BUSINESS OPPORTUNITIES IN

BRUNEI DARUSSALAM
March 2014

Brunei Abode of Peace

Land Size : 5,765 sq km

Population : 399,800 (2012)
Religion: Muslim Majority
Currency : Brunei Dollar (on par &
interchangeable with Singapore Dollar)

Language : Malay, English, Chinese

#2 in ASEAN

Human Development Index

(United Nations 2013)

Economic Overview

GDP (2012): est USD16.6 billion

GDP per capita (2013): est USD42,000
GDP growth (2013): est 1.1%

GDP composition (2012)

Oil & Gas : 67.7%
Government services : 11.7%
Private : 20.6%
Inflation (2013) : 0.4%

No Government Debt
#2 in ASEAN for Global Competitiveness
Index (GCR 2013-2014)

#4 in ASEAN for Ease of Doing Business

(World Bank 2013)
*Exchange Rate USD1=BND1.24

#5 Richest Nation in the World

(Forbes 2013)

Successful Oil & Gas Sector

With our strengths well displayed in the Oil & Gas sector, Brunei is more
than ready to look at viable ways to diversify our economy.

Total Exports : BND 15.6 Billion - 95.9% from Oil & Gas (JPKE 2013)
Crude Oil
42.1%

Others
2.9%

Methanol
1.5%

LNG 53.8%
*Others include Manufactured articles, Machinery and
Transport Equipments

Vision for the Future

WAWASAN 2035
To be one of the Top 10 nations in
the world recognized for its Quality of
Life and Dynamic and Sustainable
Economy

#1 in the World

Macroeconomic Environment
(GCR, World Economic Forum, 2013-14)
Politically and Economically Stable
No History of Natural Disasters
No History of Terrorism related incidents

Extraordinary Biodiversity
Borneo is home to 6% of worlds total biodiversity.

Brunei has preserved 58% of its total land area as

part of the Heart of Borneo conservation
initiative.
Environmental Performance Index (EPI 2014)
#2 in South East Asia
#4 in Asia-Pacific
#1 in the world for Health Impacts
#1 in the world for Biodiversity and Habitat

Capable Workforce
Brunei has a young, multilingual and highly educated workforce.

Highly Educated, Skilled & Affordable Workforce

Median Age Group

27 years old

Literacy Rate

96.4%

Quality of Education
(GCR, World Economic Forum, 2011-12)

#3 in ASEAN
#4 in the Organisation of Islamic Cooperation
countries (OIC)

Multilingual Speaking Population

English, Malay, Chinese Dialects and Indian Dialects.
Flexible Employment Policies
#4 in the world for Employing Talent
(World Bank, Doing Business 2010)

No Active Trade Unions

No history of labour unrest.

Innovative Islamic Initiatives

Bruneis credibility guarantees the highest Halal standards
and quality in Halal certification

#1 in the world to issue guidelines on the

production of Halal Pharmaceuticals in 2010.
Stringent Halal Food Guidelines
Brunei is currently drafting similar guidelines for
the production of Halal Cosmetics.

International Network Connectivity

80% of Bruneis internet capacity is under-utilised.

Brunei is currently connected to TWO

major submarine cables:
Asia-America Gateway (AAG)
Southeast Asia- Middle East- Western
Europe Cable (SEA-ME-WE3)
A third cable, the South-East Asia-Japan
Cable (SJC) will be ready by 2013.

Strategic Location
Brunei is a member of Association of South East Asian (ASEAN) countries.

