business opportunities in brunei darussalam

BUSINESS OPPORTUNITIES IN

BRUNEI DARUSSALAM

March 2014

Brunei – “Abode of Peace”

Land Size : 5,765 sq km

Population : 399,800 (2012)

Religion: Muslim Majority

Currency : Brunei Dollar (on par &

interchangeable with Singapore Dollar)

Language : Malay, English, Chinese

#2 in ASEAN

Human Development Index (United Nations 2013)

Economic Overview

*Exchange Rate USD1=BND1.24

GDP (2012): est USD16.6 billion

GDP per capita (2013): est USD42,000

GDP growth (2013): est 1.1%

GDP composition (2012)

• Oil & Gas : 67.7%

• Government services : 11.7%

• Private : 20.6%

Inflation (2013) : 0.4%

No Government Debt

#2 in ASEAN for Global Competitiveness Index (GCR 2013-2014)

#4 in ASEAN for Ease of Doing Business (World Bank 2013)

#5 Richest Nation in the World (Forbes 2013)

With our strengths well displayed in the Oil & Gas sector, Brunei is more

than ready to look at viable ways to diversify our economy.

Total Exports : BND 15.6 Billion - 95.9% from Oil & Gas (JPKE 2013)

Successful Oil & Gas Sector

Crude Oil

42.1%

LNG 53.8%

Methanol

1.5%

Others

2.9%

*Others include Manufactured articles, Machinery and Transport Equipments

Vision for the Future

WAWASAN 2035

“To be one of the Top 10 nations in

the world recognized for its Quality of

Life and Dynamic and Sustainable

Economy”

#1 in the World Macroeconomic Environment

(GCR, World Economic Forum, 2013-14)

Politically and Economically Stable

No History of Natural Disasters

No History of Terrorism related incidents

Brunei has preserved 58% of its total land area as part of the ‘Heart of Borneo’ conservation initiative.

Environmental Performance Index (EPI 2014) #2 in South East Asia #4 in Asia-Pacific

#1 in the world for ‘Health Impacts’ #1 in the world for ‘Biodiversity and Habitat’

Extraordinary Biodiversity

Borneo is home to 6% of world’s total biodiversity.

Capable Workforce

Brunei has a young, multilingual and highly educated workforce.

Highly Educated, Skilled & Affordable Workforce

Median Age Group 27 years old

Literacy Rate 96.4%

Quality of Education (GCR, World Economic Forum, 2011-12)

#3 in ASEAN #4 in the Organisation of Islamic Cooperation

countries (OIC)

Multilingual Speaking Population

English, Malay, Chinese Dialects and Indian Dialects.

Flexible Employment Policies

#4 in the world for ‘Employing Talent’ (World Bank, Doing Business 2010)

No Active Trade Unions

No history of labour unrest.

Innovative Islamic Initiatives

#1 in the world to issue guidelines on the production of ‘Halal Pharmaceuticals’ in 2010.

Stringent Halal Food Guidelines

Brunei is currently drafting similar guidelines for

the production of ‘Halal Cosmetics’.

Brunei’s credibility guarantees the highest Halal standards

and quality in Halal certification

Brunei is currently connected to TWO major submarine cables:

Asia-America Gateway (AAG) Southeast Asia- Middle East- Western

Europe Cable (SEA-ME-WE3)

A third cable, the ‘South-East Asia-Japan Cable’ (SJC) will be ready by 2013.

International Network Connectivity

80% of Brunei’s internet capacity is under-utilised.

2000km

500km

1000km

Strategic Location

ASEAN Market

Population: 597,254,076

GDP: USD1.800 trillion

Land area: 4,435,830km2

Brunei is a member of Association of South East Asian (ASEAN) countries.

ASEAN’s market size is 1.2 times larger than the European Union (EU).

