Brunei’s Economic Crossroads: Ministers Defend Budget as Lawmakers Push for Stronger Reforms

Is Brunei Ready for Real Change? A Look into the 9th Day LegCo Proceedings

National policies are under scrutiny as economic realities challenge Brunei’s vision for progress. Is this the turning point for real transformation, or are we seeing a cycle of familiar promises? The latest Legislative Council session tackled critical issues shaping the nation’s future - here’s what you need to know.

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Bandar Seri Begawan, March 11, 2025 — The 9th-day session of Brunei’s Legislative Council (LegCo) exposed deep-seated concerns over economic stagnation, employment struggles, and bureaucratic inefficiencies.

As ministers presented budget justifications, lawmakers challenged gaps in policy execution and questioned the transparency of fiscal management. 

The discussions underscored the nation’s struggle to break free from an over-reliance on state-led development while grappling with the slow pace of economic diversification. 

Fiscal Stability and Economic Diversification: Policy or Rhetoric?

Opening the session, Yang Berhormat Dato Seri Setia Dr. Awang Haji Mohd. Amin Liew bin Abdullah, Minister of Finance and Economy II, outlined Brunei’s financial standing and long-term economic priorities. 

“Our fiscal policies must be agile and forward-thinking to sustain economic resilience,” he emphasised. 

However, some lawmakers were less convinced, criticising the lack of urgency in implementing economic reforms and pointing to unrealised diversification efforts that continue to leave Brunei vulnerable to external shocks. 

 

Muara Port Trade Zone: A Game Changer or Another White Elephant?

One of the most significant announcements was the Muara Port Trade Zone (PTZ), a 3.62-hectare development aimed at boosting trade, logistics, and foreign investment. 

Yang Berhormat Pengiran Dato Seri Setia Shamhary bin Pengiran Dato Paduka Haji Mustapha, Minister of Transport and Infocommunications, promoted it as a cornerstone of Brunei’s National Development Plan (RKN 2025-2026), claiming it will enhance the nation’s logistics capabilities. 

However, scepticism surfaced over whether this project will deliver real economic benefits or become another expensive, underutilised initiative. 

Several lawmakers raised concerns about past infrastructure projects, questioning whether they had delivered expected economic benefits. 

One council member noted that without clear performance metrics, it is difficult to measure whether these investments have translated into meaningful returns. 

Others warned that without a clear investor attraction strategy, PTZ could join the list of state-funded projects that fail to live up to expectations. 

Brunei is also positioning Muara Port as a key trade gateway for Indonesia’s new capital, Nusantara, with planned shipping route expansions and direct trade agreements with Kalimantan. 

Lawmakers raised concerns over whether Brunei’s bureaucratic processes could efficiently support the execution of large-scale international trade agreements and investment strategies. 

Employment and Workforce Development: A Nation Stuck in Dependency?

Lawmakers grilled ministers on the ongoing failure to transition Brunei’s workforce into the private sector, with youth unemployment and underemployment remaining pressing concerns. 

The Brunei Employment Centre (PPB) has been allocated $19,407,310, but job seekers remain hesitant about entering the private sector, often preferring low-risk government jobs.

 

Some LegCo members noted continued hesitation among job seekers in entering the private sector, emphasising the need for policies that enhance wage competitiveness and business incentives to create sustainable, high-paying jobs. 

While Yang Berhormat Dato Seri Setia Dr. Awang Haji Mohd. Amin Liew bin Abdullah reaffirmed the government’s commitment to sustainable job creation; some members argued that government programs have so far failed to generate meaningful employment opportunities. 

Infrastructure, Energy, and Public Sector Development: Investments Without Accountability?

LegCo members scrutinised infrastructure and energy spending, questioning the efficiency of budget allocations, particularly in infrastructure and energy spending, and whether allocated funds would deliver tangible economic returns. Budget allocations included: 

• Electricity generation funding was slashed from $46.3 million to $15.6 million, raising concerns about energy sustainability. 
  
  
• Public infrastructure maintenance was cut from $55 million to $26.4 million, prompting questions about project delays and deteriorating public services. 
  
