Brunei's Economy: A Cause for Concern?

The economic situation in Brunei is raising concerns. The country has experienced a decrease in trade, a decline in foreign investment, and a shrinking development budget. 

 

These factors have led experts to question whether Brunei might face challenges in maintaining its development momentum.

 

Decrease in Trade

 

The total trade value of Brunei declined by 53.9% year-on-year in April 2023. This decline was driven by a 56.2% drop in export value and a 50.7% drop in import value. 

 

The decrease in export value was mainly attributed to liquified natural gas (LNG) and other petroleum products.

 

The declining trade figures are likely to negatively impact Brunei's economy. 

 

As a small country with a narrow export base, Brunei heavily relies on trade to generate revenue. 

 

This trade decline could lead to reduced government revenue, potentially affecting the government's ability to provide essential services. 

 

Additionally, it could result in job losses within the export-oriented sectors of the economy.

 

 

Decline in Foreign Investment

 

Brunei has also witnessed a decline in foreign investment in recent years. 

 

In 2022, the country saw foreign investments totaling B$403 million exiting the country, which represents a significant capital outflow not being offset by replacements.

 

The dwindling foreign investment is a major concern for Brunei. Foreign investment plays a pivotal role in the country's economic development by fostering job creation, boosting economic growth, and attracting new technologies. 

This decline suggests waning investor confidence in the Bruneian economy.

 

 

Shrinking Development Budget

 

The development budget of Brunei has also undergone contraction in recent years. 

 

In 2023, the development budget stands at B$0.5 billion, a notable drop from B$1.5 billion in 2012. 

This substantial reduction in government spending on development projects raises alarms.

The diminishing development budget poses challenges for Brunei's future. 

 

Development projects are pivotal in fostering the country's economic growth. They contribute to infrastructure development, job creation, and the attraction of new businesses. 

 

The shrinking budget could impede Brunei's ability to achieve its economic goals.

 

 

Maintaining Development Momentum

 

Experts are questioning whether Brunei might face challenges in maintaining its development momentum. 

 

The economic trends do not paint a positive picture. The Bruneian government must take proactive measures to address investor concerns and stimulate economic growth. 

Successful implementation of such measures can help secure Brunei's prosperity in the future.

 

 

Conclusion

 

In conclusion, the economic situation in Brunei raises concerns. 

 

The country faces a decline in trade, reduced foreign investment, and a shrinking development budget. 

 

To safeguard its future, the Bruneian government must take measures to tackle these issues and stimulate economic growth. With effective actions, Brunei can ensure its continued prosperity in the times ahead. (MHO/08/23)

 

 

Disclaimer:

 

The views and opinions expressed in this article, "Brunei's Economy: Cause for Concern," are solely those of the author and do not necessarily reflect the official stance of any organisation, institution, or government body. The information in this article is based on publicly available sources as of the time it was published. While every effort has been made to ensure accuracy, the author does not make any representations or warranties regarding the completeness, accuracy, reliability, or suitability of the information.

 

This article is intended for informational and educational purposes only and should not be construed as professional financial or economic advice. Readers are advised to consult with qualified professionals and experts before making any financial or economic decisions. The author disclaims any liability for any actions taken or not taken based on the information provided in this article.

 

Readers are encouraged to independently verify any information presented in this article and to consider various perspectives before forming their own opinions. The author and the publisher are not responsible for any errors or omissions, or for any actions taken based on the information presented in this article.

Brunei's LNG Plant Back Online, But Challenges Remain

    Brunei's LNG plant, which was shut down on June 12 due to an "unforeseen external event," has resumed operations after three days.

 

    The plant is a major contributor to Brunei's economy, and its brief shutdown raised concerns about the country's ability to meet its LNG export commitments.

 

    The government confirmed that the aforementioned "unforeseen external event" caused the shutdown. The event has now been resolved, but the company has not released any further details about it.

 

    The prompt resolution of the issue and the resumption of operations at the LNG plant are positive signs for Brunei's economy. 

 

    However, the nation must remain proactive in addressing the challenges posed by the volatile LNG market and the need to ensure sustainable economic development in the future.

