World Trade Organization |
RESTRICTED |
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WT/TPR/G/196 | |
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(08-0237) |
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Trade Policy Review Body |
Original: English |
TRADE POLICY REVIEW Report by Brunei Darussalam |
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the |
Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Brunei Darussalam.
CONTENTS
Page
I. GENERAL POLICY STATEMENT 5
II. INSTITUTIONAL FRAMEWORK 5
III. INTERNATIONAL TRADE RELATIONS 5
(i) International organisations 5
(ii) Regional efforts 6
(iii) Free Trade Agreements 6
IV. ECONOMIC ENVIRONMENT 7
V. TRADE POLICY FRAMEWORK 7
(1) Tariffs 7
(2) Services 8
(3) Investment 8
(4) Intellectual Property Rights 9
(5) Standards 10
(6) Government Linked Companies 11
VI. SECTORAL POLICIES AND DEVELOPMENT 11
(1) Oil and Gas 11
(2) Downstream Industries 12
(3) Small and Medium Enterprises 12
(4) Agriculture, Forestry and Fisheries 13
(5) Manufacturing 13
(6)
(7) Telecommunications 15
(8) Information and Communications Technology (ICT) 15
(9) Air Transport Services 16
(10) Ports 16
(11) Tourism 17
VII. STRATEGY FOR FUTURE GROWTH 17
VIII. CONCLUDING REMARKS 18
I. GENERAL POLICY STATEMENT
1. Since the last trade policy review in 2001, Brunei Darussalam maintains its strong support for an open, rules-based and non-discriminatory multilateral trading system as prescribed by the WTO, and continues to support the process of the Doha Development Agenda.
2. Brunei Darussalam continues to pursue free trade policies aimed at fostering economic growth, with the responsibility for allocating resources and determining economic decisions left to market forces.
3. Participation in regional economic forums remains based on the concept of "open regionalism", in which regional economic cooperation is seen as a building block towards multilateral trade liberalization.
II. INSTITUTIONAL FRAMEWORK
4. The Constitution of Brunei Darussalam was revised in 2004 and 2006 which led to the re-establishment of the Legislative Council on
5. On
6. On
III. INTERNATIONAL TRADE RELATIONS
(i) International organisations
7. Brunei Darussalam is also a member of the Asia Europe Meeting (ASEM) and the Asia Pacific Economic Communities (APEC) organisations which, among others, hold informal consultations on WTO matters, thus complementing and reinforcing efforts to strengthen the multilateral trading system. In the last APEC Summit in
(ii) Regional efforts
8. Regionally, Brunei Darussalam enjoys strong and friendly relations with the other
9. Brunei Darussalam continues to support ASEAN’s efforts particularly to establish the ASEAN Community by 2015, which aims to transform ASEAN into a stable, prosperous and highly competitive region through 3 pillars; the ASEAN Security Community, the Socio-Cultural Community and the ASEAN Economic Community. The establishment of the ASEAN Economic Community (AEC) is to be facilitated by the AEC Blueprint, which essentially provides a clear focus of work for economic integration, by setting out defined measures, timelines and implementation targets for the realization of the AEC by 2015. ASEAN Leaders signed the Declaration on the AEC Blueprint at the 13th ASEAN Summit held in
10. Under the umbrella of
11.
(iii) Free Trade Agreements
12. Bilaterally, Brunei Darussalam has also been involved in several Free Trade Agreements, which it believes will complement its aim for a multilateral trading regime. Brunei Darussalam is a party to the Brunei-Japan Economic Partnership Agreement (BJEPA) and the Trans-Pacific Strategic Economic Partnership Agreement (P4).
13. The Brunei-Japan Economic Partnership Agreement is Brunei Darussalam’s first bilateral free trade agreement. The Agreement was signed by the leaders of both Brunei Darussalam and
14.
15. The Trans-Pacific Strategic Economic Partnership Agreement also has side agreements, namely the Environment Cooperation Agreement and Labour Cooperation Memorandum of Understanding, to reflect a shared desire to encourage and promote sound labour and environment practices. These agreements establish mechanisms for ongoing cooperation and dialogue on labour and environment issues. Brunei Darussalam is also preparing its non-conforming measures list for the Services Chapter as well as the list for entities under the Government Procurement chapter to be submitted to the Parties. Negotiations on investment and financial services will resume within two years after the entry into force of the Agreement.
