Brunei’s Final Friday Sermon of 2024: A Wake-Up Call for Reflection, Renewal, and Action

"As 2024 fades into history, Brunei faces a pivotal moment: will the calls for reflection and renewal spark meaningful change, or will 2025 be another year of missed opportunities? With challenges like budget deficits, underemployment, and governance inefficiencies looming, the time for action has never been more urgent. The message is clear—will we rise to the occasion?"

BELAIT, 30TH DECEMBER 2024: As 2024 draws to a close, the mosques and suraus of Brunei resonate with a powerful message that touches the heart of every individual in the nation. 

 

On 27 December 2024, Imams delivered the final Friday sermon of the year, urging the people to reflect on their actions, repent for their mistakes, and enter 2025 with renewed purpose and determination. 

 

But are we truly listening, or have these calls for introspection and change become mere rituals?

 

Delivered on 25 Jamadilakhir 1446 in the Islamic calendar, the sermon served as a stark reminder that time waits for no one. 

 

Imams called congregants to recognise the end of the year—whether they acknowledged it or not—and to observe this final Friday of 2024. 

 

This was a moment to evaluate their deeds over the past year—both good and bad—and to plan for self-improvement. 

 

Gratitude was expressed for the blessings of peace, harmony, and prosperity that Brunei experienced throughout the year, with prayers offered for these blessings to continue into 2025. 

 

However, the lingering question remains: how many of us truly heed this call? How many are content with the status quo, allowing complacency and mediocrity to take hold?

 

A Sobering Call for Personal and Collective Reflection

The Imams emphasised the significance of reflection, urging congregants to evaluate their actions over the past year. 

 

Worshippers were reminded to consider whether they had fulfilled their obligations to Allah, such as performing daily prayers, paying zakat, fasting, and avoiding prohibited actions like bribery and usury. 

 

The sermon also encouraged individuals to take stock of their personal responsibilities, to improve upon their shortcomings, and to strive for higher standards where they had already excelled.

 

While the sermon focused on individual reflection, its themes resonate with the broader challenges facing Brunei as a nation. 

 

The timeless wisdom of reflection, accountability, and renewal transcends personal lives and extends to the collective responsibilities of society. 

 

As 2024 concludes, Brunei continues to grapple with significant challenges, including decades of budget deficits, persistent unemployment and underemployment, slow economic development, and difficulties in attracting sufficient Foreign Direct Investments (FDIs). 

 

These issues are further exacerbated by governance inefficiencies, the emergence of "Little Napoleons"—mid-level bureaucrats who misuse their authority—and a pervasive mindset of short-termism that prioritises immediate fixes over sustainable solutions.

 

The sermon emphasises that true progress starts with self-awareness and a commitment to improvement, applicable to individuals, organisations, and the nation as a whole.

 

Bridging the Sermon’s Message to Collective Challenges: A Call for Action Across All Sectors

The well-being of Brunei relies on how effectively various sectors—State-Owned Enterprises (SOEs), government institutions, private businesses, corporations, and small and medium enterprises (SMEs)—align their actions with the nation’s aspirations of Adil Laila Bahagia, which means justice, happiness, and prosperity. 

 

Just as individuals are encouraged to reflect on their responsibilities and shortcomings, these entities must assess their contributions to national progress and societal welfare.

 

The sermon’s call for reflection applies equally to these sectors. SOEs and government institutions must commit to transparency, innovation, and ethical governance to overcome stagnation. 

 

Private businesses and corporations should implement sustainable practices and prioritise long-term investments that create meaningful opportunities for Bruneians. 

 

Additionally, grassroots leadership, particularly among Ketua Kampongs and Penghulus, needs revitalisation to strengthen communities and foster trust between the people and the government.

 

Mental Health and Workplace Culture: A National Concern

The sermon’s emphasis on self-reflection also underscores the necessity of addressing mental health issues in Brunei. 

 

Toxic workplace cultures, often characterised by narcissistic leadership and unhealthy power dynamics, have increased stress and anxiety for many individuals. 

 

Although the Imams did not explicitly address this issue, their message of sincerity, humility, and the pursuit of improvement serves as a valuable reminder for organisations to prioritise mental well-being.

 

Mental health is a collective challenge, not merely an individual responsibility. 

 

Organisations must foster supportive environments in which employees feel respected and valued, recognising that mental well-being is crucial to productivity and societal progress.

 

Addressing Economic and Societal Challenges

The sermon’s message of renewal is particularly relevant as Brunei advances toward Vision 2035. 

 

The nation must shift from cautious spending to strategic investments in sectors such as renewable energy, education, tourism, and digital technology—areas that have the potential to diversify the economy and lessen reliance on oil and gas revenues.

