Darussalam Assets’ Billion-Dollar Capital Cut: Cleaning the Books or Cracks in Governance?

💸 B$1.24 Billion Cancelled.
But was it money lost — or numbers that were never there in the first place?

Darussalam Assets has petitioned the High Court to cancel shares described as “lost or unrepresented.” The legal notice was buried in the classifieds — but it has triggered confusion, anger, and suspicion among Bruneians online.

In this KopiTalk with MHO piece, I unpack what “ghost shares” really mean, why this move matters for Brunei’s governance, and why silence only deepens public mistrust.

👉 Read the full story: Darussalam Assets’ Billion-Dollar Capital Cut: Cleaning the Books or Cracks in Governance?

 

By Malai Hassan Othman | KopiTalk with MHO

Darussalam Assets Sdn Bhd, Brunei’s flagship holding company overseeing more than 30 government-linked entities, has asked the High Court to cancel B$1.243 billion worth of ordinary shares. The hearing is set for 27 September 2025, and the petition seeks court confirmation of a special resolution passed in 2023 to reduce the company’s issued share capital.

While some folks initially thought this move signalled a winding-up or dissolution, it’s actually about a capital restructuring exercise. The cancelled amount refers to shares that are “lost or unrepresented” — entries in the register without real assets to back them.

What Does “Lost or Unrepresented” Mean?

In corporate law, these shares are often called “ghost entries.” They can come from:

• Shares issued but never paid for or taken up,

• Transfers within government arms that weren't reconciled, or

• Capital inflated on paper without real assets.

For Darussalam Assets, this means its balance sheet overstated the true value of its capital. By cancelling the unrepresented shares, the company admits they were never there in realisable form.

Simply put: no new money has been lost today. The company is just cleaning up the books. But the fact that such a huge mismatch lasted for years raises some uncomfortable questions.

Voices from the Ground

While the legal notices described the move in dry financial terms, the public had a different take. On Reddit’s r/nasikatok forum, reactions ranged from confusion to anger.

One commenter put it simply: “It’s like a restaurant menu listing 201 burgers when the kitchen can only cook 65. The missing burgers never existed — they were just written on the menu.”

Others were more scathing: “You put in B$2 billion, you lost B$1.3 billion. No accountability, no transparency, just papering over the cracks.”

Many connected the billion-dollar figure to everyday struggles: “That money alone could fix so many problems the country is facing right now — from youth unemployment to basic services.”

The notices themselves appeared in the Notification/Advertisement column of the Borneo Bulletin, as per standard legal practice. But without any explanatory reporting, many readers were left scratching their heads — and in that void, public speculation and mistrust grew.

This shows the danger of silence. Without clear explanations, suspicion becomes the default narrative.

Implications for Competency and Integrity

Darussalam Assets was created to bring together Brunei’s state-linked companies, enforcing professional discipline and corporate governance in managing national assets. Yet the need to erase over a billion dollars in “ghost capital” raises some serious concerns:

• Weak accounting systems: how could such an overstatement survive years of reporting?

• Gaps in governance: why did it take two years after the 2023 resolution to seek court approval?

• Erosion of integrity: overstated capital undermines trust in the company’s role as a steward of national wealth.

The clean-up itself is a step toward transparency, but the delay highlights a culture of silence rather than proactive accountability.

This is exactly the kind of weakness international observers have warned about.

The IMF’s 2024 Article IV Consultation cautioned Brunei to improve fiscal risk management, strengthen oversight of state-owned enterprises, and boost transparency in public finances. The Darussalam Assets case seems to illustrate these concerns in action.

Investor Confidence at Stake

Even though Darussalam Assets isn’t publicly listed, it manages subsidiaries in key sectors like energy, telecommunications, agribusiness, and healthcare.

• Foreign investors might now wonder: if shares worth over a billion dollars can sit on the books without backing, what else could be hidden in Brunei’s state-linked ecosystem?

• Local partners might question whether joint ventures with subsidiaries have the financial discipline they expect.

Brunei has long promoted itself as a safe, stable investment destination. This incident risks tarnishing that image unless it’s followed by clear reforms and public communication.

Domestic signals matter too. In March 2025, Brunei’s Legislative Council raised more than 400 issues in its annual session — many tied to economic management and public trust. Such discussions reflect growing expectations that state assets be managed transparently and with integrity.