IV. ECONOMIC ENVIRONMENT
16. Hydrocarbon exports and the steady accumulation of long-term foreign assets continue to provide Brunei Darussalam with a comfortable external position, and have helped
17. In 2006, Brunei Darussalam's economy improved, as it grew by 5.1% compared to 2.7% in 2001. GDP growth was largely due to positive developments in the hydrocarbon, financial and private services sectors. The growth rate for the next five years is expected to be within the range of 2 to 4%.
18. The Department of Economic Planning and Development (DEPD) is embarking on a new development plan that will further stimulate and accelerate the pace of economic growth and ensure the realisation of a more diversified and sustainable economic development in the long term.
V. TRADE POLICY FRAMEWORK
(1) Tariffs
19. Brunei Darussalam's tariff structure remains liberal and transparent consisting of 10,702 tariff lines – of which 68% of tariff lines are duty free, 30.68 % are ad valorem rates (5-30 %) and 1.2% are specific tariffs (131 lines). Tariffs have been eliminated or progressively reduced over the years, and in 2004, the average MFN tariff was 4.8%. In 2004, the categorisation of the tariff lines with ad valorem rates is as follows:
Ad Valorem Rates (%) |
Number of Tariff lines |
0 |
7,285 |
5 |
876 |
10 |
124 |
15 |
99 |
20 |
2,181 |
30 |
6 |
Total |
10,571 |
20. Non-tariff measures are few and maintained only to discharge
21. The Department of Information Technology and State Stores continues to administer the importation and stockpiling of sugar and certain types of rice, to ensure security of supplies and price stability.
(2) Services
22. The services sector is an area of focus in efforts to diversify the economy and the policy of each Services sector remains under the purview of the relevant Ministry/agency.
23. Brunei Darussalam continues to liberalise its services sectors progressively, in accordance with its domestic capabilities and priorities, and commitments under the WTO and bilateral/regional arrangements. As such technical cooperation is welcome. To date, Brunei Darussalam has made liberalisation commitments in the following sectors:
(i) Business (Professional services);
(ii) Business (Computer and related services);
(iii) Business (Rental/Leasing services without operators);
(iv) Communication (Telecommunication services);
(v) Financial (Insurance and Insurance related services);
(vi) Other Financial Services;
(vii) Transport (Air Transport Services); and
(viii) Tourism
(3) Investment
24. Brunei Darussalam does not maintain any WTO inconsistent trade-related investment measures. A local equity requirement of not less than 30% applies to joint ventures in agriculture, fisheries and food processing, only if government facilities such as government-developed industrial sites are applied for.
25. The Government also continues to actively pursue Bilateral Investment Treaties and Double Taxation Agreements with interested countries. Brunei Darussalam has concluded and signed Bilateral Investment Treaties with ASEAN,
26. Since the last review, the Government enacted the Investment Incentives Order 2001 in June 2001 to replace the former Investment Incentives Act (CAP. 97) in order to encourage the establishment and development in Brunei Darussalam of industrial and other economic enterprises for economic expansion and for incidental and related purposes. The authority to administer this legislation is currently vested in the Minister of Industry and Primary Resources. The new law provides guidelines for granting pioneer status to industries and tax relief for foreign and local investment, as well as the possibility of extending tax relief periods.[2]
27. The Brunei Economic Development Board (BEDB) Act was revised in 2003 and is now called the Brunei Economic Development Board Act (Chapter 104).[3] The Act strengthens the BEDB's powers for the promotion of foreign direct investment, development of joint ventures in strategic sectors and the provision of efficient services to investors. The Act was further amended with the Brunei Economic Development Board Act (Amendment) Order 2003, which includes a new provision on auditing and BEDB is now a corporate body with perpetual succession and a common seal of power, subject to the provisions of the Brunei Economic Development Board Act, to acquire and dispose of property, both moveable and immoveable, may sue and be sued in its corporate name and perform such other acts as corporate bodies may by law perform.