    In light of the recent incident, Brunei is likely to redouble its efforts to secure new contracts and stabilise its position in the competitive LNG market. 

 

    Tokyo Gas's decision not to renew its contract with Brunei LNG, alongside the country's territorial disputes with neighbouring Malaysia, underscores the need for Brunei to diversify its energy sources and explore new ventures to maintain production levels and revenue.

 

    Additionally, Brunei LNG will begin supplying liquefied natural gas to Japan Petroleum Exploration Co. (JAPEX) in April. 

 

    The company aims to explore mutually beneficial opportunities for future contracts in Japan beyond the new one with JAPEX.

 

    While details of the new contract between Brunei LNG and JAPEX, including duration and sales volume, have not been revealed, the move signifies Brunei's proactive efforts to secure new contracts and maintain a steady supply of LNG to its crucial export destination.

 

    As Brunei seeks to expedite the ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to diversify its economy, international cooperation and innovative policies, along with securing new LNG contracts, will be vital in shaping the country's future economic outlook. (MHO/08/23)

Debate Over Emigration in Brunei

    The social media landscape in Brunei has become a focal point for a spirited debate about the possibility of leaving the country. 

    An online thread titled "Will Bruneians ever think of leaving the country?" has sparked a wide array of responses, reflecting diverse opinions on the matter.    

 Participants in the discussion have engaged in a casual yet engaging exchange of ideas, generated by succinct questions seeking simple answers. 

    The conversation has allowed individuals to share their thoughts and feelings about the prospects of emigration from Brunei.
 
    Among the participants, a group of individuals has expressed their inclination to depart the nation, citing various reasons for their desire to leave. 

    Some have mentioned limited opportunities as a reason, while others point to a perceived lack of personal freedom and dissatisfaction with government policies.
 
    On the other side of the spectrum, another segment of participants advocates for staying in Brunei and contributing to the country's growth and development. 

    These individuals emphasize the importance of developing their homeland and preserving its unique cultural identity.
 
    The debate has touched upon several critical factors that influence the decision to emigrate, including job prospects, access to quality education, healthcare facilities, and overall quality of life. 

    These aspects play a crucial role in shaping the perspectives of those who are contemplating leaving Brunei.

    In an interesting juxtaposition, while some Bruneians consider leaving, foreign migrant workers from countries like India and Bangladesh see Brunei as a land of opportunity to pursue their dreams and start businesses. 

    Various retail shops, vegetable mini markets, hardware stores, and construction ventures are thriving with the entrepreneurial spirit of these expatriates.
 
    Amidst the ongoing online conversation, His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah addressed the nation during the 18th National Youth Day celebration, delivering a titah on August 1. 

    In his address, the Sultan encouraged Brunei's youth to step out of their comfort zones and explore opportunities beyond the country's borders. 

    He emphasized the importance of broadening horizons and gaining exposure to diverse cultures and experiences, highlighting how such international exposure can ultimately benefit the country.
 
    The Sultan's call garnered mixed responses from the public. Some individuals supported his encouragement, arguing that gaining international exposure would enhance Bruneians' competitiveness in the global marketplace and contribute to the country's development. 

    Conversely, others expressed concerns about potential brain drain resulting from individuals seeking opportunities abroad.

    They advocated for balancing the two goals of encouraging youth to explore opportunities overseas while also investing in their development at home.

     Overall, the online discussion has shed light on a spectrum of perspectives, providing a platform for a meaningful exchange of ideas among Bruneians with a keen interest in the country's future growth and development. 

    It is evident that the decision of whether to pursue opportunities abroad remains a deeply personal one, and individuals must carefully weigh the pros and cons before making their choices. 

    As the conversation continues, the importance of balancing the two goals of encouraging citizens to explore opportunities abroad while also investing in the country's development remains paramount. 

    Bruneians are engaging in thoughtful discussions about the potential benefits and challenges of embracing opportunities beyond their homeland, with the ultimate goal of charting the best path forward for themselves and their nation as a whole. (MHO/08/2023)

Mohammad Gadafi Haji Mokti and his wife, Siti Norsuhaila, have opened a halal butcher shop in Palmerston, Darwin. The shop, opened in 2019 is called Lakim Halal Butcher, and is located in the Oasis shopping centre.

