains. 

    By implementing a multi-faceted approach that includes collaboration with the private sector, supporting entrepreneurship, and aligning education with industry demands, Brunei can work towards creating a more balanced and thriving job market for its graduates. 

    Addressing the issue of overeducation will not only benefit individuals seeking meaningful employment but also contribute to the country's sustainable economic growth and societal well-being.