 

To attract foreign direct investments (FDIs) and stimulate economic growth, Brunei must streamline bureaucratic processes, enhance competitiveness, and position itself as a stable and ethical investment destination. 

 

Empowering SMEs and fostering partnerships with SOEs can lead to inclusive supply chains that support local industries and drive innovation.

 

Moving Forward: A National Call to Action

The final Friday sermon of 2024 serves not only as a spiritual exercise but also as a wake-up call for Brunei as a whole. 

 

It encourages both individuals and institutions to reflect, renew, and take meaningful action. 

 

The principles of accountability, sincerity, and a commitment to improvement must guide efforts at every level—from governance to businesses, from community leadership to individual households.

 

As 2025 approaches, Brunei faces a crucial choice: Will we heed the sermon’s call for introspection and renewal, or will we allow another year of potential to slip away? 

 

Across all sectors—state-owned enterprises, government institutions, private businesses, small and medium-sized enterprises, and communities—there is a shared responsibility to address the challenges ahead. 

 

By cultivating a culture of accountability, innovation, and collaboration, Brunei can realise its aspirations and achieve a future grounded in Adil Laila Bahagia.

 

The Imams have delivered their message. The question now is: will we listen? Or will 2025 be another year of missed opportunities and unfulfilled potential? Brunei, the choice is ours to make. (MHO/DEC?2024)

 

 

 

 

Adil Laila Bahagia: The Philosophy Brunei's SOEs Must Embrace

"Are Brunei’s State-Owned Enterprises truly serving the people—or just chasing profits? Discover how Social Capitalism and Maqasid Syariah could transform SOEs into engines of justice, equity, and national progress."

By DMAO/MHO

 

From Lost Glory to a New Vision

 

BANDAR SERI BEGAWAN, DECEMBER 2024: Once a symbol of global luxury and prestige, Brunei’s Empire Hotel & Country Club now embodies a larger narrative of missed opportunities and declining standards, highlighting an urgent need for reform. 

 

In contrast, institutions like the Jerudong Park Medical Centre (JPMC) and Jerudong International School (JIS) illustrate the potential of Brunei’s State-Owned Enterprises (SOEs) when guided by effective governance, strategic investment, and alignment with national goals. 

 

As Brunei strives to realise Vision2035, its SOEs must transform into engines of growth, societal empowerment, and global relevance. 

 

By adopting OECD best practices and drawing inspiration from the successes of nations like Singapore and Dubai, Brunei has the opportunity to re-envision its SOEs—not merely as service providers but as pillars of national progress and innovation.

 

The Current Landscape: Challenges in Brunei’s SOEs

 

Brunei’s SOEs are managed through Darussalam Assets, the state-owned investment agency responsible for their governance and alignment with national objectives. 

 

Despite this structure, several challenges remain:

 

Disconnected Goals: Many SOEs operate in isolation, focusing on their metrics while neglecting broader national objectives.

 

Missed Opportunities for Growth: Without innovation and competitiveness, Brunei risks falling behind its regional peers.

 

Public Frustration: Ask anyone about DST (Data Stream Technology), and you’ll hear consistent complaints—unreliable service, confusing billing, and a pervasive sense of being unheard. 

 

Independent economists, who prefer to remain anonymous, emphasise that these challenges point to systemic issues within Brunei’s SOEs, underscoring the need for structural reforms and customer-centric policies.

 

DST: A Case Study in Lost Trust

 

Imagine this: You’re on a family trip overseas, excited for your adventure, stepping out of the country with your prepaid package active. 

 

But your data roaming isn’t switched off, and without clear warning, you’re automatically billed staggering roaming fees, even for just a few minutes. 

 

By the time you realise what’s happening, you’ve amassed hundreds of dollars in charges. 

 

If this isn’t daylight robbery, I don’t know what is. Sound familiar? 

 

This is the reality for many DST users. Despite being the market leader, DST has earned an unfortunate nickname: "Duit Saja Tahu" ("Only Interested in Money"). 

 

Here’s why:

 

Service Complaints: From exorbitant roaming fees to unexplained deductions, DST customers feel exploited rather than valued.

 

Lack of Transparency: With unclear pricing plans and limited itemised billing, many users feel left in the dark.

 

Stiff Competition: While competitors like Progresif and Imagine offer better packages, switching providers remains a hassle for most consumers. 

 

If Brunei aims to transform its SOEs, DST must lead by rebuilding trust and prioritising customer satisfaction.

 

Renewable Energy and the Bigger Picture

 

Sustainability is a buzzword we often hear, but what does it genuinely mean for Brunei? 