28. The BEDB's main role is to create new economic opportunities for the local people and SMEs in terms of employment and business respectively; while it functions as a first-stop agency to attract, retain and add value to both local and foreign investments and coordinating with relevant ministries and agencies to maximize the benefits generated by both local and foreign direct investment through the strengthening of policy, legal and institutional framework and human resources development for investment and improving investment promotion capabilities.
(4) Intellectual Property Rights
29. The Registries Division of the Attorney General’s Chambers is responsible for all matters concerning intellectual property (IP) including drafting of relevant intellectual property legislation, registration and administration of intellectual property rights under the respective intellectual property legislations as well as promoting awareness and disseminating information on intellectual property in the country.
30. Currently, the Registries Division administers the following intellectual property rights legislation:
(i) Trade Marks Act (Cap 98)
(ii) Trade Marks Rules, 2000
(iii) Inventions Act (Cap 72)
(iv) Copyright Order, 1999
(v) Industrial Designs Order, 1999
(vi) Industrial Designs Rules, 2000
(vii) Layout Designs Order, 1999
31. Enforcement of intellectual property rights (IPR) is based on complaints lodged by the registered owner. Both civil remedies and criminal sanctions are available in infringement cases. The Commercial Crime Unit of the Royal Brunei Police Force is responsible for criminal enforcement activities while border enforcement measures are carried out by the Royal Customs and Excise Department. Prosecution of offences is initiated by the Criminal Justice Division of the Attorney General's Chambers.
32. There are no provisions on parallel importation in the IP laws currently in force. While the Inventions Act (Cap 72) does not prohibit parallel importation, the Emergency (Patents) Order does not give the patent holder an opportunity to interfere with a parallel trader. Section 66(2)(g) indicates that the proprietor of the patent has no right to prevent acts with regard to products that have been put on the market by him (or with his consent), including products that were put on the market outside Brunei Darussalam under his equivalent patents. Parallel importation is thus allowed under the new Patents Order which is yet to be fully implemented.
33. Unfortunately, the lack of technical support from the right-holders is one of the failures of IP enforcement in Brunei Darussalam. Some refuse to rely on the border enforcement provisions under the relevant IP legislations. Most of the time second-hand evidence has to be relied on and more often than not most cases do not go to court as the right owners enter into agreements with alleged offenders.
(5) Standards
34. The Construction Planning and Research Unit (CPRU) at the Ministry of Development is the focal point for standards and conformity assessment activities. They are the focal point in Brunei Darussalam for international and regional standards organisation and fora (e.g. ISO, IEC, Pacific Area Standards Congress (PASC), Asia Pacific Laboratory Accreditation Cooperation (APLAC). CPRU manages the National Technical Committees (TECO) in the various sectors for standards development, including the adoption of international standards as national standards. CPRU also manages the accreditation programme for testing and calibration laboratories to ISO 17025:2005 and promotes the recognition of certification and accreditation from ILAC/APLAC, IAF/PAC signatories and have signed an MOU with the Singapore Accreditation Council (SAC-SINGLAS) on 9 April 2001 to cover accreditation activities not provided under the CPRU scope of accreditation.
35. The National Standards and Accreditation Centre (NSAC) was formed in 2006 as a division under the Ministry of Industry and Primary Resources. It has the task of assisting companies producing local products to comply with international standards in order to be able to penetrate the export market. The services currently provided by NSAC include assistance in obtaining international certification (e.g. HACCP, GMP); standard and quality product training; quality and promotion development; and consultation services. The establishment of a Calibration Laboratory, which will be traceable to the International System of Units as maintained by the Bureau International des Poids et Measures (International Bureau of Weights and Measures) is currently in progress and NSAC is also proposing to establish a National Metrology Laboratory under the 9th National Development Plan[4]. NSAC is working together with various other ministries in moving towards centralising standards in Brunei Darussalam
36. National standards are currently available in the construction and halal food[5] sector. It is the policy of Technical Committees for the development of standards to adopt international standards where relevant and there is an ongoing exercise to review the alignment of national standards with existing relevant international standards in line with ISO/IEC Guide 21:1999. Brunei Darussalam is also a member of the following organisations responsible for the international standards for various sectors: International Organisation for Standards (ISO), International Electrotechnical Commission (IEC), International Telecommunication Union (ITU) and Codex Alimentarius (food standards).
