Brunei’s Leaders Face Mounting Pressure as LegCo Debates Inflation, Healthcare, and Jobs

Brunei at a Crossroads: Can Leaders Deliver on Inflation, Healthcare, and Jobs?

✅ BND 400 million in subsidies—but is it enough?

✅ Rising Hajj costs—can Bruneians afford their religious duty?

✅ Long hospital wait times—when will healthcare improve?

✅ Foreign workers vs. local jobs—who really benefits?

✅ Illegal logging—will Brunei’s forests survive?

Brunei’s 5th Day LegCo session revealed hard-hitting truths and tough questions.

✅ Promises were made, but will real action follow?

➡ Read the full report—What was debated, what was promised, and what it means for you. 

By Malai Hassan Othman

BANDAR SERI BEGAWAN, MARCH 2025: The 5th Day of Brunei’s Legislative Council (LegCo) session exposed urgent national issues, from inflation to public healthcare, taxation, labour policies, and economic sustainability. 

Lawmakers engaged in critical debates, challenging government leaders on subsidy sustainability, healthcare accessibility, foreign workforce policies, and Brunei’s economic resilience amid global uncertainties. 

Ministerial responses highlighted policy adjustments and strategic reforms. However, concerns remained over execution timelines, enforcement mechanisms, and whether these measures would bring tangible relief to the people.

Inflation, Subsidy Pressures, and Fiscal Concerns

Government subsidies, now reaching BND 400 million annually, continue shielding citizens from soaring costs, yet questions persist over long-term affordability and fiscal burden. 

LegCo members pressed for targeted subsidy reforms, urging direct financial aid for low-income groups while pushing for stronger diversification efforts. 

Some called for a tiered subsidy structure based on income levels, while others recommended tax incentives for local businesses to ease inflation’s impact. 

"We must ensure subsidies reach those who truly need them and do not encourage over-reliance," one member stated, emphasising fiscal responsibility and accountability. 

Some members also questioned whether Brunei should rethink its approach to food security, advocating increased domestic food production to reduce import dependency.

Hajj Costs, Accessibility Concerns, and Pilgrim Support Measures

The rising cost of Hajj pilgrimage packages and the long waiting period for Bruneian pilgrims were heavily debated, with lawmakers urging reforms. 

LegCo members voiced affordability concerns, noting that many citizens struggle to fulfil this religious obligation due to financial constraints and travel quotas. 

The Minister of Religious Affairs acknowledged these concerns, announcing that the government is reviewing pricing structures and travel arrangements to ease burdens on pilgrims.

"Hajj is a fundamental religious duty, and we must explore ways to make it accessible without imposing excessive financial strain," the Minister stated. 

Discussions also touched on the efficiency of Hajj registration systems and the possibility of financial aid schemes for lower-income pilgrims.

Healthcare Crisis: Long Waiting Periods, Dental Shortages, and Insurance Gaps

The healthcare sector was a focal point, with concerns over long waiting periods for specialist treatments, dental service shortages, and the need for digitalisation. 

The Minister of Health acknowledged these issues, outlining measures such as increased workforce recruitment, technology adoption, and public-private collaborations to alleviate pressure. 

He announced plans to introduce digital health records by 2026, aiming to streamline patient management and reduce wait times. 

LegCo members, however, remained sceptical, demanding clear implementation timelines, measurable performance indicators, and accountability in monitoring progress, warning that prolonged delays would further strain public confidence. 

Mandatory medical insurance for foreign workers was also debated, with members questioning its affordability for businesses and enforcement effectiveness to prevent policy loopholes.

Foreign Workforce, Immigration Reforms, and Local Employment Protections

Brunei’s new Long-Term Pass policy seeks to attract foreign investors and skilled professionals, granting five-year residency for those contributing to national economic growth. 

LegCo members raised concerns about potential job market competition, urging strict employment eligibility to prevent displacing local workers from high-skilled jobs. 

"Investment is welcome, but our policies must prioritize Bruneians in the job market," one member argued, reflecting broader national employment anxieties. 

