Economic Growth or Social Harmony: What Will Define Brunei’s Future?

As Brunei races toward its Wawasan 2035 vision, are we too focused on economic growth while ignoring deeper challenges that threaten our future? Beneath the surface of progress lies a hidden iceberg of social issues—poverty, corruption, and rising crime—that could derail the nation’s ambitions. Can the spiritual and ethical foundations of *Melayu Islam Beraja* and *Negara Zikir* guide Brunei toward a more balanced and just society, or will we miss the mark on genuine development? Explore the complexities of Brunei's future in this analysis. MHO

 

 

BANDAR SERI BEGAWAN, SEPTEMBER 2024: As Brunei forges ahead with its Wawasan 2035 vision, the nation’s path to sustainable progress rests on two fundamental concepts: Melayu Islam Beraja (MIB) and Negara Zikir. 

 

These guiding philosophies aim to balance the country’s spiritual and material development. 

 

However, the journey toward achieving this ambitious vision is fraught with challenges. From rising crime, unemployment, and mental health issues to deep-seated problems like poverty and corruption, Brunei faces a reality that necessitates more than just economic growth to achieve national success. 

 

A recent analysis from the Fakulti Usuluddin at Universiti Islam Sultan Sharif Ali, led by Rasinah Ahim, emphasises the importance of Negara Zikir as a philosophy that not only strengthens national stability but also reinforces the principles of MIB in governance. 

 

Yet, challenges in translating these ideals into practical policies become apparent as Brunei confronts social, economic, and administrative hurdles. 

 

The central question emerges: how effectively have MIB and Negara Zikir been integrated into governance and policy to address Brunei's pressing social issues?

 

An Iceberg of Challenges: Beyond Economic Metrics

 

In a decade-old video recording from a workshop on Wawasan 2035, a Bruneian government official offered a striking analogy, comparing the vision to an iceberg. 

 

The visible tip represents Brunei's economic ambitions—GDP growth and infrastructure development—but beneath the surface lie the more profound challenges of governance, societal well-being, and spiritual alignment with Islamic values. 

 

The official, who had only recently learned about these concepts despite not being Muslim, questioned whether Brunei's focus on economic metrics overshadowed the deeper values of Maqasid Syariah. 

 

This Islamic governance framework emphasises the protection of five essential elements: faith (din), life (nafs), intellect (aql), lineage (nasl), and wealth (mal). 

 

His reflections remain relevant today, as these core elements are critical to ensuring the holistic development of a nation beyond mere financial prosperity. 

 

For example, Brunei’s growing social issues—such as rising divorce rates, poverty, school dropouts, and unemployment—signal that the balance between material progress and societal well-being remains off-kilter. 

Divorce rates alone surged from 588 in 2022 to 735 in 2023, underscoring the stress on families and raising questions about the protection of lineage (nasl), a key goal of Maqasid Syariah.

 

Meanwhile, school dropouts and mental health issues among youth suggest gaps in safeguarding intellect (aql).

 

Measuring Progress: Is GDP the Right Metric? 

 

One of the key insights from the video and other reflections on Brunei’s development is the question of whether GDP is an adequate measure of national progress. 

 

The official noted that Bhutan, a small Himalayan nation, has adopted a different approach: using a Happiness Index to measure success rather than GDP alone. 

 

This index focuses on the well-being and happiness of its citizens, ensuring that economic growth does not come at the cost of social and spiritual fulfilment. 

 

Bhutan’s Gross National Happiness (GNH) index measures nine domains: psychological well-being, health, education, time use, cultural diversity, good governance, community vitality, ecological diversity, and living standards. 

 

This holistic approach ensures that national policies serve not only economic needs but also cultural, environmental, and social objectives. 

 

Similarly, Brunei’s guiding principles, particularly those embedded in Negara Zikir and MIB, offer an opportunity to rethink how the country measures its success. 

 

As Rasinah Ahim’s paper suggests, Brunei’s focus should be on developing a “Zikir Nation” where spiritual and material well-being is balanced. 

 

This philosophy calls for a holistic view of progress—one that goes beyond the surface of economic development and delves deeper into the nation's core values of Islamic ethics, environmental stewardship, and social harmony.

 

Corruption and Governance: A Tarnished Administration

 

Compounding Brunei’s challenges is the issue of corruption within its administration. 

 

Despite ranking second in the ASEAN region in corruption indices—behind only Singapore—Brunei has not escaped the negative impact of corruption. 

 

Since the Anti-Corruption Bureau (ACB) was established in 1982, 2,469 cases of alleged corruption have been investigated, leading to 284 individuals being brought to court and 231 convicted of offences such as bribery, criminal breach of trust, and submitting false financial claims. 

Beyond criminal charges, 260 public servants have faced administrative punishments for abusing their positions for personal gain or favouritism. 

