Brunei’s Construction Industry: Betrayed by Bureaucracy, Dismantled by Neglect

"What happens when a nation’s dreams are built on broken foundations? Brunei’s construction industry, once a proud symbol of progress, now stands in ruins—abandoned projects, sidelined local talent, and rogue developers wreaking havoc on homebuyers. Behind every cracked facade lies a deeper story of neglect, exploitation, and lost identity. Are we witnessing the slow collapse of a nation’s vision?"

 

By DMAO and Malai Hassan Othman

 

BANDAR SERI BEGAWAN, DECEMBER 2024: Brunei’s construction industry, once a proud beacon of national identity and progress, is now a shameful reflection of systemic neglect and bureaucratic dysfunction.  

 

Forty years after independence, the sector that should have been dominated by local talent and rooted in cultural pride is instead a breeding ground for unqualified expatriates, botched projects, and abandoned dreams.  

 

The revelations from a recent closed-door meeting between Legislative Council members (MMN) and the Institution of Surveyors, Engineers, and Architects (PUJA) expose a crisis that cuts to the heart of Brunei’s aspirations. 

 

It’s a damning indictment of a system that has failed its people, prioritising cost-cutting and convenience over quality, safety, and national pride.  

 

Local Talent Abandoned, Foreign Workers Overrun the Industry

Where are Brunei’s homegrown architects, engineers, and planners? 

 

Driven out by limited opportunities and stalled projects, local professionals—many of them graduates from Universiti Teknologi Brunei (UTB)—are sidelined while expatriates, some barely qualified, dominate the industry.  

 

UTB graduates, lacking international accreditation, are forced to compete on an uneven playing field. 

 

Unlike their peers in Malaysia and Singapore, who achieve Chartered status with ease, Bruneians face closed doors at home and abroad. 

 

Many have no choice but to abandon their dreams or leave the country.  

 

Meanwhile, unregulated expatriates have stepped in, claiming the lion’s share of opportunities. 

 

“We’re losing our nation’s identity to foreign hands,” one disillusioned professional said.

 

“This isn’t just an oversight—it’s a betrayal.”  

 
Design & Build: Cutting Corners, Killing Quality   

The Design and Build (D&B) approach has become the industry’s default method, but instead of fostering innovation, it’s a disaster. 

Contractors, given unchecked control, prioritise cost-cutting over quality, sidelining consultants who are supposed to ensure safety and integrity.  

 

The results are everywhere: housing projects left to rot, public buildings devoid of cultural relevance, and a skyline that no longer tells Brunei’s story. 

 

Buildings that once reflected Melayu Islam Beraja (MIB) values now resemble a “rojak” —a tasteless mix of architectural styles with no coherence.  

 

Neighbouring countries, such as Malaysia, have shown how culturally inspired architecture can coexist with modernity. 

 

Malaysia’s Putrajaya stands as a benchmark Brunei should aim to meet or exceed.  

 

Systemic Inefficiencies and Vendor Bullying  

Brunei’s tendering system compounds these issues by rewarding the lowest bid rather than quality. 

 

Contractors cut corners, using substandard materials and unqualified labour to meet tight budgets. 

 

Adding insult to injury, government project managers and executives have been accused of pressuring contractors and consultants into giving additional discounts under the guise of budget-saving exercises. 

 

Affected vendors report withheld payments and forced terms that deviate from original agreements.  

 

One consultant shared, “We completed our work on time and within specifications, yet they demanded discounts that weren’t part of the deal. It’s bullying, plain and simple.”

 

These coercive practices, combined with delays in project approvals that stretch into months or years, have deterred foreign investors and stifled local development. 

 

Global investors accustomed to streamlined processes are bypassing Brunei for more predictable markets, further widening the gap between aspiration and reality.  

 

Unregulated Developers: A Nightmare for Homebuyers

The housing sector has become a minefield for buyers. Rogue developers, operating with impunity, abandon projects, leaving families to shoulder loans for homes they’ll never live in. 

 

Adding insult to injury, Qualified Persons (QPs) tasked with ensuring compliance are often scapegoated for developer failures. 

 

This lack of accountability is a slap in the face to every Bruneian citizen.  

 

A System in Freefall: What’s at Stake? 

Brunei’s construction industry is not just in trouble—it’s in freefall. 

 

Its inefficiencies, lack of oversight, and misplaced priorities betray the principles of self-reliance and cultural pride that underpin Wawasan 2035.  

 

For Brunei to regain its competitive edge, it must emulate nations like Singapore, where streamlined processes and transparent systems attract global investors. 