  
• Ministry of Foreign Affairs granted $117.4 million, leading to discussions on whether trade negotiations and diplomatic investments were yielding sufficient returns.
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Yang Berhormat Pengiran Dato Seri Setia Shamhary outlined logistics expansion plans, highlighting the Muara Port Trade Zone’s strategic role. 

Some LegCo members raised concerns about investor confidence and suggested forming a dedicated task force to ensure its long-term success. 

Zakat, Social Safety Nets, and Welfare Programs: Who Really Benefits?

Debates over zakat distribution and social assistance revealed ongoing frustrations over bureaucracy and inefficiency. 

Since 2020, over 68,000 applications have been processed through SKN, JAPEM, and JUZWAB, but questions were raised about the actual impact of these financial aid programs. 

Yang Berhormat Dato Seri Setia Awang Haji Ahmaddin bin Haji Abdul Rahman, Minister of Home Affairs, defended the current system but acknowledged the need for better integration with employment initiatives. 

“Our support programs must align with long-term job opportunities,” he stated. 

Meanwhile, Yang Berhormat Pehin Udana Khatib Dato Paduka Seri Setia Ustaz Haji Awang Badaruddin bin Pengarah Dato Paduka Haji Awang Othman, Minister of Religious Affairs, addressed concerns regarding zakat transparency, stating that continuous improvements were being made to enhance efficiency in disbursement. 

However, lawmakers pressed for more concrete assurances that funds were reaching the most vulnerable without excessive bureaucratic delays. 

With over 44,000 senior citizens receiving Old Age Pension and 1,600 additional elderly individuals granted financial aid, lawmakers called for stronger protections against elder poverty and long-term strategies to support Brunei’s ageing population. 

Final Takeaways: A Nation in Need of Urgent Course Correction?

The 9th-day proceedings underscored Brunei’s ongoing struggle to transition from state dependence to a diversified, self-sustaining economy. 

While initiatives like Muara PTZ and workforce development programs signal progress, the session also exposed the persistent flaws in policy execution, financial accountability, and employment strategies. 

Lawmakers called for bolder, results-driven approaches to prevent Brunei from slipping further behind regional competitors. Are we seeing true policy shifts or just recycled promises? 

What should Brunei’s next move be?

Join the conversation and share your thoughts on the country’s future. (MHO/03/2025)

 

Behind the Debates: What’s at Stake in Brunei’s Legislative Council?

March 11, 2025

By Malai Hassan Othman

 

BANDAR SERI BEGAWAN, MARCH 2025:  The 8th day of Brunei’s Legislative Council (LegCo) session focused on pressing national issues, including flood control, healthcare, education, religious fund transparency, and cultural heritage.

 

While ministers assured ongoing improvements, legislators raised concerns over execution gaps, leaving the public questioning whether reforms are producing real results or merely procedural reassessments.

 

However, ministers also reaffirmed ambitious projects and policy enhancements for long-term national development.

 

Flood Mitigation: Millions Invested, Yet Cities Still Flooding

 

Brunei has allocated BND 80 million for flood control projects under the National Development Plan, yet urban areas continue to suffer from severe flooding.

 

Similar commitments were made under the 10th and 11th National Development, Plans, but recurring flood incidents have led to public frustration over perceived inefficiencies. 

 

Minister of Development, Dato Seri Setia Awang Haji Muhammad Juanda bin Haji Abdul Rashid, defended the government’s efforts, stating:

 

“Significant enhancements are planned under the 12th Development Plan to strengthen mitigation efforts.”

 

However, lawmakers demanded accountability for previous investments that have yet to produce tangible results. 

 

Yang Berhormat Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Haji Awang Suyoi bin Haji Osman questioned: 

 

“We need to assess why previous initiatives have not resolved the issue.”

 

The debate centred on whether Brunei’s flood control efforts are addressing root causes or merely reactive measures.

 

Lawmakers raised concerns that a lack of comprehensive urban planning and drainage system integration may be key underlying issues, a point echoed in previous debates on infrastructure planning.