 

These instances of corruption undermine public trust and stall the very policies that aim to build a prosperous and ethical nation. 

 

Tackling corruption and the abuse of power is critical to realising the full potential of Wawasan 2035 and ensuring that it aligns with the country's spiritual aspirations.

 

Poverty: The Hidden Struggle in a Wealthy Nation

 

While Brunei is often perceived as a wealthy nation, the reality of poverty in the country presents a different picture. Brunei ranks 11th out of 78 countries in terms of the percentage of its population living in poverty, with a staggering 43.7% living below the poverty line. 

 

In 2012, over 20,790 individuals, or more than 5% of the population, were reported to be living in poverty. 

 

This stark reality highlights the gaps in Brunei's wealth distribution systems and raises questions about whether the nation’s policies, rooted in the principles of Negara Zikir and MIB, are being implemented effectively to address economic inequality. 

 

Poverty, along with rising crime and unemployment, threatens the nation’s stability and contradicts the Maqasid goal of protecting wealth (mal). 

 

Crime, Poverty, and Social Stability: An Emerging Concern 

 

In addition to poverty, crime remains an issue that tests the resilience of Brunei's social fabric. 

 

Data from the Royal Brunei Police Force and the Narcotics Control Bureau show fluctuating crime rates across categories. For instance, offences against persons—such as those harming individuals' physical or emotional well-being—reached 511 cases in 2023. 

 

Meanwhile, property crimes, although reduced from a peak of 3,854 in 2014 to 1,105 in 2022, continue to present challenges. 

 

More concerning is the rise in penal code offences, including cybercrime and fraud, which surged from 669 cases in 2012 to over 1,700 by 2023. 

 

This reflects not only local challenges but also global trends in technology-driven crimes. 

 

Drug-related offences have also seen a resurgence, with 2,161 cases reported in 2023, underscoring the need for stronger enforcement and rehabilitation efforts. 

 

These crime trends, coupled with issues such as poverty, school dropouts, unemployment, and mental health challenges, test the stability that MIB and Negara Zikir aim to protect. They highlight the need for governance that not only addresses economic progress but also tackles the root causes of crime, corruption, and social instability.

 

Bridging the Gap: Policy and Implementation 

 

The heart of the issue is not that Brunei lacks the values or philosophies to guide it forward. 

 

MIB and Negara Zikir are well-established as cornerstones of the nation's governance framework. 

 

However, the challenge lies in translating these ideals into actionable policies and implementing them effectively. 

 

Inefficiencies in Brunei’s zakat management and welfare systems are key examples. 

 

Zakat, designed to redistribute wealth and promote social equity, often fails to reach those most in need due to administrative delays. 

 

Similarly, the welfare system, while well-structured, struggles to provide timely assistance to the vulnerable. 

 

These systemic issues have persisted over the years, as highlighted in a 2020 workshop led by Professor Amin Abdul Aziz at Universiti Brunei Darussalam, where it was emphasised that execution, not philosophy, remains the primary challenge. 

 

Additionally, strengthening oversight and improving transparency in these systems could help ensure that the principles of Maqasid Syariah—particularly the protection of wealth (*mal*) and the well-being of society—are fully realised.

 

Moving Forward: A Balanced Approach for Wawasan 2035 

 

As Brunei continues its march toward Wawasan 2035, the nation must recalibrate its approach to balance spiritual well-being with material advancement. 

 

The reflections of officials, captured on video a decade ago, remind us that the real mission lies not just in economic growth but in creating a just and equitable society that aligns with Brunei’s Islamic values. 

 

Corruption must be rooted out, poverty alleviated, and social services strengthened to ensure that all citizens benefit from the nation’s development. 

 

Only then can Brunei fulfil the true aspirations of Wawasan 2035, building a nation that is both prosperous and blessed with spiritual harmony. 

 

Brunei’s future rests on its ability to bridge the gap between policy and practice, between tradition and modernity. To fully realise its vision, the nation must commit to strengthening its governance frameworks, prioritising the well-being of its people, and upholding the values that form the very foundation of its identity. (MHO/09/2024)

  

In a nutshell:

• Wawasan 2035 is Brunei’s goal for national prosperity, focusing on economic growth and development.

• The vision is built on Melayu Islam Beraja (MIB) and Negara Zikir, aiming to balance spiritual well-being, social harmony, and material advancement.

• However, Brunei faces challenges: rising crime, poverty, unemployment, school dropouts, and mental health issues.

• Corruption remains a critical issue, with over 2,469 cases investigated since 1982, undermining governance and public trust. 

• The article questions whether GDP is the right measure for progress, suggesting that Brunei could benefit from adopting Bhutan’s Happiness Index to prioritise well-being and social equity.

• Maqasid Syariah offers a holistic framework for governance, focusing on the protection of faith, life, intellect, lineage, and wealth—essential for true progress.