 

Singapore’s Building and Construction Authority (BCA) serves as a model, proving that efficiency and accountability can coexist in governance.  

 

Reforms Needed Now 

To salvage what’s left, Brunei must act immediately. The following reforms are non-negotiable:  

 

1.     Revise D&B Practices: Restrict this method to specialised projects and restore consultants’ authority over quality and cultural integrity.

 

2.     Accredit UTB Programs: Achieve international recognition to empower Brunei’s graduates to compete globally and take leadership roles locally.

 

3.     Streamline Bureaucracy: Implement technology to expedite approvals and rebuild investor confidence.

 

4.     Regulate Developers: Enforce strict registration, financial checks, and penalties to protect homebuyers and ensure accountability.

 

5.     Fix the Tendering System: Prioritize quality and sustainability over cost to safeguard public trust.  

 

The Cost of Complacency  

Brunei’s construction industry once stood as a proud testament to the nation’s values and aspirations. Today, it’s a cautionary tale of neglect, inefficiency, and misplaced priorities.  

 

If these issues are not addressed, the consequences will be catastrophic—not just for the industry but for the very fabric of Brunei’s identity. 

 

“We’re not just losing buildings—we’re losing who we are.” 

 

The time for complacency is over. The time for action is now.  

 

Disclaimer: This article is based on documents shared anonymously and aims to shed light on systemic issues without implicating specific organisations or individuals.

 

 

2024 in Review: Brunei's Recovery and the Countdown to Wawasan 2035

As Brunei wraps up 2024, the nation finds itself at a crossroads - celebrating impressive economic growth yet grappling with deep-seated challenges. With just a decade left to achieve the ambitious Wawasan 2035, can Brunei turn its vision into reality? From hybrid rice harvests to fiscal deficits, underemployment, and missed opportunities, this is the story of a nation racing against time to secure a sustainable and prosperous future. The question is: Will it succeed?

 

By Malai Hassan Othman

 

BANDAR SERI BEGAWAN, DECEMBER 2024: As 2024 draws to a close, Brunei stands at a defining moment.

 

Official numbers highlight encouraging signs of economic recovery, yet behind the figures lies a deeper reality - one of progress tempered by persistent challenges and missed opportunities.

 

For many Bruneians, Wawasan 2035—the nation’s ambitious vision of a diversified, sustainable, and inclusive economy—feels both hopeful and distant. 

 

The year reflects small but important strides in agriculture, manufacturing, and aquaculture alongside ongoing struggles with fiscal resilience, underemployment, and overreliance on oil.

 

With just a decade left to deliver on its promises, the question remains: Is Brunei moving fast enough to secure its future?

 

Brunei’s economy expanded by 6.8% in the first quarter of 2024, a rebound driven by 8.9% growth in oil and gas, with crude production reaching 102,000 barrels per day. 

 

Hydrocarbons continue to dominate government revenues, but progress outside the oil sector is beginning to take shape, signalling early steps toward diversification. 

 

The agriculture sector, long overshadowed, is showing encouraging signs of revival. 

 

In March 2024, the first successful harvest of high-yield hybrid rice at the Lekiun Agricultural Development Area marked an important step toward addressing food security. 

 

Farmers trained in modern rice management techniques have reported higher yields, reflecting the potential of partnerships and innovation in the sector.

 

Yet, challenges remain. Agriculture currently contributes only 0.49% to GDP, and the sector continues to rely heavily on an ageing workforce, with the average age of farmers hovering around 55 years old. 

 

Younger generations, while recognising the potential in agriculture, remain hesitant to engage due to financial risks, limited access to affordable credit, and outdated perceptions of farming as an unprofitable endeavour.

 

This financial gap is where the proposal for a Bank Pertanian, or Agricultural Development Bank, could play a transformative role. 

 

Such a bank would focus on providing low-interest loans, grants, and financial products tailored to the needs of farmers, agripreneurs, and agro-industrial businesses. 

 

It could also support financing for modern tools, machinery, and irrigation systems critical to increasing productivity and reducing operational risks.

 

Agripreneur Dayang Rosenta, who has been part of the hybrid rice project, reflects on this need: 

 

“We need more accessible and affordable financing. Many of us can’t afford new equipment or expand our farms without support. A dedicated agricultural bank could give us the boost we need to make agriculture viable.” 

 

In addition to traditional loans, Bank Pertanian could integrate innovative financial models, such as the muzara’ah profit-sharing scheme, to attract younger farmers into the sector. 