Governance Lessons

In democratic nations, such revelations usually lead to parliamentary scrutiny and ministerial accountability. Boards, auditors, and senior executives are expected to step up, explain, and — if needed — resign.

In Brunei, without open parliamentary oversight, there's a risk that this matter is treated as a technical exercise and quietly filed away. Yet for Brunei’s journey toward Wawasan 2035, the deeper lesson is crucial:

• Who in Darussalam Assets or the Ministry of Finance should take responsibility for this mismatch?

• Why wasn’t the issue caught earlier by audits or internal reviews?

• What safeguards will ensure other state-linked entities aren’t carrying similar “ghost capital”?

The international evidence is clear: state-owned enterprises under weak governance perform worse and cost taxpayers more. An IMF working paper on SOEs found that lax accounting and oversight often lead to inefficiency, corruption, and erosion of public trust.

A Call for Accountability

This isn’t just about cancelled shares. It’s about public trust. Bruneians deserve to know how their national assets are managed. Investors will also be watching closely for signs that governance is tightening, not loosening.

The cancelled shares were held under the Minister of Finance Corporation, an institutional shareholder acting on behalf of the State. 

While it’s a corporate entity, its role within the government creates a perception gap: without clear explanations, the difference between institutional oversight and leadership accountability can easily blur in the public eye.

This is why transparent communication is key. By explaining how these mismatches happened and how safeguards will prevent a repeat, the State can show it’s serious about integrity and accountability in managing public wealth.

The billion-dollar question isn’t whether the shares have been cancelled — they have. It’s whether systemic accountability will follow.

In other countries, boards, ministers, or corporate executives would be expected to step up, take responsibility, and reassure both citizens and investors. In Brunei, the entries may be erased on paper, but the stain on credibility will remain unless institutions clearly own the responsibility. (MHO/09/2025)

 

 

Wawasan 2035 dan Tekanan Generasi Muda: Iktibar Dari Paris, Jakarta dan Kathmandu

Api yang menyala di jalanan Paris, jeritan mahasiswa di Jakarta, dan gegaran rakyat di Kathmandu - semuanya lahir daripada akar yang sama: harapan yang melangit, tetapi kenyataan yang mengecewakan. Dunia sedang memberi kita cermin. Apabila janji tidak ditepati, apabila jurang kekayaan melebar, apabila anak muda merasakan pintu masa depan tertutup, maka kesabaran akan bertukar menjadi gelombang.

Brunei masih aman. Namun aman bukan warisan yang kekal, ia adalah amanah. Amanah ini hanya subur jika dipupuk dengan keadilan dan peluang yang nyata. Kita telah meletakkan Wawasan 2035 sebagai mercu cita-cita negara. Ia menjanjikan masyarakat berpendidikan, berkemahiran tinggi dan makmur. Tetapi persoalannya: adakah cita-cita ini sedang menjadi kenyataan, atau hanya gema slogan yang semakin pudar nadinya?

Image concept by KopiTalk with MHO, generated using AI tools

Tekanan di Bumi Sendiri

Kita tidak boleh menutup mata. Pengangguran dan ‘underemployment’ dalam kalangan graduan masih menghantui keluarga. Mereka menghantar puluhan permohonan kerja, namun pintu rezeki seolah tidak terbuka.

Pemberhentian pekerja dalam industri minyak dan gas telah menggoncang keyakinan terhadap tonggak utama ekonomi kita. Generasi sandwic pula menanggung beban - pesara dengan pencen kecil menyara anak yang menganggur dan cucu yang masih bersekolah. Jurang antara yang kaya dan miskin semakin jelas, dari rumah mewah dan kereta mewah di satu sisi, keupayaan makan cukup sebulan di sisi lain.

Di tengah-tengahnya, negara terus berdepan defisit belanjawan dan pertumbuhan ekonomi yang perlahan. Sementara itu, kelemahan sistem penyampaian - kerenah birokrasi, sikap “Little Napoleons” - terus mengikis keyakinan rakyat. Malah, modal bocor apabila pembelian rentas sempadan mengalirkan jutaan ringgit keluar setiap bulan, sedang peniaga kecil tempatan menunggu pelanggan yang tidak kunjung tiba.

