Brunei Darussalam

Brunei Investment Opportunities

Investment Opportunities – Source Ministry of Foreign Affairs and Trade http://www.mofat.gov.bn/index.php?option=com_k2&view=item&layout=item&id=330&Itemid=256

Brunei Darussalam is one of the safest countries in the world with high quality of life. Brunei Darussalam also possesses a stable political system, sound macroeconomic and excellent infrastructure, including education, health, transportation and communications, legal environments, a well-educated population, strong regulatory environment as well as stable supply of water and electricity. These factors make Brunei Darussalam an attractive option for potential investors.

For longer economic sustainability, His Majesty The Sultan and Yang Di-Pertuan of Brunei Darussalam has mandated his Government to embark on a new phase of economic diversification.

OVERVIEW
Brunei Darussalam Foreign Direct Investment (FDI) Data for 2006 showed that FDI flows into Brunei Darussalam increased from B$481 million in 2005 to B$689.2 million in 2006. European Union accounted for 69.9 percent of the total FDI into Brunei Darussalam, the biggest being the United Kingdom and France. Singapore is the biggest investor from ASEAN where total investments from ASEAN member countries in 2006 were 2.2 percent and other countries 27.9 per cent.

1.OPPORTUNITIES IN DOWNSTREAM OIL AND GAS INDUSTRIES
A 271-hectare site, the Sungai Liang Industrial Park (SPARK) is being developed into a world class industrial park for petrochemical and manufacturing industries to extend the value chain of Brunei Darussalam’s natural resources of crude oil and natural gas. SPARK is situated adjacent to existing gas processing facilities, 63 km from the airport, 66 km from the capital and 77 km from Muara port. The first project to be established in the SPARK is the Brunei Methanol Company’s methanol plant with a capacity to produce 2,500 tonnes of methanol per day. The Brunei Methanol Company (BMC), incorporated on March 13, 2006, comprised three joint venture partners: Mitsubishi Gas Chemical Company (MGC), the ITOCHU Corporation, and PB Petrochemical Company Sdn Bhd (a subsidiary of Petroleum Brunei). MGC holds an equity share of 50 percent and Itochu Corp and PB Petrochemical Company Sdn Bhd hold 25 percent each. Petroleum Brunei (PB) is wholly-owned by the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam through the Prime Minister Corporation. Mitsubishi Heavy Industries Ltd is responsible for the engineering, procurement and construction of the methanol plant. The plant is being developed for target commercial production in 2010. The plant occupies an area of 16 hectares.

The other target industries for SPARK are methanol derivatives, ammonia and its derivatives. As such, there will be spin-off opportunities linked to methanol derivatives for location at SPARK. Methanol derivatives include acetic acid, polyoxymethylene(POM), Methymethacylate (MMA) and others. Other potential investment opportunities are in areas of ammonia and its derivatives, renewable energy, such as manufacturing of polysilicon, wafer and solar cells.

The Sungai Liang Authority (SLA) is a one-stop agency that addresses the requirements of SPARK tenants and provides a single point for granting of licences and approvals. The agency also enters into contracts to build infrastructure and utilities; and operates and manages common user facilities and services.

The SLA plans to develop infrastructure at SPARK for tenants’ use. The first of which is the Single Point Mooring which will be the export facility for BMC. Other infrastructures to be developed potentially via a Public-Private Partnership are the power plant, common jetty, water treatment plant and zone village.