(6) Government Linked Companies
37. In order to enhance the Government's economic diversification policy, Semaun Holdings was established as a domestic investment and trading arm of the Government. It is a private limited company incorporated in 1995 under the Companies Act. It is wholly owned by the Government and has been placed under the jurisdiction of the Ministry of Industry and Primary Resources. Its mission is to spearhead industrial and commercial development through direct investment in key industrial sectors in the interest of Brunei Darussalam. Semaun Holdings invests in companies conducting business in areas of importance to
38. Semaun Holdings has a policy to divest of a company once the company is profitable and the Government has recovered its initial investment. Since commencing operations, Semaun Holdings has steadily been building up its portfolio of joint ventures and linked companies. However to date it has not divested any companies due to the failure of these companies to meet the criteria for divestment. Semaun Holdings is currently involved in ventures in the fisheries (food processing, aquaculture), forestry (timber and joinery products) and manufacturing (therapeutic goods, crystal products) sectors.
VI. SECTORAL POLICIES AND DEVELOPMENT
(1) Oil and Gas
39. On
40. The Energy Division advises the Minister of Energy on pertinent matters concerning energy and its administration. The energy matters handled by the Energy Division range from petroleum and electricity to energy policy and sustainable energy issues. The Petroleum Unit oversees exploitation of
41. The Brunei National Petroleum Company or PetroleumBRUNEI, was legislated by enactment by the Brunei National Petroleum Company (BNPC) Order 2002. PetroleumBRUNEI was then duly registered on
(2) Downstream Industries
42. A 271 hectare land has been recognised as an appropriate site to establish SPARK, a world class Industrial Park. The projects are expected to attract investments worth US$1.5 billion worth of foreign investments and create approximately 1,000 permanent jobs. The Brunei Economic Development Board has recently completed designated areas and handed them over to the Brunei Methanol Company Sdn. Bhd. (BMC), which will commence the construction of a Methanol Plant in the beginning of 2008. Pending decisions for other projects include an ammonia/urea plant. Some space for spin-off companies benefiting from the anchor projects have been allocated within SPARK. The creation of clusters of industries over a certain area for downstream projects is a part of the development of SPARK, under the management of
(3) Small and Medium Enterprises
43. Small and Medium Enterprises (SMEs) make up 99% of the business sector in Brunei Darussalam. The creation of a business environment that is supportive of the development of SMEs is therefore a priority area for the Government.
44. The Ministry of Industry and Primary Resources has been playing a greater role as the main government focal agency for SME development. Since the inception of the Resource and Standards Centre or currently known as Entrepreneurial Development Centre (EDC) in 1997, several capacity building programs for SMEs are developed and organized throughout the calendar year. These include human capacity building on entrepreneurship and technical skills upgrading, business management, marketing, and info-communication technology. In the last five years (2001-2006), EDC has managed to organize a cumulative total of 22 seminars and 138 short courses with 5,676 entrepreneurs as beneficiaries.
45. The Business Incubator program is another human capacity building initiative run by EDC that was aimed at serving new entrepreneurs with a specialized, well-guided business operation and management practice for a period up to 2-5 years (maximum) until graduation. Currently, there are about 20 participants engaging in the field of agro-based production sector and cottage industry as well as other business support services.
46. The financial supports program which is one of the major contributing factors of SMEs development has also been undertaken and managed by MIPR. This comes in the form of Government guaranteed loans known as Enterprise Facilitation Scheme (EFS) and Micro-credit Financing Scheme (MFS) which each provides a maximum loan of B$1.5 million and B$30,000 per enterprise, respectively. Both schemes are funded by the
(4) Agriculture, Forestry and Fisheries
47. Agriculture in Brunei Darussalam is supported by the Government in the form of incentives for infrastructure development, in an effort to boost its currently small share of the GDP. The role of the Agriculture Department is to promote sustainable and competitive Agribusiness, focusing on high quality and safety while ensuring food security for the people of Brunei Darussalam. Brunei Darussalam aims to tap into the regional and global market for Halal products and services. The Ministry of Industry and Primary Resources is actively promoting the development of Brunei Darussalam as a regional Halal centre for the production and export of Halal products and services through the launching of the "Brunei Halal Brand" in August 2007.