Additionally, data from the Labour Department revealed a post-pandemic surge in foreign workers, with key industries like construction and retail heavily reliant on non-local labour.

Tackling Unpaid Municipal Taxes and Strengthening Economic Accountability

A staggering BND 26 million in unpaid municipal taxes prompted calls for stricter enforcement, digital tax reforms, and improved collection mechanisms to bolster national revenue.

The Minister of Home Affairs assured LegCo of upcoming system enhancements, including the introduction of an online tax payment system to improve compliance and reduce tax evasion. 

He urged businesses and property owners to fulfil obligations to support public infrastructure projects.

SME Support, Economic Diversification, and Growth Strategies

LegCo members highlighted persistent struggles faced by small and medium enterprises (SMEs), stressing limited access to financing, bureaucratic hurdles, and slow adaptation to digital transformation. 

Government officials pledged increased financial support, training programs, and simplified regulatory procedures, though some members urged faster execution to prevent further business stagnation. 

"SMEs are the backbone of our economy. Delays in support mechanisms only weaken our long-term economic resilience," one member stated, pushing for more proactive reforms.

Environmental Protection, Illegal Logging, and Sustainability Efforts

LegCo members raised concerns over environmental degradation, illegal logging, and wildlife trafficking, urging stronger enforcement and policy interventions to safeguard Brunei’s natural resources. 

The Minister of Primary Resources and Tourism assured that enforcement measures are being enhanced, with increased surveillance, digital tracking, and stricter penalties for offenders. 

"Illegal logging threatens our ecosystem and national sustainability," the Minister stated.

"We are expanding patrols and deploying drone technology to combat these unlawful activities." 

Members also pressed for better public engagement, advocating educational campaigns to raise awareness of environmental conservation and community-driven sustainability programs.

Conclusion: Public Expectations and Government Accountability

Brunei’s leaders face mounting pressure to ensure these legislative discussions translate into meaningful, timely action benefiting businesses, workers, and the broader public. 

LegCo members cautioned against policy delays, emphasizing that public patience is thinning, and economic challenges require swift, transparent execution of promised reforms. 

Public trust hinges on government efficiency - bold policies must yield measurable outcomes, or frustrations will escalate, shaping future economic and political discourse in Brunei. (MHO/03/2025)

Brunei’s $3.1 Billion Deficit, Corruption Crackdown, and Cyber Threats: LegCo Faces Nation’s Biggest Challenges

By Malai Hassan Othman

BANDAR SERI BEGAWAN, MARCH 2025: Brunei’s Legislative Council (LegCo) entered its fourth day of deliberations on March 4 2025, tackling fiscal sustainability, governance integrity, and national security concerns.

 

$3.1 Billion Budget Deficit Sparks Debate

Brunei’s BND 6.35 billion budget remains under scrutiny, with concerns about a BND 3.1 billion fiscal deficit raised by legislators. 

Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Awang Haji Adnan bin Begawan Pehin Siraja Khatib Dato Seri Setia Haji Md Yusof warned, "Economic diversification is not progressing fast enough. We must rethink revenue collection and optimise spending." 

Comparing previous years, Brunei’s deficit has widened significantly from BND 2.4 billion in 2023/24, signalling a continued reliance on oil and gas revenues.

The government reassured its commitment to new tax frameworks and foreign direct investment (FDI) incentives to bridge the revenue gap. 

Adding to the concern, Brunei projects US$1.82 billion in revenue from oil and gas in the new fiscal year, reinforcing fears that diversification efforts remain sluggish. 

The Minister of Finance and Economy emphasised that non-oil and gas revenues are expected to reach US$595.46 million, indicating gradual but insufficient economic transformation. 

Crackdown on Corruption Gains Momentum

Anti-corruption measures took centre stage as the Minister in the Prime Minister’s Office reaffirmed strict enforcement under the Anti-Corruption Act (Penggal 131). 

"Corruption, whether big or small, erodes national trust and progress," the Minister stated, calling for internal integrity units in all ministries. 

Since its establishment in 1982, Brunei’s Anti-Corruption Bureau has investigated 2,469 cases, with 231 convictions. 