Europe

Belgo-Luxembourg Economic Union ^

Finland ^

France ^

Germany # ^

Russian Federation ^

UK*

Ukraine #

Asia

ASEAN #@

ASEAN-China@

ASEAN-India@ ASEAN-Japan@

ASEAN-Korea@

China*#

Hong Kong*

India #

Indonesia*

Japan*@

S. Korea #

Laos*

Malaysia*

Pakistan*

Philippines ^

Singapore*

Tajikistan*

Thailand ^

Vietnam*

Middle East

Bahrain* #

Iran ^

Kuwait *#

Oman * #

Qatar *

UAE ^

Australasia

ASEAN-

Australia-NZ@

Others

Trans-Pacific Strategic

Economic Partnership :

Australia, Chile, NZ, Peru,

Singapore, US, Vietnam @

International Tax & Trade Agreements

* Double Taxation Agreements # Bilateral Investment Treaties

@ Free Trade Agreements ^ Ongoing negotiations

Regional Comprehensive Economic Partnership

ASEAN-China-Japan-S. Korea-India-NZ-Australia ^

Potential partners include the Ministry of Finance and Brunei Government’s private equity funds:

Bank Islam Brunei Darussalam (BIBD), Strategic

Development Capital Fund, Aureos-BICB and Soft Bank Investments Brunei (SBI).

‘Build & Lease’ business

models can also be

considered for strategic

projects.

Financial Partnership

Credible financial support and partnership through means of

co-investment from both government and private investors.

Brunei Research Incentive Scheme (BRISc)

Cost-sharing grant created to address funding

needs of private sector R&D, for both local and

foreign companies.

Government will cost share between 80% - 50%

of R&D activities costs, at a maximum of

B$5million per application.

Companies are encouraged to collaborate with

either the Institutes of Higher Learning or

Government Agencies to carry out their R&D.

Training Grants

Grants are available for investors to improve

local manpower’s competency and skill sets .

Research & Training Grants

Ranked amongst ‘Most Improved’ countries in Innovation

Performance (Global Innovation Index 2012).

Tax Incentives

Tax Exemptions in Brunei

No Personal Income Tax

No Sales Tax

No Payroll Tax

No Capital Gains Tax

No Manufacturing Tax

Corporate Income Tax in Brunei : 18%

Pioneer Status (8 years plus extension)

Exemption from Corporate Income Tax

Exemption from import duties on machinery,

equipment, component parts accessories or

building structures

Exemption from import duties on Raw Materials

Foreign Loans For Productive Equipment

Exemption of approved foreign loan interest

from paying withholding tax

Established by

His Majesty, The Sultan & Yang Di-Pertuan of Brunei Darussalam in 2001

Vision

A leading Economic Development Agency recognised for its Professionalism, Progressive and Result Driven Culture.

Mission

To grow and diversify Brunei Darussalam’s economy by attracting investments and strengthening local businesses enabled through research and innovation.

The BEDB

REPORTING LINE

INCREASING R&D AND INNOVATION

Develop a National

Innovation System that

encourages Knowledge

Creation and

Commercialisation in

Science & Technology

and Creative Sectors.

Key Focus Areas

ENHANCING THE VALUE OF

INNOVATION

Supporting and

Promoting Intellectual

Property, Strengthening

the Tangibility of

Creative and

Innovative Output.

STRENGTHENING LOCAL BUSINESSES

Grow Micro Businesses

and Strengthen Local

Enterprises towards

Internationalisation.

DELIVERING INFRASTRUCTURE

PROJECTS

Complete Infrastructure

Projects On Time, On

Budget and To Quality.

ATTRACTING INVESTMENTS

Promote Foreign Direct Investments in Export-Oriented

Manufacturing and Services as well as Research

Collaboration in Brunei.

Food & Food Ingredients

Petrochemicals Integrated

Petrochemical

Refinery

Oil Field Services

Aviation Support Services

Silica Sand e.g. renewables

Pharmaceuticals

e.g. vaccines

Air & Sea Logistics

Software Dev / New Media

Wireless Communication

e.g. RFID, GPS

Multimedia & Game

Development

e.g. Apple, Android, Linux

Data Centre/

Disaster Recovery

Centre

Vitamins & Supplements

Adding Value to Brunei’s Resources

Tapping into our Hinterland

Regional Hub for Information & Communication

Growing our Supporting Industries

Focus on Emerging New Technologies

Financial

Services Food Security

Energy

ICT

Environment

Health Care & Health

Sciences

Cosmetics & Personal Care

Economic Diversification

Industrial Sites

PULAU MUARA BESAR (PMB)

Total Site Size : 955ha

Zhejiang Hengyi (China)

Refinery and Aromatics Complex

US$4bil (Phase 1) / 800 jobs / 260 ha

Target Start Operation : 2017

Infrastructure

Bridge to PMB

Main Road across PMB Island

Target Construction : 2014

Integrated Marine Supply Base

Centralised facility providing

fabrication yard, storage, berthing

facilities, etc to cater for the Oil & Gas

Upstream development.

