BUSINESS OPPORTUNITIES IN BRUNEI DARUSSALAM
Transcript of BUSINESS OPPORTUNITIES IN BRUNEI DARUSSALAM
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
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)
Total Site Size : 271ha
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
*80 km to Brunei International Airport
*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
*11 km to Brunei International Airport
*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
Total Site Size : 15ha
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
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.
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.
Financial Schemes for Innovative Start Ups
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.
Financial Schemes for Innovative Start Ups
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
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.
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.
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.
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
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.
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