Saturday, September 14, 2024

Crown Prince Leads Brunei's Path to Wawasan 2035



Bandar Seri Begawan, September 2024: Brunei's development under the ambitious Wawasan 2035 vision gained a fresh burst of energy following a pivotal working visit by His Royal Highness Crown Prince Al-Muhtadee Billah to Singapore. 

 

As Senior Minister and Deputy Chairman of the Wawasan Brunei 2035 Supreme Council, the Crown Prince led a high-level delegation that immersed itself in five days of strategic engagements across Singapore's key sectors. 

 

The visit—far from being a ceremonial affair—signals Brunei's serious commitment to shaping its future economy with lessons from one of Asia's leading nations.

 

As the future ruler of Brunei, the Crown Prince has actively contributed to steering the nation towards its long-term development objectives.

 

His leadership was evident throughout the visit as he led the delegation—comprising senior officials such as Minister of Defence II Pehin Dato Halbi Yussof, Minister of Development Dato Juanda Rashid, and Minister of Communications and Transport Dato Shamhary Mustapha—through a series of high-impact briefings and site visits. 

 

These officials, all key figures in the Wawasan Brunei 2035 Supreme Council, joined the Crown Prince in exploring how Singapore's infrastructural advancements could serve as models for Brunei's future development. 

 

A major tour highlight was a stop at Sentosa Island, where the Crown Prince and his team were briefed on Singapore's Eco-Tourism Plan. 

 

Targeting carbon neutrality by 2030, the plan showcases a blend of economic growth and environmental stewardship—a balance Brunei hopes to emulate. 

 

Brunei, with its untouched natural gems like Temburong, is positioning itself as a key eco-tourism destination in ASEAN, and this visit offered crucial insights into how to sustainably develop these assets.

 

A Vision for Logistics and Economic Diversification

 

Beyond eco-tourism, Brunei's aspirations to become a trade and tourism services hub in the BIMP-EAGA (Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area) were underscored during the visit. 

 

The presence of both the Minister of Communications and Transport and the Minister of Development highlighted the complementarity between Brunei's need to enhance its logistics infrastructure and Singapore's expertise as a global logistics hub. 

 

As the Crown Prince led the delegation through engagements with Singapore's renowned Jurong Town Corporation (JTC) Summit and the Punggol Digital District, it became clear that Brunei seeks to replicate Singapore's success in merging sustainability with logistics efficiency. 

 

These initiatives are directly in line with Brunei's efforts to develop a strong logistics and transport sector, which will be critical for its vision of becoming a key player in regional trade and tourism. 

 

The insights gained could help Brunei better integrate its logistics networks, ensuring complements rather than competition with Singapore's well-established role in global supply chains.



 

Building Strategic Partnerships for the Future

 

The visit wasn't just about infrastructure—it also solidified Brunei's diplomatic relations with Singapore.

 

A welcome dinner hosted by Singapore's Senior Minister Lee Hsien Loong was a fitting reminder of the strong ties between the two nations. 

 

Senior Minister Lee highlighted the importance of continued collaboration, noting that both countries, while small, could remain dynamic and resilient by working together in facing global challenges. 

 

The Crown Prince's leadership was once again on display as he led the delegation through the 10th Singapore-Brunei Young Leaders' Programme. 

 

This program is not just a platform for exchanging ideas—it represents the future of Brunei's international relations, emphasizing cooperation in areas like digital innovation, logistics, and sustainable tourism. 

 

The Crown Prince's involvement in these dialogues underscores his growing influence in shaping Brunei's role on the global stage.

 

Translating Insights into Action: Brunei's Next Big Step

 

While the visit has already yielded important insights, the true impact will depend on how these lessons are applied. 

 

The Crown Prince and his delegation are expected to gather actionable strategies in sectors such as eco-tourism, logistics, and digitalization—strategies that will be critical for Brunei's development once implemented. 

 

As Brunei looks to transition from its traditional reliance on oil and gas, these sectors will play a pivotal role in shaping a more diversified economy. 

 

The Crown Prince's leadership will be crucial in ensuring that these ideas do not remain theoretical but are transformed into real-world progress. 


Brunei's future growth, especially its aspirations to become a regional hub for trade and tourism, hinges on how effectively the nation integrates the knowledge gained from Singapore into its development plans.

 

A Future Leader Shaping Brunei's Path

 

Crown Prince Al-Muhtadee Billah's growing leadership role in Brunei's economic transformation is clear. 

