Post on 15-Apr-2022
Low GDP Growth Fiscal DeficitReliant on Oil & Gas High Unemployment
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THE ECONOMY CONTINUS FACESCHALLENGES & RISKS
External Factors
DIVERSIFICATION EFFORTSWe need to continue progress and accelerate economic growth despite any challenges
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Developing Micro, Small and Medium Enterprises (MSMEs)
INCREASING & STRENGTHENING PRIVATE SECTOR
Increasing Investment Opportunities
INCREASING ECONOMIC ACTIVITIES
TOWARDS ACHIEVING ECONOMICGROWTH AND DEVELOPMENT
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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
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IMPLICATION OF COVID-19 ON
BRUNEI DARUSSALAM’S ECONOMY
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NEWS ARTICLE
“ 10 March 2020,
Brunei Darussalam’s recorded first COVID-19 case ”
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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
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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
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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
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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.
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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.
.
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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.
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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.
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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.
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PROVIDING ALTERNATIVE SERVICE DELIVERY
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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.
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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.
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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