2.PORT DEVELOPMENT
The Brunei Economic Development Board (BEDB) intends to develop Pulau Muara Besar (PMB), located in the Brunei Bay into a deep sea container port. The current size of PMB is approximately 955 hectares and will be expanded to approximately 2,000 hectares after reclamation. It will be the lowest cost deep sea container port to be built in the region. PMB has two distinct physical characteristics that make it a natural location for a deep sea container port:

◦It has a sand spit which serve as a natural breakwater where in most countries, a lot of resources will have to be allocated to build artificial breakwater to prevent the port from bad weather;
◦It is very close to deep water surrounding, i.e. 3 km from 20m water depth. Brunei Darussalam Economic Development Board (BEDB) recently invited strategic partners comprising port operators and shipping lines to submit proposals to jointly invest, design, build and operate a deep sea container port at PMB. The development of the port will be done in phases and will also house an export processing zone, oil and chemical storage, petrochemical, and other downstream export industries. There will be spin-off opportunities in the PMB both for local and international investors.
3.ICT
The iCentre was established to help promote and develop local and joint venture businesses in the field of Info Communication and Technology. Located in Anggerik Desa close to the International Airport, the iCentre aspires to be a catalyst for the development of business services cluster in Brunei Darussalam. The iCentre is managed by a subsidiary company of the National University of Singapore.

The BEDB is actively engaging technology collaborators to complement the innovation and incubation activities at the iCentre, amongst which are SKALI Malaysia, an MSCstatus company specialising in e-Business.

Opportunities at the iCentre include investment as a technology partner in RFID, mobile application and GPS and collaboration with iCentre incubatees.

For further information and clarification of the above three sectors, please contact:
The Brunei Economic Development Board
Block 2K, Bangunan Kerajaan,
Jalan Ong Sum Ping,
Bandar Seri Begawan BA1311,
BRUNEI DARUSSALAM

Tel: (673) 223 0111
Fax: (673) 223 0082

Website: www.bedb.com.bn
E-mail: info@bedb.com.bnThis e-mail address is being protected from spambots. You need JavaScript enabled to view it

4.FINANCIAL SERVICES
Financial services are one of the strategic sectors identified for economic diversification. Investment opportunities are available in banking and finance, asset management, mutual funds and insurance. Efforts have been made to create a favourable business and investment environment for the financial industry to flourish, and thereby turning the country into a vibrant investment domicile.

Brunei International Financial Centre (BIFC) was established in July 2000, with the aim to establish Brunei Darussalam as a Regional Financial Hub for the services sector, especially in the areas of Islamic Banking and finance, insurance, asset management, mutual funds, trusts and corporate activities.

A comprehensive set of legislation to cover the financial activities was enacted from 2000 to 2002, including for Islamic Banking and finance, a niche area that is now attracting growing interest from investors. The regulatory framework provides a conducive environment for regional and international financial businesses, for corporate and private clients. As Brunei Darussalam is a relatively new jurisdiction, the legislation is up-to-date and was carefully crafted to permit flexible and cost effective activities. The legislation includes laws directed at the prevention of
money laundering and other financial crimes. Legislation in-force includes:

1.Money Laundering Order, 2000*
2.Criminal Conduct (Recover of Proceeds) Order, 2000*
3.International Business Companies Order, 2000
4.International Limited Partnerships Order, 2000
5.Registered Agents and Trustees Licensing Order, 2000
6.International Banking Order, 2000
7.International Trusts Order, 2000
8.Mutual Funds Order, 2001*
9.Securities Order, 2001*
10.International Insurance and Takaful Order, 2002
11.Syariah Financial Supervisory Board Order, 2006*
* Applies to international and domestic activities

In February 2007, with the consent of His Majesty The Sultan and Yang Di-Pertuan of Brunei Darussalam, the Ministry of Finance established the Financial Intelligence Unit (FIU) to combat money laundering activities and other suspicious transactions. FIU has the support of the National Anti-Money Laundering Committee (NAMLC) members and the collaboration of the Australian Transaction Reports and Analysis Centre (AUSTRAC). The establishment of FIU reflects Brunei Darussalam’s commitment to comply with international standards. Brunei Darussalam therefore provides a ground for international market players to conduct their businesses.

The country’s conducive environment including political stability, its strategic location within the heart of the largest grouping of ASEAN countries, its strong and comprehensive legal and regulatory framework, its modern physical infrastructure and the relatively low cost of business operations, has already managed to attract an increasing number of international financial institutions to the BIFC. To date more than 7,500 licences were issued to International Business Companies, 3 international insurance licences, 6 international banking licences, 7 investment advisers licences, 8 approved auditors, 25 mutual funds and 11 registered agents and licenced trust companies.