 

As the future ruler, he is not only safeguarding Brunei's traditions but also guiding the nation into a future where sustainability and economic diversification are at the forefront. 

 

His hands-on approach during this visit signals that Brunei is serious about meeting the challenges of tomorrow, armed with the insights and innovations seen in Singapore. 

 

With eco-tourism, logistics, and digitalization as key growth sectors, Brunei stands at a crossroads, and under the Crown Prince's leadership, it appears poised to make significant strides. 

 

The lessons learned from Singapore will serve as a blueprint for the next phase of Brunei's development—a phase that seeks to balance economic growth with environmental responsibility and regional cooperation. 

 

The visit may have drawn to a close, but the real work is just beginning. With the Crown Prince leading the charge, Brunei's journey toward realizing its Wawasan 2035 vision is gaining momentum, and the nation's future as a diversified, sustainable economy is starting to take shape. (MHO/09/2024)

Wednesday, September 11, 2024

The Clock Is Ticking: Brunei’s Race to Diversify Before Oil Runs Dry

 

Brunei is currently experiencing an economic boom fueled by the remarkable surge in growth in the oil and gas industry. However, beneath this prosperity, a challenge looms: how long can the Sultanate rely on its oil wealth before the global shift to green energy changes the trajectory of events? As the world moves away from fossil fuels, Brunei faces a critical decision: should it diversify its economy or face an uncertain future? Can the nation find a path to sustainable success or will it be left behind? Continue reading to discover the future that Brunei awaits. MHO

 



By Malai Hassan Othman

 

 

Bandar Seri Begawan, September 2024: Brunei, a small yet prosperous nation situated on the northern coast of Borneo, finds itself at a critical juncture. 

 

Recent headlines highlight a remarkable 6.8% economic surge in the first quarter of 2024, driven by a thriving oil and gas industry. 

 

But the pressing question remains: how long can Brunei sustain this oil-dependent prosperity before an uncertain future looms?

 

Oil undoubtedly underpins Brunei's wealth. The country witnessed an astounding 8.9% increase in oil production, with crude oil and liquefied natural gas (LNG) leading the way. 

 

This oil boom translates into more job opportunities and a robust economy, with oil alone contributing nearly half of the GDP. 

 

However, beneath this tale of success lies a ticking time bomb: what happens when global oil demand diminishes? 

 

The IMF's latest report highlights the significant risk Brunei faces due to its reliance on oil. 

 

As the world transitions towards renewable energy sources, the long-term future of this Sultanate becomes increasingly uncertain. 

 

Currently, the economy flourishes, but it is well-known that oil fields have a finite lifespan.

 

There is a glimmer of hope, though, as Brunei's non-oil sectors experienced a promising 5.0% growth. This indicates that the nation is striving to reduce its heavy dependence on oil. 

 

Industries such as chemical production are stepping up, and the clothing manufacturing sector has observed an explosive growth rate of 24.8%. 

 

Nevertheless, these advancements pale in comparison to the dominance of the oil industry. 

 

The IMF has issued a warning: Brunei must diversify its economy or risk being at the mercy of volatile oil markets. 

 

If oil revenues decline, the IMF predicts a staggering fiscal deficit of -9.2% by year's end. This serves as a major red flag, urging the country to take action before it's too late.

 

Brunei has committed to achieving Net Zero emissions by 2050, but can the nation do so without sacrificing its economic backbone—oil? 

 

The government is making investments in renewable energy projects, such as an upcoming solar power initiative. 

 

However, the IMF cautions that the transition to a green economy will come at a significant cost. 

 

Decarbonizing while remaining heavily reliant on oil could strain Brunei's budget immensely. 

 

The proposal to introduce carbon pricing as a new revenue source may seem logical, but it faces challenges with a public accustomed to generous energy subsidies. 

 

Ultimately, Brunei finds itself in a delicate balancing act: is it a tale of hope or a hazardous situation? 

 

Despite the challenges, Brunei is making its mark globally. Exports grew by a staggering 14.5%, with international markets eagerly snapping up the nation's goods.

 

Imports also surged, reflecting higher demand for foreign products and indicating growing economic activity. 

 

But while things might look rosy now, cracks are starting to show. The country's heavy reliance on a single sector—oil—makes it vulnerable to future shocks. 

 

If global oil prices take a hit or production stumbles, the ripple effects could be devastating. 

 

For Bruneians, the message is clear: the country must change or risk economic turbulence in the years to come.

