Vision 2035 in Focus: Where is Brunei's Workforce Heading?

As Brunei races toward Vision 2035, are we equipping our workforce with the right tools, or are we missing the mark? Despite our ambitions, underemployment, and a preference for foreign talent tell a different story. How can we bridge the gap between education and the realities of our job market? It’s time to rethink our strategies—because a vision without action is just a dream.

 

Vision 2035 in Focus: Where is Brunei's Workforce Heading?

 

Brunei's Vision 2035 aims to cultivate a highly educated and skilled workforce, serving as a cornerstone for the nation's long-term development strategy. 

 

However, achieving this vision presents challenges that underline the need for a deeper focus on organizational development, cultural adaptation, and people-centric reform.

 

An important challenge facing Brunei's workforce is the mismatch between educational outcomes and job market needs. 

 

Despite substantial investments in education, many graduates, including those with advanced degrees, find themselves in underemployed roles that fail to utilize their skills effectively. 

 

This trend emphasizes the importance of aligning educational programs with market demands and fostering a culture of continuous learning and adaptability within organizations.

 

The Manpower Planning and Employment Council (MPEC), established in 2020 under the Prime Minister's Office, plays a central role in addressing these challenges. 

 

MPEC's mission is to create a productive, sustainable, and competitive workforce by aligning workforce skills with the needs of the economy. 

 

However, this mission needs broader support through organizational development initiatives that promote continuous learning, knowledge enrichment (personally and organizationally), and the cultivation of organizational wisdom. Unfortunately, these elements have yet to be fully realized.

 

Continuous Learning and Knowledge Enrichment

 

Continuous learning is essential for developing a workforce that can adapt to the ever-changing demands of the global economy. 

 

Organizations, both public and private, must foster environments that encourage ongoing professional development. 

 

This includes providing access to training programs, offering opportunities for skill enhancement and upgrading, and integrating new technologies and methodologies. 

 

Knowledge enrichment, which involves systematically capturing, sharing, and applying knowledge, should be a priority. 

 

By promoting a culture of learning, continuous improvement, and adaptability, Brunei's organizations can enhance their capacity for innovation and adaptability. 

 

The Challenge of Achieving Organizational Wisdom and Maturity

 

In conclusion, achieving organizational wisdom and maturity poses a significant challenge for many institutions in Brunei. 

 

To address this, a focus on continuous learning, knowledge enrichment, and the ability to make informed decisions based on experience, knowledge, and insight is crucial. 

 

Additionally, organizational maturity involves sustaining effective operations over time while remaining adaptable to environmental changes. 

 

Unfortunately, many of Brunei's institutions have not fully integrated these elements. 

 

Cultivating a wise and mature organizational culture requires time, commitment, and a willingness to embrace change. 

 

Without these factors, the potential for Brunei's workforce to reach its full potential is limited. 

 

Furthermore, in addition to internal organizational development, the government's administrative reforms, such as privatization, corporatization, and commercialization of government activities and services, play an important role in Brunei's overall economic strategy. 

 

Privatization, like PPP, can increase efficiency, stimulate competition, and improve service delivery. 

 

However, it is essential to carefully manage these reforms to ensure they contribute to job opportunities and positively impact workforce development. 

 

Privatization and corporatization of government-run utilities and services should be accompanied by efforts to enhance organizational knowledge and wisdom, including providing opportunities for local talent to grow within private entities and fostering a culture of continuous improvement and adaptability. 

 

At the heart of these efforts should be a people-centred approach to development. By prioritizing human capital, Brunei can create a more resilient and dynamic workforce. 

 

This approach emphasizes employee engagement, professional growth, and aligning individual aspirations with organizational goals. 

 

Investing in people not only enhances an organization's capacity for success but also contributes to the nation's vision of a prosperous and competitive economy. 

 

As Brunei progresses towards Vision 2035, incorporating organizational development principles will be crucial for overcoming future challenges. 

Key elements such as continuous learning, knowledge enrichment, organizational wisdom, maturity, and adaptability need to be implemented. 