48. Fisheries has been identified as one of the sectors that can contribute to the diversification of the Brunei economy away from its reliance on the oil and gas industry, and thus the development of the fisheries sector is actively pursued. Due to the high local demand for fisheries products coupled with a rising global demand the fisheries industry in Brunei Darussalam has been developing steadily and has the promise of being an attractive industry for the export market. The three main sectors of the industry are capture fisheries, aquaculture and processing.
49. The Forestry Department under the Ministry of Industry and Primary Resources, aims to support the national economic diversification policy through the development of the forestry sector and the creation and facilitation of viable business opportunities while preserving biological forest resources for the well-being of the nation in accordance with international and sustainable forest management obligations. Under the National Forestry Policy[6], not less than 55% of the total land area of Brunei Darussalam will be demarcated and set aside to constitute the National Forest Estate.
50. In February 2007 together with the Governments of Indonesia and Malaysia, Brunei Darussalam signed up to the Heart of Borneo Initiative, which is a voluntary trans-boundary cooperation initiative to ensure the effective management of forest resources and conservation of a network of protected areas, productive forests and other sustainable land uses for the benefit of present and future generations. It is hoped that opportunities based on non-timber forest product industries such as bio product industries (e.g. pharmaceutical, herbal and cosmetic industries) could be opened up. Eco and nature tourism is another potential sector to be further developed based on Brunei Darussalam's wealth of forest bio-diversity.
(5) Manufacturing
51. Ready made garments constitute the third biggest export after crude oil and liquefied natural gas. Since the full integration of the textiles and clothing sector into GATT 1994, this industry has seen a brief decline and although the number of companies in operation in this industry has fallen from 25 companies to merely 11, the value of garment exports has risen steadily from US$239,809,275.00 in 2004 to US$285,171,047.00 in 2006, despite the sharp fall from its 2003 peak export value of B$398.38 million. Related industries in the form of value-added services such as embroidery and printing have also been established. Other than ready made export orientated garments, the local industries also manufacture food and beverages as well as construction materials.
(6) Brunei International Financial Centre
52. The Brunei International Financial Centre (BIFC) was established in July 2000, with one of its aim to diversify the country's economy away from oil and gas, into financial services. To-date, BIFC is already fully equipped with a wide range of legislation that meets international market and standard requirements. The legislation caters for both conventional and Islamic financial activities:
Order |
Issue |
Notification number |
Issue date |
Money-Laundering Order, 2000 |
27 |
S 44 |
|
International Limited Partnerships Order, 2000 |
28 |
S 45 |
|
Criminal Conduct (Recovery of Proceeds) Order 2000 |
32 |
S 52 |
|
International Banking Order, 2000 |
33 |
S 53 |
|
Registered Agents and Trustees Licensing Order, 2000 |
34 |
S 54 |
|
International Trusts Order, 2000 |
34 |
S 55 |
|
International Business Companies Order, 2000 |
36 |
S 56 |
|
Mutual Funds Order, 2001 |
8 |
S 18 |
|
Securities Order, 2001 |
16 |
S 31 |
|
International Insurance and Takaful Order, 2002 |
27 |
S 43 |
|
53. BIFC reviews its legislation from time to time to ensure that it meets current market practices and international standards. Amendments have been made to two of its Orders as follows:
54. With the introduction of the Syariah Financial Supervisory Board Order in January 2006, the Syariah Financial Supervisory Board was established to provide for the control of administration and business dealings of financial institutions concerning Islamic products.
55. New regulations which have been introduced under the primary legislations above are: the Mutual Funds (Fees, Forms and Miscellaneous Provisions) Regulations Order 2001 (S20), the Securities (Fees, Forms and Miscellaneous Provisions) Regulations 2001 (S32) and the International Insurance and Takaful (Fees, Forms and Miscellaneous Provisions) Regulations 2001 (S44).