 

The Path Ahead: Decisive Action Needed 

Brunei's leaders are now facing a stark choice. They can either push forward with efforts to diversify the economy—building up industries like tourism, digital technology, and manufacturing—or they can keep banking on oil and hope for the best. 

 

The IMF's 2023 Article IV Report leaves no room for hesitation: Brunei must take action now. 

 

The economic growth seen in 2024 could easily vanish if the country doesn't rethink its future. 

 

The stakes are high, and the next few years could define whether Brunei emerges as a diversified, modern economy or remains trapped in the volatility of global oil markets. 

 

The time for the Sultanate to decide is now—will Brunei embrace the future or be left behind as the world moves on from oil?

 

References

 

- IMF Article IV Consultation Report (2023): [link](https://www.imf.org/external/pubs/ft/scr/2023/cr23250.pdf)

- Brunei's GDP First Quarter Report (2024)

Monday, September 9, 2024

Rising Food Prices Pose a Threat to Household Budgets

While some prices drop, rising food costs are quietly taking a bigger bite out of your budget. Families across Brunei are feeling the pressure at the grocery store, as the cost of essentials climbs higher and higher. Can the relief in one area truly make up for the strain in another? Dive into the hidden story behind the numbers, and discover why food prices could be the biggest threat to your household budget this year.



Bandar Seri Begawan, July 2024 – While consumers in Brunei may briefly find relief in lower transportation and housing costs, a more troubling reality is emerging at the dinner table: the price of food is steadily climbing, putting a strain on household budgets across the country. 

 

As grocery bills continue to increase, many families, especially those with lower incomes, are feeling the pressure rise, turning what seemed like an economic relief into a harsh financial situation.

 

The Consumer Price Index (CPI) for July 2024 presents a complex picture. While overall prices have slightly decreased by 0.4% compared to last year, this small decrease masks the growing burden of rising food costs. 

 

What does this mean for the average consumer? While they may be paying less for transportation and housing, they are spending more to put food on the table. And that's where the real impact is felt.

 

Surging Food Costs: How Long Can Families Manage?

 

The harsh reality is that grocery prices are increasing at a faster rate than any relief felt in other areas. 

 

The CPI reports a 0.6% rise in food prices, driven by essential items such as dairy products, eggs, soft drinks, and cereals. For families already struggling financially, this increase is significant and could push them to their limits. 

 

Every visit to the grocery store feels like a heavier burden on their wallets, as the cost of basic items continues to rise without any sign of stopping. 

 

This should be a concern for everyone. For lower-income families, who spend a significant portion of their household budget on food, the situation is particularly dire. 

 

Every additional dollar spent on food means less for other necessities, emergencies, and future expenses. 

 

While transportation and housing may be more affordable, for those who are barely making ends meet, it is the cost of groceries that is causing sleepless nights.

 

Relief at the Pump, but Is It Sufficient?

 

Transportation costs have decreased, with the prices of cars, fuel, and air travel dropping by 1.8%. 

 

Housing-related expenses, such as rent and repairs, have also fallen by 1.1%. These numbers suggest some financial relief for consumers, but the question remains: is it enough to counterbalance the rising cost of food? 

 

For many, the answer is no. While lower costs for transportation and housing provide immediate relief, the problem lies in the ever-increasing costs of essential goods. 

 

As food prices continue to rise, any savings on housing or transportation may be consumed by more expensive trips to the grocery store. 

 

A few dollars saved on rent provide little comfort when they are going towards higher prices at the supermarket checkout.

 

A Looming Crisis for the Cost of Living

 

The impact on the cost of living is undeniable. Although numbers may indicate a drop in overall prices, the reality is more grim for most people. 

 

The rising cost of food is felt more deeply and more frequently than any other expense. 

 

How long can families continue to absorb these rising prices before something has to give? 

 

The consequence is simple: consumers will start cutting back. Whether it's fewer dinners out, less spending on leisure activities, or holding off on larger purchases, the squeeze on disposable income will be felt across the board. 

 

As food prices continue to climb, it's not just the grocery bill that suffers—it's the entire quality of life for many households.

 

Businesses on the Front Line

 

The ripple effects of rising food costs extend beyond the consumer. Businesses, particularly in the food retail and hospitality sectors, are already feeling the strain. 

 

As consumers tighten their belts, restaurants, cafes, and grocery stores are left in a difficult position—either raise prices and risk driving customers away or absorb the increased costs and face shrinking profit margins. 