 

The government, however, reaffirmed its long-term infrastructure plans, including additional flood retention ponds and drainage system expansions set to be completed in the coming years.

 

Healthcare Workforce: Training Local Talent, But Can Brunei Retain Them?

 

The government has expanded the number of local medical specialists from 30 to 128 over 15 years, yet retention remains a critical issue.

 

During the Legislative Council session, it was noted that financial competitiveness, career growth limitations, and opportunities abroad are among the factors influencing specialist migration. 

 

Minister of Health, Dato Seri Setia Dr Haji Mohammad Isham bin Haji Jaafar, highlighted initiatives to address the concern:

 

“Salary adjustments and structured career pathways are being introduced.” 

 

Despite these assurances, lawmakers raised deeper concerns over structural reforms beyond financial incentives. 

 

Yang Berhormat Dayang Hajah Rosmawatty binti Haji Abdul Mumin emphasized: 

 

“Financial incentives alone may not be enough. We need long-term policy solutions.” 

 

Lawmakers suggested that increasing incentives should be complemented by improving working conditions and professional development opportunities, echoing concerns raised in past workforce debates.

 

To address this, the government reaffirmed its healthcare expansion, strategy, including new medical training programs and partnerships with international institutions to enhance skills transfer.

 

Education Reform: Are Alternative Assessments the Right Move?

 

A major shift in Brunei’s education system is the transition from traditional exams to alternative assessments.

 

The reform aims to reduce pressure on students while maintaining academic rigour, yet concerns remain about how it aligns with employment needs and skill development. 

 

Minister of Education, Datin Seri Setia Dr Hajah Romaizah binti Haji Mohd Salleh, explained:

 

“We aim to develop a more holistic evaluation framework.” 

 

However, concerns were raised about its alignment with industry and workforce needs. 

 

Yang Berhormat Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Haji Awang Suyoi bin Haji Osman asked: “How does this align with industry requirements and labour market needs?” Consultations with over 300 private-sector companies to forecast workforce needs have supported the transition to alternative assessments.

 

However, lawmakers raised concerns that a lack of direct engagement with businesses and employers in shaping these assessments could result in misalignment between education policies and labour market demands.

 

The debate emphasized the need for continuous industry participation in curriculum development to ensure graduates are equipped with relevant skills.

 

The government responded by committing to more frequent industry consultations and expanding vocational training programs to bridge education gaps.

 

Religious Fund Management: Calls for Greater Transparency

 

The Tabung Dana Pembinaan Masjid fund has accumulated BND 30.4 million since 2015, raising calls for clearer financial disclosures.

 

While internal audits are conducted and submitted to relevant authorities, the level of public disclosure regarding fund allocation remains a concern for some legislators. 

 

Minister of Religious Affairs, Pehin Udana Khatib Dato Paduka Seri Setia Ustaz Haji Awang Badaruddin bin Pengarah Dato Paduka Haji Awang Othman, assured:

 

“Monthly audits are conducted and reviewed by the National Religious Council.” 

 

However, lawmakers argued that internal audits alone may not satisfy public expectations for transparency.

 

Yang Berhormat Dr. Awang Haji Mahali bin Haji Momin stated: 

 

“Public confidence hinges on comprehensive financial transparency, not just internal audits.” 

 

Some lawmakers and governance advocates have suggested that enhancing digital tracking and increasing the accessibility of financial reports could improve public trust in how donations are utilized.

 

The Ministry of Religious Affairs announced efforts to streamline financial reporting and explore enhanced transparency measures to address these concerns.

 
Cultural Heritage Preservation: Priority or Afterthought?

 

Brunei has designated 27 protected historical, sites, yet funding challenges continue to hinder conservation efforts.

 

Historical preservation in Brunei has long been constrained by budgetary limitations and shifting policy priorities. 

 

Minister of Culture, Youth and Sports, Dato Seri Setia Haji Awang Nazmi bin Haji Awang Mohamad, acknowledged:

 

“Sustainable preservation requires greater public participation and investment.” 