 

Iktibar Dari Luar, Renungan Untuk Kita

Pengajaran dari Paris, Jakarta dan Kathmandu jelas: bila harapan anak muda diabaikan, percikan kecil mampu menyalakan api besar. Kerajaan yang hanya bertindak selepas jalan raya bergelora telah pun kehilangan masa yang berharga.

Brunei punya kelebihan: kestabilan yang nyata. Tetapi kestabilan tidak abadi. Ia mesti diperbaharui dengan tindakan yang berani dan bijaksana. Di sinilah NDP menegaskan - pembaharuan mesti berlaku dalam tiga medan utama:

1. Pemerintahan berintegriti - pengukuhan Biro Mencegah Rasuah, meritokrasi mengatasi kronisme, dan hukuman jelas terhadap salah guna kuasa.
   
   
2. Penyertaan rakyat - ruang sebenar untuk suara belia, masyarakat sivil dan komuniti memberi input kepada dasar.
   
   
3. Digitalisasi kerajaan - memecah benteng birokrasi, melicinkan perkhidmatan, dan menjadikan kerajaan rakan kepada rakyat, bukan penghalang.

Jalan Ke Depan

Haluan kita bukan ketakutan, tetapi pembaharuan yang membina. Kita mesti membuka laluan pekerjaan yang nyata - melalui perusahaan kecil, peluang latihan, dan industri baharu di luar minyak dan gas. Jurang sosial mesti dirapatkan - bukan hanya dengan bantuan, tetapi dengan akses saksama kepada peluang mobiliti sosial.

Para pemimpin dan elit mesti kembali rapat dengan denyut nadi rakyat: lebih banyak mendengar daripada bersuara, lebih banyak bertindak daripada berjanji.

Penutup

Di seluruh dunia, anak muda sedang menulis sejarah - ada yang di jalanan, ada yang di makmal inovasi, ada yang di bilik darjah. Di Brunei, pilihan di tangan kita: sama ada tenaga anak muda disalurkan untuk membina, atau dibiarkan membara untuk meruntuh.

Wawasan 2035 tidak boleh hanya menjadi slogan di podium; ia mesti bernafas dalam kehidupan rakyat.

Kestabilan bukan hadiah, ia adalah amanah yang mesti diperbaharui. Uprising di luar negara bukanlah ramalan untuk Brunei, tetapi peringatan: harmoni hanya seteguh harapan yang kita tawarkan kepada generasi muda.

Akhirnya, ukuran sebenar kejayaan kita bukan pada ucapan atau skor, tetapi pada satu pengakuan ikhlas daripada anak muda Brunei:

“Negara ini memberi aku masa depan yang boleh dipecayai dan meyakinkan.” (MHO/09/2025)

 

“Keeping Wawasan 2035 Alive: What Brunei Must Learn from Youth Uprisings Abroad”

The clock is ticking. Wawasan 2035 is not just a vision — it’s a promise. But are we turning that promise into reality, or letting grains of hope slip away?

Image concept by KopiTalk with MHO, generated using AI tools

By Malai Hassan Othman | KopiTalk with MHO

It all started with blocked highways in France, burning streets in Jakarta, and lawmakers being stormed in Kathmandu. Each event was different, but the message was clear: when young people feel excluded and let down by broken promises, their patience runs out, and they take to the streets. These global protests — caused by budget cuts, lawmakers' perks, or censorship — remind us that youth power can be a force to be reckoned with, and ignoring it can cause problems. 

In France, the call to “block everything” came as austerity measures clashed with rising living costs. In Indonesia, a motorbike driver's death caused by a police vehicle fuelled anger over lawmakers' allowances, leading to violent riots. In Nepal, the sudden social media ban by the government sparked a youth uprising that resulted in the Prime Minister's resignation. Across these places, it was the youth — connected online, aware of global issues, and fed up with corruption and inequality — who led the way.

For Brunei, these stories aren’t just warnings; they’re reminders. Our nation is banking on Wawasan 2035 — a vision for a well-educated, skilled, and prosperous society. Expectations are high, especially among graduates who see themselves as key players in a diverse economy. But as I’ve mentioned before, through the J-Curve theory, when expectations outpace reality, frustration takes root, and that’s where things can go wrong.