 

Meanwhile, the transport and housing sectors may see a temporary boost as consumers take advantage of lower prices. 

 

However, with spending power diminished by rising food costs, these gains could be short-lived. 

 

The broader economy faces an uncertain future as businesses and consumers alike grapple with these conflicting trends.

 

What's Next for the Public?

 

So, what's the takeaway? The supposed relief of lower transportation and housing costs is quickly overshadowed by the harsh reality of rising food prices. 

 

As the cost of living quietly climbs, the public must ask: How much longer can we sustain this? 

 

If food prices continue to surge, the pressure on household budgets will only grow. 

 

The challenge ahead for consumers is clear: navigating a world where the things we need most are becoming harder and harder to afford. 

 

It's time for the public to demand answers and, more importantly, solutions to this growing problem. Will policymakers step in to address the rising cost of essentials? Or will the burden continue to fall on the shoulders of those who can least afford it? (MHO/09/2024)

 

 

Sunday, September 8, 2024

Exclusive: Inside Brunei's Push to Unlock Its Tourism Potential – Promises or Progress?

Is Brunei Ready to Unlock Its Tourism Potential?

 

Brunei’s tourism sector is at a crossroads—while government briefings promise growth, public frustration is mounting. Can the Sultanate overcome its infrastructure gaps and modest targets to compete with regional powerhouses like Malaysia and Singapore truly? With bold claims from a recent AMRO report and public outcry online, the time for talk is over. Will Brunei deliver or miss its chance to become a top destination? Dive into the full story and discover the challenges and opportunities shaping Brunei’s tourism future.


  

By Malai Hassan Othman

 

BANDAR SERI BEGAWAN: In the halls of Brunei's Ministry of Finance and Economy (MOFE), a recent briefing on business opportunities in the tourism sector aimed to shed light on the country's future economic prospects. 

 

Organised by the Corporate Development Unit, it brought together cooperative leaders and tourism stakeholders eager to explore how Brunei could diversify its economy from relying on oil and gas. 

 

However, while the official event proceeded smoothly, online public discourse surrounding the briefing painted a more complex picture. 

 

The briefing, featuring insights from the Tourism Development Department and key industry players such as the Brunei Association of Hotels and Darussalam Holdings Sdn Bhd, was designed to offer a roadmap for growth. 

 

Yet, once news of the event spread online, the public response revealed frustration and scepticism about the country's ability to turn these discussions into real progress.

 


Public Sentiment: Discontent Brews Online

While the briefing aimed to inspire optimism, the reaction from the online community was less than enthusiastic. 

 

Many voiced their dissatisfaction through social media platforms and online forums, questioning whether the government was doing enough to support tourism. 

 

"It's all talk, nothing more," commented one user on a popular platform. 

 

"How can we be serious about tourism when our infrastructure is outdated, our payment systems are fragmented, and we still haven't implemented solutions that our neighbours did years ago?" 

 

This sentiment reflected a growing unease in the public sphere—an unease that has been building as Brunei's tourism sector continues to lag behind its regional peers. 

 

Despite being identified as a key player in the country's diversification efforts under the Wawasan Brunei 2035 plan, the perception is that the sector is still struggling to gain traction.

 

Legislative Council Speaks Out

The recent Legislative Council (LegCo) meeting held earlier this year underscored the complexities surrounding Brunei's tourism challenges. 

 

Minister of Primary Resources and Tourism, Dato Dr Hj Abd Manaf Hj Metussin, revealed that tourist arrivals had surged from 35,701 in 2022 to 133,360 in 2023, a sign of post-pandemic recovery. 

 

However, this figure pales compared to the region's tourism powerhouses, like Malaysia, which expects 27.3 million tourists in 2024, or Singapore with its 15 million visitor target. 

 

LegCo member Pehin Dato Hj Abd Rahman Hj Ibrahim was vocal in his criticism of Brunei's tourism targets, calling them "too modest." 

 

He pointed out that the country's goal of 362,565 tourists by 2024 and 552,733 by 2029 fell significantly short when benchmarked against neighbouring countries. 

 

"Our tourism potential is enormous, but we must be willing to make the necessary investments," he argued.

 

Insights from the "Boosting the Tourism Sector in Brunei" Report

 

Adding weight to this argument, the June 2024 AMRO (ASEAN+3 Macroeconomic Research Office) report, "Boosting the Tourism Sector in Brunei" by Vanne Khut, offers a deeper dive into Brunei's tourism landscape and the steps needed to unlock its potential. 