For further information and clarification, please contact:
Brunei International Financial Centre (BIFC)
Level 14, Ministry of Finance Building
Commonwealth Drive, Jalan Kebangsaan
Bandar Seri Begawan BB3910,
Brunei Darussalam

Tel: +673 383 8747
Fax: +673 238 3787

E-mail: bifc@mof.gov.bnThis e-mail address is being protected from spambots. You need JavaScript enabled to view it

5.OPPORTUNITIES IN PRIMARY INDUSTRIES
The contribution from agriculture, forestry and fisheries to the GDP has improved. The Ministry of Industry and Primary Resources (MIPR) has set a target of achieving B$4.5 billion in gross output by 2023. Value-added, export-oriented and high-tech industry in the field of agriculture, fishery, forestry, manufacturing and tourism are the priority sectors for investment.

It is hoped that Brunei Darussalam will be able to achieve a gross output of B$2.7 billion in the agricultural industry, B$400 million in fisheries, B$1 billion in the manufacturing industry, B$356 million in the tourism industry and B$40 million in the forestry sector.

5.1 Fishery Sector
Brunei Darussalam’s marine fish per capita consumption is estimated at 47kg/year and 50 per cent of the fresh fish requirements are from import. The fisheries potentials of Brunei Darussalam is estimated to be worth at least B$400 million/year by the year 2023. Brunei Darussalam’s clean and unpolluted environment, the absence of typhoon and other food related epidemic or phenomena are amongst the reasons why Brunei Darussalam is an ideal choice for investment in the fishery sector. Furthermore, Brunei Darussalam is also found to be in the migration path of tuna.

Investment opportunities are available in the three major sectors of the fishing industries namely capture fisheries, aquaculture and seafood processing:

a.Capture Fisheries
The level of exploitation especially at Zone 3 and 4 are relatively untapped. In its effort to increase the contribution of fisheries towards the national GDP, the Government is opening up opportunities for more investments in this sector especially on the pelagic or tuna fishing. Besides giving supportive facilities and incentives, the Government, is also:

1.encouraging participation of new operators either from the locals or as joint ventures;
2.giving technical guidance and assistance for the present operators to realise their maximum potentials;
3.promoting the establishment of more downstream processing industries; and
4.introducing the financial scheme to the local operators; among others.
In capture fisheries, fishing licences are available for operating purse-seiners, tuna long liners in Brunei Fishery Limits in Zone 3 and 4.

ZONE 3 – extends 20 – 45 nautical miles offshore and is open for the larger vessels as follows:

1.Purse-seiners with 60.1 – 150 Gross Tonnage (GRT) and 351 – 600 Horse Power (HP.
2.Long liners with 60.1 – 150 Gross Tonnage (GRT) and 351 – 600 Horse Power (HP).
ZONE 4 – extends from 45 – 200 nautical miles offshore and is open for tuna long lining and tuna purse-seining.

b.Aquaculture
Aquaculture is one of the fastest developing sectors in the fisheries industry. The potential of aquaculture in Brunei Darussalam is estimated to be at least B$200 million by the year 2023. Shrimp farming, off-shore fish cage culture, ornamental fish production and freshwater culture are amongst the targeted sectors in aquaculture.

Areas for shrimp farming, specifically a 200-hectare shrimp culture area in Telisai and a 40- hectare eco-aquaculture park in Sungai Paku have been identified. Basic amenities such as access roads, main electricity supply and water supply are provided by the Government. Support facilities are also provided. Technology verification and development are conducted to ensure that appropriate technology and suitable species are available to the aquaculture operators.

c.Seafood Processing
The fish processing sector is relatively at a small scale despite the big numbers of processors and a joint-venture company involved in the production of a variety of fisheries products. These products include frozen fish, crackers, fish ball and cakes, fish nuggets, shrimp pastes, marinated fish and dried fish. They are sold and easily available in the local markets. Foreign companies are therefore welcomed to form a joint venture company with local entrepreneurs in further developing the fish processing sectors into larger enterprises.

