Brunei
Industries
Agriculture in Brunei
Agriculture
Cleantech
Digitization & IT
Food & Beverage
Manufacturing
Country Overview
How Brunei Darussalam's economy shapes agriculture
In 2008, Brunei Darussalam began its journey towards its national vision, Wawasan Brunei 2035, where it aspires to become a country recognised for its educated, highly skilled and accomplished people, with high quality of life and a dynamic, sustainable economy by 2035. This vision remained as Brunei Darussalam’s guiding principle for its development strategies and policies, which has also incorporated sustainable development perspectives.
In ensuring the economy is sustainable for future generations, the third goal aims to transform the country into a developed nation with a high income, utilising knowledge and technology as the basis for development and boosting private sector involvement, while strengthening the public sector’s role in realising the country’s economic potential. Therefore, diversifying its economy away from the oil and gas sector is among the main agenda in the nation’s economic development.
Sector Overview
Agriculture in Brunei Darussalam - at a glance
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Key industries
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Imports of agricultural crops
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Imports of animal products
REGULATIONS
Understand the key rules before entering the market.
In the last decade, Brunei applied significantly lower tariffs than previous times, under free trade agreements on a bilateral basis and through ASEAN schemes. Generally, the average most favoured nation (MFN) tariff was reduced from 3,66% in 2011 to 1,21% in 2018. The highest tariff is on headgears and musical instruments, but most importantly there are no tariffs on agricultural products. In Brunei’s trade regulation system, there are import and excise duties, but no value-added tax.
Four international, multilateral conventions have been ratified by Brunei. The Montreal Protocol, which affects customs, the Basel Convention about the control of export, import and transit of hazardous waste, the CITES convention on the international trade of endangered species of wild flora and fauna, and the Convention on Narcotic Drugs, Psychotropic Substances, ratified in the Misuse of Drugs Act in Brunei.
In the last decade, Brunei applied significantly lower tariffs than previous times, under free trade agreements on a bilateral basis and through ASEAN schemes. Generally, the average most favoured nation (MFN) tariff was reduced from 3,66% in 2011 to 1,21% in 2018. The highest tariff is on headgears and musical instruments, but most importantly there are no tariffs on agricultural products. In Brunei’s trade regulation system, there are import and excise duties, but no value-added tax.
Four international, multilateral conventions have been ratified by Brunei. The Montreal Protocol, which affects customs, the Basel Convention about the control of export, import and transit of hazardous waste, the CITES convention on the international trade of endangered species of wild flora and fauna, and the Convention on Narcotic Drugs, Psychotropic Substances, ratified in the Misuse of Drugs Act in Brunei.
Food Safety and Quality Control Division, Dep. of Health Services, Ministry of Health www.moh.gov.bn and fsqc@moh.gov.bn
Attorney General’s Chambers for non-tariff measures
www.agc.gov.bn
The Halal Meat Act can be found here: http://www.agc.gov.bn/AGC%20Images/LOB/pdf/Chp.183.pdf
ASEAN Tarde Repository
https://atr.asean.org/index.php/links/search/?country_code=bn&src=home
UNCTAD TRAINS
https://trains.unctad.org/
MARKET ENTRY
How to get in
Market channels and logistics
Agricultural products mainly reach Brunei by sea freight, and arrive at Muara Port, while others are brought in by air cargo or land transportation from neighbouring states. There are 15 larger logistic providers in the country, which handle most of the imports. Online marketplace/ecommerce for the primary sectors is yet to be fully explored, and Brunei offers many opportunities in this area.
Promotional opportunities
There are small-scale events every year in Brunei, where agrifood products were promoted. Annual fairs or exhibitions, such as the International Food Fair, Consumers’ Fair are a good platform for business matching and also for exhibitors/vendors to build strategic business relations. Since 2017, there is also the annual Brunei Gastronomy Week, a 2-week event, an initiative to highlight Bruneian cuisines in creative and innovative ways and for the public and tourists to experience Bruneian cuisines.