The couple are originally from Brunei, but they have been living in Australia for the past few years. They decided to open the butcher shop after seeing a growing demand for halal meat in the Darwin area.

Readers Respond to the Issue of Over-education in Brunei

The issue of overeducation in Brunei has sparked widespread discussion among readers, highlighting the need for a balanced approach between attitude, skills, and knowledge (ASK).
 
In response to an article addressing this concern, readers have emphasized the importance of aligning the supply and demand sides of the equation while also considering the enabling factors that contribute to a well-functioning education system.
 

Supply:

Balancing the Educational Pipeline: 

Readers emphasize the significance of aligning the supply of education with the needs and demands of the workforce. 

It is crucial to strike a balance between producing graduates with the necessary skills and knowledge required by the job market.

This requires a comprehensive understanding of the industries and sectors that are thriving in Brunei, enabling educational institutions to tailor their programs accordingly.

By aligning the supply of education with the demands of the job market, Brunei can effectively reduce the issue of overeducation.

Demand: 

Fostering Vocational Education and Practical Skills

Readers recognize the need for a shift in perception regarding vocational education and practical skills.

While academic qualifications hold their value, there is a growing demand for individuals who possess practical expertise and skills that directly contribute to the economy.

Encouraging the development of vocational training programs and apprenticeships can bridge the gap between education and employment. 

By promoting a diverse range of career paths and highlighting the importance of practical skills, Brunei can ensure that the demand for skilled workers is met without an excess of overeducated individuals.

 

Enablers:

Strengthening Collaboration and Partnerships

Readers emphasize the importance of collaboration and partnerships between educational institutions, the government, and industries.

Such collaborations can facilitate the exchange of information and insights, enabling educational institutions to stay updated with industry trends and demands.

Moreover, partnerships can lead to the creation of internship programs, job placements, and mentorship opportunities, thereby ensuring that graduates are well-prepared for the workforce.

By fostering a culture of collaboration and establishing strong partnerships, Brunei can enhance the effectiveness of its education system and mitigate the issue of overeducation.

 

Conclusion

The response of readers to the issue of overeducation in Brunei highlights the significance of the ‘ASK ’ approach: attitude, skills, and knowledge. 
 
By aligning the supply and demand sides of the equation and considering the enabling factors, Brunei can effectively address the issue of overeducation. 
 
This involves balancing the educational pipeline, fostering vocational education and practical skills, and strengthening collaboration and partnerships. 
 
Through these collective efforts, Brunei can create a well-functioning education system that meets the needs of the job market, ensuring a prosperous future for its graduates and the nation as a whole.

 

Additional Key Points Raised by Readers:

The importance of changing mindsets and attitudes towards education.

The need to update curriculum content regularly to keep up with the changing dynamics of the job market.

The importance of providing students with opportunities to develop practical skills and experience.

The need for better collaboration between educational institutions, employers, and government bodies.

By incorporating these valuable perspectives, Brunei can create a more balanced and relevant education system. 

Addressing the ‘ASK’ framework will not only reduce the prevalence of overeducation but also ensure that individuals are equipped with the right skills and knowledge to contribute meaningfully to the workforce and society as a whole.

Rising Over-education in Brunei Sparks Concerns, Calls for Comprehensive Reforms

    In Brunei, the number of unemployed university graduates is on the rise, with some holding Master's and Bachelor's degrees finding themselves employed in fast food restaurants, earning less than $500 per month. This concerning trend has triggered discussions on social media, shedding light on the issue of over-education and its implications for the nation.

 

    The problem of over-education has become a significant concern in Brunei, prompting debates on social media between citizens and experts. 

    Some argue that the government should take more proactive steps to match graduates' skills and qualifications with suitable job opportunities, while others contend that graduates should be more flexible and willing to explore jobs outside their chosen fields.