Target Request For Proposals: 2014

New Opportunities:

Oil and Gas Based Petrochemicals

Metal Smelting

*24 km to Brunei International Airport

Oil & Gas Related Industries

SUNGAI LIANG INDUSTRIAL PARK (SPARK)


Brunei Methanol Company (BMC)

*FIRST DOWNSTREAM PETROCHEMICAL

PLANT IN BRUNEI. US$600mil /181 jobs

850,000 tons per year Methanol Plant Mitsubishi Gas Chemicals (Japan)

ITOCHU Corporation (Japan)

Petroleum Brunei (Brunei)

Start operations : May 2010

Infrastructure

Common export facility (jetty)

Steam Generation Facility

Water Treatment Plant

New Opportunities

Methanol Derivatives

Gas-Based Petrochemicals

Ammonia-Urea based downstream


*90 km to Muara port

Petrochemical Industries

BMC (24 ha)

Methanol Export Facility

Light Manufacturing Industries

*11 km to Brunei

International Airport

*20 km to Muara Port

SALAMBIGAR INDUSTRIAL PARK

Total Site Size : 137.2ha

• Light Industry (Food; Cosmetics;

Pharmaceutical; etc.)

Readily prepared infrastructure

• Connection to Utilities (Power,

Water, Tele-communication, etc)

• Road Access

Potential ‘Build & Lease’ Option

Negotiable Land lease rates

Simpor Pharma (Canada)

• Export of Halal-certified natural

health products, over-the-counter

and prescription drugs.

• US$18.5mil / 100 jobs / 2ha

Potential Investors

Astaxanthin production plant

Halal Cosmetics Manufacturing


*28 km to Muara port

(2.77ha)

Proposed

MPTC

Lot 2 (3.0ha)

Proposed

National

Data Centre

Potential Data

Centre/Disaster

Recovery Centres

(7.2ha)

Executive Housing

ICT & High-Tech Industries

RIMBA DIGITAL JUNCTION


Information and Communication

Technology and other High-Tech

Industries

CAE (Canada)

Multi-Purpose Training Centre

US$102mil / 35 jobs / 2.4ha

Co-investment with Brunei Government

National Data Centre

Data Centre for Energy & e-Government

US$80mil / 250 jobs / 5ha


Develop a National



Creation and




Key Focus Areas


INNOVATION

Supporting and



the Tangibility of

Creative and

Innovative Output.




Enterprises towards



PROJECTS








iCentre

Incubates technology based start up companies

Current Incubatees: 13 physical & 7 virtual

Activities:

Mobile, Web, GPS, RFID, Smart Technology, Apps Development and Multimedia

Knowledge Hub

Houses companies involved in R&D activities.

Tech One Global

(Microsoft/Adobe)

ICT/R&D Software and services

company

CRAFT Multimedia Lab

UBD | IBM Energy research &

Environmental simulation

Centre

Ministry of Defence National Modeling and

Simulation Centre ANGGEREK DESA

TECH PARK

Knowledge Based Enterprises

Knowledge Based Enterprises

ANGGEREK DESA TECH PARK (Phase III)

SME Development Centre

R&D Activities

CRAFT (Creative Arts Facilities)

Financial Schemes for Innovative Start Ups

ACCEL-X Venture Capital Fund

Accel-X Pte Ltd is a Singapore- based venture capital fund

that invests into early stage technology companies in ICT, interactive digital media and engineering.

Fund Size

B$20 million (Brunei B$5 million/SPRING, Singapore B$15 million)

Recipients Products

Infindo Technology

Top 100 best start-up, PRs Germany

Top 20, Apple Apps worldwide

iPhone/Android

Applications

MeSixty Sdn Bhd

Top 100 Asia, Red Herring SMS Gateway

Chatworthy

The Future Fund

Partnership with AITI and DST to provide seed capital to ICT

start-ups. Funded companies will be:

Incubated at iCentre and will receive mentorship.

Given access to test business ideas in the market by

leveraging on DST’s mobile infrastructure.