 

By partnering with landowners and sharing farming risks, these models lower the entry barriers for aspiring agripreneurs, ensuring long-term sustainability for Brunei’s agricultural ecosystem. 

 

The establishment of such a bank would align with Brunei’s broader goals of reducing import dependency, improving food security, and creating a productive and sustainable agricultural economy. 

 

It would not only address financial challenges but also reframe agriculture as a viable and respected career for the next generation.

 

Progress is also emerging in manufacturing, particularly in small-scale industries.

 

The clothing sector grew by 24.8%, and local food production businesses have begun exporting poultry and processed goods to regional markets. 

 

However, entrepreneurs continue to face significant hurdles. Haji Rosli, a café owner who expanded into food production, highlights the challenges: 

 

“We have good products, but access to better packaging and bigger markets is tough. If we want to compete outside Brunei, we need support to improve quality and visibility.” 

 

While industrial parks such as Sungai Liang offer opportunities, bureaucratic processes, limited infrastructure, and market access remain barriers for small businesses. 

 

The aquaculture industry also shows promise as Brunei explores its blue economy potential. 

 

Sustainable fish farming initiatives at Sungai Liang Industrial Park have increased local production of sea bass, tilapia, and shrimp, contributing to food security and reducing imports. 

 

Still, small-scale operators face challenges with outdated tools, inconsistent technical support, and limited access to financing.

Progress in Downstream Industries

Brunei’s downstream industries continue to be pillars of the non-oil economy, showing strong growth and export potential in 2024. 

Brunei Methanol Company (BMC) and Brunei Fertilizer Industries (BFI) exemplify this progress, with significant contributions to industrial output and exports.

BFI, operational since 2021, has expanded its production capacity, exporting $356 million worth of urea in 2024, further solidifying Brunei’s position in the global fertiliser market​. 

The facility not only creates jobs but also drives economic activity in supporting sectors like logistics and supply chain management.

Similarly, BMC, a major player in the methanol sector, has strengthened its output to cater to growing regional demand. 

Methanol, a key feedstock in various industries, has bolstered Brunei’s export profile while positioning the country as a reliable supplier in Asia.

These downstream ventures are not only adding value to Brunei’s hydrocarbon resources but also laying the groundwork for broader industrial diversification.

Together, they demonstrate the potential of leveraging Brunei’s natural assets to create sustainable economic opportunities beyond crude oil and LNG exports.  

While these gains provide cautious hope, Brunei continues to face deep-rooted structural challenges. 

 

The fiscal deficit, projected to reach $2.99 billion for FY 2024/25, underscores the economy’s heavy dependence on hydrocarbons as its primary revenue stream. 

 

Despite diversification efforts, oil and gas remain Brunei’s economic backbone, leaving it vulnerable to price fluctuations and global market uncertainties. 

 

Traditionally, navigating such deficits has involved calls for prudent spending and cost-cutting. 

 

However, observers argue that Brunei must adopt a smart investment mindset - one that prioritises strategic spending in growth sectors such as agriculture, manufacturing, and ICT. 

 

These investments could unlock long-term revenue streams and reduce dependency on oil and gas. 

 

Brunei’s $70 billion reserve, a testament to decades of resource wealth, offers a unique opportunity to accelerate this transformation.

 

Strategic use of these funds - focused on building infrastructure, supporting emerging industries, and fostering innovation - could serve as a catalyst for sustainable economic growth. 

 

However, analysts caution that the reserve, while substantial, must be leveraged wisely. 

 

Overreliance could risk depleting the nation’s financial buffer, but targeted investments in future-ready industries could secure Brunei’s fiscal resilience for generations to come. 

 

A smart investment approach would mean directing resources toward sectors that create jobs, foster innovation, and position Brunei as a competitive player in regional and global markets. 

 

While fiscal prudence remains essential, growth-oriented spending is key to breaking the cycle of deficit reliance and ensuring the economy thrives beyond hydrocarbons. 

 

At the same time, Brunei’s employment landscape reflects another pressing challenge: underemployment and job mismatch. 

 

Many graduates are forced to settle for roles that do not match their qualifications, leading to frustration and a sense of wasted potential. 

 

Yasin, an engineering graduate working part-time in retail, sums up the reality: 

 

“I studied engineering, but I’ve been working part-time in retail. There just aren’t enough quality jobs that fit what we’ve trained for.”

 

For years, efforts to address unemployment have focused on balancing supply and demand, often by pushing job seekers into available vacancies. 