    Recognizing the severity of the issue, the government has acknowledged the growing unemployment among university graduates and has pledged to tackle the problem through various initiatives. These include providing enhanced job training and internship opportunities, and supporting graduates in their entrepreneurial endeavors.

 

    However, experts assert that the government needs to address the root causes of over-education comprehensively. One pressing issue is the lack of job opportunities in the private sector, which creates an oversaturated job market for highly educated individuals. Additionally, the mismatch between the skills possessed by graduates and the needs of employers is exacerbating the problem.

 

    As the nation grapples with this challenge, potential solutions have been proposed by concerned citizens and experts. Here are some of the key suggestions:

 

Financial support for entrepreneurship: 

    The government could offer increased financial support to graduates who wish to start their own businesses. By encouraging entrepreneurship, the country can create more job opportunities and alleviate the burden of over-education.

Collaboration with the private sector: 

    Working hand-in-hand with employers, the government can identify and develop job opportunities in the private sector that match the qualifications of university graduates. This collaboration can lead to more productive and satisfying employment options.

Enhanced job training and internships:

    The government's focus on providing more job training and internship opportunities can help bridge the gap between education and employment. These programs can equip graduates with the necessary skills demanded by the job market.

Curriculum alignment:

    Close cooperation between universities and industries can lead to a curriculum that aligns with the demands of the job market. By tailoring education programs to meet specific industry needs, the country can reduce instances of over-education.

    In conclusion, the rising over-education issue in Brunei is a matter of concern that demands prompt and comprehensive action. 

    The various perspectives presented in discussions reflect the complexity of the problem, and its implications span economic, individual, educational, and societal domains. 

    By implementing a multi-faceted approach that includes collaboration with the private sector, supporting entrepreneurship, and aligning education with industry demands, Brunei can work towards creating a more balanced and thriving job market for its graduates. 

    Addressing the issue of overeducation will not only benefit individuals seeking meaningful employment but also contribute to the country's sustainable economic growth and societal well-being.

Brunei Workers' Welfare: A Call for Whole-of-Nation Action

 

    The welfare and well-being of Bruneian workers have recently come under scrutiny. Stakeholders have emphasized the need for constructive action to ensure that workers are treated fairly and with dignity.

 

    The government has taken a positive step by introducing a minimum wage policy across all private sectors. This policy aims to provide workers with a reasonable basic salary and safeguard them from inadequate wages.

 

    However, concerns have surfaced regarding the treatment of local workers in the private sector. Workers have reported problems such as the lack of proper guidance and mentorship, unfair salary grading systems, work-life imbalance, abuse of power, and discrimination based on race.

 

    A unified approach involving the government, employers, workers, and other stakeholders is essential to address these pressing issues. Collaborative efforts are required to establish a more equitable and just workplace for all.

 

    The government can play a significant role in this endeavour by fortifying labor laws and regulations and ensuring their effective enforcement. Additionally, increased support for labor unions, coupled with investments in worker training and education, can foster a more empowered workforce. By raising awareness of labor rights and protections, the government can actively contribute to a fair work environment.

 

    Collaboration between various ministries and government agencies is also vital in tackling the root causes of workplace concerns. The Ministry of Education can join forces with the Labor Department and Manpower Planning and Employment Council to enhance access to quality education and training for all workers. Likewise, cooperation with the Ministry of Health and SHENA (The Safety, Health and Environment National Authority) can ensure that workplaces adhere to high safety standards.

 

    Employers have a crucial role in creating a fair and supportive work environment by providing equitable wages and benefits, fostering safe and healthy workplaces, promoting diversity and inclusion, and respecting workers' right to organize and bargain collectively.

 

    Workers, too, are encouraged to actively participate by raising awareness about workplace issues, educating themselves about their rights, and holding both employers and the government accountable.

 

    In unison, a Brunei where all workers are treated with respect and dignity can be forged. This national call to action implores the government, employers, workers, and all stakeholders to work together towards this common goal – ensuring the welfare of workers becomes the nation's utmost priority.

 

Conclusion

 

With a whole-of-nation approach, Brunei can realize its vision of an equitable society where all workers can thrive. The urgent need to address concerns about worker welfare resonates as a matter of national pride and collective responsibility. Through constructive collaboration and a shared commitment, Bruneians can forge a future where the well-being and dignity of workers remain at the heart of the nation's success.