Brunei faces its own share of challenges. Graduate unemployment and underemployment are real issues, with many young people endlessly applying for jobs that just aren’t there or settling for roles that don’t utilise their skills. Job cuts in the oil and gas sector have shaken our confidence in what was once rock-solid — our economic backbone. Families are feeling the pressure of the “sandwich generation,” where retirees on tight pensions are supporting both adult kids and grandkids. The growing gap between the rich and the poor is obvious, from luxury lifestyles to underpaid contract workers. On top of that, we’re dealing with a budget deficit and slow economic growth, raising questions about whether Brunei can fund its long-term goals without urgent change. Public frustrations over the delivery system— with inefficiencies, delays, and the burden of “Little Napoleons” — are slowly eroding trust in our government. Retailers are also struggling with capital leakage, as cross-border shopping drains millions that could have been spent locally — one reason growth feels sluggish for small businesses.

The takeaways from Paris, Jakarta, and Kathmandu are clear. When the hopes of youth are ignored, small frustrations can turn into big protests. Governments that wait for protests to act have already fallen behind. Brunei’s advantage is in being proactive: we have stability, but that stability needs to be refreshed continuously, especially by addressing youth concerns before they become disillusioned.

Good governance is just as important as growth. Building trust means showing real integrity — a stronger Anti-Corruption Bureau with consequences for wrongdoing. It means true public participation beyond just appearances, and digital government channels that let citizens help shape policy. Prioritising merit over connections and transparency over secrecy — these quieter reforms can turn slogans into real change.

The way forward isn’t about fear, but about constructive renewal. We need to open up platforms for dialogue so youth voices are genuinely heard and not just in token gestures. Job creation should shift from mere slogans to tangible actions — creating real pathways through SMEs, internships, and new industries beyond oil and gas. We need to tackle inequality not just with welfare handouts, but by ensuring fair access to opportunities and upward mobility. Above all, leaders and elites need to stay grounded, listening as much as they speak.

All around the world, young people are shaping their nations’ futures — sometimes through protests, sometimes through innovation. In Brunei, it’s our choice: to channel youth energy into building, not breaking; to make Wawasan 2035 a real experience, not just a fading slogan.

Stability isn’t something we can take for granted; it’s a trust that we need to continually renew. The uprisings abroad aren’t warnings for Brunei, but reminders that harmony is only as strong as the hope we offer our youth. If Vision 2035 is to last, it can’t just be a promise on paper; it must be a promise kept in the daily lives of our people.

In the end, the real measure of Wawasan 2035 won’t be found in speeches or scorecards — it’ll be whether every young Bruneian can say: “This nation gave me a future worth believing in.” (MHO/09/2025)

 

Brunei’s Arctic Oil Moment

🚢 Not Brunei’s first Russian oil—but Hengyi’s first via the Arctic route. A corporate move for refinery supply, yet one with global political ripples.

Brunei has bought Russian crude before, but this latest shipment is a game-changer - it took the Arctic’s Northern Sea Route, which Moscow is promoting as a Suez alternative. For our small sultanate, this tanker’s arrival is a significant moment in international politics.

It’s important to note: Hengyi Industries, which runs the Pulau Muara Besar refinery, made this call, not the government. Hengyi, part of a joint venture with Brunei Investment Agency and China’s Zhejiang Hengyi Group, decides on feedstock and shipping routes. The government reaps the benefits through jobs and revenues, but isn’t involved in the tanker’s journey.

The economics are straightforward. Shorter routes mean quicker deliveries and cheaper oil. For a large refinery like Pulau Muara Besar, having diverse supply sources is key. So, going for Arctic oil makes sense from a business standpoint.

However, the perception risks are real. The vessel is linked to a sanctioned owner, and the Arctic route is politically sensitive. Allies in Washington or Brussels won’t overlook this, even if Brunei claims it’s a corporate choice, not a political one.

At home, the situation feels different. Reliable refinery supply, steady jobs, and lower costs exist alongside our net-zero commitments. How do we align the image of a “green Brunei” with oil transported through the fragile Arctic?

Clarity is crucial here. Brunei needs to position this as commercial pragmatism, not political alignment. It’s about energy security, not ideology. Sometimes geopolitics shows up not with soldiers but with a ship quietly docking in Muara.

