Stitching Lessons: How Brunei’s Garment Boom Can Guide Today's Trade Strategy

🇧🇳 Once a rising star in global apparel, Brunei now faces a 24% U.S. tariff—and echoes of a lost garment industry boom are ringing louder than ever. What went wrong, and can we afford to repeat the same mistakes?

🧵 “Stitching Lessons” reveals how Brunei’s short-lived garment glory holds critical insights for navigating today's trade turbulence. A must-read for those shaping Brunei’s economic future.

By Malai Hassan Othman

In the late 1990s, Brunei—renowned worldwide for its oil wealth - unexpectedly entered the global garment market. 

Factories flourished, staffed predominantly by foreign workers from the Philippines, Bangladesh, and Vietnam, producing clothing proudly bearing the label "Made in Brunei." 

These garments found their way into prominent stores across North America and Europe, signalling a brief yet significant period of economic diversification.

Why Did It Happen?

The sudden growth was not driven by local entrepreneurship but by the international trade agreement known as the Multi-Fiber Arrangement (MFA). 

This agreement imposed strict textile export quotas on major producers like China, prompting Chinese manufacturers to seek alternative production bases. 

Brunei, politically stable and economically untapped, quickly became an attractive partner.

The Power of Strategic Partnerships:

Chinese manufacturers established joint ventures with local Brunei factories, sharing international production licenses. 

This allowed Brunei to manufacture globally recognized branded apparel, significantly boosting local economic activity and putting Brunei-made clothing on the global stage. 

At its height, Brunei's garment exports reached B$303.4 million in 2005 - a substantial figure for a non-oil sector in the country’s economy.

Personal Impact:

The garment industry's brief success profoundly impacted local workers. 

Aminah, a Bruneian seamstress, recalls with pride, “Knowing the shirts I stitched were sold in London and New York gave meaning to my work and hope for my family.” 

Such personal stories highlight the industry's tangible effects on lives and communities.

The Sudden Fall:

However, the garment industry's growth ended abruptly in 2005 with the termination of the MFA quotas. 

Unable to compete without protective barriers, Brunei quickly lost its industry to more competitive nations like China, Bangladesh, and Vietnam. 

In the first half of 2006 alone, export earnings had already dropped to B$100.3 million. 

Factories shut down, jobs were lost, and once-thriving industrial hubs such as Serasa and Muara fell silent.

Reflecting on Missed Opportunities:

Looking back, experts and public sentiment converge on a sobering truth: the garment industry in Brunei was never meant to be sustainable. 

It was a profit-driven venture created to exploit a momentary loophole in global trade - never backed by a serious long-term industrial strategy. 

Higher operational costs, a strong Brunei dollar, and reliance on foreign labour made the sector uncompetitive in an open market. 

Public discussions have pointed out that the government and civil service lacked a coordinated vision to transition this opportunity into a resilient sector. 

A mindset shift was needed - one that moved beyond bureaucratic inertia and excuses like “nada budget.” 

Instead, the lack of investment in technology, infrastructure, and skills development left the country exposed when global trade dynamics inevitably shifted.

Relevance to Today’s Global Economy:

Current trade conflicts, such as the 2025 "reciprocal tariff regime" introduced by U.S. President Donald Trump, have placed Brunei under new pressure. 

A newly imposed 24% tariff on Brunei’s exports to the U.S. is seen by many as unjustified, especially given that Brunei posted a trade deficit - not a surplus - with the U.S. in 2024. 

This has reignited frustrations over Brunei’s small voice in global trade negotiations. 

The disproportionate tariff, compared to Singapore’s 10%, highlights how vulnerable small economies like Brunei are in the face of global power dynamics. 

It also echoes the vulnerabilities of the past garment era, where international decisions rendered local industries obsolete overnight.

Moving Forward: 

The story of Brunei's garment industry - and the looming 2025 tariff shock - provides crucial lessons for future leaders. 

Strategic foresight, technological innovation, and a genuine commitment to economic diversification are now essential, not optional. 

By honestly reflecting on past missteps and embracing bold new approaches, Brunei’s youth and policymakers can ensure the nation is prepared for any global trade challenges that may arise.

However, reflection alone is insufficient.

Singapore, known for its strong economic planning and reserves, has expressed serious concerns about the global economic outlook. 

Even its Prime Minister has cautioned that trade wars and collapsing economies were factors that led to the outbreak of World War II. 

If a nation as advanced and diversified as Singapore is preparing for worsening conditions, Brunei must not dismiss this moment as trivial.

We must recognize our vulnerabilities. The majority of our food is imported - including fresh red chillies, cat and dog food, and even basic items like chopping boards. 

These realities indicate a lack of resilience and serve as warning signs.

Now is the time - not tomorrow - to revitalize our agricultural sector. 

If relevant ministries and agencies fail to take action, we must question their effectiveness. 

What is the purpose of maintaining portfolios that yield no results? 

If we cannot cultivate fresh chillies in our fertile soil, can we truly consider ourselves a self-reliant nation?

Economic resilience begins with a shift in mindset, followed by decisive action. 

If Singapore is preparing, Brunei must intensify its efforts. 

Trade tariffs may not signal the end; they could mark the start of more profound disruptions. The time to act is now. (MHO/04/2025)