 

Lawmakers warned that without sufficient budgetary commitment, Brunei’s heritage could suffer irreversible damage. 

 

Yang Berhormat Awang Abdul Aziz bin Haji Hamdan raised concerns: 

 

“How do we ensure these sites remain national treasures, not forgotten relics?” 

 

Heritage advocates have suggested that public-private partnerships and tourism-driven funding models could help sustain conservation efforts. 

 

The government announced plans for a national cultural heritage blueprint, including partnerships with local businesses to support funding and preservation.

 
Conclusion: Ongoing Reforms, but Public Trust Still Uncertain

 

While the government outlined ongoing and expanded, reforms, legislators and the public demand measurable results. 

 

Key challenges remain: ensuring the effective execution of, policies, addressing governance and inefficiencies, and bridging the gap between legislative intent and public expectations. 

 

📩 What are your thoughts? 

 

🔹 Are these reforms yielding tangible results? 

 

🔹 Which issue requires the most urgent action? 

 

🔹 How can Brunei better retain its talent and resources? 

📢 Join the conversation on Kopi Talk with MHO on LinkedIn, Facebook, and my Blogspot. (MHO/03/2025)

Brunei’s Legislative Council: Reform in Motion or Just Housekeeping?

"Brunei’s Legislative Council convenes to shape the nation’s future, balancing governance improvements with economic resilience, education reforms, and public service efficiency. As ministers defend policies and legislators push for more decisive action, the question remains - are these steps laying the groundwork for progress, or are they a continuation of routine housekeeping?

By Malai Hassan Othman

BANDAR SERI BEGAWAN, MARCH 2025: The seventh day of Brunei’s Legislative Council proceedings saw ministers defending government policies amid growing calls for more decisive action on governance, economic strategy, and public services.

While ministers highlighted ongoing reviews, performance evaluations, and policy refinements, some legislators pressed for bolder and more immediate solutions to Brunei’s economic and social challenges.

The question looming over the debate: Is the government focused on genuine reform or merely engaged in a housekeeping exercise - fine-tuning existing structures without real forward momentum?

Governance and Public Service: Fixing the System, But To What End?

A major issue was Brunei’s slight decline in the World Bank’s Government Effectiveness Index, prompting questions about the accuracy of national performance assessments.

Concerns were raised during the Legislative Council debate about Brunei’s slight decline in the World Bank’s Government Effectiveness Index.

Lawmakers questioned whether data gaps in national performance assessments had contributed to the ranking and called for a reassessment of the evaluation framework to ensure more accurate performance measurement.

However, legislators pointed to internal reports revealing that over 50% of government agencies received only a one-star rating under the national performance evaluation system.

One legislator asked: “What’s the bigger concern here - our ranking or our actual governance performance?” A question that remained largely unanswered.

Ministers pledged to update outdated key performance indicators (KPIs) across government agencies, but some legislators worried that fixing performance metrics was becoming a substitute for fixing actual performance.

Brunei’s bureaucracy is notorious for its slow-moving reforms, and the focus on "improving assessment methods" rather than tackling the root causes of inefficiency raises concerns about whether the government is engaged in a housekeeping exercise rather than a real push for better governance.

Historical Context: Efforts to streamline government performance have been recurring over the years, with previous administrations launching various review initiatives aimed at improving efficiency.

However, despite these attempts, public complaints about bureaucratic inefficiencies and slow implementation of reforms persist. Legislators continue to question whether the current efforts will yield tangible improvements or remain another internal assessment exercise. Will this latest initiative yield actual improvements, or will it be another exercise in internal self-assessment without concrete results?

Economic Strategy: Revenue Diversification or Business as Usual?

Brunei’s 2025/2026 Supply Bill advanced to the committee stage, but not before tough questions on economic resilience, spending priorities, and the slow progress of diversification efforts.

The Minister of Finance and Economy II, Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah outlined a fiscal consolidation program, promising “enhanced revenue streams” and public-private partnerships (PPPs) as key strategies.

"We are carefully exploring revenue options, ensuring that any measures introduced remain equitable and do not burden the public," he stated.

