Brunei - Latest News/Current Events, Economic Overview & Trade Relations
Quick Facts about Brunei
| Official Name | Negara Brunei Darussalam |
| Capital | Bandar Seri Begawan |
| Location | Southeastern Asia, bordering the South China Sea and Malaysia |
| Area | total: 5,770 sq km land: 5,270 sq km water: 500 sq km |
| Climate | tropical; hot, humid, rainy |
| Terrain | flat coastal plain rises to mountains in east; hilly lowland in west |
Editor PicksBrowse Asia News Archive
Brunei Shows Signs of Simmering Inflation
Brunei's consumer price index (CPI) rose 2.7 percent year on year in 2008, according to a report by the Department of Economic Planning and Development (JPKE).
Brunei's consumer price index (CPI) rose 2.7 percent year on year in 2008, according to a report by the Department of Economic Planning and Development (JPKE). Last year's inflation is a marked departure from past inflation levels - the CPI in 2007 grew only by 0.3 percent. The spike in inflation in 2008 is attributed to the significant rise of the prices of food and non-alcoholic beverages, which rose 5 percent. This rise in food and non-alcoholic beverages prices was caused by soaring prices in cooking oils and fats, which recorded a 38.9 percent jump. The CPI is based on a fixed basket of goods and services that is representative of the consumption pattern of the majority of households in Brunei. The inflation rate has been significantly lower than in other countries in the region partly because the Bruneian government subsidizes purchases on rice and sugar, petrol and diesel and liquefied petroleum gas.read source article
Brunei: $1.05b Set Aside For Development Projects Over This Fiscal Year
The State Legislative Council Meeting yesterday saw the passing of the budget for the fiscal year 2009/2010, which included the allocation of $1.05 billion for development projects.
The State Legislative Council Meeting yesterday saw the passing of the budget for the fiscal year 2009/2010, which included the allocation of $1.05 billion for development projects. This figure remained unchanged to that of the previous fiscal year. Spending in development, under the National Development plan of 2007-2012, includes investment in the oil, gas and private sectors. Development projects and investment are expected to help stimulate the economy, increase small and medium entrepreneurship (SMEs) and create more job opportunities in the private sector.Brunei To Toughen Dirty Money Defense
Brunei is confident that it will improve its compliance ratings with international rules against dirty money.
Brunei is confident that it will improve its compliance ratings with international rules against dirty money. The ratings will be based on the Financial Action Task Force (FATF) 40 + 9 Recommendations on Money Laundering and Terrorist Financing in November 2009. The aim of improving Brunei's ratings is to comply with international standards to be a financial center.read source article
Brunei: Cement Exports Not Viable
Butra HedelbergCement Sdn Bhd (BHC), Brunei's sole cement company, has ruled out the viability of exporting its product as it struggles against the lack of government policy limiting foreign competition in the domestic market.
Butra HedelbergCement Sdn Bhd (BHC), Brunei's sole cement company, has ruled out the viability of exporting its product as it struggles against the lack of government policy limiting foreign competition in the domestic market. BHC said that cement is not actually produced in Brunei and that it will incur high freight costs if they transport the finished product to overseas markets. Moreover, BHC has to take into account the fact that it imports raw material and that the market to export cement is too small right now.Brunei Government Targets SME Export Finance Scheme This Year
Brunei's government is aiming to set up an export financing scheme by the end of the year to help provide capital to small businesses venturing into the overseas market.
Brunei's government is aiming to set up an export financing scheme by the end of the year to help provide capital to small businesses venturing into the overseas market. It will provide money to small and medium enterprise (SME) exporters in areas such as product and business development, training, design and technology development and marketing. The government is also expecting the private sector to do its share to assist SME's in this regard to follow principles of good corporate citizenship and to help enhance the nation's competitiveness.read source article
Brunei Businesses Accept New Tax, Demand Accountability
A new Commercial Building Tax, which goes into effect on April 1, was welcomed by local businesses to help defray the costs of maintaining public services.
