As the retail and food sectors in Brunei reach new heights, a quiet revolution is taking place. This revolution is not led by local vendors but by a growing wave of Bangladeshi entrepreneurs. These "Ali Bangla" businesses are building on the foundations laid by their predecessors and quickly surpassing traditional retailers, gaining a significant market share. However, as their influence grows, concerns arise. Will local businesses be left behind, and what does this shift mean for the future of Brunei's economy? Explore the story of how expatriate-run enterprises are reshaping the nation's economic landscape
Bandar Seri Begawan, August 30, 2024 — A significant transformation is occurring in Brunei's retail and food and beverage sectors, driven by the emergence of "Ali Bangla" businesses.
Initially starting with the "Ali Baba" model, which involved partnerships between local Malays and Chinese expatriates, the landscape has evolved into the "Ali Chandran" phenomenon in the 2010s, led by Indian entrepreneurs.
Now, Bangladeshi operators are emerging as major players in this evolving market, capturing an increasing share of Brunei's lucrative market.
The competition for a share of Brunei's thriving retail and food and beverage markets is intense.
In the first quarter of 2024, Brunei’s total retail sales reached an impressive BND447.6 million.
Department stores contributed nearly a third of this amount, with sales worth BND120.5 million, followed closely by supermarkets at BND77 million.
The food and beverage sector is also flourishing, with sales increasing by 7.1 per cent in Q3 2023 compared to the previous year, pushing the total revenue from BND107.4 million to BND114.9 million.
This significant market size makes it an attractive target for both local and expatriate entrepreneurs, with the "Ali Chandran" and "Ali Bangla" businesses vying for their pieces of this substantial economic "cake."
A 2019 study conducted by Li Li Pang of Universiti Brunei Darussalam highlighted how "Ali Chandran" businesses leveraged community networks and utilized Sendirian Berhad (Sdn Bhd) companies strategically to dominate the retail sector.
These businesses, often controlled by Indian expatriates, operated under local licenses, allowing them to offer competitive prices and establish a loyal customer base.
Today, the "Ali Bangla" trend builds on these strategies. Bangladeshi entrepreneurs are not only taking over existing operations but also expanding into new areas, including the establishment of backstreet shops — small, informal outlets offering niche products at highly competitive prices.
This approach has enabled them to attract a diverse clientele, further marginalizing local vendors who face challenges due to limited financial resources and less access to prime retail locations.
The adaptability of "Ali Bangla" businesses is also evident in their expansion into other sectors, such as construction, where Bangladeshi and Indonesian workers have been known to utilize their employers' licenses to run independent businesses.
This diversification demonstrates the resourcefulness of these expatriate communities in navigating Brunei's economic landscape.
However, the rapid growth of "Ali Bangla" businesses has raised concerns.
While they provide essential services and make significant contributions to the economy, there are increasing calls for stronger regulatory measures to address issues like license renting and informal activities such as unregistered money lending and remittance services.
As these businesses continue to grow, the future of local entrepreneurship in Brunei hangs in the balance.
The evolution from "Ali Baba" to "Ali Chandran" and now to "Ali Bangla" businesses reflects broader shifts in Brunei's economy, where expatriate-run enterprises have become increasingly dominant.
The challenge now lies in ensuring that local vendors are not left behind and that Brunei's market remains fair and competitive for all participants.
The continued rise of "Ali Bangla" businesses emphasizes the need for targeted policies to support local vendors and regulate expatriate-run operations.
Without such measures, the balance of power in Brunei's economy may continue to shift, reshaping the retail and food and beverage sectors for years to come. (MHO/09/2024)
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