ASEANs market size is 1.2 times larger than the European Union (EU).
ASEAN Market
2000km

1000km
500km

Population:
597,254,076
GDP:
USD1.800 trillion
Land area:
4,435,830km2

International Tax & Trade Agreements

Asia
ASEAN #@
ASEAN-China@
ASEAN-India@
ASEAN-Japan@
ASEAN-Korea@
China*#
Hong Kong*
India #
Indonesia*
Japan*@
S. Korea #
Laos*
Malaysia*
Pakistan*
Philippines ^
Singapore*
Tajikistan*
Thailand ^
Vietnam*

Europe
Belgo-Luxembourg Economic Union ^
Finland ^
France ^
Germany # ^
Russian Federation ^
UK*
Ukraine #

Others
Trans-Pacific Strategic
Economic Partnership :
Australia, Chile, NZ, Peru,
Singapore, US, Vietnam @

* Double Taxation Agreements

# Bilateral Investment Treaties
@ Free Trade Agreements
^ Ongoing negotiations

Middle East
Bahrain* #
Iran ^
Kuwait *#
Oman * #
Qatar *
UAE ^

Australasia
ASEANAustralia-NZ@
Regional Comprehensive Economic Partnership
ASEAN-China-Japan-S. Korea-India-NZ-Australia ^

Financial Partnership
Credible financial support and partnership through means of
co-investment from both government and private investors.

Potential partners include the Ministry of Finance

and Brunei Governments private equity funds:
Bank Islam Brunei Darussalam (BIBD), Strategic
Development Capital Fund, Aureos-BICB and
Soft Bank Investments Brunei (SBI).

Build & Lease business

models can also be
considered for strategic
projects.

Research & Training Grants

Ranked amongst Most Improved countries in Innovation
Performance (Global Innovation Index 2012).

Brunei Research Incentive Scheme (BRISc)

Cost-sharing grant created to address funding
needs of private sector R&D, for both local and
foreign companies.

Government will cost share between 80% - 50%

of R&D activities costs, at a maximum of
B$5million per application.
Companies are encouraged to collaborate with
either the Institutes of Higher Learning or
Government Agencies to carry out their R&D.

Training Grants
Grants are available for investors to improve
local manpowers competency and skill sets .

Tax Incentives

Tax Exemptions in Brunei

No Personal Income Tax
No Sales Tax
No Payroll Tax
No Capital Gains Tax
No Manufacturing Tax
Corporate Income Tax in Brunei : 18%
Pioneer Status (8 years plus extension)
Exemption from Corporate Income Tax
Exemption from import duties on machinery,
equipment, component parts accessories or
building structures
Exemption from import duties on Raw Materials
Foreign Loans For Productive Equipment
Exemption of approved foreign loan interest
from paying withholding tax

The BEDB

REPORTING LINE
Established by
His Majesty, The Sultan & Yang Di-Pertuan of
Brunei Darussalam in 2001
Vision
A leading Economic Development Agency
recognised for its Professionalism, Progressive
and Result Driven Culture.
Mission
To grow and diversify Brunei Darussalams
economy by attracting investments and
strengthening local businesses enabled
through research and innovation.

Key Focus Areas

ATTRACTING INVESTMENTS
Promote Foreign Direct Investments in Export-Oriented
Manufacturing and Services as well as Research
Collaboration in Brunei.

INCREASING R&D
AND INNOVATION
Develop a National
Innovation System that
encourages Knowledge
Creation and
Commercialisation in
Science & Technology
and Creative Sectors.

ENHANCING THE
VALUE OF
INNOVATION
Supporting and
Promoting Intellectual
Property, Strengthening
the Tangibility of
Creative and
Innovative Output.

STRENGTHENING
LOCAL BUSINESSES
Grow Micro Businesses
and Strengthen Local
Enterprises towards
Internationalisation.

DELIVERING
INFRASTRUCTURE
PROJECTS
Complete Infrastructure
Projects On Time, On
Budget and To Quality.

Economic Diversification
Tapping into our Hinterland
Pharmaceuticals
e.g. vaccines

