RKN12: A Second Look - Behind Budget Lines and the Chains That Still Bind

RKN12: Billions on Paper, But Are We Moving Forward?

Brunei’s BND 9.785 billion plan promises transformation — yet contractors wait, projects stall, and the economy contracts.

Are we breaking barriers, or just polishing the chains that still bind us?

Read the full KopiTalk with MHO report: RKN12: A Second Look — Behind Budget Lines and the Chains That Still Bind

By Malai Hassan Othman | KopiTalk with MHO - August 2025

 

The real strength of a national plan is all about how well it’s executed.

As Brunei’s 12th National Development Plan (RKN12) kicks off its second year, people are feeling hopeful, but some doubts still hang around. 

The issues from RKN11 are still fresh in everyone’s mind. With RKN12 moving forward on a BND 9.785 billion budget - almost half of which will be allocated to carry-over projects - the focus is shifting from planning to how honestly and effectively things are getting done.

From the BND 4 billion set aside for the 2024/2025 fiscal year, BND 1.7 billion is earmarked for RKN12 implementation, while BND 1.2 billion is allocated to clear up the leftovers from RKN11. The rest goes to operational and miscellaneous expenses. These numbers paint one picture; the reality out there tells a different story.

A TITAH MISSED OR MERELY QUOTED?

In two important speeches - the first during the launch of Wawasan 2035 and the second on His Majesty the Sultan’s 79th birthday - the monarch warned against being complacent, incompetent, and hypocritical. 

He pointed out issues like enforcement failures, bureaucratic delays, and the gap between strategy and actual results, asking for transparency and accountability instead of just catchy slogans. 

But in the routine of departmental meetings and ministerial briefings, how many of these calls are taken seriously as real mandates rather than just PR talk?

THE DEBT OF INACTION

We’ve got some ongoing problems in our development efforts, like delayed payments to contractors, inconsistent project oversight, and depending too much on foreign consultants without enough tech transfer. 

Small and medium enterprises - touted as key players in diversification - are struggling with confusing procurement systems, while young entrepreneurs often hit a wall of complex applications, unclear procedures, and radio silence from agencies.

Even worse, there’s a growing gap between investment plans and what’s happening on the ground. 

Budget allocations might look good, but records from the Ministry of Finance and Economy show consistently low spending rates, with millions left unspent each year - not because of fiscal caution, but due to a lack of action.

A DANGEROUS DEPENDENCE, A FRAGILE FUTURE

As pointed out in external analyses like the April 2025 ASEAN Briefing Report, Brunei’s efforts to diversify the economy are still overshadowed by oil. 

Oil and gas make up more than 50% of GDP, and government revenues fell from BND 5.4 billion in 2023 to BND 2.6 billion in 2024. Total reserves are expected to run out by 2048. 

If RKN12 is our lifeboat, it can’t afford to spring any leaks.

Priority sectors like tourism, halal manufacturing, Islamic finance, the digital economy, agriculture, and aquaculture often get mentioned in government documents. 

But too often, these sectors feel more like dreams than reality. 

Foreign Direct Investment (FDI) is lagging compared to regional competitors, with investors pointing to slow processes, unresponsive licensing, and a shortage of skilled labour as major issues.

Projects in places like Temburong have faced logistical hiccups and payment delays, quietly showing the gaps between vision and reality.

THE REALITY CHECK

Despite the BND 9.785 billion commitment under RKN12, Brunei’s economy shrank by 1.8% in the first quarter of 2025. 

DEPS data shows declines in both the oil and gas sector (-1.5%) and the non-oil economy (-2.0%), with investment dropping by a concerning 13.2%. 

These numbers challenge the optimism around RKN12, suggesting that ambitious plans haven’t yet turned into real progress.

WHAT THE PEOPLE SEE

In Brunei’s kampongs, towns, and business circles, trust in national planning documents is fading. 

This isn’t because people don’t believe in the nation’s goals, but because the average person feels left out of the conversation. 

They hear big speeches but don’t see any startup parks. They read about irrigation plans but pass by unused farmland. 

They hear about innovation but find themselves held back by outdated rules that treat business as a potential threat instead of a partner.

A CRY FOR INTEGRITY IN DELIVERY

RKN12 is a big opportunity - not just to win back public trust but to show that planning can lead to real results. 

It’s a chance to make development truly people-focused - not just in documents but in visible, meaningful outcomes. 

This moment calls for turning national planning from a ritual into reality, and from big ideas into actual progress.

His Majesty’s speeches shouldn’t just be seen as ceremonial soundbites. They’re genuine calls to action that need to be acted upon. 

Ignoring them now risks not only policy stagnation but also quietly dishonouring our national resolve. (MHO/08/2025)