Recommendations and Trends
As trend analysis shows, growth in international trade in goods will be limited in the next decade, even though intra-ASEAN trade will probably exceed global averages. On the other hand, trade in services is expected to grow by 5-10% every year until 2030. For SMEs this would give a perfect opportunity to find new markets, which can include veterinarian services, services for food technology companies, where even university research spin-out start-ups can become international service providers.
Investment opportunities
The Ministry of Primary Resources, the Tourism Strategic Plan and other nationwide development programmes are clear about Brunei’s approach to enhance local business development as well as to encourage Government Link Companies (GLC) or high value added Foreign Direct Investment. This includes the production, research and development of animal feed and fertilisers in order to reduce input costs, ensure high and quality yielding production and strengthen competitiveness of the agriculture and food processing activities. Brunei is actively promoting new agricultural sites and investors for new technology from other countries. Investments include research and development collaboration with its education institution for new agricultural varieties, seeds and breeds. The Ministry of Primary Resources and Tourism including Darussalam Assets are seeking joint venture partners and other business professionals, to operate new agro-sites, like the large rice cultivation site in Kandol and other agricultural sites.
Investment opportunities and business environment:
Ministry of Primary Resources and Tourism: http://mprt.gov.bn
Brunei Department of Agriculture and Agrifood: http://www.agriculture.gov.bn/
BusinessBN, the one-shop for business: https://business.mofe.gov.bn/sitepages/home.aspx
Trade organisations, chambers, and other useful contacts
Brunei has four chambers of commerce, all of which offer services to SMEs. The 4 organisations are the National Chamber of Commerce and Industry, the Brunei Malay Chamber, the Brunei International Chamber and the Chinese Chamber of Commerce. Contact information is available here.
The Brunei Economic Development Board as the marketing arm for attracting FDI has in their website a useful source of the country’s current economic situation and its centralised development plans. It is also the main gateway for foreign investors, and provides information on open investment projects.
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Brunei · Agriculture full brief
Country Overview
How Brunei Darussalam's economy shapes cleantech
Brunei is located on the north coast of the island of Borneo, facing the South China Sea, surrounded by East Malaysia. The monarchy gained its independence from the United Kingdom in 1984, and today the lowest population in the ASEAN (ca. 450.000), though with one of the highest GDP per-capita levels in the region. Brunei has abundant natural resources, and offshore oil-drilling is the base of the economy, providing almost half of the GDP (47.4%) and more than half of export revenue (51.4%). During the COVID-19 pandemic, revenues from oil and gas have shrunk, while the non-oil and gas sector continued to expand, supported by a strong increase in agriculture and services.
The country has a masterplan for economic and social transformation called Vision Brunei 2035 (or Wawasan Brunei 2035), the main goal of which is to achieve a state, when the country is no longer reliant on income from oil and gas reserves. The business development part of this blueprint focuses on local small and medium sized enterprises (SMEs) as the target of the government’s effort to give business opportunities for them and enable Brunei Malays to achieve leadership.
One of the more detailed goals of Vision Brunei 2035 is to improve the country’s self-sufficiency rate, thus reducing dependency on imports. The latest national development plan and information on Vision Brunei 2035, can be found here.
Sector Overview
Cleantech in Brunei Darussalam — at a glance
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Renewable energy
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Sustainable energy segment
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Waste treatment and recycling
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Water and wastewater treatment
REGULATIONS
Understand the key rules before entering the market.
The core authorities of the environment protection, cleantech and related segments are the Department of Environment, Parks and Recreation (JASTRe) of the Ministry of Development and the Sustainable Energy Division of the Ministry of Energy which supervises the development of renewable energy sources and regulates installation.
The most important pieces of Environmental legislation are the ‘Environmental Protection and Management Order 2016’ and the ‘Hazardous Waste Order 2013’, more information on which can be found on the website of the Department of Environment, Parks and Recreation.
The country still needs to adopt a regulatory regime to scale up the development of renewable energy, particularly solar energy, which is more abundant than wind energy. A number of strategic actions are being taken to build the investment climate for renewable energy in Brunei Darussalam, including giving priority to renewable energy in the governance system, adopting and implementing key legislation, mobilising domestic investors, and improving market entry conditions for foreign investors.