Vitamins &
Supplements

Food & Food

Ingredients

Cosmetics &
Personal Care

Focus on Emerging
New Technologies

Energy
Adding Value to Bruneis Resources
Petrochemicals

Integrated
Petrochemical
Refinery

Silica Sand
e.g. renewables

Regional Hub for Information & Communication

Software Dev /
New Media

Data Centre/
Disaster
Recovery
Centre

Wireless
Communication
e.g. RFID, GPS

Multimedia
& Game
Development

Environment

Health Care &

Health
Sciences

e.g. Apple,
Android, Linux

ICT

Financial
Services

Food Security

Growing our Supporting Industries

Air & Sea
Logistics

Aviation
Support
Services

Oil Field
Services

Industrial Sites

Oil & Gas Related Industries

PULAU MUARA BESAR (PMB)
Total Site Size : 955ha
Zhejiang Hengyi (China)
Refinery and Aromatics Complex
US$4bil (Phase 1) / 800 jobs / 260 ha
Target Start Operation : 2017
Infrastructure
Bridge to PMB
Main Road across PMB Island
Target Construction : 2014
Integrated Marine Supply Base
Centralised facility providing
fabrication yard, storage, berthing
facilities, etc to cater for the Oil & Gas
Upstream development.
Target Request For Proposals: 2014

New Opportunities:
Oil and Gas Based Petrochemicals
Metal Smelting
*24 km to Brunei International Airport

Petrochemical Industries
Methanol Export Facility

SUNGAI LIANG INDUSTRIAL PARK

(SPARK)
Total Site Size : 271ha
Brunei Methanol Company (BMC)

BMC

(24 ha)

*FIRST DOWNSTREAM PETROCHEMICAL

PLANT IN BRUNEI.
US$600mil /181 jobs
850,000 tons per year Methanol Plant
Mitsubishi Gas Chemicals (Japan)
ITOCHU Corporation (Japan)
Petroleum Brunei (Brunei)

Start operations : May 2010

Infrastructure

Common export facility (jetty)

Steam Generation Facility
Water Treatment Plant
New Opportunities
*80 km to Brunei International Airport
*90 km to Muara port

Methanol Derivatives
Gas-Based Petrochemicals
Ammonia-Urea based downstream

Light Manufacturing Industries

SALAMBIGAR INDUSTRIAL PARK

Total Site Size : 137.2ha
Light Industry (Food; Cosmetics;
Pharmaceutical; etc.)
Readily prepared infrastructure
Connection to Utilities (Power,
Water, Tele-communication, etc)
Road Access
Potential Build & Lease Option
Negotiable Land lease rates
Simpor Pharma (Canada)
Export of Halal-certified natural
health products, over-the-counter
and prescription drugs.
US$18.5mil / 100 jobs / 2ha
Potential Investors
*11 km to Brunei
International Airport
*20 km to Muara Port

Astaxanthin production plant

Halal Cosmetics Manufacturing

ICT & High-Tech Industries

RIMBA DIGITAL JUNCTION

Potential Data
Centre/Disaster
Recovery Centres
(7.2ha)

Total Site Size : 15ha

Information and Communication
Technology and other High-Tech
Industries
CAE (Canada)
(2.77ha)
Proposed
MPTC

Multi-Purpose Training Centre

US$102mil / 35 jobs / 2.4ha
Co-investment with Brunei Government
National Data Centre
Data Centre for Energy & e-Government
US$80mil / 250 jobs / 5ha

Lot 2 (3.0ha)
Proposed
National
Data Centre

Executive
Housing

*11 km to Brunei International Airport

*28 km to Muara port

Key Focus Areas

ATTRACTING INVESTMENTS
Promote Foreign Direct Investments in Export-Oriented
Manufacturing and Services as well as Research
Collaboration in Brunei.

INCREASING R&D
AND INNOVATION
Develop a National
Innovation System that
encourages Knowledge
Creation and
Commercialisation in
Science & Technology
and Creative Sectors.

ENHANCING THE
VALUE OF
INNOVATION
Supporting and
Promoting Intellectual
Property, Strengthening
the Tangibility of
Creative and
Innovative Output.

STRENGTHENING
LOCAL BUSINESSES
Grow Micro Businesses
and Strengthen Local
Enterprises towards
Internationalisation.

DELIVERING
INFRASTRUCTURE
PROJECTS
Complete Infrastructure
Projects On Time, On
Budget and To Quality.

Knowledge Based Enterprises

iCentre
Incubates technology based start up companies
Current Incubatees: 13 physical & 7 virtual
Activities:
Mobile, Web, GPS, RFID, Smart Technology, Apps
Development and Multimedia
Knowledge Hub
Houses companies involved in R&D activities.