Fund Size

B$1.8 Million (ranging B$50K to $150K per applicant)

Local Enterprise Applications and Products (LEAP) Grant Scheme

Provides financial assistance to develop prototypes or pilot

projects across a broad range of industries that have innovative

technological content, commercial viability and export potential.

Fund Size Recipients to date

B$5 Million over 4 years 23

SMEs Product Status

Batik

Desamas

Company

Digital printing on

woven material.

Signed MOU with a Korean

business partner.

Supported by MOFAT under

ASEAN Trading Partnership to

supply Batik to Korea.

MeSixty Sdn

Bhd

Geo-tagged travel

guide for social

networks.

MeSixty developed Brunei

Tourism’s first official iPad app

as a travel guide

M&G

Sustainable

Aquaculture

Self-operating

aquaculture system

with remote

accessibility.

Project endorsed by MIPR

and has received interest

from Malaysia and Singapore

as distributors.


Startup Brunei (SUB)

A Grant Scheme offered by the Brunei Economic Development

Board that aims to increase innovative start-ups and develop

entrepreneurship in Brunei Darussalam. The Scheme provides a

platform that offers financial assistance, fast-track business setup

support and talent recruitment facilitation to local and foreign

entrepreneurs that wish to start-up their innovative business in

Brunei.


Eligibility

Incentive Details New local

startup

Existing local

business

Foreign

startup

Start-up incentive

B$50,000

Fast-track business

set-up1

Talent recruitment

facilitation2

Relocation incentive

B$30,000

Criteria

Innovative Business Proposal

Quality of proposal

Quality of founder and team

Knowledge and Innovation

Five focus areas of research:

Energy

Environment

Food Security

HealthCare / Health Sciences

ICT

Brunei Research Incentives Scheme (BRISc) is a cost-

sharing scheme to support R&D activities conducted in

the five focus areas.

Companies will be encouraged to collaborate with

Institutes of Higher Learning or Government Agencies, so

as to ensure knowledge and technology transfer to

Brunei.

R&D projects under consideration:

Food, nutraceuticals & pharmaceuticals.

Diagnostic and screening products for cancer & viral

diseases.

Water & solar technologies.

Research & Commercialisation


Develop a National



Creation and




Key Focus Areas


INNOVATION

Supporting and



the Tangibility of

Creative and

Innovative Output.




Enterprises towards



PROJECTS








Intellectual Property Regime

PATENTS INDUSTRIAL DESIGNS TRADEMARKS PLANT VARIETY

PROTECTION (PVP) COPYRIGHT*

Legislation Patents Order, 2011 Patent Rules, 2012

Industrial Designs Order, 1999

Industrial Designs Rules, 2000

Trade Marks Act (Cap 98)

Trade Marks Rules, 2000

Plant Variety Protection Act (at finalisation stage)

Copyright Order, 1999

Membership

to International Conventions & Treaties and Work Sharing Initiatives

Patent Cooperation

Treaty (PCT) for the International Filing of Patents

Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of

Patent Procedure ASEAN Patent

Search & Examination Cooperation (ASPEC)

The Hague System

for the International Registration of Industrial Designs by 2013

The Madrid Protocol

for the International Filing of Trademarks (the Madrid System) by 2014

The International

Union for the Protection of New Varieties of Plants (UPOV) by 2014

Berne Convention

for the Protection of Literary and Artistic Works

* Currently under the

Attorney General’s

Chambers (AGC)

Paris Convention for the Protection of Industrial Property

Intellectual Property Rights

Protecting Businesses Through Strong IP Rights

Recognized as a Nation with Strong IP Rights

On 1 May 2013, Brunei Darussalam was removed from

the United States Trade Representative (USTR) Special

301 Watch List in recognition of the country’s

substantive efforts in implementing legislation on IPR,

enforcing laws and educating the public on the

importance of protecting IP.

Worldwide IPR Protection When Protecting in Brunei

Brunei has acceded to a number of WIPO-

administered treaties in different areas of Intellectual

Property enabling the worldwide protection of

products and businesses:

• The Patent Corporation Treaty (PCT): Businesses

can have their patents protected in any one of

the 147 contracting PCT States when applying for

a patent in Brunei.

• The Hague Agreement: By the end of 2013,

businesses can have their industrial designs

protected in several countries by means of a

single application lodged in Brunei.

• The Madrid Protocol: By 2014, businesses can have

their trademarks protected internationally in a

number of jurisdictions with an application

registered in Brunei.


