Allo' Expat Brunei - Connecting Expats in Brunei
Main Homepage
Allo' Expat Brunei Logo


Subscribe to Allo' Expat Newsletter

   Information Center Brunei
Brunei General Information
 
History of Brunei
Brunei Culture
Brunei Cuisine
Brunei Geography
Brunei Population
Brunei Government
Brunei Economy
Brunei Communications
Brunei Transportation
Brunei Military
Brunei Transnational Issues
Brunei Healthcare
Brunei People, Languages & Religions
Brunei Expatriates Handbook
Brunei and Foreign Government
Brunei General Listings
Brunei Useful Tips
Brunei Education & Medical
Brunei Travel & Tourism Info
Brunei Lifestyle & Leisure
Brunei Business Matters
  Sponsored Links


Check our Rates

Economy of Brunei
 
 
 

General

Although small, Brunei has a wealthy economy with a mixture of foreign and domestic entrepreneurship, government regulation, welfare measures and village tradition. Crude oil and natural gas production account for nearly half of its GDP. Brunei's proven oil and gas reserves are sufficient until at least 2015, and planned deep sea exploration is expected to find significant new reserves. The government sought in the past decade to diversify the economy with limited success. Oil and gas and government spending still account for most of Brunei's economic activity. Brunei's non-petroleum industries include agriculture, forestry, fishing and banking.

Substantial income from overseas investment supplements income from domestic production. The government provides for all medical services and subsidises rice and housing. Brunei's leaders are concerned that steadily increased integration in the world economy will undermine internal social cohesion although it became a more prominent player by serving as chairman for the 2000 Asia-Pacific Economic Cooperation (APEC) forum. Stated plans for the future include upgrading the labour force, reducing unemployment, strengthening the banking and tourism sectors, and, in general, further widening the economic base. The national airline, Royal Brunei is trying to make Brunei a hub for international travel between Europe and Australia/New Zealand. It also has services to major Asian destinations.

Brunei's substantial foreign reserves are managed by the Brunei Investment Agency (BIA), an arm of the Ministry of Finance. BIA's guiding principle is to increase the real value of Brunei's foreign reserves while pursuing a diverse investment strategy, with holdings in the United States, Japan, western Europe, and the Association of South East Asian Nations (ASEAN) countries.

The Brunei Government actively encourages more foreign investment. New enterprises that meet certain criteria can receive pioneer status, exempting profits from income tax for up to five years, depending on the amount of capital invested. The normal corporate income tax rate is 30%. There is no personal income tax or capital gains tax.

The government owns a cattle farm in Australia that supplies most of the country's beef. At 5,859 km² (2,262 mi²), this ranch is larger than Brunei itself. Eggs and chickens are largely produced locally, but most of Brunei's other food needs must be imported. Agriculture and fisheries are among the industrial sectors that the government has selected for highest priority in its efforts to diversify the economy.

Brunei depends heavily on imports such as agricultural products (e.g. rice, food products, livestock, etc.), motorcars and electrical products from other countries. Brunei imports 60% of its food requirements, which around 75% of those food imports come from the ASEAN countries. To achieve its target for food self-sufficiency, Brunei renamed its Brunei Darussalam Rice 1 to Laila Rice during the launch of the "Padi Planting Towards Achieving Self-Sufficiency of Rice Production in Brunei Darussalam" ceremony at the Wasan padi fields in April 2009. In August 2009, the Royal Family reaped the first few Laila padi stalks, after years of multiple attempts to boost local rice production, a goal which was envisioned about half a century ago. In July 2009 Brunei launched its national halal branding scheme, Brunei Halal, with an aim to export to foreign markets.


See more information on the next page... (next)


 

 
 
   



 


copyrights © AlloExpat.com
2018 | Policy