 

However, it is essential to recognize that achieving these ideals will require significant progress. 

 

Without a focused effort to cultivate these qualities within organizations, Brunei's workforce may not fully contribute to the nation's development. 

 

Therefore, the government's administrative reforms, including the privatization of corporations, need to align with these goals to ensure the development of a capable workforce that can drive Brunei's economic future. 

 

This balanced approach of lessening the government burden and increasing revenue profitability must go hand in hand with employment opportunities and human resources development. 

 

By adopting a people-centred approach to development, Brunei can come closer to achieving the ambitious goals outlined in Vision 2035. 

 

This will create a future where people are empowered, the economy is dynamic, and organizations are wise and adaptable. 

 

Although these qualities are crucial, they have not yet been fully embraced.

 

In a Nutshell:

 

·        Brunei's Vision 2035 aims to create a highly educated and skilled workforce, but challenges persist.

 

·        Despite investments in education, many graduates are underemployed, and there's a gap between academic qualifications and job market needs.

 

·        Organizational wisdom, maturity, and adaptability have yet to take root, hindering progress. The government should ensure that its administrative reforms, such as privatization, are in line with workforce development goals.

 

·        To achieve Vision 2035, Brunei needs to prioritize continuous learning, knowledge enrichment, and a people-centred approach within organizations, while also addressing slow economic growth and over-reliance on foreign talent.

Balancing Act: Will Closing Tax Loopholes Boost or Burden Brunei’s Economy?

Bandar Seri Begawan, August 26, 2024 – Following a recent exposé on businesses in Brunei allegedly exploiting loopholes in the tax system, experts from various fields have offered their insights, sparking a broader discussion about the implications of closing these gaps. 

 

The original article revealed how some businesses, particularly sole proprietorships and partnerships, avoid significant tax liabilities despite generating substantial revenue. While many agree that reform is necessary, there are diverging views on the best path forward.

 

A French Perspective on the Government's Role

One expert highlighted a French-centered approach to governance, noting how some believe in a highly interventionist government that collects nearly all the nation's GDP through taxes and redistributes it according to political agendas to ensure equity. 

 

However, this view was criticized for its potential to expand government activities at the cost of altering consumption patterns among the population. 

 

The expert cautioned that closing these "loopholes," which they argue are not truly loopholes, might lead to higher prices and an increased cost of living for Bruneians, rather than addressing the root issues.

 

The Productivity and Diversification Challenge

The debate deepened when the focus shifted to productivity. "My main concern is always, 'what do we do to raise productivity, raise the rate of productivity growth? What do we do to accelerate domestic diversification?'" remarked one expert. 

 

They emphasized that while closing tax gaps might free up resources for government spending, it could come at the expense of economic stability, particularly since Brunei already allocates a significant portion of its GDP to government expenditures.

 

The Metaphor of the Whirlpool

Another expert offered a vivid metaphor to underscore the risks of taxation in a system lacking transparency and accountability. "Would you throw money into a whirlpool? Because that's what it is with taxation without transparency and accountability," they remarked. 

 

The whirlpool symbolizes a situation where money is lost or wasted without clear oversight or understanding of its usage. 

 

In the context of taxation, the expert argued that without proper management, tax revenues risk being misused or squandered, ultimately failing to benefit the public. 

 

 

The Path Forward: Positive Incentives Over Punitive Measures

Several experts echoed the sentiment that Brunei should prioritize fostering a more productive economy through positive incentives rather than closing tax gaps that may lead to unintended consequences. 

 

They pointed out that Brunei already has successful models of productivity-driven growth that need to be scaled up and popularized. "Rather than expanding government functions, we should be looking at how to create an environment where businesses are encouraged to grow and diversify domestically," noted one expert, advocating for a strategy that balances tax reform with economic resilience.