A new Commercial Building Tax, which goes into effect on April 1, was welcomed by local businesses to help defray the costs of maintaining public services. Revenues from the tax will fund services such as waste and sewage management. These public services used to be funded partly by revenues from the corporate income tax, but only companies that declared profitability at a set range paid. Thus, the new tax makes all businesses pay for the public services that they used to enjoy for free. With more money to fund public services, business leaders now have higher expectations for these services to be better.Browse Asia News Archive
Trade Agreements
ASEAN - China Free Trade Area
The ASEAN - China Free Trade Agreement will apply in an area involving 1.7 billion consumers, making it the world's largest trading area. The agreement currently establishes a zero-tariff market. The agreement now contains trade in goods, services and dispute settlement. Investment is still under negotiation.
ASEAN - Korea Free Trade Area
Under the ASEAN- Korea Free Trade Agreement, Korean businesses will gain access to the ASEAN market, which contains nearly 500 million people. The agreement contains trade in goods and tariffs will be either eliminated or reduced on Korean products. http://www.aseansec.org/18063.htm
ASEAN Free Trade Area
Initiated in 1992, ASEAN Free Trade Area (AFTA) main mechanism used to reduce tariffs in ASEAN. It originally contained six members (Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand) the other four members (Vietnam -1995, Laos -1997, Myanmar-1997 and Cambodia-1999) joined after the original agreement was signed. In order to join ASEAN, they had to agree to AFTA. The overall objective of AFTA is to encourage more foreign investment to ASEAN and establish ASEAN as a world competitor by eliminating both tariff and non-tariff barriers within ASEAN. Over the next 15 years, ASEAN agreed to reduce tariffs 0-5%. http://www.aseansec.org/19346.htm
Trade and Investment Framework Arrangement between the United States of America and the Association of Southeast Asian Nations
United States of AmericaThe Enhanced partnership between ASEAN and the United States will increase cooperation and understanding in the areas of politics, economics and safety. EAI, Enterprise ASEAN Initiative, will strengthen economic cooperation and will allow and increase of trade and investment between both parties. Both sides have also vowed to work together on various projects in the development arena including, fighting infectious disease and disaster relief. http://www.ustr.gov/assets/Trade_Agreements/TIFA/asset_upload_file932_9760.pdf
Trans-Pacific Strategic Economic Partnership Agreement
The Trans-Pacific Strategic Economic Partnership Agreement was concluded in 2005. The Agreement has previously been know as the Pacific Tree FTA; however, upon the entry of Brunei, it changed to its current title. It spans three continents, the first FTA to do so, and it seeks to connect the economies of the involved countries. Most of the tariffs were eliminated upon entry into force as well as immediate market access. http://www.mfat.govt.nz/Trade-and-Economic-Relations/0--Trade-archive/0--Trade-agreements/Trans-Pacific/0-sep-index.php
Trade Organizations
ASEAN Plus 3
Forum as a coordinator of cooperation between ASEAN and China, Japan and South Korea.
Asia Cooperation Dialogue (ACD)
The Asia Cooperation Dialogue (ACD) is an International Organization to promote Asian cooperation at a continental level, helping to integrate the previously separate regional organizations of political or economical cooperation such as ASEAN, SAARC
Asia-Pacific Economic Cooperation (APEC)
Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries or regions (styled 'member economies') to discuss the regional economy, cooperation, trade and investment. The membership is claimed to account for approximately 41 percent of the world's population, approximately 56 percent of world GDP and about 49 percent of world trade. The activities, including year-round meetings of the members' ministers, are coordinated by the APEC Secretariat.
Association of Southeast Asian Nations (ASEAN)
Association of Southeast Asian Nations, commonly referred to as ASEAN, is a geo-political and economic organization of 10 countries located in Southeast Asia, which was formed on August 8, 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Its aims include the acceleration of economic growth, social progress, cultural development among its members, and the promotion of regional peace.
BIMP-East ASEAN Groth Area (BIMP-EAGA)
A subregional economic cooperation initiative involving 4 Southeast Asia Nations
East Asia Summit (EAS)
The East Asia Summit (EAS) is a Pan-Asia forum of 16 countries in East Asia, with ASEAN in a leadership position.
Trans-Pacific Strategic Economic Partnership (SEP or P4 Agreement)
he Trans-Pacific Strategic Economic Partnership (SEP), also known as the P4 agreement, is a multilateral free trade agreement between the countries of Brunei, Chile, New Zealand and Singapore which was signed on 3 June 2005 and came into force on 28 May 2006.