ANGGEREK DESA
TECH PARK

Tech One Global

(Microsoft/Adobe)

ICT/R&D Software and services

company

CRAFT

Multimedia Lab

UBD | IBM

Energy research &

Environmental simulation
Centre

Ministry of Defence

National Modeling and

Simulation Centre

Knowledge Based Enterprises

ANGGEREK DESA TECH PARK (Phase III)

SME Development Centre
R&D Activities
CRAFT (Creative Arts Facilities)

Financial Schemes for Innovative Start Ups

ACCEL-X Venture Capital Fund
Accel-X Pte Ltd is a Singapore- based venture capital fund
that invests into early stage technology companies in ICT,
interactive digital media and engineering.

Fund Size
B$20 million (Brunei B$5 million/SPRING, Singapore B$15 million)
Recipients

Products

Infindo Technology
Top 100 best start-up, PRs Germany
Top 20, Apple Apps worldwide

iPhone/Android
Applications

MeSixty Sdn Bhd

Top 100 Asia, Red Herring

SMS Gateway
Chatworthy

The Future Fund

Partnership with AITI and DST to provide seed capital to ICT
start-ups. Funded companies will be:
Incubated at iCentre and will receive mentorship.
Given access to test business ideas in the market by
leveraging on DSTs mobile infrastructure.
Fund Size

B$1.8 Million (ranging B$50K to $150K per applicant)

Financial Schemes for Innovative Start Ups

Local Enterprise Applications and Products (LEAP) Grant Scheme

Provides financial assistance to develop prototypes or pilot
projects across a broad range of industries that have innovative
technological content, commercial viability and export
potential.
Fund Size

Recipients to date

B$5 Million over 4 years

23

SMEs

Product

Status

Batik
Desamas
Company

Digital printing on
woven material.

Signed MOU with a Korean

business partner.
Supported by MOFAT under
ASEAN Trading Partnership to
supply Batik to Korea.

MeSixty Sdn
Bhd

Geo-tagged travel
guide for social
networks.

MeSixty developed Brunei

Tourisms first official iPad app
as a travel guide

M&G
Sustainable
Aquaculture

Self-operating
aquaculture system
with remote
accessibility.

Project endorsed by MIPR

and has received interest
from Malaysia and Singapore
as distributors.

Financial Schemes for Innovative Start Ups

Startup Brunei (SUB)
A Grant Scheme offered by the Brunei Economic Development
Board that aims to increase innovative start-ups and develop
entrepreneurship in Brunei Darussalam. The Scheme provides a
platform that offers financial assistance, fast-track business setup
support and talent recruitment facilitation to local and foreign
entrepreneurs that wish to start-up their innovative business in
Brunei.
Eligibility
Incentive Details

New local
startup

Start-up incentive
B$50,000

Fast-track business
set-up1

Talent recruitment
facilitation2

Relocation incentive
B$30,000
Criteria
Innovative Business Proposal
Quality of proposal
Quality of founder and team

Existing local
business

Foreign
startup

Research & Commercialisation

Knowledge and Innovation

Five focus areas of research:
Energy
Environment
Food Security
HealthCare / Health Sciences
ICT
Brunei Research Incentives Scheme (BRISc) is a costsharing scheme to support R&D activities conducted in
the five focus areas.
Companies will be encouraged to collaborate with
Institutes of Higher Learning or Government Agencies, so
as to ensure knowledge and technology transfer to
Brunei.
R&D projects under consideration:
Food, nutraceuticals & pharmaceuticals.
Diagnostic and screening products for cancer & viral
diseases.
Water & solar technologies.

Key Focus Areas

ATTRACTING INVESTMENTS
Promote Foreign Direct Investments in Export-Oriented
Manufacturing and Services as well as Research
Collaboration in Brunei.

INCREASING R&D
AND INNOVATION
Develop a National
Innovation System that
encourages Knowledge
Creation and
Commercialisation in
Science & Technology
and Creative Sectors.

ENHANCING THE
VALUE OF
INNOVATION
Supporting and
Promoting Intellectual
Property, Strengthening
the Tangibility of
Creative and
Innovative Output.