 

Conclusion

The responses to the original article highlight a complex and nuanced debate over how to handle tax loopholes in Brunei's corporate sector. As policymakers consider their next steps, they must navigate the fine line between ensuring fairness in taxation and fostering an environment conducive to growth. The need for transparency, accountability, and a balanced approach is critical as Brunei moves forward in its economic development. (MHO/08/24)

Businesses in Brunei Exploiting Tax Loopholes

BANDAR SERI BEGAWAN — Brunei's business landscape may appear thriving, but a closer look reveals a critical issue: many of the country's most lucrative businesses are legally avoiding paying taxes, depriving the nation of millions in potential revenue. As Brunei grapples with an ongoing budget deficit, the question arises—are these businesses exploiting loopholes in the tax system, and what can be done to close them?

 

As of July 31, 2024, Brunei boasts 136,437 registered business names, mostly sole proprietorships and partnerships, alongside 14,485 registered companies (Sendirian Berhad and Berhad) and 959 foreign company branches. 

 

Yet, insiders estimate that roughly half of the registered companies are inactive. Meanwhile, many of the active businesses, particularly those operating as sole proprietorships and partnerships, are running multimillion-dollar enterprises—completely tax-free.

 

Legal Loopholes or Strategic Tax Avoidance?

Unlike registered companies that face a corporate income tax rate of 18.5%—with some sectors like oil and gas tax as high as 55%—sole proprietorships and partnerships in Brunei are exempt from paying corporate tax altogether. 

 

This legal gap allows many businesses, including those in retail, trading, wholesale, supermarkets, and services, to legally sidestep taxes while earning substantial profits.

 

For these businesses, the decision to remain unincorporated is not just about simplicity—it’s about shielding themselves from the corporate tax net. 

 

Additionally, some Sendirian Berhad companies may be active but generate meagre revenue, contributing insignificantly to the nation’s tax revenue. 

 

Others may employ smart accounting strategies, such as categorizing personal property—like cars and houses—as company assets, effectively reducing their taxable income.

 

The Cost to the Nation 

The impact on government revenue is significant. With such a large number of high-earning businesses legally avoiding taxes, the government is losing out on millions of dollars that could be used to fund critical public services, infrastructure projects, and economic diversification efforts. 

 

In a country that does not levy personal income tax, sales tax, or VAT, corporate tax is a crucial revenue stream. But when so many businesses contribute nothing, the burden falls heavily on those that do.

 

This loss of potential revenue is particularly troubling as Brunei continues to face a budget deficit, compounded by its reliance on oil and gas. 

 

The government has made economic diversification a priority, but with tax revenues falling short, these ambitions could be stifled.

 
Calls for Reform 

Experts argue that Brunei’s tax structure is overdue for reform. One proposed solution is introducing a minimum tax for high-earning sole proprietorships and partnerships. 

 

By setting a revenue threshold, the government could ensure that even unincorporated businesses contribute their fair share to the nation’s coffers.

 

Others suggest incentivizing incorporation through tax breaks or simplified compliance for small businesses, thereby expanding the corporate tax base. Strengthening tax enforcement and closing loopholes could also play a critical role in ensuring that all businesses pay their dues.

 

Public Debate: What’s Fair? 

As Brunei confronts these challenges, the public is left to ponder—should businesses be allowed to profit while contributing nothing to the nation’s tax revenue? Is it fair for some to bear the tax burden while others, often more profitable, escape it?

 

The debate is not just about numbers; it’s about fairness, equity, and the long-term health of Brunei’s economy. If these loopholes remain unaddressed, the nation could continue losing revenue at a time when every dollar counts.

 

With the budget deficit looming large, the question now is whether the government will take decisive action or allow this trend to continue. The answer could shape Brunei’s financial future for years to come. (MHO/08/24)

 

As Budget Grows, So Do Concerns: Public Calls for More Focus on Development

Bandar Seri Begawan 23rd August: Public concern has emerged regarding Brunei's 2024/2025 national budget, part of the 12th National Development Plan (RKN 12).

Critics argue that the current budget may not sufficiently address the need for economic diversification and infrastructure development, potentially impacting the nation's long-term sustainability.