Additionally, 260 public servants have been dismissed or reprimanded for exploiting their positions, highlighting a persistent governance challenge. 

Legislators urged more transparency in government procurement, financial reporting, and civil service accountability. 

A senior LegCo member added, “Without strict monitoring, financial mismanagement will continue to burden national resources.”

Cybersecurity and Digital Fraud on the Rise

Brunei’s cybercrime landscape is evolving, with 82 scam websites and 557 fraudulent numbers blocked in 2024, the Minister of Transport and Infocommunications revealed. 

In response, the government announced SIM card re-registration, stricter cybersecurity regulations, and partnerships with tech giants like Meta (Facebook, WhatsApp, Instagram). 

However, cybercrime remains a major concern, with BND 5 million lost to online scams in 2024, a 100% increase from the previous year. 

Chief Inspector Adinin bin Haji Ahmad from the Cyber Crime Investigation Division warned that scammers are exploiting digital vulnerabilities, making regulatory adaptation a pressing necessity. 

A special task force, including banks and law enforcement agencies, is being formed to counter digital financial fraud. 

A cybersecurity expert warned, “Cybercriminals are evolving faster than regulations. Without continuous updates to our cybersecurity policies, financial fraud will rise.”

Border Security and Brunei-Malaysia Land Demarcation

Legislators reviewed progress on the 528.45km Brunei-Malaysia border, demarcation, with 175.96km completed so far. 

The Minister of Foreign Affairs II confirmed a commitment to finalising land boundary agreements with Malaysia by 2034 to enhance border security and prevent smuggling. 

Historical complexities continue to play a role, with disputed claims over maritime and land territories between the two nations. 

While agreements such as the 2009 Exchange of Letters have addressed some issues, others remain unresolved. 

Residents near border areas have raised concerns about illegal crossings affecting local businesses, prompting calls for increased security patrols and enhanced surveillance infrastructure. 

Brunei’s Sports Industry Push

Brunei is investing in sports infrastructure ahead of hosting the ASEAN School Games (ASG) in November 2025.

Upgrades to Stadium Negara Hassanal Bolkiah and plans for annual international marathon and cycling events on the Sultan Haji Omar ‘Ali Saifuddien Bridge are in motion. 

A youth representative from Brunei’s national sports body noted, “Investing in sports is not just about infrastructure - it’s about creating long-term opportunities for our athletes and boosting tourism.”

What’s Next? A Nation at a Crossroads

Brunei faces critical choices: reform fiscal policies or risk deeper deficits, enforce governance reforms or lose public trust, accelerate digital security measures or fall prey to cyber threats. 

With economic pressures mounting and regional complexities at play, how will policymakers navigate these challenges? The answer will shape Brunei’s future for years to come. (MHO/03/2025)

 

The Illusion of Progress: A Nation's Reality Beyond the Statistics

 

By DMAO/MHO

Economic Growth vs. Everyday Reality

Despite a reported economic growth of 2.8%, Amirah (not her real name), a local shop owner, still struggles to make ends meet. 

Her story sheds light on a deeper issue: the illusion of progress. 

Governments worldwide celebrate economic growth figures, flaunt declining inflation rates, and showcase ambitious fiscal plans. 

Yet, for ordinary citizens, the lived experience often contradicts these optimistic statistics. 

Investing in Growth: A Needed Change from Austerity

Focusing only on saving money is hurting economic growth. Instead, we should invest in projects that create jobs and improve infrastructure. 

This approach balances short-term fiscal discipline with long-term economic prosperity and social well-being. 

Numbers Don't Reflect Public Sentiment

Government reports may show economic growth, but have average citizens felt any improvement? 

While GDP figures are touted as successes, they don't show income inequality, stagnating wages, and rising living costs. 

Discussions on budget allocations often seem detached from people's everyday struggles. 

Economic growth means little when disposable income shrinks and basic necessities become less affordable. 

The Spin Game: Using Statistics to Mask Reality

Governments often use statistics to present a rosier picture than reality. 

