Trade & Investment
From The Report: Brunei Darussalam 2014
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Driven mainly by offshore oil and gas infrastructure, Brunei Darussalam had an estimated stock of $14.2bn of inward foreign direct investment as of the end of 2013, equal to around $35,000 per capita. The country actively recruits foreign investment, offering generous tax incentives to targeted projects that bring in high-paying jobs, help diversify the economy, add value to existing oil and gas production, or efficiently substitute for imports. Foreign investors are paying close attention to how Brunei Darussalam handles its transition into sharia law. Although the Sultanate is not believed to be aiming for a radical implementation, there is concern that any sharia case opened against a foreigner could potentially damage the sense of security to which foreign investors and experienced professionals have grown accustomed.

This chapter contains interviews with Pehin Dato Lim Jock Seng, Minister of Foreign Affairs and Trade II; Jun Yanai, Senior Executive Vice-President and CEO, Energy Business Group, Mitsubishi Corporation; and Kevin Speed, Vice-President and Regional Business Leader, CAE Asia; as well as a viewpoint from Xi Jinping, President of China.

Articles from this Chapter

Overview

Energy exports generate surpluses for investment at home and abroad
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As a small and relatively high-income country with an economy built around oil and gas exports, Brunei Darussalam is quite active in international trade and both inward and outward foreign investment. The bulk of inward foreign investment has come from Brunei Darussalam’s close relationship with AngloDutch oil company Royal Dutch Shell. The firm made the first discovery of onshore oil in the country in 1929, and as the focus of exploration and production has moved to larger offshore gas fields…

Interview

OBG talks to Pehin Dato Lim Jock Seng, Minister of Foreign Affairs and Trade II
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Interview:Pehin Dato Lim Jock Seng What opportunities does the implementation of the ASEAN Economic Community (AEC) in 2015 create for the country? PEHIN DATO LIM JOCK SENG: As the country with the smallest population in ASEAN, we support the realisation of a prosperous, economically integrated region. Hence, we see the work of the AEC as an important opportunity for our businesspeople and investors to tap into a market with over 600m people, the third largest in the world. Furthermore, over…

Analysis

Striking a deal: Ambitious new trade agreements are set to create greater opportunities in the region
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If asked to name the founding members of the TransPacific Partnership (TPP), which is shaping up to be the most important free trade agreement (FTA) of the early 21st century, not many people would guess that one of them is Brunei Darussalam. The country has an enthusiasm for FTAs that has few rivals. After all, the Sultanate’s oil and gas exports face few import restrictions globally, due to the crucial importance that energy costs play in international competitiveness. Most countries whose exports…

Viewpoint

Xi Jinping, President of China, on the Asia-Pacific’s ties with China
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The Chinese economy has remained consistently strong as we focus on reforms and liberalisation, and we are confident of maintaining this momentum going forward. China and the Asia-Pacific share a symbiotic relationship. Both parties rely on one another for new job prospects and economic growth. We hope to establish more links with the Asia-Pacific in order to build a better and more prosperous future. The global economic recovery will be filled with difficulties and setbacks. In the Asia-Pacific…

Viewpoint

Xi Jinping, President of China, on the Asia-Pacific’s ties with China
OBG
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The Chinese economy has remained consistently strong as we focus on reforms and liberalisation, and we are confident of maintaining this momentum going forward. China and the Asia-Pacific share a symbiotic relationship. Both parties rely on one another for new job prospects and economic growth. We hope to establish more links with the Asia-Pacific in order to build a better and more prosperous future. The global economic recovery will be filled with difficulties and setbacks. In the Asia-Pacific…

Interview

OBG talks to Jun Yanai, Senior Executive Vice-President and CEO, Energy Business Group, Mitsubishi Corporation
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Interview:Jun Yanai What role can international firms play in Brunei Darussalam’s economic diversification through their involvement in the energy sector and beyond? JUN YANAI: Since its inception over 40 years ago, the Brunei Liquefied Natural Gas (BLNG) project has played a major role in making the country a world leader in LNG. Those in the LNG industry consider the Sultanate to be the pioneer in the sector, and BLNG, as one of the first world-class commercial LNG projects, has proven…

Analysis

Better together: The Sultanate is a strong advocate of free trade and regional integration
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As one of ASEAN’s richest but smallest member states, Brunei Darussalam gained enormously from its decision to join the organisation just a week after gaining independence in 1984. “Joining ASEAN was a way to solidify statehood,” said Bangkok-based regional political analyst Chayut Setboonsarng. “As a small country being part of a regional grouping increases its leverage, especially during its year as chair.” Brunei Darussalam chaired ASEAN most recently in 2013. Moving Towards AEC The…

Interview

OBG talks to Kevin Speed, Vice-President and Regional Business Leader, CAE Asia
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Interview:Kevin Speed Does Brunei Darussalam have the potential to take a leading regional role in defence and aviation? KEVIN SPEED: Brunei Darussalam is demonstrating leadership in aviation by being the first in ASEAN to fly the Boeing 787 Dreamliner and the Sikorsky S-70i Black Hawk helicopter, with Sikorsky and AgustaWestland offshore helicopters already in service. The government has invested in the world’s best aircraft for civil aviation, defence and humanitarian support services. Through…