 

However, this approach inadvertently contributes to underemployment - where individuals are underutilised in roles far below their capabilities. 

 

A mindset shift is needed: from simply reducing unemployment numbers to creating meaningful, quality job opportunities. 

 

This means investing in future-ready industries, such as renewable energy, ICT, and the creative economy, and fostering entrepreneurship to empower Brunei’s youth to build their own opportunities. 

 

Such a focus would not only address job mismatch but also align employment strategies with Brunei’s economic aspirations under Wawasan 2035. 

 

With 2025 approaching, Brunei is now just a decade away from its Wawasan 2035 target. 

 

The seeds of progress - seen in hybrid rice cultivation, sustainable aquaculture, and small business ventures—are beginning to sprout. 

 

However, without bold, sustained action, these opportunities risk being lost. 

 

Observers argue that Brunei must act urgently to address these challenges by: 

 

• Expanding investment in non-oil sectors like agriculture, aquaculture, and manufacturing.

• Supporting farmers and young entrepreneurs with innovative financing models such as the muzara’ah profit-sharing scheme and establishing a dedicated Bank Pertanian

• Leveraging its $70 billion reserve for smart, growth-oriented investments that create resilience beyond hydrocarbons. 

Brunei’s economy has shown its resilience in 2024, but growth alone is not enough. 

 

The time for bold execution is now - because a vision without action is just a dream. 

 

The next ten years are Brunei’s opportunity to build a future that its people can see, feel, and believe in. 

 

As we close the chapter on 2024, let us look forward to 2025 with renewed hope and determination. 

 

May the new year bring prosperity, progress, and the realisation of a brighter future for all Bruneians. (MHO/12?2024)

A Journey to Enlightenment: MIB, Social Capitalism, and WAWASAN 2035

How can Brunei balance its rich traditions with the demands of a rapidly evolving global landscape? In his thought-provoking article, DMAO delves into the intersection of Malay Islamic Monarchy (MIB), social capitalism, and the ambitious goals of WAWASAN 2035. 

 

Drawing from his decades of experience in governance and policy-making, DMAO, a seasoned technocrat with 30 years of distinguished service in the Government, explores how these frameworks can work in harmony to build a just, inclusive, and sustainable future for Brunei. Through insights on governance, economic diversification, and community empowerment, the article offers a compelling vision of progress rooted in tradition. Read on...

 

Years ago, I found myself at a crossroads, seeking clarity and purpose in both my professional and personal life. 

 

My role often felt like walking a tightrope: balancing economic growth with societal well-being, navigating governance through Islamic principles, and contributing to Brunei Darussalam’s vision for the future. 

 

During this quest, I began to grasp the profound connections between the Malay Islamic Monarchy (MIB), Social Capitalism, and the aspirations outlined in WAWASAN 2035. 

 

This realisation not only provided a lens for understanding Brunei’s development but also became a guiding philosophy for my own journey.

 

The Awakening: Balancing Tradition and Progress

 

My journey began with questions. How could Brunei uphold its deeply rooted values of MIB while responding to the pressures of globalisation?

 

Could we build a modern, competitive economy without compromising the spiritual and communal foundations of our way of life? 

 

These inquiries led me to explore social capitalism, an approach that blends profit-seeking with the greater good, emphasising equity, sustainability, and community empowerment. 

 

As I delved deeper, I discovered how the principles of social capitalism reflected MIB, especially the Islamic concepts of Khalifah (stewardship) and Ulil Amri (leadership by those in authority). 

 

These values advocate for governance that prioritises justice, compassion, and public welfare. 

 

A vivid example of this balance is the traditional Bruneian practice of gotong-royong (mutual cooperation). 

 

Whether rebuilding homes after a disaster or organising community celebrations, the spirit of collective effort embodies the ethos of social capitalism: that progress is most meaningful when it uplifts everyone.

 

WAWASAN 2035: Progress with Purpose

 

In 2007, WAWASAN 2035 was introduced as a bold vision to transform Brunei into a nation characterised by educated and skilled citizens, a high quality of life, and a sustainable, dynamic economy. 

However, achieving this vision requires more than infrastructure and investment; it demands a transformation in mindset—an alignment of values with systems to ensure that progress benefits all. 

 

Social capitalism serves as a bridge to realise this vision.

 

Focusing on fairness, inclusivity, and sustainability can enable Brunei to grow in ways that honour its traditions. 

 

For instance, investing in renewable energy not only diversifies the economy but also aligns with the Khalifah principle of caring for the environment as a divine trust.