For example, a drop in inflation doesn't necessarily mean things are more affordable; it just means prices are rising more slowly. 

Policymakers focus on broad economic trends while ignoring everyday realities. 

Despite talk of a booming non-oil sector, dependence on oil and gas revenue remains. 

Employment statistics may look good, but underemployment and job insecurity are still widespread issues. 

Inflation is Down, Growth is Up - But for Whom?

Yes, inflation has cooled and some sectors have grown, but these improvements often don't reach the average person. 

The expansion of industries like petrochemicals benefits corporate stakeholders more than workers. 

Local industries struggle with limited support and inconsistent policies. 

The government's success narrative contrasts with business closures, rising operational costs, and a tight job market for young graduates. 

Public Services: Clean Water Shouldn't Be a Dream

Beyond economic figures, quality-of-life issues persist. 

Clean water should be a given, not a privilege. 

Yet, communities still deal with unreliable water supply and poor quality. 

Amirah (not her real name), a resident of Brunei-Muara, shared her frustrations: "We’ve been dealing with water supply issues for years. Sometimes, there’s no water at all, and when there is, it’s not always clean. It’s hard to believe the government talks about economic sustainability when we can’t even get basic utilities." 

While policymakers talk about economic sustainability, residents struggle with basic utilities. 

What good is fiscal stability when public services fail at such a basic level? 

Neglected Roads: Infrastructure Neglect

A city's roads are a testament to governance. 

Smooth highways and well-maintained streets indicate efficiency and foresight. 

Unfortunately, potholes, patchwork repairs, and deteriorating roads tell a different story - one of neglect, mismanagement, and misplaced priorities. 

Roads riddled with defects are not just an inconvenience; they are a safety hazard. 

A road user from Kuala Belait shared: "The potholes on our streets are a constant problem. It's frustrating to see funds allocated for infrastructure but no proper maintenance." 

Shopping Complexes Reflect Urban Decline

Many shopping complexes suffer from poor maintenance, mismanaged waste, and declining business activity. 

If economic growth is truly robust, why are these commercial hubs in such visible disrepair? 

A local business owner in Gadong mentioned: "The facilities here are constantly breaking down. We've reported these issues multiple times, but nothing gets done. It's hard to believe we're in a growing economy when our local businesses are suffering." 

The disconnect between official optimism and on-the-ground reality couldn't be starker. 

Conclusion: Diversifying Investment for Sustainable Progress

While macroeconomic indicators offer a snapshot of economic health, true progress lies in citizens' lived experiences. 

This article highlights the gap between reported growth and public dissatisfaction, inadequate infrastructure, and declining quality of life. 

Simply focusing on GDP growth and inflation control is insufficient. 

We need to invest in projects that generate revenue, improve infrastructure, and create jobs to achieve genuine and sustainable progress. 

We must also address income inequality, stagnating wages, and rising living costs.

Diversifying investment strategies beyond private sector initiatives is crucial. 

Creating and managing State-owned Enterprises (SOEs) and Government-Linked Companies (GLCs), coupled with targeted support and subsidies, can facilitate investment in crucial sectors like infrastructure and renewable energy. 

These interventions, when implemented transparently and with clear accountability mechanisms, can foster sustainable development and improve the overall well-being of the population. 

However, careful oversight is essential to prevent mismanagement and corruption. 

Moving forward, a balanced approach that combines private-sector dynamism with strategic public-sector involvement, guided by transparency and accountability, will be critical for achieving genuine and lasting progress.

Note: The names and details of individuals mentioned in this article have been changed for privacy reasons.

---

 

Masa Depan Ekonomi Brunei: Antara Cabaran dan Harapan

Dari meja Penasihat…

LIMBARUH HIJAU, MAC 2025: Brunei Darussalam kini berada di persimpangan ekonomi yang mencabar. 

Kebergantungan terhadap hasil minyak dan gas selama ini telah membentuk asas kekuatan ekonomi negara. 

Namun, dengan ketidaktentuan harga minyak dan keperluan mendesak untuk kepelbagaian ekonomi, masa depan yang lebih lestari harus dirancang. 