Develop a National



Creation and




Key Focus Areas


INNOVATION

Supporting and



the Tangibility of

Creative and

Innovative Output.




Enterprises towards



PROJECTS








Youth Entrepreneurship Development

Programme

To encourage and assist youths to either start their own

micro businesses or obtain jobs as skilled workers in

collaboration with Youth Development Centre and

Vocational Schools.

Features of Grant

Non-repayable

Applicants can be either individuals or group of 2

people

Grants capped at B$2,000 per applicant

Grants are only for purchase of equipment relevant

to the businesses

Type of Businesses

Beauty Salon

Bakery

Catering Services

Tailoring & Embroidery

Car Washing Services

Plant Nursery

Air Conditioning

Maintenance

Services

Food Kiosks

Weaving

Fish Mongering

102 NEW MICRO BUSINESSES SET UP SINCE 2008

Micro-Enterprise Development

Village Enterprises

To assist in the development of village product to support the

‘One Village, One Product’ initiative under the Ministry of Home

Affairs by providing capital assistance in collaboration with

respective District Office.

Assistance

Grant of up to $50,000 per village for purchase of equipment or

construction of relevant facilities.

Targeted Industries

Kg Tg Maya &

Kg Bukit Udal, Tutong Production of Virgin Coconut Oil

Kg Ukong, Tutong Production of traditional

handicrafts

Kg Kapok Production of banana crackers

Kg Senukoh, Temburong Production of yellow noodles

Micro-Enterprise Development

Promising Local Enterprise Development Scheme (PLEDS)

To provide assistance to promising local enterprises to

enhance their capability and competitiveness

To assist the promising local enterprises expand their

businesses and venture abroad

Assistance

Enterprise Technical Assistance Scheme (ETAS) of B$3

million over 2 years to support up to 50% co-sharing in

engaging professional consultants, hiring of

professional staff and helping companies overcome

common market entry cost barriers.

Target Industries

Established Companies with readily available Products &

Services for exports.

Internationalisation Support


Develop a National



Creation and




Key Focus Areas


INNOVATION

Supporting and



the Tangibility of

Creative and

Innovative Output.




Enterprises towards



PROJECTS








18.6 Km Dual Carriageway Lumut-Telisai Highway

Status : On-going construction

Timeline

2010 Construction by CCCC Third Harbour

Engineering/Surati Construction

(China/Brunei)

2014 Completion

Modernisation of Brunei International Airport Terminal

Status : On-going construction

Timeline

2010 Concept Design and Project Management

by Changi Airport

Consultant/AECOM (Singapore)

2011 Construction by Trans Resources

Corporation Sdn Bhd/Swee Sdn Bhd JV

(Malaysia/Brunei)

2014 Completion

Infrastructure Implementation

Rehabilitating Existing Dump Site (Sg Akar)

Status : Final closure is on-going by Jurusy Perunding (Brunei)

Timeline

2009 Commencement of rehabilitation and operations

2010 Completion of rehabilitation and on-going operations

2011 Completion of operations

2012 Completion of final closure works

Modern Engineered Landfill (Sg Paku) & Transfer Station

Status : On-going construction and partial operations

Timeline

2010 Commencement of design by ST Marine (Singapore) /

QAF (Brunei)

2011 Commencement of construction and Partial

Operations

2012 Completion of construction and commencement of

full operations

2015 Completion of operations contract

Modern Waste Management

2,000 Houses (Panaga)

STATUS : Completed

Timeline

2009 Construction by Bina Puri (Malaysia)

2011 Handed Over to House Owners

4,000 Houses (Mengkubau)

STATUS : On-going construction

Timeline

2010 Construction by UEM Builders (Malaysia)

Consultancy by Surbana (Singapore)

2014 Completion

1,500 Houses (Bukit Beruang)

STATUS : On-going construction

Timeline

2010 Construction by Tee International

(Singapore)

2014 Completion

Infrastructure Implementation

THANK YOU

THE BRUNEI ECONOMIC DEVELOPMENT BOARD

Block 2D, Jalan Kumbang Pasang

Bandar Seri Begawan BA1311

Brunei Darussalam

Tel: +673-223 0111

Fax: +673-223 0082

www.bedb.com.bn

http://www.bedb.com.bn/

business opportunities in brunei darussalam

Documents