The proposed budget for the 2024/2025 financial year, themed 'Building a Prosperous Future Together,' is set at BND6.25 billion, an increase from the previous year's BND5.96 billion.

This increase was announced by Minister at the Prime Minister's Office and Minister of Finance and Economy II, Yang Berhormat Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah, during the 20th session of the Legislative Council (LegCo) meeting.

The minister outlined that the budget includes BND2.29 billion for emoluments, BND2.40 billion for recurring expenditures, BND500 million for projects under the 12th National Development Plan (RKN 12), and BND1.06 billion for acknowledged expenditure. 

Concerns remain about whether the budget prioritizes sectors that can drive sustainable growth.

Observers have pointed out that neighbouring regions, such as Sarawak, have seen rapid development, including mass transit systems, new highways, and expanded infrastructure.

In contrast, several districts in Brunei, including Tutong and Belait, are perceived to be lagging in visible development.

Economic analysts have highlighted that while BND17.5 million has been allocated for vegetable production, BND18 million for livestock development, and BND18.5 million for aquaculture sites, these figures may not be sufficient to significantly reduce Brunei's reliance on the oil and gas sector.

The minister forecasted that 75 per cent of the projected BND3.26 billion in revenue for the 2024/2025 financial year will still come from oil and gas, underscoring the continued dependence on this sector.

Further scrutiny has been directed at the lack of significant investment in infrastructure. While BND60 million has been allocated for airport runway upgrades and BND36.4 million for tourism infrastructure, critics argue that more comprehensive development is needed for long-term economic stability.

Another area of concern is the expected budget deficit, forecasted at BND2.99 billion. This figure will be updated periodically based on factors such as oil and gas production levels, global oil prices, and the performance of the non-oil and gas sector.

The government recorded a budget surplus of BND260.46 million in the 2022/2023 financial year, attributed to higher global oil prices, but the current outlook remains cautious.

Calls for greater transparency and public involvement in budget decisions have also surfaced.

Some citizens have suggested that a more participatory approach to budget allocation could help ensure that funds are directed toward areas with the greatest impact on national development.

"We need to ensure that budget decisions are made with input from a broad cross-section of society. This would help align spending with the needs and aspirations of the people," said a community leader from Belait District.

As Brunei navigates an uncertain global economic landscape, the debate over budget allocation is likely to continue, with many urging a renewed focus on diversification and infrastructure development.

The government's ability to manage its resources effectively will be crucial in addressing public concerns and securing a prosperous future for the nation. (MHO/08/2024)

Public Concerns Grow Over Brunei's Economic Diversification: Voices from the Ground

 

Bruneians Demand Concrete Measures for Economic Diversification

As Brunei strives to achieve its ambitious vision of Wawasan 2035, the plan to transform the nation into a sustainable and dynamic economy, there is mounting public concern about the slow progress of economic diversification. 

 

With heavy reliance on oil and gas, Brunei faces significant risks due to volatile global prices and finite resources. 

 

Despite ongoing government efforts to promote diversification since the Fifth National Development Plan (1986-1990), tangible results have been elusive, sparking debates among concerned citizens.

 

Many Bruneians, even those without an economic or policy background, are observant of their country's economic landscape. 

 

They strongly believe that investing in education and human capital development is crucial. While they appreciate free education, they question its quality. 

 

As one observer aptly pointed out, "What's the point of education if it is of poor quality?" 

 

Suggestions to enhance the education system include upgrading teacher training, increasing salaries, and improving school facilities. 

 

Additionally, implementing a national school bus system to support full-day classes, especially for primary school children, is seen as greatly beneficial.

 

Brain drain is another pressing issue. Many Bruneians leave the country in search of better opportunities elsewhere. 

 

"Grant citizenship to children born in Brunei to stateless parents and simplify the citizenship process," suggests one bystander. 

 

Improving the quality of life, work-life balance, healthcare, education, and entertainment options is seen as essential for retaining local talent.

 

The business environment in Brunei often faces criticism for being excessively restrictive. 

 

"Facilitate business operations. Remove unnecessary restrictions and simplify processes for small and medium enterprises (SMEs) and foreign direct investments (FDIs)," urges one citizen. 