 

Discovering Siasah Syariah and Maqasid Syariah 

 

My understanding deepened when I explored Siasah Syariah, the Islamic framework for governance. 

 

This approach centres on Maqasid Syariah — the preservation of faith, life, intellect, lineage, and wealth—as the foundation of societal well-being. It became clear to me that these principles could serve as a moral compass for addressing Brunei’s challenges. 

 

One institution that exemplifies this potential is Darussalam Assets Sdn Bhd, a private limited company established in 2012 as part of a government initiative to promote economic development in Brunei. 

 

Darussalam Assets manages a portfolio of over 30 subsidiaries across various sectors, including telecommunications, agribusiness, healthcare, hospitality, education, power utilities, logistics, food and beverage, leisure and tourism, and real estate.  

 

What sets Darussalam Assets apart is its commitment to social responsibility and its role in inspiring both social and economic change. 

 

The company’s Governance Training Committee (GTC) regularly reviews governance structures and provides training for employees to ensure ethical and effective management. 

 

Additionally, its Learning Management System (LMS), DArjah, offers an innovative online platform for educational courses and training programs, reflecting a commitment to workforce development and lifelong learning.  

 

However, for Darussalam Assets to realise its full potential, there is a pressing need for a shift in mindset — from merely practising prudent spending to adopting smart investment strategies. 

 

In the face of budget deficits and evolving economic challenges, Brunei must explore opportunities to maximise the value of its resources. 

 

Strategic investments in innovation, infrastructure, and sustainable industries can help balance fiscal constraints with long-term economic growth. 

 

By embracing a forward-looking approach, Darussalam Assets can lead the way in turning challenges into opportunities, ensuring that Brunei’s economy remains resilient and competitive.  

 

Darussalam Assets represents a tangible opportunity to embody social capitalism in Brunei. 

 

Beyond generating profits, it has the potential to champion projects that empower communities, foster innovation, and reflect Brunei’s unique identity.  

 

Lessons from China’s State-Owned Enterprises

 

Throughout this journey, I found inspiration in China’s State-Owned Enterprises (SOEs).

 

These entities have played a pivotal role in the country’s economic transformation, addressing challenges like poverty, infrastructure development, and innovation. 

 

China’s approach demonstrated that state-owned enterprises, when guided by a robust governance framework, can drive inclusive growth while achieving national objectives. 

 

This resonated deeply with me as I reflected on Brunei’s own institutions. Entities like Darussalam Assets hold similar potential to balance economic goals with social good, fostering innovation while remaining true to the values of MIB.

 

Guidance from His Majesty’s Titah

 

The wisdom of His Majesty’s Titah has illuminated the path toward realising WAWASAN 2035, providing actionable pillars for Brunei’s development:

 

1.     Fostering an Educated and Skilled Society: Education must extend beyond technical and academic skills to reinforce moral and spiritual values rooted in Islam. His Majesty emphasises lifelong learning and adaptability to help citizens flourish in a rapidly changing world.

 

2.     Ensuring High Quality of Life: A comprehensive healthcare system should prioritise mental health, preventive care, and public awareness to build a resilient population.

 

3.     Building a Sustainable Economy: Diversifying into technology, renewable energy, and entrepreneurship is essential to reduce reliance on oil and gas and ensure long-term economic stability.

 

4.     Upholding Governance and Integrity: Transparency, accountability, and ethical leadership are cornerstones of good governance. These principles reflect Brunei’s Islamic values and build public trust.

 

5.     Protecting the Environment: Environmental stewardship aligns with Brunei’s identity as caretakers of the Earth. Preserving our natural heritage ensures sustainability for future generations.

 

The Personal Impact

 

This journey has been deeply personal, as I began to view my role not merely as a professional but as a Khalifah, a steward of values who bridges tradition and modernity. 

 

The convergence of MIB, social capitalism, and Siasah Syariah has provided a guiding light, showing me that progress is not about abandoning the past but about building on it.

 

The Future Unfolds

 

As I reflect on this journey, I am filled with hope. 

 

Brunei is uniquely positioned to lead by example, blending tradition with innovation. 

 

By embracing social capitalism and drawing inspiration from global successes, such as China’s SOEs, Brunei can forge a path that is both competitive and compassionate. 

 

True progress is not measured by GDP alone but by the flourishing of individuals, the strength of communities, and the preservation of values. 

 

This embodies the essence of MIB and the promise of WAWASAN 2035 —a future where tradition and modernity coexist harmoniously and where every step forward uplifts not just the economy but the human spirit.