 

The report emphasises that Brunei's heavy reliance on hydrocarbons is becoming increasingly unsustainable, especially as global decarbonisation efforts accelerate. 

 

The tourism sector, identified as one of the five priority sectors under Wawasan Brunei 2035, is seen as a key solution for economic diversification. 

 

The report warns that Brunei lags behind its regional peers in terms of tourist infrastructure, including inadequate airport connectivity, limited accommodation options, and insufficient ground transport systems. 

 

It calls for urgent investment in both physical infrastructure—such as roads, transportation, and hotels—and human resources, including workforce training and modernised payment systems. 

 

It also highlights the potential of niche markets, particularly eco-tourism and Islamic tourism, as untapped resources for Brunei. 

 

The success of eco-tourism in the Temburong district, with its focus on preserving biodiversity, is a promising development but one that needs more promotion and scale. 

 

 

Similarly, Brunei's strong Islamic identity positions it to become a premier destination for Muslim travellers if more Halal accommodations and services are developed.

 

The Infrastructure Conundrum

The infrastructure issue remains a hot topic both inside and outside government circles. 

 

During the LegCo discussions, it was revealed that £7.32 million has been allocated for tourism development projects under the 12th National Development Plan. 

 

These funds are earmarked for upgrades such as the Temburong Pulau Selirong Forest Recreation Park and the refurbishment of the Kampong Ayer Culture and Tourism Gallery. 

 

An additional £3 million will go towards improving facilities at key tourist sites, including the construction of jetties along the Brunei River to enhance river cruise activities. 

 

Yet, for critics online, these numbers seem insufficient. "How can we compete with Singapore or Malaysia on that kind of budget?" one user remarked in a public forum. 

 

"We need a complete overhaul of how we approach tourism—starting with better infrastructure, transportation, and modern payment systems that make things easier for tourists." 

 

The lack of a unified QR code system for digital payments, for instance, has been a sticking point for years.

 

Visitors struggle to navigate different payment platforms, leaving many frustrated when attempting to make simple purchases. 

 

Critics argue that Brunei must adopt a universal digital payment system like Alipay or WeChat, which is widely used in China and other parts of Asia. 

 

"If we want international tourists, we need to modernise. Fast," another commenter stressed.

 


The Future of Niche Markets

The AMRO report by Vanne Khut also argues that the future of Brunei's tourism lies in niche markets. 

Islamic tourism, for instance, holds significant promise, as Brunei ranks highly in the Global Muslim Travel Index (GMTI). 

 

By improving services such as Halal dining and Muslim-friendly accommodations, Brunei could attract a growing global Muslim traveller market. 

 

Eco-tourism, particularly in the Temburong district, is another key opportunity. However, the report stresses that Brunei needs to promote its eco-tourism offerings more aggressively and invest in infrastructure to support this growth. 

 

The recent briefing and visit to Eco Ponies Garden reflect a step in this direction, but for eco-tourism to truly thrive, larger-scale projects and international promotion are necessary.

 


Words vs. Action

As the public discourse around the briefing continues to evolve, one message stands out: the time for talk is over. 

 

Brunei's tourism sector cannot thrive on briefings alone. Real change requires action—investment in infrastructure, modern digital solutions, and bold initiatives that capitalise on Brunei's unique cultural and environmental heritage. 

 

The LegCo discussions, paired with the insights from the AMRO report, show that the government is aware of what needs to be done. 

 

But the question remains—will they follow through? 

 

For Brunei to unlock its tourism potential, it must go beyond plans and promises. It's time to deliver. Only then will the Sultanate's tourism sector be able to stand alongside the giants of Southeast Asia. And only then will Brunei's dream of diversification truly become a reality. (MHO/09/2024)

Thursday, September 5, 2024

Manpower Blueprint: Bold Vision or Empty Promises for Brunei’s Future Workforce?

As Brunei’s highly educated youth face growing unemployment, frustration mounts. The government’s ambitious *Manpower Blueprint* promises change, but are these policies truly reaching those in need? With Vision 2035 on the horizon, the question remains: Will Brunei unlock the potential of its young talent, or will they continue to be left behind in a system that struggles to match education with opportunity? Explore the cracks in Brunei’s labour market and the urgent need for a shift in strategy. MHO



 

Brunei Darussalam – Unemployment among Brunei’s youth, especially recent graduates, is spiralling into a national crisis. Amid rising frustrations, questions loom over the effectiveness of the government's initiatives to tackle this issue.

