Industry & Agriculture
From The Report: Brunei Darussalam 2014
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The 2014/15 budget allocated $92.9m, out of a total of $902.4m, for the industry and trade sector under the 10th National Development Plan. Much of the current manufacturing sector is built around downstream energy applications, such as petrochemicals, although the country continues to encourage growth in other light industry and knowledge-based segments, including ICT and niche halal products. The Sultanate is focusing development on some of its key strengths, such as its young and well-educated workforce, developed infrastructure and abundance of energy. Agriculture, forestry and fisheries contributed just 0.73% to GDP in 2013 with $114.8m, requiring the import of around $470m worth of food each year. Recent strategic shifts have placed a new premium on reaching self-sufficiency in food production, including a new $3.14m project entailing the construction of an agricultural industrial park. Development of agro-industry and processing capacity with a bent towards exports is expected to provide long-term value for the sector, provided it can continue to attract investment.

This chapter contains interviews with Pehin Dato Yahya Bakar, Minister of Industry and Primary Resources; Vijaya Rajendram, CEO, Neptune Bio-Innovations; and Feby Latip, Deputy CEO, Ghanim International Food Corporation.

Articles from this Chapter

Overview

A commitment to investing in more segments will set the sector on the right track
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While constrained by a relatively small labour pool and limited domestic resources, Brunei Darussalam’s industrial sector is nevertheless seeking to carve out a significant niche for itself in the country’s growing economy. In order to achieve a larger role for the sector going forward, the Sultanate is focusing on some of its key strengths, such as its young and well-educated workforce, developed infrastructure and abundance of energy. Much of the current manufacturing sector is built around…

Interview

OBG talks to Pehin Dato Yahya Bakar, Minister of Industry and Primary Resources
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Interview:Pehin Dato Yahya Bakar How is the government focusing its efforts in the short term for greater industrial development? PEHIN DATO YAHYA BAKAR: There are several distinct areas of focus in two broad categories: primary resources development, and industry and entrepreneur development. Primary resource development encompasses agriculture, agri-food, fisheries and forestry, as well as other supportive areas. At the moment, Brunei Darussalam is self-sufficient in the production of poultry,…

Analysis

Global food safety concerns offer potential for both Muslim and non-Muslim markets
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Taking advantage of Brunei Darussalam’s core competencies, including its international reputation and an observant Islamic culture with strict adherence to halal standards, the country is looking to serve the growing global demand for sharia-compliant products by expanding its own stable of halal offerings. Derived from the Arabic word meaning permissible, halal is a term widely used to designate food and other consumer products that are deemed suitable according to Islamic law. In addition, a…

Interview

The best medicine: OBG talks to Vijaya Rajendram, CEO, Neptune Bio-Innovations
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Interview:Vijaya Rajendram How likely is it that bio-industry can become a major contributor to the nation’s economic diversification? VIJAYA RAJENDRAM: Brunei Darussalam is a crown jewel for scientists, especially as far as the future of the ethnobotanical industry and herbal medicinal sector are concerned. Over 60% of the nation still consists of forests, which are well conserved, and the government is very clear on sustainable environmental policy. This is a fantastic starting point…

Interview

OBG talks to Feby Latip, Deputy CEO, Ghanim International Food Corporation
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Interview:Feby Latip In what ways can the halal industry contribute to the country’s economic diversification? FEBY LATIP: When Brunei Wafirah Holdings was set up, one of the objectives of the company was to have a greater role in the economic diversification of Brunei Darussalam. The global halal industry is worth more than $600bn, so there are a lot of opportunities for the nation to exploit its expertise in the industry and gain a bigger share of the market. While there are numerous…

Overview

By focusing on niche segments the sector is sure to grab a greater share of the market
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The country is currently in the midst of an ambitious agricultural reform campaign designed to ease the Sultanate’s heavy reliance on foreign imports by increasing domestic output of key commodities such as rice, fish, crops and livestock. Limited by a dearth of plantable land – just 1% of Brunei Darussalam’s already small land mass is gazetted for agricultural use – the agricultural, forestry and fisheries sector made up just 0.73% of GDP in 2013, or BN$146.3bn ($114.8m), according to data…

Analysis

The government is committed to reducing reliance on food imports
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When a widespread shortage of basic foodstuffs occurred worldwide in early 2007 and 2008, global commodity prices for wheat, rice, corn and soybean roughly tripled within a matter of months. The results of these price spikes rippled around the world and led to social unrest, ranging from the hijacking of dozens of truckloads of UN humanitarian grain shipments in Africa to armed guards protecting rice fields in Thailand to prevent rice rustling. Growing Need These events, and the instability that…