56. BIFC issues licenses to both conventional and Islamic financial institutions. Both financial institutions are subject to conform to the requirements prescribed in the appropriate orders. Several steps are being taken to strengthen the supervisory role of BIFC such as:
- the formation of a national money-laundering committee comprising relevant enforcement departments within the Brunei Government to help in the prevention of money laundering and financial crimes activities. The Financial Intelligence Unit (FIU) has been established in 2007 to serve as a national collection centre for purposes of suspicious transactions reports;
- joining relevant International Associations of Supervisors such as International Organisation Securities Commission (IOSCO), and International Association of Insurance Supervisors (IAIS) and also the international standard setter for Islamic Financial services, the Islamic Financial Services Board (IFSB);
- hold meetings with overseas regulatory bodies. More are planned with FSA (UK) and MAS (
- an emphasis on admitting only licensees who are of high standards; and
- all new IBCs must be the subject of Certificates of Due Diligence completed by the Licensed Agent responsible.
(7) Telecommunications
57. On
58. On
59. Prior to 2005, the only mobile service provider available in Brunei Darussalam was DST Communications Sdn Bhd (DSTCom). DSTCom was established in April 1995 as part of a Government drive to privatize key segments of the telecommunication services sector. In 2005 a second mobile service provider was awarded a license, with the aim of increasing competition in the mobile segment and thus, stimulating the market for mobile services. B-Mobile Communications Sdn. Bhd. (B-Mobile) is a joint venture company between TelBru and QAF Comserve. DSTCom delivers its services on a GSM platform, while B-Mobile delivers its services over a 3G (W-CDMA) platform.
60. The effects of competition in the mobile segment as a result of B-Mobile's entry into the segment may be illustrated as follows:
Mobile Services |
2005 |
2006 |
Population |
370,100 |
383,000 |
Subscription |
|
|
Total Mobile Subscriber (post-paid & pre-paid) |
232,900 |
278,900 |
Penetration Rate % |
62.93 |
72.82 |
Cellular tariff |
|
|
Pre-paid connection charge |
B$40.00 |
B$30.00 |
Pre-paid per minute local call (peak) |
B$0.40 |
B$0.30 |
Pre-paid per minute local call (off peak) |
B$0.20 |
B$0.20 |
Pre-paid per minute local call (different operator) |
.. |
B$0.40 |
Pre-paid short message service (sms) |
B$0.10 |
B$0.05 |
Pre-paid sms (different operator) |
.. |
B$0.15 |
(8) Information and Communications Technology (ICT)
61. The development of ICT in Brunei Darussalam falls under the purview of the Ministry of Communications. Specific to ICT Sector, the key objective of the Ministry of Communications is to uphold the vision of Brunei Darussalam on Information Society, which is to create a people-centered, intelligent, socially-responsible, inclusive and development-oriented Information Society where everyone can create, access, utilize and share information and knowledge
62. Another important body which is concerned with the ICT development is The Brunei Information Technology Council (BIT COUNCIL) with the role of providing ICT leadership and direction at the national level. While on the regulatory aspect, the planning, monitoring and implementation of the ICT Industry form the responsibility of The Authority for Info-communications Technology and Industry of Brunei Darussalam (AiTi).
63. About $950 million has been allocated by the government for the e-Government initiative under the 8th National Development Plan for ministries and government departments. The central agency to lead e-Government is the Prime Ministers' Office. Through the enactment of ICT related laws such the Electronic Transaction Order, Computer Misuse Act, Copyright Order, Broadcasting (Class License) Notification, and Internet Code of Practice Notification,
64. One of BEDB's current efforts aimed at building an ICT related industry is the establishment of the iCentre™, which began operations in August 2007. The iCentre™ is an incubation centre with a capacity to host 16 incubatees at a time. The management company overseeing the development of the centre also provides an incubation programme which includes mentorship, training and legal consultation. With the successful completion of iCentre™, BEDB plans to establish a Business Park using part of the Anggerek Desa area surrounding the centre, include the setting up of a one stop business centre providing legal, administration, banking, customs and other services under one roof while also incorporating business suites facilities for SME entrepreneurs.