The local market for processed seafood products presently is estimated to worth B$17 million annually at a sustainable level. There is also the domestic requirement for fishmeal, which at present, about 5 metric tons are being imported per day and with the growing aquaculture, chicken farming, etc. in the country, the demand is set to increase. More rooms are still available for expansion and further development. The Seafood Products Handling Centre in Serasa, next door to Brunei deep-water port offers an integrated business proposition in a rapidly growing fishery industry.

The well-known prawn crackers of Brunei Darussalam are seeing further growth. The products are well-received locally and overseas. It is anticipated that the product will be available easily overseas.

The Department of Fisheries has verified the technology for the production of other valueadded products such as smoked fish from under utilised fish.

For further information and clarification, please contact:

Fisheries Department
Ministry of Industry and Primary Resources
Jalan Menteri Besar, Berakas BB3910
Brunei Darussalam.

Tel: +673 238 3067 / 238 3068 / 238 3412
Fax: +673 238 2069

Website: www.fisheries.gov.bn
E-mail: bruneifisheries@brunet.bnThis e-mail address is being protected from spambots. You need JavaScript enabled to view it

5.2 Agriculture Sector
Brunei Darussalam is free from Foot and Mouth Diseases (FMD), Avian Flu and Mad Cow Diseases (BSE). Brunei Darussalam is a member of the World Animal Organization (OIE) since 2004.

Opportunities exist in all areas of agricultural production and agribusiness, ranging from primary production and food processing to providing professional services. Brunei Darussalam imports most of her food requirements except chicken and eggs. As agriculture is pivotal in ensuring security of food supply, the Department of Agriculture actively promotes agricultural development as well as facilitates outsourcing of agricultural commodities and food supply.

a.Primary Production
In the primary production sector, opportunities are available in fruit and vegetable production, floriculture, growing of herbal and medicinal plants, feed lot production of livestock and poultry production. Various kinds of agricultural infrastructure such as farm roads, irrigation and drainage as well as water and electricity supplies are given to help entrepreneurs to develop the farmlands.

Vegetable & fruit growing are still profitable ventures to meet domestic demands. Investments on high technology farm and modern technology could raise the productivity and it is still possible to stretch the profit margin of this sector.

The herbal and medicinal plants offer great potential for commercialisation. Some of these plants are already household “brands” for people in Brunei and in the region, but have yet to be exploited in agronomic scales. Enterprising investors could innovate to produce new health food products such as herbal cookies and other tonic beverages.

Floriculture in Brunei Darussalam is still small and steadily developing, but the available facilities offer great opportunity for investors to venture into either the domestic market or into the lucrative global markets. Investors with a wide business network should take advantage of the various incentives offered by the Government to establish their operations in Brunei Darussalam and export their products overseas.

Livestock production is mainly on poultry farming, particularly in the production of broilers and eggs. The close-housing system of farming in Brunei Darussalam has contributed in raising the production efficiency of poultry farming. Brunei Darussalam is now self sufficient in chicken meat and eggs.

Currently, ruminant (cattle, buffaloes, cows, goats, etc) production is still very low and the bulk of the requirement is imported. The feed lot system offers an opportunity for intensive cattle and buffalo production in Brunei Darussalam. Besides cattle and buffaloes, small herd of Friesian cows are reared in Brunei Darussalam for fresh milk supply to domestic market.

b.Secondary production
Investment opportunities are also abundant for agribusiness in the secondary production which include processing and further processing of meat products, egg processing, grain milling, processing of fruit juices and cordial , manufacturing of pharmaceuticals from medicinal plants and herbs as well as manufacturing of veterinary medications and biologics.