Persoalannya, adakah kita sudah cukup bersedia menghadapi perubahan ini?

Dalam titah sempena Sambutan Hari Kebangsaan Ke-41, Kebawah Duli Yang Maha Mulia Paduka Seri Baginda Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah, Sultan dan Yang Di-Pertuan Negara Brunei mengakui bahawa usaha mengukuhkan ekonomi negara bukanlah sesuatu yang mudah. 

Walaupun terdapat sektor bukan minyak dan gas yang menunjukkan pertumbuhan, impaknya masih belum cukup besar untuk menggantikan kebergantungan terhadap sumber asli. 

Ini bermakna cabaran untuk mencapai keseimbangan ekonomi masih berterusan, dan langkah-langkah strategik diperlukan untuk memastikan keberkesanan setiap usaha yang diambil. 

Dalam sesi Mesyuarat Majlis Negara, beberapa ahli juga membangkitkan kebimbangan mengenai ketidakseimbangan dalam pembangunan ekonomi negara. 

Mereka menegaskan bahawa meskipun terdapat insentif pelaburan, banyak syarikat tempatan masih sukar mendapatkan akses kepada modal dan pasaran antarabangsa. 

Selain itu, lambakan pekerja asing dalam beberapa sektor mengakibatkan pengurangan peluang pekerjaan bagi rakyat tempatan, satu isu yang semakin mendapat perhatian dalam perbahasan ekonomi negara. 

Jika keadaan ini berterusan, negara berdepan dengan dilema besar: menambah hutang atau mengurangkan perbelanjaan awam. 

Kedua-duanya memberi impak langsung kepada rakyat dan memerlukan penyelesaian yang lebih mampan bagi memastikan kesejahteraan ekonomi negara dalam jangka panjang.

Dasar dan Realiti di Lapangan

Langkah mempelbagaikan ekonomi bukanlah sesuatu yang baru. Namun, pertanyaannya, mengapa hasilnya masih belum benar-benar dirasakan oleh rakyat? 

Banyak dasar dan strategi telah diperkenalkan, tetapi cabaran masih berterusan dalam pelaksanaannya. 

Adakah ia berpunca daripada faktor dalaman atau cabaran di peringkat global? 

Dalam sesi Mesyuarat Majlis Negara, beberapa ahli menegaskan bahawa usaha untuk meningkatkan daya saing ekonomi memerlukan pendekatan yang lebih agresif. 

Ini termasuk mempercepatkan proses pelesenan perniagaan, mengurangkan kerenah birokrasi, serta memberi lebih banyak insentif kepada pelabur tempatan dan asing. 

Sekiranya tidak ada reformasi segera, kita mungkin akan terus melihat kelembapan dalam pertumbuhan sektor bukan minyak dan gas. 

Sebagai contoh, seorang pengusaha tempatan yang ingin membangunkan perniagaan teknologi hijau mendakwa bahawa proses mendapatkan lesen perniagaan memakan masa berbulan-bulan. 

Selain itu, syarat pembiayaan bank yang ketat menyukarkan syarikat-syarikat baharu untuk berkembang. 

Masalah-masalah ini bukan sahaja membebankan usahawan tempatan, malah menghalang pertumbuhan industri yang sepatutnya menjadi tunjang kepada kepelbagaian ekonomi. 

Titah KDYMM turut menekankan kepentingan ekonomi digital dan penguasaan teknologi oleh generasi muda. 

Dalam dunia yang semakin berkembang ke arah automasi dan kecerdasan buatan, golongan belia perlu dilatih dengan kemahiran yang bersesuaian dengan permintaan pasaran. 

Namun, tanpa ekosistem yang menyokong pertumbuhan inovasi dan keusahawanan, peluang yang ada mungkin tidak dapat dimanfaatkan sepenuhnya. 

Sementara itu, laporan dari sesi Majlis Mesyuarat Negara juga menunjukkan bahawa sektor pekerjaan mengalami ketidakseimbangan antara peluang yang tersedia dan kemahiran tenaga kerja tempatan. 