And remember - these are Hengyi’s business decisions, not government policy. I’m just here, sipping coffee, thinking about how this all looks to the world.

— KopiTalk with MHO

Bullying Has No Place Here: Sultan’s Warning as Brunei Counts the Toll on Its Youth

“Is your child really safe in school? 447 bullying cases were recorded in Brunei last year. His Majesty says bullying has no place in our culture — but are we doing enough?”

KopiTalk with MHO

By Malai Hassan Othman

His Majesty Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaullah, the Sultan and Yang Di-Pertuan of Negara Brunei Darussalam, recently made it clear in his Titah Maulidul Rasul 2025 that bullying and bad behaviour among young people have no place in Brunei. 

The monarch emphasised that this kind of behaviour doesn't fit our culture and called for better monitoring in schools, reminding everyone that the values of kindness, justice, and responsibility, as taught by the Prophet Muhammad (peace be upon him), should guide how we raise the next generation.

The Sultan's message comes as Brunei deals with the ongoing issue of bullying in schools. 

According to Education Minister Datin Seri Setia Dr. Hajah Romaizah binti Haji Mohd Salleh, there were 447 reported cases of bullying in 2024, down from 734 in 2023. The Minister shared with the Legislative Council that out of the 2024 cases, 292 involved boys and 155 involved girls. She also mentioned that seven cases were reported at higher education institutions between 2022 and 2024. While it’s good to see some improvement, these numbers are still concerning because each case represents a child suffering from peer cruelty.

In response, the Ministry has rolled out new tools and stricter rules. Notification Letter No. 2/2025 now lays out how schools should handle bullying, gang behaviour, and drugs. 

Disciplinary actions can range from suspensions of five to ten days, parental counselling, and community service, with ongoing monitoring. Programs like the BEST (Bantu, Empati, Sayangi, Tanggungjawab) campaign are now regular features, and the G.I.N.I.S. program, which was introduced in 31 secondary schools and involved nearly 4,000 students in 2024, offers more intensive help. Evaluations show positive results, with many participants feeling that the program helps reduce negative influences.

However, these stats point to deeper issues. The Minister noted that many bullying cases come from kids who have been exposed to aggressive behaviour at home, poor discipline, lack of religious values, or peer groups that normalise cruelty. These root causes remind us that schools are just one part of the bigger picture, and families and communities need to be involved in finding solutions.

Events outside of Brunei highlight the seriousness of this issue. In July 2025, 13-year-old Zara Qairina Mahathir from Sabah died after an incident believed to be linked to bullying, sparking national outrage in Malaysia with thousands demanding justice. Although this tragedy wasn’t mentioned in Brunei’s Parliament or His Majesty’s titah, it serves as a stark reminder of the consequences of unchecked bullying.

It’s not just isolated incidents that matter. The Global School-Based Student Health Survey (2019) found that nearly 24 per cent of Bruneian students aged 13 to 17 reported being bullied at least once in the past month, up from 21 per cent in 2014. This survey highlights what many parents already suspect: bullying is common and often goes unreported.

The timeline is revealing. In July, a tragedy in Sabah brought the dangers to light. In August, Brunei’s Legislative Council discussed changes to the Child and Young Persons Act (Cap. 219), with Yang Berhormat Dayang Hajah Safiah binti Sheikh Haji Abd. Salam is advocating for reforms to address physical bullying as well as digital exploitation and psychological abuse. 

The Minister of Culture, Youth and Sports confirmed that efforts are being made to strengthen the Act and enhance the National Framework on Child Protection (NFCP), supported by protocols for early detection, consistent reporting, and a review of the Child Online Protection Framework from 2013. In September, His Majesty set a cultural and moral boundary, stating that bullying is something Brunei must never accept.

The concern is now fully acknowledged. But parents are still asking important questions: How soon will the changes to Cap. 219 happen? Do schools have enough counsellors and the ability to intervene effectively? And most importantly, will children be heard before it’s too late?

The Sultan has spoken clearly. Parliament is aware of the issue. The government has promised reforms. Now it’s up to the entire nation - families, schools, communities, and institutions - to turn these commitments into real protections. The youth aren’t just students; they are Brunei’s future. Protecting them from bullying isn’t optional anymore; it’s a must. (MHO/09/2025)

---