 

While solar energy sounds appealing on paper, it comes with a catch: producing electricity from solar panels costs 14-17 cents per kWh—significantly more than natural gas. 

 

Independent economic analysts suggest prioritising practical solutions like electric vehicles to reduce domestic oil reliance while boosting exports. 

 

Rather than rushing into solar, let’s start with electric vehicles (EVs). Did you know a small electric sedan costs just 1.2 cents per kilometre to operate? 

 

The savings compared to gasoline cars are substantial. Now, imagine redirecting the oil saved from reduced domestic fuel consumption to the export market. 

 

With global oil prices fluctuating, every barrel conserved domestically could mean potential revenue earned internationally—revenue that can be reinvested in national development.

 

The benefits extend beyond economics. By exporting oil instead of consuming it locally, Brunei strengthens its trade balance and secures a buffer against dwindling reserves. 

 

This strategy not only enhances financial sustainability but also aligns with global efforts to reduce carbon footprints. 

 

However, adopting EVs requires more than enthusiasm. As economic experts point out, it demands a multi-pronged strategy that includes:

 

·      Upgrading Brunei’s electricity grid to handle increased demand efficiently.

 

·      Implementing public education campaigns to dispel misconceptions about EVs and promote widespread adoption.

 

·      Prioritising infrastructure, such as charging stations, to support this transition.

 

By focusing on these practical solutions, Brunei can balance sustainability with affordability while turning saved resources into lucrative opportunities for national growth, ensuring no one gets left behind.

 

Lessons from Around the World

 

Denmark: Ørsted’s transition to renewable energy demonstrates that SOEs can lead global innovation. Imagine Brunei Shell Petroleum (BSP) doing the same—diversifying into green energy while maintaining economic stability.

 

Norway: Norway’s SOEs are models of transparency with independent boards and strict accountability. Darussalam Assets can learn from this to build public trust.

 

New Zealand: Balancing profitability with service delivery, New Zealand’s SOEs prioritise citizens without sacrificing financial health. This approach is a valuable lesson for Brunei, particularly for entities like Unified National Networks (UNN).

 

Stories of Success: JPMC, JIS, and Darussalam Holdings

 

Not all SOEs are struggling. JPMC, JIS, and Darussalam Holdings exemplify what strategic vision and commitment can achieve. However, even these institutions have room for improvement:

 

JPMC: Known for its healthcare services, JPMC’s high pricing raises accessibility concerns. 

 

Why are private clinics outsourcing lab tests to Miri for one-third of the cost? This reveals the need for more equitable pricing models.

 

JIS: As one of Asia’s leading schools, JIS showcases the potential of strong leadership and investment. However, could its success inspire reforms in public education?

 

Darussalam Holdings: Established to facilitate Hajj and Umrah journeys for Bruneians, Darussalam Holdings has expanded its services over the past three decades. 

 

Yet, the rising costs of Hajj and Umrah packages have made these spiritual journeys increasingly inaccessible for low-income citizens. 

 

By leveraging its position as a government-linked company, Darussalam Holdings could restructure its pricing models to ensure affordability while maintaining quality. 

 

Making these trips affordable would not only fulfil its original purpose but also uphold the values of justice and equity embedded in Maqasid Syariah.

 

Social Capitalism Meets Maqasid Syariah

 

Social Capitalism focuses on ensuring that economic activities benefit everyone, not just a select few. 

 

This principle underscores the need for SOEs, as government-linked companies, to prioritise Corporate Social Responsibility (CSR) as a fundamental element of their operations. 

 

CSR initiatives align with the national philosophy of 'Adil Laila Bahagia' (“Justice Leads to Happiness”), emphasising fairness, equity, and the welfare of all citizens. 

 

For example, redirecting resources like the oil saved from adopting electric vehicles for exports can generate national revenue to fund CSR programs in critical areas such as education, healthcare, and affordable housing. 

 

This approach ensures that economic gains are reinvested into society, fostering shared prosperity and addressing urgent social challenges.

 

Maqasid Syariah emphasises justice, equity, and societal welfare, ensuring inclusivity in governance and economic practices. 

 

In this context, justice may involve implementing fair pricing models for services provided by SOEs, such as affordable Hajj packages by Darussalam Holdings or transparent billing by DST. 

 

Equity entails creating opportunities for low-income citizens to access essential services, while societal welfare ensures that all economic progress contributes positively to future generations.

 

By integrating these frameworks, Brunei’s SOEs can transition from profit-driven entities, which are perceived to prioritise profits over public well-being, to organisations that embody the principles of justice and fairness enshrined in 'Adil Laila Bahagia.' 