While the plan aims for long-term financial sustainability, legislators expressed concerns about the continued reliance on oil revenue and the government’s slow response in attracting significant foreign direct investment (FDI).

One member questioned: “What specific industries are we prioritizing for diversification? And what incentives are we offering to foreign investors?”

The minister’s response was measured but lacked specifics, leading some to question whether Brunei is still in the "exploration" phase of economic diversification instead of implementation.

Despite repeated discussions on economic resilience, there was little clarity on new investment drivers or concrete steps to reduce dependence on hydrocarbons. With global markets shifting, Brunei’s slow approach to diversifying its economy could prove costly.

The government allocated BND 552,343,750 to the Prime Minister’s Office and its agencies, with BND 324,296,400 for salaries and BND 228,047,350 for recurring expenditures.

Meanwhile, over BND 500 million per year is spent on electricity, fuel, and rice subsidies, while BND 70 million has been allocated over five years for water infrastructure.

Expert View: Analysts studying Brunei’s investment climate have observed that the country faces challenges in attracting long-term FDI, citing bureaucratic delays and insufficient incentives as key barriers. Past reports from regional economic studies have pointed to regulatory inefficiencies as a deterrent to foreign investors, limiting Brunei’s ability to diversify its economic base.

Education Reform: Are We Preparing Students for the Future?

The Minister of Education, Datin Seri Setia Dr Hajah Romaizah binti Haji Mohd Salleh, presented updates on the national curriculum reform, noting that the new framework introduced in November 2023 aims to balance academic excellence with real-world skill development.

"We are ensuring that our students receive a holistic education that equips them for future challenges," the Minister stated.

However, legislators raised concerns about teacher readiness, resource constraints, and whether the curriculum adequately aligns with market needs.

One legislator asked: “Are we preparing students for the workforce, or just revising textbooks?”

Historical Context: The issue of skills mismatch between graduates and job market demands has been a recurring concern in Legislative Council debates, with calls for stronger links between education and industry. Although recent reforms emphasize technical and vocational training (TVET), legislators questioned whether these efforts have translated into meaningful employment opportunities for graduates.

Healthcare and Mental Health Services: Long Overdue Reforms

The long-delayed Kampong Pandan Health Centre has finally received approval to proceed, following repeated calls from legislators and the public.

"We have now completed the necessary evaluations, and the project will move forward," the Minister of Health, Dato Seri Setia Dr Haji Mohd Isham bin Haji Jaafar, confirmed.

Mental health was another key issue, with lawmakers urging stronger nationwide initiatives beyond awareness campaigns.

The Minister detailed collaborations between the Ministry of Health and religious authorities, integrating spiritual and psychological approaches to mental health care.

Expert View: A medical professional from RIPAS Hospital noted that while religious-based interventions are helpful, “the lack of psychiatric specialists remains a major gap in Brunei’s healthcare system.”

Agriculture & Food Security: A Lingering Challenge

Concerns were raised about delays in fertiliser subsidy distribution, affecting farmers' ability to maximise crop yields.

The Minister of Primary Resources and Tourism, Dato Seri Setia Dr Awang Haji Abdul Manaf bin Haji Metussin, acknowledged supply challenges, particularly in the distribution of fertiliser subsidies, and pledged improvements.

However, legislators pushed for a more structured long-term strategy to prevent recurring shortages and ensure better support for local farmers.

Historical Context: Brunei has aimed for greater self-sufficiency in agriculture since the early 2000s, but subsidy delays and inconsistent policies continue to hinder local farmers’ productivity.

Conclusion: A Government Stuck in Review Mode?

The seventh day of proceedings revealed a government engaged in refining policies rather than introducing forward-thinking reforms.

Ministers largely emphasized ongoing reviews, policy adjustments, and performance evaluations, while legislators pushed for more decisive and results-driven action.

With the 2025/2026 budget now moving to the committee stage, the real test will be whether these discussions lead to meaningful changes or remain an internal exercise in system maintenance.

For Brunei’s policymakers, the challenge ahead is not just managing the present—but actively shaping the future. (MHO/03/2025)