 

A striking 5.30% unemployment rate in 2023, up from the previous year, highlights a significant problem. 

 

Forecasts for 2024 predict only a slight improvement, but with an estimated 11,250 people still without jobs, this modest change does little to quell concerns. 

 

Frustrated Graduates Speak Out

"I thought a degree would unlock doors, but it feels like I'm stuck outside, looking in." 

 

This cry of frustration, shared in a recent online forum by a master’s degree holder, has resonated deeply with other unemployed graduates. 

 

Years of education, hard work, and sacrifices have not yielded the career opportunities they were promised.

 

The online commentary has sparked a larger debate about the adequacy of Brunei’s labour market policies. 

 

Despite the well-intentioned government initiatives, graduates ask, “Where are the jobs?”

 

Manpower Blueprint: Bold Promises, but What’s Missing?

In 2023, Brunei introduced the Manpower Blueprint, a document brimming with ambitious goals to align education and workforce development with the needs of the evolving economy. 

 

But while it lays out a clear vision, the real-world results appear to be missing. 

 

Three years after His Majesty Sultan Haji Hassanal Bolkiah's call for a strategic workforce plan, the country is still grappling with rising unemployment rates, especially among those who have invested heavily in their education. 

 

The blueprint’s objectives, such as creating a future-ready workforce and fostering public-private partnerships, look promising on paper. But have they led to any substantial changes on the ground?

 

The Graduate Dilemma: Mismatch Between Aspirations and Reality

A study by Universiti Brunei Darussalam (UBD) in 2020 exposed a harsh truth: a mismatch between what young Bruneians want and what employers need. 

Graduates tend to aspire to high-paying government jobs, a preference shaped by a cultural “safety net” mentality. 

 

Meanwhile, industries like construction and agriculture struggle to attract local talent.

 

Adding to this, employers complain that fresh graduates lack critical problem-solving and leadership skills, often demanding work experience these job seekers do not yet have. 

 

How, then, can young graduates break into an already shrinking job market?

 

Are Government Programs Doing Enough?

The government has rolled out programs like i-Ready and the Industry Competency Framework (ICF) to tackle unemployment, offering apprenticeships and aligning education with market needs. 

 

However, critics argue these programs fall short of addressing the scale of the problem.

 

Why is it, despite these initiatives, that Brunei’s youth are still struggling to find jobs? 

 

The question remains: are these programs providing real solutions, or are they just patchwork fixes for a much larger issue?

 

Cultural Challenges: The Oil Dependency Dilemma

Brunei’s reliance on oil revenue has fostered a “rentier mentality,” where government jobs are seen as the safest bet. 

 

This deep-seated preference for public sector roles stifles private sector growth and discourages entrepreneurship. 

 

While the Manpower Blueprint acknowledges the need for a cultural shift toward risk-taking and innovation, are there enough efforts to change this mindset?

 

The reliance on foreign labour for manual jobs, while local graduates remain unemployed, highlights an ironic twist. The blueprint may call for a dynamic workforce, but without a shift in attitude and policy execution, Brunei risks failing to equip its youth for the future.

 

Vision 2035: Can It Be Achieved?

Brunei’s Vision 2035 aims for a highly educated and skilled workforce driving a diversified economy. 

 

Yet, as the clock ticks closer, the gap between policy and reality is widening. The Manpower Blueprint remains a guide, but unless its strategies translate into real-world impact, the unemployment crisis will continue to cast doubt over the nation’s ability to meet its targets.

 

What Needs to Change?

The key to reversing this trend lies in aligning education with labour market demands. Expanding vocational training, increasing internships, and forging stronger ties between educational institutions and industries can help bridge this gap. 

 

Encouraging entrepreneurship and steering the economy away from oil dependency are also critical steps. Without a more diverse economic foundation, Brunei’s workforce risks being unprepared for the challenges of the future.

 

Conclusion: A Crossroad for Brunei’s Workforce

Brunei stands at a critical juncture. The unemployment crisis among its graduates is not just a statistic—it’s a call to action. 

 

While the Manpower Blueprint offers a roadmap, there’s an urgent need to fast-track its implementation.

 

The nation must address its cultural reliance on government jobs, foster a spirit of innovation, and ensure that its workforce is adaptable and future-ready. 