The processing sector especially food and eggs processing offers vast opportunities for investors. Imported raw commodities can be value-added for domestic and regional markets such as BIMP-EAGA and ASEAN. Fresh eggs could be processed into semi-finished products such as dehydrated whole eggs, egg white and egg yolk, as well as liquid egg. Such processed products are easy to handle and have a long shelf-life, which allows deep penetration into remote market segments, normally not accessible by fresh whole eggs. The ASEAN region has a potential of 150,000mt of processed egg products. This is estimated from 3 percent of the 500 million population with a per capita consumption of 10kg of eggs.

The egg sector provides a best opportunity for vertical integration that includes modern layer farms of about 8 million layers, inline egg processing plants and feed milling.

With a combined broiler and layer populations of 30 million, it is feasible to establish an international-size feed mill. Under the concept of cluster development, it is possible to integrate feed milling with oil-seed extraction and flourmill operations. Hence, the development of egg processing will have a positive chain-effect on the development of crop processing industry, particularly in the business of milling and edible oil extraction. Brunei Darussalam could outsource grains and oil, seeds to sustain its milling and edible oil extraction businesses. In this regard, multinational corporations with agro-based resources will be in the best position to take up the opportunities in milling, edible oil extraction and feed milling.

Other than opportunities found in the primary and secondary agro industries, the service sector too have many opportunities. Professional services in marketing, veterinary practice, and trading of veterinary and agricultural products are needed by the business community and consumers. Such professionals are welcomed to set up their practices in Brunei Darussalam.

c.Opportunities in ‘Halal’ products
The Brunei Halal Branding project launched in 2007, gives opportunity for investment both inside and outside the country whilst strengthening bilateral ties between Brunei Darussalam with its partnering countries through the Halal certification services, offering joint-venture opportunity and Foreign Direct Investment. Looking at the world population growth of Muslims at the moment, which is close to two billion, opportunities in the trade sector certainly has a big potential. It is estimated that the halal industry currently has a value of US$560 billion as a whole and US$150 billion specifically for halal food industry alone.

A 263-hectare area is currently being developed as agro-technological park for investments in Brunei. The park will support activities under the Brunei Halal Brand, providing sites for research activities and support services and development of industries through jointventure and Foreign Direct Investment. A “Halal Science Centre” too will be established within the park.

For further information and clarification, please contact:
Agriculture Department
Ministry of Industry and Primary Resources
Old Airport, Berakas
Bandar Seri Begawan BB3510
Brunei Darussalam

Tel: (673) 238 8000
Fax: (673) 238 2226

Website: www.agriculture.gov.bn
E-mail: info@agriculture.gov.bnThis e-mail address is being protected from spambots. You need JavaScript enabled to view it

5.3 Tourism
Tourism and hospitality is a new industry in Brunei Darussalam. There are existing local, regional and international markets that can be tapped for further growth. Brunei’s well preserved nature, offering easily accessible ecotourism activities that can be further developed, addresses the growing trends towards nature, health and wellness tourism, and its deserted long sandy coastline offers a welcome respite from the more crowded and commercialised regional beach resort areas. Business and investment opportunities are available in the following areas:

◦hotels and resorts
◦restaurants
◦ecotourism and leisure tourism
◦agro-aqua tourism
◦ground handling operations and destination management
◦health and wellness tourism
◦cruise tourism

For further information and clarification, please contact:
Brunei Tourism Board
Jalan Menteri Besar
Bandar Seri Begawan BB3910
Brunei Darussalam

Tel: (673) 238 2832
Fax: (673) 238 2824

Website: www.tourismbrunei.com
E-mail: info@bruneitourism.travel

LISTS OF PREFERRED INDUSTRIES

PRIMARY PRODUCTION
Agriculture

◦Poultry farming
◦Cultivation of vegetables, tubers and roots
◦Cultivation of fruits
◦Livestock fanning
◦Floriculture/other ornamentals
◦Production of planting materials
◦Cultivation of rice and other cereals
◦Cultivation of herbs and spices
◦Cultivation of fodder crops or animal feed ingredients
◦Cultivation of medicinal plants