 

The financial system also needs to align with international standards, enabling seamless use of global payment methods like PayPal in Brunei. 

 

However, doubts remain about Brunei's ability to compete with established financial hubs in the region, such as Singapore. 

 

Quality healthcare is considered essential for a thriving nation. One resident emphasized the need for more clinics, doctors, nurses, and modern facilities. 

 

It is crucial to increase healthcare professionals' salaries to international standards to attract and retain talent. Additionally, maintaining and improving existing infrastructure is a priority. 

 

There have been calls to preserve the Brunei Museum, Tasek Merimbun ASEAN Heritage Site, and the BSB bus station, as well as ensure adequate water, electricity, and internet supply. 

 

Shifting the population away from car ownership to public transportation is seen as a long-term goal, but one observer noted that achieving this could take longer for Brunei compared to Singapore's timeline of 30-50 years. 

 

Reducing the financial burden of car ownership could free up household income for other purposes. Attracting foreign direct investment (FDI) and foreign talent is seen as pivotal.

 

Imagining a scenario where major companies like TSMC, Intel, or Toyota establish operations in Brunei, one citizen suggests that this could be a game-changer, providing scholarships and producing graduates for these industries.

 

Despite these well-articulated concerns and suggestions, there is a sense of disillusionment among the public. 

 

"We are too busy arguing about what's right or wrong, and in the end, nothing gets done," lamented one observer. Budget constraints are another recurring issue. 

 

"No budget doesn't mean we don't have money, but current budget allocations are insufficient," explained a concerned citizen. 

 

Ministries often cite budgetary limitations as a reason for inaction, leading to frustration. 

 

Moreover, the lack of a cohesive 'Whole of Government' and 'Whole of Nation' approach is criticized. 

 

"Why are we discussing these critical issues on Reddit instead of public media?" asked one frustrated resident. 

 

The inability to openly discuss economic stagnation reflects deeper issues within the governance framework.

 

As Brunei marches towards Wawasan 2035, the voices of its people underscore a collective desire for meaningful change. 

 

Addressing education, the business environment, healthcare, infrastructure, and FDI with strategic investments and policy reforms could steer Brunei towards a more resilient and diversified economy. 

 

Whether these aspirations translate into action remains to be seen, but the conversation is a crucial first step towards a brighter, more diversified future. (MHO/08/2024)

Introducing Mayors in Brunei: A New Vision for WAWASAN 2035?

While researching the latest progress and developments on Wawasan Brunei 2035, I stumbled upon an intriguing paper titled "The Role of Mayors in Achieving Brunei Darussalam's Wawasan 2035: Lessons from China" published in the Journal of Strategic and Global Studies. 

 

The paper presents a compelling proposal on how Brunei might benefit from a mayoral system similar to China's decentralised governance. 

 

This article delves into the feasibility and practicality of such a system in Brunei, exploring both the potential advantages and the challenges of integrating this approach within Brunei's unique political and cultural landscape.

 

Centralised vs. Decentralised Governance

Brunei aims to become a developed nation by 2035 under its WAWASAN 2035 initiative. 

 

The debate between centralised and decentralised governance is critical in this context. 

 

Brunei's current monarchical system, based on Malay Islamic Monarchy (MIB) principles, emphasizes central authority, Islamic values, and Malay traditions. 

 

Introducing a decentralised mayoral system could face resistance due to potential disruptions to existing power dynamics. 

 

However, local leadership might enhance governance by providing more responsive and tailored solutions to district-specific issues.

 

Economic Diversification and Growth

 

China's economic boom under decentralised governance highlights the potential for localized policies to drive growth and innovation.

 

Empowering mayors in Brunei to implement district-specific economic strategies could reduce reliance on oil and gas, diversify the economy, and stimulate sustainable development. 

 

Balancing central control with local autonomy is crucial to avoid inefficiencies and resource misallocation.

 

Improving Public Services 

Decentralised governance could lead to improved public services, as local leaders are better positioned to address community needs. 