(9) Air Transport Services
65. Brunei Darussalam maintains a liberal air services policy. In order to attract more foreign airlines to operate into
66. Brunei Darussalam has also signed an open skies agreement with some APEC countries on
67. The Brunei International Air Cargo Centre (BIACC) was established in 2001 to handle ingoing and outgoing cargo activities in Brunei Darussalam. Brunei Darussalam also endeavours to be a niche player in the regional market for aviation support services, specifically on aircraft maintenance.
(10) Ports
68. Brunei Darussalam aims to utilize
69. In 2004, the Government reserved a 955-hectare site in Pulau Muara Besar (PMB) to be developed into a deep sea container port. A feasibility study concluded that it is feasible to develop the proposed container port in PMB based on its: strategic location along the East-West maritime trade route; the proximity of the island to naturally very deep water, which is required by mega-sized container ships; and the growing trend in transhipment activities.
70. The port will be developed in phases by BEDB who are currently looking for strategic partners, in particular port operator and shipping lines to jointly invest and develop the PMB port. To date, BEDB have five regional port operators, who are interested to jointly invest in, build, and operate the PMB port. BEDB's plan is to invite these port operators to participate in the tender which is currently being drawn up by Drewry Shipping Consultants Ltd.
(11) Tourism
71. Since
72. The tourism industry in
73. Tourism promotion is carried out by the Tourism Development Department in the Ministry of Industry and Primary Resources, acting under the advice of the Brunei Tourism Board, which is composed of members from both the public and private sector. The Ministry and the Board intend to develop
74. In an effort to further develop its tourism industry, Brunei Darussalam joined the U.N. World Tourism Organisation in November 2007.
VII. STRATEGY FOR FUTURE GROWTH
75. Brunei Darussalam continues in its drive towards economic diversification to ensure sustainable development, both financially as well as socially.
76. The Government continues to place a great emphasis on the need for greater participation by the Economic sector to contribute towards the diversification of the economy. The Government has identified strategic industry clusters in the non-oil and gas sectors with growth potential for Brunei Darussalam, such as financial services which will focus on high end, niche investment management services, and asset and fund management, focusing on Islamic principles; hospitality and tourism, focusing on eco-tourism and hospitality services; agro-food and the halal industries, concentrating on core and value-added products of meat and fisheries, with potential activities on cosmetics and pharmaceutical products; business services, concentrating on service-outsourcing and, system and software development.
77. The Government is also still interested in attracting investment to develop the oil and gas sectors, albeit in the downstream industries, and in the manufacturing industry in sites such as the Sungai Liang and Pulau Muara Besar. Both of these undertakings are considered to require foreign investors and expertise, and thus attract FDIs into the country.
VIII. CONCLUDING REMARKS
78. Brunei Darussalam, as a small developing economy, faces many challenges in its economic diversification programme in line with the rules-based, multilateral trading system
79. During the period of the review, Brunei Darussalam remains a politically and economically stable country, suitable for foreign investment. The UN Human Development Index (HDI) 2006 ranks
80. Brunei Darussalam continues to advocate free and open trade and acknowledges the vital importance of attracting Foreign Direct Investment, in order to diversify the economy. Brunei Darussalam further recognizes the importance of adapting to an increasingly global community, and as such welcomes any economic or technical cooperation. Herewith, the Government continues to introduce and modify policies in an effort to become an even more open and competitive economy.
__________
[1] Consists of Brunei Darussalam, the Indonesian provinces of
[2] The investment incentives include corporate tax relief of up to 5 years for companies that would invest between B$500,000 to B$2.5 million in approved ventures; 8-year tax relief for investing more than B$2.5 million and an 11-year tax break if the venture is located in a high-tech industrial park. Other incentives include deduction of losses, adjustment of capital allowances and losses, exemption from import duties on machinery, equipment, component parts, accessories, building structures and raw material, as well as waiver of 20% withholding tax on foreign loans for productive equipment.
[4]
[5] With the launch of the PBD24:2007, Brunei Darussalam's Halal Food standards in 2007.
[6] Amendments made in August 2007 to the Forestry Act (Chapter 46, Laws of Brunei), will see the classification of reserved forests under the purview of the Forestry Department into the following categories "protection forest", "production forest", "recreation forest", "conservation forest" and "national parks". Activities which maybe undertaken within the limits of these areas will governed by the category to which a particular area has been assigned.