 

Otherwise, the rising frustration among Brunei’s youth may become an even bigger obstacle to achieving Vision 2035.

 

Will Brunei’s leaders step up to the challenge, or will the blueprint remain just another plan that never quite materialized? (MHO/09/2024)

Wednesday, September 4, 2024

From "Ali Baba" to "Ali Bangla": The Evolution of Expatriate-Run Enterprises in Brunei

 

As the retail and food sectors in Brunei reach new heights, a quiet revolution is taking place. This revolution is not led by local vendors but by a growing wave of Bangladeshi entrepreneurs. These "Ali Bangla" businesses are building on the foundations laid by their predecessors and quickly surpassing traditional retailers, gaining a significant market share. However, as their influence grows, concerns arise. Will local businesses be left behind, and what does this shift mean for the future of Brunei's economy? Explore the story of how expatriate-run enterprises are reshaping the nation's economic landscape

 



 

Bandar Seri Begawan, August 30, 2024 — A significant transformation is occurring in Brunei's retail and food and beverage sectors, driven by the emergence of "Ali Bangla" businesses. 

 

Initially starting with the "Ali Baba" model, which involved partnerships between local Malays and Chinese expatriates, the landscape has evolved into the "Ali Chandran" phenomenon in the 2010s, led by Indian entrepreneurs. 

 

Now, Bangladeshi operators are emerging as major players in this evolving market, capturing an increasing share of Brunei's lucrative market.

 

The competition for a share of Brunei's thriving retail and food and beverage markets is intense. 

 

In the first quarter of 2024, Brunei’s total retail sales reached an impressive BND447.6 million. 

 

Department stores contributed nearly a third of this amount, with sales worth BND120.5 million, followed closely by supermarkets at BND77 million. 

 

The food and beverage sector is also flourishing, with sales increasing by 7.1 per cent in Q3 2023 compared to the previous year, pushing the total revenue from BND107.4 million to BND114.9 million. 

 

This significant market size makes it an attractive target for both local and expatriate entrepreneurs, with the "Ali Chandran" and "Ali Bangla" businesses vying for their pieces of this substantial economic "cake."

 

A 2019 study conducted by Li Li Pang of Universiti Brunei Darussalam highlighted how "Ali Chandran" businesses leveraged community networks and utilized Sendirian Berhad (Sdn Bhd) companies strategically to dominate the retail sector. 

 

These businesses, often controlled by Indian expatriates, operated under local licenses, allowing them to offer competitive prices and establish a loyal customer base. 

 

Today, the "Ali Bangla" trend builds on these strategies. Bangladeshi entrepreneurs are not only taking over existing operations but also expanding into new areas, including the establishment of backstreet shops — small, informal outlets offering niche products at highly competitive prices. 

 

This approach has enabled them to attract a diverse clientele, further marginalizing local vendors who face challenges due to limited financial resources and less access to prime retail locations.

 

The adaptability of "Ali Bangla" businesses is also evident in their expansion into other sectors, such as construction, where Bangladeshi and Indonesian workers have been known to utilize their employers' licenses to run independent businesses. 

 

This diversification demonstrates the resourcefulness of these expatriate communities in navigating Brunei's economic landscape.

 

However, the rapid growth of "Ali Bangla" businesses has raised concerns. 

 

While they provide essential services and make significant contributions to the economy, there are increasing calls for stronger regulatory measures to address issues like license renting and informal activities such as unregistered money lending and remittance services. 

 

As these businesses continue to grow, the future of local entrepreneurship in Brunei hangs in the balance.

 

The evolution from "Ali Baba" to "Ali Chandran" and now to "Ali Bangla" businesses reflects broader shifts in Brunei's economy, where expatriate-run enterprises have become increasingly dominant. 

 

The challenge now lies in ensuring that local vendors are not left behind and that Brunei's market remains fair and competitive for all participants. 

 

The continued rise of "Ali Bangla" businesses emphasizes the need for targeted policies to support local vendors and regulate expatriate-run operations. 

 

Without such measures, the balance of power in Brunei's economy may continue to shift, reshaping the retail and food and beverage sectors for years to come. (MHO/09/2024)

Tuesday, September 3, 2024

'Little Napoleons' in Brunei: A Threat to Business and Efficiency

Power in the Wrong Hands? Brunei's public sector faces a growing challenge from so-called "Little Napoleons"—mid-level bureaucrats who misuse their authority, causing delays and frustrations for businesses and citizens alike. As Brunei strives to become a key player in the East Asian region, can it overcome this hidden obstacle that threatens its reputation for efficiency? Discover how these power plays are quietly undermining progress in our latest report.