 

 

In Brunei, mayors could enhance education, healthcare, and infrastructure at the district level, directly contributing to WAWASAN 2035's goal of a high quality of life for citizens. 

 

However, significant cultural shifts might be necessary given Brunei's deep-rooted traditions and centralised governance model.

 

Fostering Technological Innovation

Local governance can promote technological innovation, as seen in China's regional tech hubs. 

 

Brunei could similarly benefit by allowing districts to develop bespoke technology solutions to local challenges, aiding national progress towards a dynamic and sustainable economy.

 

Environmental Management

Decentralised governance allows for tailored environmental policies, addressing specific regional challenges effectively. 

 

Brunei's districts, each with unique ecological landscapes, could benefit from localized environmental initiatives, aligning with WAWASAN 2035's sustainability goals.

 

Learning from Sarawak

Sarawak, a neighbouring state in Malaysia, provides a local example of successful decentralisation. 

 

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has emphasized the importance of decentralising power from the federal government to the Sarawak government. 

 

Sarawak's approach involves setting up nine development agencies, each allocated RM1.5 billion, to decide and conduct development projects in their respective areas. 

 

This bottom-up approach ensures that development is tailored to the specific needs of each community, promoting efficiency and responsiveness.

 

Pros and Cons of Introducing Mayors in Brunei

The introduction of a mayoral system in Brunei offers several potential benefits. 

 

Localised solutions tailored to district needs could lead to more effective governance and increased public satisfaction. 

 

Decentralised governance could also drive economic diversification and growth, fostering innovation and best practices. 

Improved public services would be another advantage, as local leaders would be better positioned to address community needs, thereby enhancing the quality of life and environmental management through district-specific initiatives.

 

However, there are also significant challenges. 

 

The monarchical system based on MIB principles may resist decentralisation, and the cultural shift required for such a change could be substantial. 

 

Implementing a new governance structure would involve high initial costs and resource demands, with risks of inefficiency and resource misallocation. 

 

Additionally, there is a potential for uneven development across districts, which could lead to inequality. 

 

The risk of duplication of services and increased administrative costs also presents a challenge. 

 

Introducing a decentralised mayoral system in Brunei presents both opportunities and challenges, requiring careful planning and a sensitive approach to the nation's unique political and cultural context.

 

Achievability

Introducing a decentralised mayoral system in Brunei presents both opportunities and challenges. 

 

While potential benefits are significant, achieving this vision requires careful planning and a sensitive approach to Brunei's unique political and cultural context. 

 

A robust legal framework, strategic planning, and gradual implementation could help Brunei harness the strengths of decentralised governance to realize the ambitious goals of WAWASAN 2035. 

 

As Brunei charts its path towards 2035, the key question remains: Can the nation balance localised innovation and economic growth with its deeply rooted traditions and centralised governance? 

 

The answer lies in strategic foresight, cultural sensitivity, and an unwavering commitment to national development. (MHO/08/2024)

 

References

 

- Lee, B. T. F., Asihaer, A., & Sims, J. P. (2024). *The Role of Mayors in Achieving Brunei Darussalam's Wawasan 2035: Lessons from China*. Journal of Strategic and Global Studies, 7(1). [Link](https://scholarhub.ui.ac.id/jsgs/vol7/iss1/6)

- Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg's comments on decentralization in Sarawak.

Brunei's Balancing Act: Growth Amidst Challenges

By Malai Hassan Othman

 

In the heart of Southeast Asia, Brunei stands as a symbol of wealth and cultural heritage. However, recent talks among citizens highlight a range of concerns that reflect the current state of the nation's economy and policies. 

 

These concerns, which include restrictive foreign policies and economic stagnation, contribute to a sense of uncertainty about the future.

 

Economic Stagnation: A Call for Progress 

Brunei's economic stagnation is a significant issue for its citizens. 

The country faces challenges such as ageing infrastructure, limited interbank and international banking facilities, and a stagnant population. 

