Low GDP Growth Fiscal DeficitReliant on Oil & Gas High Unemployment

2

THE ECONOMY CONTINUS FACESCHALLENGES & RISKS

External Factors

DIVERSIFICATION EFFORTSWe need to continue progress and accelerate economic growth despite any challenges

4

Developing Micro, Small and Medium Enterprises (MSMEs)

INCREASING & STRENGTHENING PRIVATE SECTOR

Increasing Investment Opportunities

INCREASING ECONOMIC ACTIVITIES

TOWARDS ACHIEVING ECONOMICGROWTH AND DEVELOPMENT

5

5 PRIORITY SECTORS SPEARHEADINGNON-OIL & GAS SECTOR GROWTH

ICTFood Tourism ServicesOil & Gas Downstream

5 priority sectors based on our competitive advantage and

key activities needed to support the whole economy

Increase Gross Domestic Product

Increase EmploymentIncrease Export

Value

Dynamic and Sustainable Economy

Increase Fiscal Revenue

Source: Department of Economic Planning and Statistics, Ministry of Finance and Economy

Improve private sector development particularly the Micro, Small and Medium Enterprises (MSMEs),which considers as the main driver to economic growth.

5,2485,721 5,876 5,913 5,990

186

175171 162 167

2015 2016 2017 2018 2019

MSMEs Large

NO. OF ENTERPRISES

From 2015 to 2019, the number of MSMEs increased about

3.4%

STRENTHENING PRIVATE SECTOR

6

IMPLICATION OF COVID-19 ON

BRUNEI DARUSSALAM’S ECONOMY

8

NEWS ARTICLE

“ 10 March 2020,

Brunei Darussalam’s recorded first COVID-19 case ”

9

Source: Department of Economic Planning and Statistics, Ministry of Finance and Economy

Brunei Darussalam registered a positive economic growth despite COVID-19 pandemic

SNAPSHOT OF BRUNEI DARUSSALAMBEFORE & AFTER COVID-19

The growth was mainly contribute by a new production ofpetroleum and chemical products from the downstreamactivities.

Services sector severely impact by the pandemic COVID-19such as Air Transport, Hotel and Restaurant.

GDP GROWTH BY OIL & NON-OIL (Q1 2019 – Q3 2020)

(0.2)

6.6

2.1

7.1

2.4 3.0

0.5

(8.0)

(4.0)

0.0

4.0

8.0

12.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3

2019 2020

%

Oil & Gas sector Non-Oil & Gas sector GDP

COVID-19PRE-COVID-19

GDP GROWTH BY ECONOMIC ACTIVITIES(Q1 2019 – Q3 2020)

(0.2)

6.6

2.1

7.1

2.4 3.0 0.5

(10.0)

(5.0)

0.0

5.0

10.0

15.0

20.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3

2019 2020

Agriculture, Forestry & Fishery Industry Services GDP

COVID-19PRE-COVID-19

10Source: Department of Economic Planning and Statistics, Ministry of Finance and Economy

SNAPSHOT OF BRUNEI DARUSSALAMBEFORE & AFTER COVID-19

During COVID-19, our total exports has declined, as our oil andgas exports decreased mainly crude oil and LNG in response tothe impacts of COVID-19 spread around the world. Thispandemic has resulted in a significant decrease in global demandas most countries implement the lockdowns and quarantine.

Prior to COVID-19, Brunei has already been experiencing fiscaldeficit due to declining oil and gas revenue particularly duringthe COVID-19 outbreak.

-

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3

2019 2020

BN

D M

illio

n

Export Import Non-Oil Export

MERCHANDISE TRADE(Q1 2019 – Q3 2020)

COVID-19PRE-COVID-19

79.9

(65.8)

(402.9) (289.0) (269.7)

(593.2)(756.8)(1,000.0)

(500.0)

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3

2019 2020

BN

D M

illio

n

Revenue Expenditure Fiscal Balance

FISCAL PERFORMANCE(Q1 2019 – Q3 2020)

COVID-19PRE-COVID-19

11Source: Department of Economic Planning and Statistics, Ministry of Finance and Economy

GDP GROWTH FORECASTREMAIN POSITIVE IN 2020

Brunei Darussalam projected the economy to be positive in 2020 despite COVID-19 pandemic

GDP GROWTH(2010 – 2020*)

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

%

*

(1.0)

(2.0)

(3.0)

* GDP Growth forecast

DOWNTURN

Manufacturing Petroleum

& Chemical Product

Wholesale & Retail Trade

UPTURN

SECTORAL PERFORMANCE 2020

Communications

Oil & Gas Mining & Manufacturing of LNG

Air Transport

Government

12

Whole of Nation Approach

U n i t e d i n a d d r e s s i n g t h e i m p a c t a n d

c h a l l e n g e s a r i s i n g f r o m t h e s p r e a d o f

C O V I D - 1 9 i n B r u n e i D a r u s s a l a m

Steps undertaken are focused on 3 main components:

Maintaining the well-being of public

Protecting jobs and providing support for individuals

Supporting and assisting businesses

GOVERNMENT AND PRIVATE SECTOR EFFORTS IN SUPPORTING

BUSINESSES AND INDIVIDUALS AFFECTED BY COVID-19

13

MAINTAINING THE WELL-BEING OF THE

PUBLIC

Construction of the new National Isolation Centre Building to treat andmonitor confirmed positive-infected COVID-19 patients in this Centre.