Fisheries

◦Capture fisheries – offshore/inshore
◦Aquaculture – crustaceans
◦Aquaculture – fish
◦Spawning, breeding or culture of aquarium fish

Forestry and Forestry Products

◦Timber plantation
◦Non-timber products
◦Reforestation

INTEGRATED PRODUCTION AND PROCESSING
Agriculture

◦Cultivation and processing of fodder crops for animal feed ingredients
◦Poultry farming and poultry products processing
◦Cultivation and processing of ornamentals (cut flowers and other foliage preservation)
◦Cultivation and processing of fruits
◦Livestock farming and processing
◦Cultivation and processing of rice and other cereals
◦Cultivation and processing of herbs and spices
◦Cultivation and processing of medicinal plants
◦Cultivation and processing of coffee

Fisheries

◦Low value fish into high value-added products
◦Convenience fishery products
◦Aquaculture feed

Forestry

◦Processing and treatment of wood products
◦Processing of non-timber products such as rattan, resin, gums, etc
◦Furniture and fixtures
◦Integrated timber complex

MANUFACTURE OF FOOD PRODUCTS, CREAMERIES AND BEVERAGES

◦Meal and flour of wheat or of meslin
◦Poultry and beef preparations – canned/retort pouch, etc
◦Sausages and other prepared poultry beef products
◦Creameries and beverages
◦Sugar confectionery and other food preparations
◦Chocolate and other food preparations containing cocoa or chocolate
◦Dried fruit (including artificially dehydrated)
◦Snacks – prawns, fish, cuttlefish
◦Fish preparations – fishball/ fish cake, canned/ retort pouch, etc
◦Other fish preparations – dried, salted, smoked or preserved
◦Whole frozen and fresh frozen (dressed) fish

MANUFACTURE OF SILICA PRODUCTS

◦Processing and manufacturing of silica products

MANUFACTURE OF CLAY PRODUCTS

◦Ceramic products
◦Pottery

MANUFACTURE OF METAL PRODUCTS

◦Metal products processing and manufacturing
◦Metal containers for storage and transport
◦Wire products
◦Nails, screws, nuts, bolts, rivets and similar parts of iron/steel/copper alloys
◦Tools, hand- or machine-use
◦Sanitary, plumbing, heating, lighting fixtures and fittings

MANUFACTURE OF NON-METAL PRODUCTS

◦Lime, cement and fabricated building materials
◦Refractory construction material
◦Mineral manufacturing

MANUFACTURE OF APPAREL PRODUCTS

◦Apparel products

MANUFACTURE OF TEXTILE MILL PRODUCTS

◦Synthetic and regenerated (artificial) fibres
◦Floor covering, tapestries, etc
◦Materials of rubber
◦Plastic materials, regenerated cellulose and artificial resins

MANUFACTURE OF LEATHER PRODUCTS

◦Footwear
◦Other leather products

MANUFACTURE OF ELECTRICAL AND ELECTRONIC
MACHINERIES/EQUIPMENT/ APPARATUS

◦Electrical power machinery and switch gear
◦Electrical apparatus for medical purposes and radiological apparatus
◦Telecommunications apparatus
◦Domestic electrical equipment
◦Equipment for distributing electricity

PRINTING INDUSTRY

◦Printed matter
◦Signs and advertising

MANUFACTURE OF CHEMICAL PRODUCTS

◦Pigments, paints, varnishes and related materials
◦Chemical materials and other chemical products
◦Fertiliser
◦Medicinal and pharmaceutical products
◦Essential oils, perfumes and flavour materials
◦Soaps, cleansing and polishing compounds
◦Inorganic chemicals, elements oxides and halogens salts

SHIPYARDS

◦Maintenance and repair

OTHER MANUFACTURED GOODS

◦Perambulators, toys, games and sporting goods
◦Jewellery and goldsmith/ silversmith wares
◦Travel goods, handbags and similar articles