STRENGTHENING
LOCAL BUSINESSES
Grow Micro Businesses
and Strengthen Local
Enterprises towards
Internationalisation.

DELIVERING
INFRASTRUCTURE
PROJECTS
Complete Infrastructure
Projects On Time, On
Budget and To Quality.

Intellectual Property Regime

PATENTS
Legislation

Patents Order, 2011

Patent Rules, 2012

INDUSTRIAL DESIGNS

TRADEMARKS

PLANT VARIETY
COPYRIGHT*
PROTECTION (PVP)
Plant Variety
Copyright Order,
Protection Act (at
1999
finalisation stage)

Industrial Designs
Trade Marks Act
Order, 1999
(Cap 98)
Industrial Designs
Trade Marks Rules,
Rules, 2000
2000
Membership Patent Cooperation The Hague System The Madrid Protocol The International
Berne Convention
to
Treaty (PCT) for the
for the
for the International
Union for the
for the Protection
International
International Filing of International
Filing of Trademarks
Protection of New
of Literary and
Conventions
Patents
Registration of
(the Madrid System) Varieties of Plants
Artistic Works
& Treaties and Budapest Treaty on
Industrial Designs
by 2014
(UPOV) by 2014
Work Sharing
the International
by 2013
Initiatives
Recognition of the
Deposit of
Microorganisms for
the Purposes of
Patent Procedure
ASEAN Patent
Search &
* Currently under the
Attorney Generals
Examination
Chambers (AGC)
Cooperation
(ASPEC)
Paris Convention for the Protection of Industrial Property

Intellectual Property Rights

Protecting Businesses Through Strong IP Rights
Recognized as a Nation with Strong IP Rights
On 1 May 2013, Brunei Darussalam was removed from
the United States Trade Representative (USTR) Special
301 Watch List in recognition of the countrys
substantive efforts in implementing legislation on IPR,
enforcing laws and educating the public on the
importance of protecting IP.
Worldwide IPR Protection When Protecting in Brunei
Brunei has acceded to a number of WIPOadministered treaties in different areas of Intellectual
Property enabling the worldwide protection of
products and businesses:
The Patent Corporation Treaty (PCT): Businesses
can have their patents protected in any one of
the 147 contracting PCT States when applying for
a patent in Brunei.
The Hague Agreement: By the end of 2013,
businesses can have their industrial designs
protected in several countries by means of a
single application lodged in Brunei.
The Madrid Protocol: By 2014, businesses can have
their trademarks protected internationally in a
number of jurisdictions with an application
registered in Brunei.

Key Focus Areas

ATTRACTING INVESTMENTS
Promote Foreign Direct Investments in Export-Oriented
Manufacturing and Services as well as Research
Collaboration in Brunei.

INCREASING R&D
AND INNOVATION
Develop a National
Innovation System that
encourages Knowledge
Creation and
Commercialisation in
Science & Technology
and Creative Sectors.

ENHANCING THE
VALUE OF
INNOVATION
Supporting and
Promoting Intellectual
Property, Strengthening
the Tangibility of
Creative and
Innovative Output.

STRENGTHENING
LOCAL BUSINESSES
Grow Micro Businesses
and Strengthen Local
Enterprises towards
Internationalisation.

DELIVERING
INFRASTRUCTURE
PROJECTS
Complete Infrastructure
Projects On Time, On
Budget and To Quality.

Micro-Enterprise Development

Youth Entrepreneurship Development

Programme
To encourage and assist youths to either start their own
micro businesses or obtain jobs as skilled workers in
collaboration with Youth Development Centre and
Vocational Schools.
Features of Grant

Non-repayable
Applicants can be either individuals or group of 2
people
Grants capped at B$2,000 per applicant
Grants are only for purchase of equipment relevant
to the businesses

102 NEW MICRO BUSINESSES

SET UP SINCE 2008

Type of Businesses

Beauty Salon
Bakery
Catering Services
Tailoring & Embroidery
Car Washing Services
Plant Nursery