Construction of an additional National Virology Laboratory in to increasethe capacity and accelerate the testing process for COVID 19 in thecountry.

Monitoring Centres for foreigners, citizens and residents of BruneiDarussalam that have entered into Brunei Darussalam from abroad toundergo self isolation.

HIGH QUALITY AND COMPREHENSIVE HEALTH CARE SYSTEM

14

Press Conference conducted daily to provide latest information on COVID-19cases in Brunei Darussalam.

BruHealth App- a one-stop mobile application has been developed to monitorthe spread of the COVID-19 pandemic in the country. All business premises arerequired to display a QR code to be scanned by the customers.

15

EFFECTIVE DISSEMINATION OF INFORMATION

Travel ban out of Brunei Darussalam in effect starting 16th March 2020 andall foreign nationals/visitors including those in transit are not allowed toenter Brunei Darussalam.

Addressing the well-being and security of Bruneian students currentlystudying abroad to return into the country.

.

16

RESTRICTION OF EXIT AND ENTRYINTO BRUNEI DARUSSALAM

Monitoring of product prices is continuously conducted for items such as rice, sugar andother essentials such as hand sanitizers and surgical face masks.

Enhancing telecommunication services to meet the increasing demand.

17

CONSUMER AFFAIRS

Fixed Broadband Penetration (Population)

Q3 2020: 14.5%2019: 11.8%

Mobile Broadband Penetration (Population)

Q3 2020: 124.8%2019: 124.3%

Source: Authority for Info-Communications Technology Industry, Brunei Darussalam

MINISTRY OF FINANCE AND ECONOMYBRUNEI DARUSSALAM

Monitoring of product prices is continuously conducted for items such as rice, sugar andother essentials such as hand sanitizers and surgical face masks.

Enhancing telecommunication services to meet the increasing demand.

17

CONSUMER AFFAIRS

Fixed Broadband Penetration (Population)

Q3 2020: 14.5%2019: 11.8%

Mobile Broadband Penetration (Population)

Q3 2020: 124.8%2019: 124.3%

Source: Authority for Info-Communications Technology Industry, Brunei Darussalam

COVID-19 Relief Fund has been set up to enable the general public to make financial contribution in tackling the COVID 19 pandemic

$14.7mTotal donation 18

UNITED IN PROVIDING ASSISTANCE

(as of 1st August 2020)

Drive-Thru for service pension payments and descendants’ pension.

A number of Government agencies have started to provide online services for theconvenience of the public such as TransportBN.

19

PROVIDING ALTERNATIVE SERVICE DELIVERY

20

PROTECTING JOBS AND PROVISING

FOR INDIVIDUALS

Since January 2020, a total of 5,051 vacancies have been registered in the private sector.

As of December 2020, 3,003 was hired by the private sector.

21

PROTECTING JOBS AND PROVIDING SUPPORT FOR INDIVIDUALS

Improving skills: Companies are encouraged to conduct upskilling dan reskilling

trainings for their local staff, as provided by Manpower Planning and

Employment Council (MPEC).

Contract extension for i-Ready apprentices for a period of six months especially

for those whose contract expires before September 2020 in both public and

private sector.

Among others:

Providing online training free-of-charge through Coursera, an online learning platform that has over 300 courses related to business matters.

22

SUPPORTING AND ASSISTING BUSINESSES

Contribution Deferment

$138kTotal fiscal stimulus assistance for deferment

63 MSME with 536 employees approved applications

Deferment on contributionstowards Employees Trust

Fund (TAP) [5%] and SupplementaryContributory Pension (SCP) [3.5%] forlocal employees earning less than$1,500 per month in all sectors underthe Micro, Small and MediumEnterprises (MSMEs) with less than100 employees – for a period of 6months.

AMONG OTHERS:

Providing 25% salary subsidies forBruneian employees in the Micro,Small and Medium Enterprises(MSMEs) with less than 100employees – for a period of threemonths.

25% Salary Subsidy

$330kTotal fiscal stimulus assistance for subsidy

151 MSME with 1,394 employees approved applications

Assistance to the targeted sectors suchas tourism, hospitality (including hotelsand lodging houses), restaurants andcafes, and air and water transportation:

Temporary exemption of customs andexcise duties to assist retailers andconsumers from the increasingdemand on personal hygiene products,especially in combatting COVID-19.

Providing 30% discount on rental rates of government buildings for Micro, Small and Medium Enterprises (MSMEs).

Providing 50% tax discount on corporate income tax for the year

of assessment 2021.

Providing 15% discount on waterand electricity bills.

Online platforms for MSMEs to selltheir products: by BIBD - Communityfor Brunei and also the establishmentof ‘buy local product campaign’ by theGovernment.

THANK YOU