 

This transformation requires a renewed commitment to Corporate Social Responsibility (CSR) to address public concerns and ensure that their operations uplift society rather than foster discontent.

 

A Future Worth Building

 

Brunei’s SOEs have the potential to be more than just businesses; they can serve as catalysts for national progress. 

 

However, achieving this requires bold reforms and visionary leadership. 

 

Imagine a Brunei where DST is celebrated, not criticised; where renewable energy represents a breakthrough, not a burden; where every citizen experiences the benefits of SOE success in their daily lives. 

 

This vision is not just a dream—it’s a future within reach. Let’s work together to make it happen. (DMAO/MHO/DECEMBER 2024)

Brunei’s Construction Industry: Broken Promises, Crumbling Trust – A Follow-Up

Brunei’s Construction Industry: Challenges and Accountability Under Scrutiny"

 

Delayed payments, regulatory hurdles, material shortages, and the use of immunity clauses are straining Brunei’s construction sector. In this follow-up report, we explore the systemic issues undermining progress and the growing calls for accountability and reform. Can the sector recover in time to support Brunei’s Wawasan 2035 goals? Read on to learn more.

By Malai Hassan Othman

 

BANDAR SERI BEGAWAN, DECEMBER 2024 – In our previous report, we revealed the underlying issues plaguing Brunei's construction industry—delayed payments, regulatory bottlenecks, legal complications, and material shortages.

 

As stakeholders continue to navigate these systemic challenges, this follow-up offers an in-depth examination of the critical issues that hinder progress and erode public trust. 

 

Through new insights and verified examples, we illuminate the sector's struggles and amplify the call for urgent reform. 

 

Once envisioned as a catalyst for national development, Brunei’s construction sector now faces a pivotal test of resilience. 

 

Can it overcome bureaucracy, inefficiency, and governance gaps to fulfil the aspirations of Wawasan 2035?

 

The Foundations of Dysfunction: A Legal Case  Study

 

A recent court case has highlighted the significant challenges contractors and suppliers encounter when dealing with government agencies. 

 

The claimant alleged that a government-linked agency exceeded its authority in a dispute over procurement contracts. 

 

Despite presenting certified documentation indicating that the agency’s directors acted ultra vires (beyond their legal authority), the agency used constitutional immunity to evade accountability. 

 

The claimant stated: “They delayed proceedings, increased litigation costs, and used immunity to escape responsibility. This isn’t just about one case—it’s about a system that allows institutions to avoid  accountability.”

 

This case also exposes troubling practices within Brunei's legal system. 

The claimant’s former lawyer withdrew representation at a crucial moment, leaving them without legal support during pivotal stages of the process. 

 

Allegations of collusion between legal professionals and powerful entities have further undermined public confidence in the justice system.

 

Immunity Clauses: A Double-Edged  Sword

 

At the core of many grievances is Article 84B of Brunei’s Constitution, which grants absolute immunity to the Sultan and extends to officials acting on his behalf. 

 

While this clause was meant to safeguard governance, critics argue it is often misapplied by government agencies to shield themselves from claims of negligence or bad faith. 

 

A supplier recounted: “We delivered materials for a project, only to be told later that the agency didn’t authorise the purchase. When we pursued legal action, immunity was invoked. How is this  fair?”

 

Such cases highlight the power imbalance created by immunity clauses, which stakeholders argue have fostered a culture of impunity within public institutions.

 

Delayed Payments: Financial Strain on  Contractors

 

For years, contractors and suppliers in Brunei have faced prolonged payment delays from government agencies. 

 

The introduction of TAFIS 2.0 in 2024 was intended to streamline financial processes and ensure prompt payments, but stakeholders report that the system has only worsened delays. 

 

Contractors have shared experiences of waiting months—or even years—for payments to be processed. One contractor stated: “We fulfilled our end of the contract, but payments are still pending. This isn’t just about our business—it’s about paying our workers and sustaining  livelihoods.”

 

Efforts by the Ministry of Finance and Economy (MOFE), such as User Clinics and training programs, have yet to address the root causes of the delays, leaving many contractors in financial limbo.

 

Material Shortages and Delays: A Critical  Bottleneck

 

Another major challenge is the approval process for construction materials, which contractors argue has become a significant bottleneck. 

 

Suppliers encounter long delays in obtaining permits to import or distribute materials, with shipments often stranded at ports for months. 

These delays ripple through the industry, causing project timelines to slip and expenses to rise for all stakeholders. 

 

A supplier explained: “We’ve had materials sitting idle because permits haven’t been processed. These delays increase costs, stall projects, and harm everyone involved.”

