Brunei’s Malay entrepreneurs have been caught in a cycle of struggle and stagnation for decades. Two studies, separated by 15 years, lay bare the reality: the same hurdles, the same fight, but with a ticking clock louder than ever. While the rest of the market races ahead, these entrepreneurs are left navigating a maze of competition, limited market access, and outdated support systems.
Isn’t it time we demand better? Isn’t it time to break free from a dependence on government contracts and overcome the competition suffocating local ingenuity? For Brunei’s economic aspirations to soar and for Vision 2035 to be more than a slogan, the Malay entrepreneurial spirit must be empowered, supported, and unleashed.
The stakes? An economy that thrives on every talent, initiative, and vision. The cost of inaction? More of the same—another two decades, another lament. Brunei, your time to act is now. The change must start from within. Are we ready to rise? MHO.
By Malai Hassan Othman
BANDAR SERI BEGAWAN, NOVEMBER 2024: Brunei’s economic narrative for its Malay entrepreneurs has remained largely unchanged over the past two decades.
Two pivotal studies—one presented by the Dewan Perniagaan dan Perusahaan Melayu Brunei (DPPMB) during the Majlis Ilmu in conjunction with Brunei's 20th National Day in 2004, and another by Li Li Pang of the UBD School of Business and Economics, published in 2019—paint a strikingly similar picture.
Despite the 15-year gap between their presentations, the challenges facing Brunei’s Malay entrepreneurs have evolved little, underscoring a systemic struggle that continues to weigh heavily on their prospects.
Limited Market Access and Competition: A Persistent Thorn
In both studies, one of the most persistent challenges highlighted is the limited market access faced by Brunei’s Malay entrepreneurs.
The DPPMB report 2004 emphasised how local entrepreneurs were sidelined by stiff competition from non-Bumiputera and expatriate businesses that dominate the local market and outmanoeuvre their Malay counterparts through extensive networks, superior access to capital, and operational flexibility.
Fast forward to 2019, and Li Li Pang echoed similar concerns, noting that Malay entrepreneurs continue to grapple with the same limitations. Restricted resources, limited strategic networks, and bureaucratic hurdles make it difficult for these businesses to expand their reach beyond small local markets.
Dependency on Government Contracts: A Fragile Lifeline
Another stark parallel between both reports is the dependency on government contracts. Bumiputera entrepreneurs have relied on government projects as their economic lifeline for years.
The DPPMB report underscored the risks of this dependency, warning that such reliance makes businesses highly vulnerable to shifts in government policy or spending. Fifteen years later, the landscape remains unchanged.
According to Li Li Pang, limited diversification beyond government-supported sectors continues to trap Malay entrepreneurs in a precarious cycle, hampering their ability to innovate and compete independently.
Capacity and Skills Deficits: The Innovation Gap
The DPPMB findings in 2004 called attention to a severe gap in entrepreneurial capacity and skills among Brunei Malay business owners, attributing it to insufficient training, a lack of exposure to modern business practices, and minimal adaptation to technology.
When Li Li Pang revisited this issue in 2019, the conclusions were nearly identical: local entrepreneurs were ill-equipped to navigate a rapidly evolving market dominated by technology and innovation.
Efforts to build capacity through education and mentorship remained insufficient, and many Bumiputera businesses struggled to keep pace with global trends and competitors.
Regulatory Barriers: A Double-Edged Sword
Regulations and policies intended to support Bumiputera entrepreneurs have become a contentious topic.
While DPPMB highlighted cumbersome bureaucratic processes that often hinder business growth, Li Li Pang noted that such policies remain poorly enforced and riddled with loopholes.
Both reports stress that well-meaning initiatives often end up as double-edged swords, inadvertently favouring non-Bumiputera dominance while failing to provide meaningful support to local entrepreneurs.
Competition from Non-Bumiputera and Foreign Businesses: An Uneven Playing Field
The competitive edge of non-Bumiputera and foreign businesses has long overshadowed Malay enterprises.
In 2004, DPPMB detailed how expatriates and non-Bumiputera leveraged their networks, resources, and know-how to dominate the local market.
Fast forward to 2019, and Li Li Pang observed that little had changed: expatriates continued to capture significant portions of the market share, leaving Malay entrepreneurs struggling to catch up.
The cycle of 'Ali Baba' and now 'Ali Chandran' business practices has further entrenched the dominance of foreign influence, often at the expense of genuine Bumiputera engagement.
Proposed Measures: Pathways to Empowerment
Both reports converge on the need for targeted measures to address these challenges. Among the proposed steps:
1. Capacity Building Programs: Comprehensive training, mentorship, and exposure to best practices. Collaboration with educational institutions and international bodies is crucial to bridging the skills gap.
2. Policy and Regulatory Reforms: Simplifying regulations to create a more business-friendly environment for Bumiputera entrepreneurs and enforcing policies with greater rigour to close loopholes.
3. Access to Financing: Providing tailored financial products, low-interest loans, and grants for Malay entrepreneurs to strengthen their capital base.
4. Market Expansion Initiatives: Promoting Bumiputera businesses in regional and international markets through trade fairs, e-commerce platforms, and joint-venture opportunities.
5. Networking and Collaboration: Fostering partnerships among Bumiputera entrepreneurs, GLCs, and private sector entities.
6. Leveraging Technology: Encouraging technological adoption and innovation to boost productivity, efficiency, and market competitiveness.
Two Decades, One Struggle
The persistence of these challenges over two decades suggests more than just systemic inertia; it highlights the need for a paradigm shift.
Brunei’s aspirations for Vision 2035 hinge on empowering all segments of society.
However, without meaningful reforms, Malay entrepreneurs risk being left behind.
The voices from 2004 and 2019, though separated by 15 years, remind us that the path to progress requires policy and an unwavering commitment to genuine change.
The clock is ticking for Brunei’s Malay entrepreneurs, and the stakes have never been higher. (MHO/11/2024)