Brunei’s Consumer Fairs: A Cash Surge - But Who Really Wins?

By Malai Hassan Othman

BANDAR SERI BEGAWAN, MARCH 2025: Brunei’s bi-annual consumer fairs and expos attract thousands of visitors with promises of great deals and vibrant shopping experiences. 

However, while these events aim to stimulate the local economy, a growing concern is whether Bruneians are benefiting or if much of the money is flowing out of the country, enriching foreign vendors instead of local businesses.

The Timing of Consumer Events: A Strategic Move

Every year, Brunei experiences a surge in cash flow during key moments: the Kurnia Peribadi distribution just before Hari Raya and the annual bonuses at the end of the year. 

These financial boosts create the perfect conditions for consumer fairs and trade expos to thrive, encouraging Bruneians to spend. 

However, the real question is: where is the money going? 

Bruneians receive the Kurnia, Peribadi, totalling BND17,352,000 for 17,352 recipients, just before Hari Raya. 

Meanwhile, the bonus season provides a similar boost to Bruneians’ purchasing power. 

However, while these funds are intended to stimulate the local economy, they often end up being spent at foreign-run booths during consumer fairs, draining cash out of Brunei.

Who Really Profits?

Consumer fairs typically feature 600 booths offering products from both local and international vendors. 

Yet, it’s often the foreign vendors who profit the most. 

They pay minimal booth fees and set up for just a few days, walking away with substantial profits from Bruneians who’ve received their bonuses and Kurnia Peribadi gifts. 

On the other hand, local vendors who face higher operating costs, including long-term rentals and staffing, can’t compete with the quick turnover enjoyed by foreign businesses during these events. 

While Bruneians spend their money, it often ends up outside Brunei’s economy, with little reinvestment into local industries.

The Disparity: Local vs Foreign Vendors

The recent Consumer Fair in Brunei highlights a pressing concern regarding the participation of local vendors versus foreign ones. 

While foreign vendors have profited significantly from occupying a large number of booths, local vendors face significant challenges, especially due to the high rental costs and the lack of special discounts. 

This growing disparity raises important questions about the event’s real purpose - if it primarily benefits foreign vendors, then local businesses are left struggling despite the support intended to boost the local economy. 

In the bonus season and during the Kurnia Peribadi period, local vendors should be prioritised to ensure that the financial influx supports them rather than allowing foreign entities to disproportionately benefit. 

The benefits of these events should ideally remain within Brunei’s borders, helping local businesses thrive rather than fueling a system where external vendors dominate the scene.

A Broader Issue: Money Draining Out of Brunei

This is just one part of the larger problem: cross-border spending. 

Bruneians have long spent their money across the border, especially in Malaysia, and a BND1 billion leakage from Brunei’s economy is estimated annually due to cross-border spending. 

While some of this spending occurs during fairs, much of it is also driven by the desire for cheaper goods and greater variety available just a short drive away in places like Miri and Kota.Kinabalu.

This systemic issue contributes to a declining retail sector in Brunei, with recent reports indicating a 6.1% drop in retail sales. 

The outflow of Brunei's consumer dollars, whether spent across the border or at foreign-run stalls during expos, leaves local businesses struggling to survive and grow.

How Consumer Fairs & Expos Can Boost Brunei’s Retail Sector and Tourism

Rather than being an economic drain, consumer fairs and expos have the potential to be powerful drivers of growth for both Brunei’s retail sector and tourism. Here’s how:

1. Supporting Local Vendors: 

Authorities should implement terms and conditions that prioritise local vendors by offering affordable booth rentals. 

Local businesses contribute to national revenue and face numerous financial obligations, such as shop, rent, salaries, and taxes. 

By ensuring local vendors are given priority, these events can help stimulate local economic activity and provide Bruneians with opportunities to grow their businesses.

2. Economic Benefits: 

The government should emphasise supporting local businesses, ensuring they benefit from events like the Consumer Fair. 

This includes leveraging local bonuses and Kurnia Peribadi gifts to keep the economic activity within Brunei rather than allowing the money to flow out to foreign vendors who do not reinvest in the local economy.

3. Policy Reforms: 

Policies should be designed to prevent scenarios where local businesses are disadvantaged. 

This aligns with the Malay proverb, "KERA DI HUTAN DISUSUKAN, ANAK DI RUMAH KELAPARAN," which stresses the importance of prioritising one’s community, in this case, supporting Bruneian entrepreneurs and ensuring they thrive during these events.

4. Strategic Partnerships: 

Encouraging partnerships between local and foreign vendors could create a more balanced economic environment, fostering mutual growth and collaboration. 

This would ensure that both local businesses and foreign vendors contribute to the economy in a way that benefits all parties involved.

What Needs to Change?

To ensure consumer fairs contribute positively to Brunei’s economy, some adjustments are necessary:

1. Support for Local Vendors:

Offer discounted booth fees for local vendors, making it easier for them to participate and gain visibility. 

Foreign vendors should be charged higher fees for short-term participation.

2. Promote Local Products: 

Encourage local product promotion through programs or incentives that directly engage consumers with Brunei-made goods, keeping money within the local economy.

3. Limit Foreign Participation: 

Restrict the number of foreign vendors allowed at each event, ensuring that local businesses have the opportunity to showcase their products without being overshadowed by foreign competition.

 

 Conclusion

Consumer fairs and trade expos in Brunei can be powerful tools for economic stimulation, but only if they benefit the local economy. 

By restructuring these events to support local businesses and prioritise Brunei-made products, the country can ensure that more of its wealth stays within its borders, promoting job creation, retail growth, and tourism. 

Brunei has the potential to grow its local market and diversify its economy but this will only happen if we make local business growth a priority and ensure that foreign vendors contribute to Brunei’s long-term prosperity.

Join the Conversation

What do you think about the impact of consumer fairs in Brunei? 

How can Brunei better support local businesses while still benefiting from global trade? 

Share your thoughts in the comments - let’s continue the conversation on how Brunei can empower its local economy and protect its future. (MHO/03/2025)