• Zakat and welfare systems face inefficiencies, with delays and mismanagement preventing wealth redistribution from reaching those in need.

• To fulfil Wawasan 2035, Brunei must address corruption, improve governance, and ensure social harmony while balancing material and spiritual progress.

Brunei’s SMEs Fuel Economic Revival: 2023 Census Shows Growth in Jobs and Revenue

BANDAR SERI BEGAWAN, SEPTEMBER 2024: Brunei’s economy is showing encouraging signs of recovery, according to the latest findings from the Annual Census of Enterprises (ACE) 2023. 

 

Conducted by the Department of Economic Planning and Statistics (DEPS), the census reveals growth in the number of active businesses, particularly among small and medium enterprises (SMEs), which continue to be the backbone of the private sector. 

 

This expansion offers an optimistic outlook for the nation's economic future, especially for business owners and the workforce. 

 

In 2022, the number of active enterprises in Brunei increased by 1.8%, rising from 6,454 in 2021 to 6,570 in 2022. 

 

While this growth may seem modest at first glance, nearly 98% of these businesses are micro, small, and medium enterprises (MSMEs), a clear indication of their dominant role in the country's economy. 

Medium-sized businesses saw the most significant growth, with a 4.7% increase, suggesting that many smaller enterprises are expanding their operations. 

 

Micro-enterprises, those with fewer than five employees, also grew by 3.4%, further demonstrating resilience during challenging times. 

 

The Wholesale and Retail Trade sector remains the largest sector in terms of the number of enterprises, representing 35.9% of all active businesses, with 2,359 enterprises. 

 

This continued dominance points to a stable foundation for local commerce and consumer activities. 

 

Furthermore, the Accommodation and Food Service sector saw the highest growth rate of any industry, increasing by 5.8%—a sign of recovery in the hospitality and tourism industries, which were severely impacted during the pandemic. 

 

Meanwhile, the manufacturing sector, accounting for 10% of total enterprises, also experienced steady growth, reflecting its importance in driving economic recovery. 

 

One of the most promising findings of the census is the increase in local employment within the private sector. 

 

In 2022, the sector employed a total of 117,591 people, with Bruneians making up 57.5% of this workforce. 

 

This marks a 2.8% increase from 2021, as more local workers found jobs, contributing to the country’s long-term goal of reducing its reliance on foreign labour. 

 

At the same time, the number of non-local workers declined by 1.7%, highlighting a shift toward a more locally driven workforce. 

 

This increase in local employment is particularly notable in sectors like wholesale and retail trade, professional services, and education, where Bruneians are increasingly playing a key role. 

 

While employment numbers are on the rise, wages across different sectors present a varied picture. On average, private sector workers earned BND 2,096 per month in 2022. 

 

However, certain sectors, such as Mining and Quarrying, provided much higher wages, with employees earning up to BND 8,130 per month. 

 

In contrast, workers in agriculture, forestry, and fisheries earned the lowest average monthly salary of BND 770. 

 

Despite these wage differences, the private sector’s total revenue reached an impressive BND 40.84 billion in 2022, a sharp increase of 28% from 2021. 

 

This surge in revenue is led by the manufacturing sector, which contributed BND 18.05 billion, followed by Mining and Quarrying with BND 9.86 billion. 

 

The Wholesale and Retail Trade sector also reported a revenue increase of 8.8%, underscoring the recovery in consumer spending. 

 

For business owners, these findings reflect a positive trend. The continued growth in local employment and the rise in revenues indicate that Brunei’s private sector is on a solid path to recovery, with SMEs leading the way. 

 

Government policies aimed at supporting SMEs and encouraging local employment are evidently paying off, as seen in the steady increase in the number of enterprises and the reduction in foreign labour dependency. 

 

The growing revenues across key industries also suggest that businesses are generating higher returns, which could translate into more opportunities for reinvestment, expansion, and job creation. 

 

At the same time, challenges remain for certain sectors. Construction and education, for example, saw a decline in employment and revenue, signalling the need for targeted interventions to stabilise these industries. 

 

Nevertheless, the overall message from the census is clear: Brunei’s private sector is rebounding, with local businesses and workers playing a crucial role in the nation’s economic future. 

 

For business owners, the time is ripe for seizing new opportunities, whether through expansion, innovation, or exploring new markets.

For the government, the report serves as a validation of efforts to strengthen local enterprises and employment, though continuous support and adjustments will be needed to ensure sustained growth. 

 

As Brunei looks ahead, the findings from the ACE 2023 present a picture of hope and resilience. 

 

The growth in SMEs, coupled with rising local employment and increasing revenues, points to a stronger, more diverse economy. 

 

While challenges remain, the foundations for a more self-reliant and robust economic future are being laid, driven by the ingenuity and determination of Brunei’s businesses and workforce. (MHO/09/2024)

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)

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)

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)

 

 

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)