As was the case across most of the region, the Asian financial crisis hit Brunei Darussalam’s construction industry hard towards the end of the 1990s, thinning out the sector as construction companies folded or exited the local market. Since then there has been a resurgence as the government rolled out large health and education initiatives in the 2000s followed by a shift towards public housing and infrastructure buildings in the past few years. National Spend High levels of public spending…
Construction & Real Estate
From The Report: Brunei Darussalam 2014
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The drive for economic diversification has led to significant expenditure on infrastructure in areas such as industrial parks, irrigation works, telecoms and the national transport network. Public spending dominates the construction sector, and around 80-90% of works are carried out by the state. Increased government expenditure will ensure that public projects continue to drive growth, although the announcement of a number of large-scale private industrial projects in 2013 and 2014 should provide more opportunities for construction firms as well. Given the demand for housing, there could be further growth in the private residential market in the future, provided regulations governing ownership are clarified. According to official figures, the real estate sector accounted for 2.38% of GDP in 2013, worth $337m. Residential property values grew by around 10% in 2013, driven largely by the ongoing land shortage, increases in labour and construction material costs, and overall inflation.
This chapter contains an interview with Bobby Chua, Vice-Chairman, Swee.