Dalam perbahasan, beberapa ahli menekankan bahawa program latihan perlu lebih bersesuaian dengan keperluan industri bagi memastikan rakyat Brunei tidak terus ketinggalan. 

Syarikat-syarikat antarabangsa yang melabur di Brunei juga masih memilih untuk menggaji tenaga kerja asing, dengan alasan bahawa tenaga kerja tempatan belum cukup bersedia untuk memenuhi keperluan mereka. 

Ini menimbulkan persoalan sama ada sistem pendidikan dan latihan negara telah benar-benar dipacu ke arah melahirkan tenaga kerja yang kompetitif.

Langkah ke Hadapan: Reformasi yang Perlu Diberi Keutamaan

Daripada terus berbicara mengenai cabaran, lebih baik kita mengalihkan tumpuan kepada penyelesaian. Berikut adalah beberapa langkah yang boleh dipertimbangkan untuk menggerakkan ekonomi Brunei ke hadapan:

1. Mempermudah Proses Pelaburan dan Perniagaan: Pelaburan yang berpotensi harus dipermudahkan dengan dasar mesra pelabur. Pengurangan birokrasi dan sistem yang lebih cekap diperlukan agar Brunei lebih menarik kepada pelabur asing dan tempatan.
   
   
2. Memperkasa Sektor Berpotensi Tinggi: Industri halal, pelancongan ekologi, ekonomi digital, dan tenaga hijau mempunyai potensi besar. Namun, ia perlu disertai dengan dasar yang lebih proaktif dan bantuan langsung kepada pemain industri bagi memastikan pertumbuhan yang lebih mampan.
   
   
3. Mengurus Perbelanjaan Negara Secara Strategik: Dalam sesi mesyuarat negara, beberapa ahli mencadangkan agar subsidi diperhalusi dan hanya diberikan kepada golongan yang benar-benar memerlukan. Ini akan membantu mengurangkan perbelanjaan yang tidak produktif serta mengukuhkan kedudukan fiskal negara.
   
   
4. Menggalakkan Inovasi dan Keusahawanan dalam Kalangan Belia: Pengangguran dalam kalangan anak muda masih menjadi cabaran yang ketara. Oleh itu, mereka perlu diberikan sokongan yang lebih besar melalui program latihan, akses kepada modal perniagaan, serta bimbingan dalam mengembangkan perniagaan mereka di pasaran yang lebih luas.

Menjadikan Harapan sebagai Realiti

KDYMM mengingatkan bahawa kemerdekaan bukan hanya mengenai kebebasan politik, tetapi juga tanggungjawab terhadap kestabilan dan kemakmuran negara. 

Kejayaan ekonomi Brunei tidak boleh bergantung sepenuhnya kepada kerajaan semata-mata, tetapi juga memerlukan penglibatan aktif rakyat, sektor swasta, dan golongan usahawan. 

Jika Brunei ingin keluar daripada krisis ekonomi dengan penuh maruah, tindakan harus diambil segera. 

Parti Pembangunan Bangsa (NDP) akan terus menyuarakan keperluan rakyat dan menjadi platform untuk cadangan serta idea-idea yang membina bagi memacu kemajuan negara. 

Brunei mempunyai kelebihan tersendiri – kekayaan budaya, kestabilan politik, dan sumber daya manusia yang luar biasa. 

Namun, kemakmuran tidak akan datang dengan sendirinya tanpa usaha berterusan, keberanian dalam membuat keputusan yang sukar, serta kesediaan untuk bergerak ke hadapan dengan lebih dinamik. 

Dengan Wawasan 2035 semakin hampir, rakyat tidak lagi mahu sekadar mendengar janji dan harapan. 

Yang mereka inginkan adalah perubahan yang nyata – ekonomi yang berkembang, peluang pekerjaan yang lebih banyak, dan masa depan yang lebih terjamin untuk generasi akan datang. (MHO/03/2025)

---

Petikan Syair Perlembagaan Al-Marhum Sultan Omar Alli Saiffuddien:

Perundingan negara bukannya mudah,
Hendaklah hati kuat dan tabah,
Supaya maksud tiada berubah,
Negeri dan rakyat dapat faedah.