 

Additionally, stringent requirements for certified materials and unresolved industrial land lease applications exacerbate the issue. 

 

Contractors have expressed frustration, pointing out that these bureaucratic hurdles obstruct their ability to meet deadlines. 

 

One contractor lamented: “How can we build when the materials we need are delayed for months? These bottlenecks are destroying the industry.”

 

ABCi: Regulatory Bottlenecks and Local Talent  Sidelined

 

The Authority for Building Control and Construction Industry (ABCi) has faced criticism for its protracted approval processes and inconsistent enforcement. 

 

Developers report that obtaining building permits can take months, leading to delays that substantially inflate project costs. 

 

One developer described their predicament: “By the time approvals come through, costs have doubled, and timelines are no longer realistic. It feels like the system is designed to slow us down, not assist us.”

 

Furthermore, ABCi has been scrutinised for not prioritising local talent. 

 

Despite Brunei's pool of skilled professionals, expatriates continue to dominate the sector, sidelining locals and raising concerns about the agency's commitment to fostering self-reliance.

 

Banking Challenges: Reluctance to Invest in  Construction

 

Financial institutions, vital for the health of the construction ecosystem, are becoming increasingly hesitant to lend to contractors due to the high risks associated with delayed payments and systemic inefficiencies. 

 

One senior banker observed: “Credit is the greatest equaliser in any capitalistic system, allowing those with good ideas but little capital to realise their potential. 

 

However, in Brunei, we’ve grown much more risk-averse following the 2013-15 oil bust. 

 

Even the biggest players in construction felt the strain, and now banks are only lending to the most secure credits. 

 

This prevents smaller firms from rising to challenge the status  quo.”

 

The banker added: “While the government has initiated programs like DARe, BEDB, and Bank Usahawan to support businesses, their impact has been limited. 

 

DARe focuses on FDI but struggles with implementation, while Bank Usahawan has been overly cautious, lending very little and boasting about low losses instead of fostering meaningful  innovation.”

 

This hesitance has left smaller firms struggling to secure the credit necessary to remain viable, exacerbating delays and financial instability across the industry. 

 

Without meaningful risk-sharing mechanisms or government guarantees, financial institutions remain reluctant to support the sector.

 

Public Outcry: A Call for  Reform

 

Public frustration with Brunei’s construction industry is mounting. 

 

Letters to the editor in publications like the Borneo Bulletin frequently express grievances concerning delayed payments, material shortages, and regulatory inefficiencies. 

 

One letter criticised the lack of accountability: “Contractors, suppliers, and homebuyers are suffering because of a broken system. 

 

How can we move forward when delays and excuses are the norm?” 

 

Another letter questioned the sidelining of local professionals: “Bruneians are more than capable, yet they’re being ignored in favour of foreign workers. Isn’t it time we prioritise our people?”

 

A Roadmap for  Reform

 

To address these systemic challenges, Brunei must implement comprehensive reforms aimed at restoring trust, accountability, and efficiency in the construction sector. Key recommendations include:

 

Resolve Payment  - Delays:

 

Expedite payments through TAFIS 2.0 by addressing technical glitches and simplifying processes.

 

Streamline Material  - Approvals:

 

Establish a fast-track process for permit applications to prevent supply chain disruptions.

 

Enhance ABCi  - Efficiency:

 

Simplify regulatory processes and standardise enforcement to eliminate delays and perceptions of favouritism.

 

Refine Immunity  - Clauses:

 

Limit the scope of immunity to prevent misuse and ensure accountability for actions beyond authority or with ill intent.

 

Support Financial  - Viability:

 

Collaborate with banks to provide risk-sharing mechanisms and government-backed guarantees for contractors.

 

Strengthen Legal  - Advocacy:

 

Encourage robust representation for claimants and enforce ethical standards to prevent legal collusion.

 

Promote Local  - Talent:

 

Introduce policies that empower Bruneian professionals and reduce reliance on expatriates.

 

Conclusion: Building Trust Alongside  Infrastructure

 

Brunei’s construction industry is at a critical crossroads. 

 

Delays in payments, material bottlenecks, regulatory inefficiencies, and governance gaps threaten not only the sector but also the nation’s broader ambitions for Wawasan 2035. 

 

Yet, the opportunity for reform remains. As one contractor articulated: “We need a system that works for everyone, not just those in power. Accountability and efficiency must be the foundation of our  future.”

 

Brunei must act now to restore trust, streamline processes, and ensure its construction industry becomes a pillar of progress rather than a symbol of dysfunction. (MHO/12/2024)