 

BANDAR SERI BEGAWAN 2 SEPTEMBER 2024: A recent incident allegedly involving an immigration officer in Brunei has sparked new concerns about a troubling issue within the public sector, often called the "Little Napoleon" syndrome. This term refers to mid-level bureaucrats who misuse their power, causing unnecessary delays and frustrations for the public.

 

The incident occurred at one of Brunei's ports, where a ship crew, despite following all immigration rules, was forced by an officer to report to the immigration office over supposed passport issues. 

 

This situation could have been easily resolved on the spot, but the crew was delayed instead, leading to costly downtime for the ship. 

 

This unnecessary action frustrated the crew and hurt Brunei's reputation as a place where doing business is supposed to be smooth and efficient. 

 

This is particularly important as Brunei aims to become a competitive service hub for trade and transhipment in the East Asian region.

 

This case isn't unique. In 2020, His Majesty Sultan Haji Hassanal Bolkiah expressed concerns about similar abuses of power during an unannounced visit to the Ministry of Transport and Infocommunications. 

 

The Sultan highlighted issues like cronyism, improper issuance of vehicle licenses, and lax customs inspections at Brunei International Airport. 

 

He also pointed out that some people were reportedly bypassing official channels to get vehicle licenses, with reports of fake renewals avoiding proper checks. 

 

These issues show that "Little Napoleon" behaviour is widespread, damaging the credibility of government institutions.

 

Back in 2017, His Majesty made it clear that those given power should not misuse it for personal gain or to mistreat others. 

 

He emphasized that good public servants should serve honestly and sincerely, noting that efficiency is meaningless if it's used to harm people.

 

Brunei's public sector is known for its strict hierarchy, where authority is highly respected, and decisions are rarely questioned. 

 

While this system keeps order, it also allows "Little Napoleons" to thrive. These officials often create unnecessary rules and procedures, causing delays and frustration for those needing government services. 

The problem is not unique to Brunei, but it is particularly strong here due to the country's cultural and structural dynamics. 

 

The emphasis on hierarchy and the reluctance to challenge superiors create an environment where these behaviours can go unchecked.

 

The impact of "Little Napoleons" is significant. What might seem like a small act of power can lead to costly delays and a decline in service quality. 

 

More importantly, it damages Brunei's reputation as a place where business can be conducted smoothly, which is crucial for attracting international investment and promoting economic growth. 

 

Understanding why "Little Napoleon" behaviour persists in Brunei requires looking at the broader cultural and structural factors. 

 

The public sector is heavily influenced by values that place high importance on respecting authority and following tradition. 

 

Combined with a strong hierarchical structure, this often means power is concentrated in the hands of a few, with little room for questioning or reform. 

 

The lack of effective accountability measures makes the problem worse. While performance evaluations exist, they often aren't enough to stop those who misuse their power. 

 

Without clear feedback channels and opportunities for public complaints, "Little Napoleons" can continue their behaviour with little fear of consequences.

 

Fixing the "Little Napoleon" problem will require a strong commitment to accountability and service. 

 

The government has a system called TPOR (Tekad Pemedulian Orang Ramai), or the Client's Charter, which was introduced in 1995 to help improve service delivery in ministries and departments. 

 

To make TPOR effective, public servants need better training on how to serve the public while using their authority wisely. 

 

They must not misuse rules and regulations to complicate service delivery. Additionally, stronger accountability mechanisms, like regular performance reviews and accessible feedback channels, could help curb the excesses of these mid-level officials.

 

As Brunei modernises its public services, tackling the "Little Napoleon" syndrome is crucial to ensuring that the public sector serves the people effectively. 

 

By doing so, Brunei can strengthen its reputation as a country where doing business is possible, efficient, and straightforward, supporting its ambition to become a leading service hub in the region. (MHO/09/24)

In a nutshell...

In Brunei, there is a worrying trend in the public sector involving mid-level bureaucrats, often referred to as "Little Napoleons," who abuse their power. This leads to unnecessary delays and frustrations, disrupting public services and jeopardizing Brunei's aspirations to become a competitive service hub in the region. Despite efforts to improve accountability, the persistent existence of these power struggles among bureaucrats raises concerns about the efficiency and reputation of the country's public sector.