 

There is a perception that the lack of foreign investment, attributed to a perceived lack of local talent, exacerbates these issues.

 

Recent data indicates that Brunei's GDP expanded by 1.4% in 2023, recovering from two consecutive years of contraction. 

 

However, the oil and gas sector, a major contributor to the economy, contracted by 2.0% due to persistent disruptions in production. 

 

On the other hand, the non-oil and gas sector, which includes finance, air transport, and communication services, has shown growth and now contributes 53% to the economy.

 

The strength of Brunei's currency pegged to the Singapore Dollar, is another topic of discussion. 

 

While the currency's strength signals stability, some believe it does not fully reflect the underlying economic reality. 

 

This perceived disconnect between the currency's strength and the country's economic health can be frustrating as it impacts exports and inflates the cost of living.

 

The Role of Foreign Workers: Balancing Perspectives

The role of foreign workers in Brunei is a complex and nuanced issue. 

 

Foreign business owners and workers, particularly from Bangladesh, are often regarded as resilient and adaptable—traits some feel are lacking among locals. 

There have been discussions about qualities perceived to be lacking among locals. 

Discussions have arisen around the recent challenges in foreign labour quotas and the departure of successful foreign business owners, which have left gaps that local entrepreneurs struggle to fill. 

 

Consequently, there is a shortage of skilled workers and businesses capable of meeting the country's needs.

 

While some sentiment suggests that Bruneians, despite having access to government support, may not fully capitalise on business opportunities due to a lack of innovation and risk-taking, it is important to consider the broader context. 

 

Decades of protective policies and reliance on government assistance may have contributed to a more risk-averse mindset.

 

Calls for Economic Reform: Stimulus or Structural Change?  

There are ongoing discussions about the need for economic reform in Brunei. 

 

Proposals for an Economic Stimulus Package (ESP) aim to boost domestic spending and stimulate the economy. 

 

However, some argue that such measures address only the symptoms rather than the root causes of economic challenges. 

 

They believe that once the stimulus ends, underlying structural issues will persist, and the country will face similar problems again.

 

Comparisons with Singapore's successful economic policies highlight different approaches. 

 

While Singapore has managed to implement multiple effective stimulus packages, Brunei's economic fundamentals are seen as needing more strength to sustain similar measures. 

 

This has led to calls for comprehensive economic reforms that address structural deficiencies and create a more conducive environment for business and investment. 

Positive Developments and Future Outlook

Despite the challenges, there are notable efforts and positive developments in Brunei. 

 

The non-oil and gas sector's growth, which now contributes 53% to the economy, highlights ongoing diversification efforts. 

 

The Pulau Muara Besar (PMB) Phase 2 Development Project with Hengyi Industries is a significant infrastructure investment expected to create job opportunities for 2,000 workers by 2029.

 

Additionally, Brunei has made strides in improving its ease of doing business, ranking second globally in regulatory matters with an impressive score of 8.8 out of 10. 

 

The government is also focusing on education and training initiatives to enhance the skills of the local workforce, ensuring they remain relevant in a rapidly changing economy. 

 

Efforts to expand digital infrastructure and improve connectivity are underway, contributing to the growth of the finance and communication sectors.

 

Looking forward, Brunei's GDP is forecasted to grow by 2.7% in 2024, driven by a resurgence in the oil and gas sector and continued expansion of the non-oil and gas sector. 

 

Inflation is expected to remain low at 0.8%, supported by stable global trade and effective government policies.

 

A Nation at a Crossroads 

Brunei is at a crossroads, with its citizens voicing concerns and hopes for the future. 

 

The current policies and economic conditions are seen as a call to action for progressive and dynamic governance and economic management. 

 

The call for reform and adaptation is louder than ever, and whether the government will undertake the necessary changes remains to be seen.

 

As Brunei navigates these challenges, the voices of its citizens serve as a reminder that complacency is not an option. 

 

The nation's future depends on its ability to adapt, innovate, and embrace change. 

 

Only time will tell if Brunei can rise to the occasion and secure a prosperous future for its people. (MHO/08/2024)