"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)