Air Conditioning
Maintenance
Services
Food Kiosks
Weaving
Fish Mongering

Micro-Enterprise Development

Village Enterprises
To assist in the development of village product to support the
One Village, One Product initiative under the Ministry of Home
Affairs by providing capital assistance in collaboration with
respective District Office.
Assistance
Grant of up to $50,000 per village for purchase of equipment or
construction of relevant facilities.
Targeted Industries
Kg Tg Maya &
Kg Bukit Udal, Tutong

Production of Virgin Coconut Oil

Kg Ukong, Tutong

Production of traditional
handicrafts

Kg Kapok

Production of banana crackers

Kg Senukoh, Temburong

Production of yellow noodles

Internationalisation Support

Promising Local Enterprise Development Scheme

(PLEDS)

To provide assistance to promising local enterprises to

enhance their capability and competitiveness
To assist the promising local enterprises expand their
businesses and venture abroad

Assistance

Enterprise Technical Assistance Scheme (ETAS) of B$3

million over 2 years to support up to 50% co-sharing in
engaging professional consultants, hiring of
professional staff and helping companies overcome
common market entry cost barriers.

Target Industries
Established Companies with readily available Products &
Services for exports.

Key Focus Areas

ATTRACTING INVESTMENTS
Promote Foreign Direct Investments in Export-Oriented
Manufacturing and Services as well as Research
Collaboration in Brunei.

INCREASING R&D
AND INNOVATION
Develop a National
Innovation System that
encourages Knowledge
Creation and
Commercialisation in
Science & Technology
and Creative Sectors.

ENHANCING THE
VALUE OF
INNOVATION
Supporting and
Promoting Intellectual
Property, Strengthening
the Tangibility of
Creative and
Innovative Output.

STRENGTHENING
LOCAL BUSINESSES
Grow Micro Businesses
and Strengthen Local
Enterprises towards
Internationalisation.

DELIVERING
INFRASTRUCTURE
PROJECTS
Complete Infrastructure
Projects On Time, On
Budget and To Quality.

Infrastructure Implementation
Modernisation of Brunei International Airport
Terminal
Status : On-going construction
Timeline
2010

Concept Design and Project Management

by Changi Airport
Consultant/AECOM (Singapore)

2011

Construction by Trans Resources

Corporation Sdn Bhd/Swee Sdn Bhd JV
(Malaysia/Brunei)

2014

Completion

18.6 Km Dual Carriageway Lumut-Telisai

Highway
Status : On-going construction
Timeline
2010

Construction by CCCC Third Harbour

Engineering/Surati Construction
(China/Brunei)

2014

Completion

Modern Waste Management

Rehabilitating Existing Dump Site (Sg Akar)

Status : Final closure is on-going by Jurusy Perunding (Brunei)
Timeline
2009

Commencement of rehabilitation and operations

2010

Completion of rehabilitation and on-going operations

2011

Completion of operations

2012

Completion of final closure works

Modern Engineered Landfill (Sg Paku) & Transfer Station

Status : On-going construction and partial operations
Timeline

2010

Commencement of design by ST Marine (Singapore) /

QAF (Brunei)

2011

Commencement of construction and Partial

Operations

2012

Completion of construction and commencement of

full operations

2015

Completion of operations contract

Infrastructure Implementation
2,000 Houses (Panaga)
STATUS : Completed
Timeline

2009

Construction by Bina Puri (Malaysia)

2011

Handed Over to House Owners

1,500 Houses (Bukit Beruang)

STATUS : On-going construction
Timeline
2010

Construction by Tee International

(Singapore)

2014

Completion

4,000 Houses (Mengkubau)

STATUS : On-going construction
Timeline
2010

Construction by UEM Builders (Malaysia)

Consultancy by Surbana (Singapore)

2014

Completion

THANK YOU
THE BRUNEI ECONOMIC DEVELOPMENT BOARD
Block 2D, Jalan Kumbang Pasang
Bandar Seri Begawan BA1311
Brunei Darussalam
Tel: +673-223 0111
Fax: +673-223 0082
www.bedb.com.bn