Ilmu itu pelita hati,
Dapat mengira untung dan rugi,
Senang menduga saudara sebati,
Panduan memilih elok dan keji.

Syair dikarang untukkan zaman,
Yang mana elok buatkan pedoman,
Jadikan perbandingan yang mana tak nyaman,
Jadi sempadan menambah pengalaman.

 

 

Brunei is Spending Big, But Can It Afford It? The $3.1 Billion Deficit Question

By MalaiHassan Othman

BANDAR SERI BEGAWAN, MARCH 2025: Brunei’s government has tabled a BND 6.35 billion budget for 2025/26, but its revenue forecast falls short, leaving a $3.1 billion deficit.

This gap signals a financial reckoning for a nation reliant on oil and gas. The burning question: Can Brunei sustain this trajectory?

A Growing Budget, But Shrinking Non-Oil Revenue

Despite economic diversification efforts, non-oil revenue remains underwhelming.

Brunei’s government revenue for the 2025/2026 fiscal year is expected to reach BND 3.26 billion (US$2.42 billion), with 75% (BND 2.45 billion or US$1.82 billion) still coming from the oil and gas sector.

Revenue from the non-oil and gas sector is projected at BND 802.24 million (US$595.46 million), showing slow progress in economic diversification.

This means that even with tax reforms and investment incentives, Brunei’s non-oil earnings barely dent the government’s financial needs. 

According to the IMF’s 2023 Article IV Consultation Report, Brunei’s fiscal deficit is projected to widen to 9.2% of GDP, raising concerns over long-term financial sustainability. 

Oil and gas have long cushioned Brunei’s economy, but global energy trends suggest diminishing returns. As reserves deplete, the fiscal gap will only widen.

Spending More Than Earning: How Will Brunei Manage?

Brunei's government has proposed a national budget of BND 6.35 billion (US$4.71 billion), prioritising public well-being, economic diversification, and human capital development. 

Government spending continues at historic, expanding levels - expanding infrastructure, sustaining public sector salaries, and funding development projects. 

But is this level of spending sustainable? 

The IMF warns that Brunei’s public sector wage bill is 35% of total government spending, higher than ASEAN peers, signalling the need for fiscal restructuring. 

Without a significant shift in revenue generation, borrowing, cuts to subsidies, or tax hikes could be unavoidable. 

What’s the government’s long-term plan? 

LegCo debates have emphasised diversification, but real-world impacts remain limited. Will policymakers accelerate reforms to bridge the fiscal gap?

Where Will New Money Come From?

Foreign direct investment (FDI) is crucial, but bureaucratic roadblocks and slow approvals hinder investment flows into Brunei’s non-oil sectors. 

The IMF recommends gradual energy subsidy cuts and expanding tax revenues, including potential carbon pricing as a long-term fiscal measure. 

The halal industry, digital economy, and eco-tourism have immense potential but require policy shifts and stronger incentives to attract international partnerships.

Can Brunei fast-track new industries, or will oil and gas remain the financial backbone despite its long-term volatility?

What Does This Mean for Ordinary Bruneians?

A sustained budget deficit could translate into economic adjustments - higher taxes, reduced subsidies, or stricter fiscal policies. 

Will the average citizen feel the pinch? 

The IMF notes that inflation, which peaked at 4.5% in 2022, has now dropped to 0.2%, providing some relief, but cost-of-living concerns persist. 

The cost of living is already a concern, and any major policy shifts could impact household budgets, business operations, and employment opportunities. 

With economic pressures mounting, how will the government balance fiscal responsibility with public welfare?

The Road Ahead: Tough Choices, Uncertain Outcomes

Brunei’s budget deficit is not just a financial issue; it’s a policy crossroads. 

The next decisions will shape the nation’s economic future. 

The IMF warns that delayed economic diversification could expose Brunei to significant financial risks, especially as the world moves towards decarbonisation. 

Will policymakers take bold steps toward revenue growth, or will Brunei remain locked in an oil-dependent economic cycle? 