A Royal Celebration in Kuala Belait

His Majesty the Sultan and Yang Di-Pertuan of Negara Brunei Darussalam visited Kuala Belait on the occasion of his 77th royal birthday anniversary. 

The event was a true spectacle of joy and camaraderie, with people from diverse backgrounds and walks of life flocking to the KBRC Padang to celebrate with their beloved monarch.

 

The KBRC Padang was adorned in vibrant colors and resonating with harmonious melodies, providing the perfect backdrop for this auspicious occasion. 

 

The theme of the event, "Raja Berdaulat, Berjiwa Rakyat," was a reminder of the Sultan's people-oriented leadership style, which has earned him the love and respect of his subjects.

 

Accompanying His Majesty were esteemed members of the royal family, including His Royal Highness Prince Haji Al-Muhtadee Billah, the Crown Prince and Senior Minister at the Prime Minister's Office, His Royal Highness Prince 'Abdul Mateen, His Royal Highness Prince Haji Sufri Bolkiah, and His Royal Highness Prince Haji Jefri Bolkiah.

 

The atmosphere crackled with electricity as the Sultan's entourage arrived, greeted by an ecstatic crowd waving flags and cheering in unison. 

 

The royal convoy gracefully made its way to the Padang, where the Sultan and his family warmly engaged with the people, who were eager to express their unwavering loyalty and deep affection for their monarch. 

The Royal Meet and Greet session proved to be a heartwarming event that transcended all barriers, uniting the people of Brunei in their shared love and respect for their revered Sultan. 

 

It served as a poignant reminder of the unbreakable bond between the ruler and his devoted subjects.

 

In conclusion, the royal visit to Kuala Belait was a moment of celebration, unity, and profound admiration for His Majesty. 

 

As I documented this remarkable event, I couldn't help but be inspired by the enduring connection between the Sultan and his people, a testament to the rich heritage and cherished values of Brunei Darussalam.(MHO/07/23)

Safety Net Collapse at RBA Golf Course Raises Concerns About Safety

    A major safety net structure erected at the Royal Brunei Airlines Golf Course to protect the busy main road from wayward golf balls collapsed severely due to strong winds on Tuesday morning. The collapse was a near miss disaster, as no motor vehicles were present in the area at the time. However, the incident has raised serious concerns about the safety measures in place.

    The golf course was built in 1995, predating the construction of the adjacent highway. Initially, the golf course operated without a safety net. However, as the highway was built and traffic increased, stray golf balls became a hazard to passing vehicles. To address this safety issue, a massive safety net structure was subsequently added.

    The collapse of the safety net has raised concerns about the design and construction of such structures. Road users are now worried about whether the safety net was engineered to withstand strong winds, especially considering the potential risks posed to motorists on the busy highway. Furthermore, there are growing concerns about the management's responsibility in ensuring the safety of the public.

    Who is accountable for the collapse? Was it a design flaw, poor maintenance, or simply a freak accident? These are all questions that need to be answered by the authorities as they investigate the incident.

    The authorities need to take this incident seriously and ensure that all safety nets are up to standard and properly maintained. The safety of motorists and passersby is at stake. If the safety net was not properly designed or maintained, then other golf courses may be at risk of a similar collapse.

    The incident has left road users and nearby residents anxious about their safety while passing through the area adjacent to the golf course. Many are calling for regular safety assessments and upgrades to be implemented to avoid potential hazards and ensure the protection of motorists and passersby in the vicinity of the Royal Brunei Golf Course.

    Members of the public have called on the Authority on Building Control and Construction Industry (ABCi) and the Safety, Health and Environment National Authority (SHENA) to thoroughly investigate the incident and to ensure that all safety nets are up to standard and properly maintained.

    As authorities delve deeper into the investigation, it is hoped that lessons will be learned, leading to improved safety measures that safeguard both golfers and the general public from the potential dangers posed by stray golf balls on busy highways. (MHO/07/23)