One thing is clear: the window for change is narrowing. What happens next will define Brunei’s financial stability for years to come. (MHO/03/2025)

 

Brunei's Legislative Council Launches Ambitious Reforms to Propel Economic Diversification

Brunei’s Legislative Council just made history—more oversight, a $6.35 billion budget, and bold reforms to reshape the economy. Will these changes bring real progress, or is it just political rhetoric?

With twice-yearly parliamentary sessions, major investments in housing, digital economy, and foreign investments, the stakes are higher than ever.

Is Brunei finally breaking free from oil dependency? Can new industries create enough jobs?

By Malai Hassan Othman

Brunei Darussalam's Legislative Council (LegCo) has embarked on a transformative journey, unveiling a series of reforms aimed at enhancing government oversight and accelerating economic diversification. 

In a historic move, the LegCo convened for its third day of proceedings, marking the introduction of twice-yearly sessions - a change anticipated to foster more rigorous monitoring of government policies and development projects.

Enhanced Legislative Oversight

Yang Berhormat Pehin Datu Lailaraja Major General (Retired) Dato Paduka Seri Awang Haji Halbi bin Haji Mohd Yussof, Minister at the Prime Minister's Office and Second Minister of Defence emphasized the significance of increased session frequency. 

He stated: "The increase to twice-yearly sessions will bring significant benefits to national administration. More frequent meetings allow continuous monitoring of government policies and development projects, as well as addressing current issues more effectively." 

This move is expected to enhance transparency and accountability within the government, ensuring that initiatives align closely with national priorities.

Substantial Budget Allocation for Strategic Sectors

The council approved a substantial budget of BND 6.35 billion for the fiscal year, marking a significant investment in key sectors.

• Infrastructure Development: Funds are allocated to improve transportation networks and digital connectivity, facilitating commerce and attracting foreign investment.

• Housing Initiatives: Continued commitment to expanding affordable housing to meet the needs of the population.

• Education and Skills Development: Investment aimed at equipping the workforce with future-ready skills.

• Healthcare Enhancement: Strengthening the health system to address current and emerging health challenges.

Economic Diversification Efforts Intensify

Central to the government's agenda is the concerted push to reduce the nation's reliance on the oil and gas sector. 

By bolstering industries such as agriculture, tourism, and technology, Brunei aims to build a resilient economy less susceptible to global market fluctuations.

Healthcare System Strengthening

Yang Berhormat Dato Seri Setia Dr Awang Haji Mohammad Isham bin Haji Jaafar, Minister of Health, highlighted the importance of reinforcing the nation's healthcare: 

"Enhancing our health system to respond more effectively and responsively to health needs and emerging challenges is vital." 

This focus underscores the government's commitment to ensuring accessible and quality healthcare for all citizens, especially in the wake of global health concerns.

Investment in Human Capital

Allocations for education signal a strong emphasis on human capital development. By fostering a skilled workforce, Brunei seeks to prepare its citizens for the demands of a rapidly evolving global economy.

Challenges and Outlook

While the reforms are ambitious, their success hinges on effective implementation and continued oversight. 

The government's ability to address challenges proactively will be crucial in achieving its diversification goals. 

A regional economist noted: "The plans set forth by the government are forward-thinking. However, the true measure of success will be in how these policies are executed on the ground."

Community Engagement and Collaboration

The authorities have called for active participation from the community and private sector. 

Collaborative efforts are seen as essential in driving the nation forward. By engaging various stakeholders, the government aims to ensure that development initiatives align with the needs and aspirations of the populace.

Future Implications

These developments position Brunei to emerge as a regional leader in sustainable development and innovation. 

By diversifying its economy and investing in strategic sectors, the nation is setting the stage for long-term prosperity.

Conclusion

Brunei stands at a pivotal moment in its history. The reforms unveiled by the Legislative Council signal a bold step towards a diversified and resilient economy. With strategic investments and increased government oversight, the nation is poised to navigate the challenges ahead and realize its vision for a sustainable future. (MHO/03/2025)