Other relevant regulations include the Municipal Board Act, and the Water Supply Act. The Environmental Impact Assessment system is also worth mentioning, as it guides project proponents to survey, predict and assess environmental impacts and study possible environmental protection measures relating to prescribed activities.
MARKET ENTRY
How to get in
Establishing a local business
Brunei amended its laws to make it quicker and easier and quicker for entrepreneurs and investors to establish businesses. The Business License Act (Amendment) of 2016 exempts several business activities from needing to obtain a business licence. The Miscellaneous License Act (Amendment) of 2015 reduces the wait times for new business registrants to start operations, with low-risk businesses, such as eateries and shops able to start operations immediately.
There is no restriction on total foreign ownership of companies incorporated in Brunei. The Companies Act requires locally incorporated companies to have at least one of the two directors – or if more than two directors, at least two of them – to be ordinarily resident in Brunei, but exemptions may be obtained in some circumstances. The rate of corporate income tax is the same whether the company is locally or foreign owned and managed.
Foreign investments
Despite having a small domestic market due to its small population, figures from UNCTAD showed that Brunei Darussalam secured US$ 577 million in new investments in 2020, up by US$ 275 million from the previous year. Brunei is now more geared toward attracting new investments of higher value that can spur the country towards becoming a dynamic and sustainable economy. This will be achieved by projects that are 100% export oriented helped by Brunei G-G trade capacity building, by securing more bilateral and multilateral trades agreements, creating high value jobs for local talents, providing technology transfer through a co-investment approach, and spurring existing or creating new domestic SME opportunities in the service industries of supply-chains, logistics, warehousing, and many more.
The FDI Action and Support Centre (FAST), is a function under the BEDB which is responsible for the promotion and engagement of new investment to the country and for supporting and facilitating incoming investment on a fast-track approval process right up to the operational of the FDI project. More information can be found on InvestBN ( www.invest.gov.bn ) website.
Recommendations and Trends
Brunei Darussalam may be the smallest of the ASEAN countries, but it will face large challenges in the next 10-15 years.
The fast-growing population is expected to cause more potential exploitation of the country’s still abundant natural resources, including freshwater reserves, tropical rainforests and its biodiversity, healthy marine life and underground materials such as natural oil and gas. The growing population requires safe drinking water supply, and a healthy environment. Just to maintain the current level, large investments are needed in waste and wastewater management, industrial wastewater treatment, as well as more sustainable energy production.
Secondly, climate change will make its effect on the coastline of Brunei. Rising sea levels may cause intrusions in freshwater sources, and rainfall may be scarcer, causing water shortages. To stay resilient, Brunei will need to invest in dams, water treatment plants and improve the water supply system. The country will have to develop a climate change resilience plan, measuring the new requirements, and establishing a more developed monitoring system.
Thirdly, the whole economy is dependent on oil and gas industry, which is no longer sustainable. As the Vision Brunei 2036 blueprint clearly illustrates, the country needs to transform its economy to a greener and knowledge-based one, requiring a greater investment in renewables and reducing its dependence on a fossil-fuel based economy.
The three aspects of the new challenges show a straight path for the cleantech sector. Brunei needs new technologies and equally importantly new investors in the sector. As the larger part of the sector is related to government operation and state-owned utility companies, there can be a great role for inter-governmental cooperation projects. Other ASEAN companies may enter the market as suppliers of these G2G operations.
On SME level, while many of the investments needed are large-scale and require government mandates, the country still has a need for many small-scale technologies, including within the solar power sector – particularly off-grid, waste treatment and water treatment sectors. With its favourable taxes and regulations, besides its stability, Brunei can be a small but valuable market for innovative, green companies.
Country Overview
How Brunei Darussalam's economy shapes digitalisation & IT
Brunei is a tiny country with an expansive vision when it comes to developing its digital economy. Part of Brunei’s strength lies in its tight dimensions. The sultanate, which is surrounded by the Malaysian state of Sarawak and fringed at its northern perimeter by the South China Sea, is a remnant of a naval empire that once controlled all of Borneo and part of the present-day Philippines.
These days, the light paced Darussalam (Arabic for ‘abode of peace) is somewhat more self-contained. With the largest oilfields in Southeast Asia lying just offshore it can afford to be. With a population of just over 400,000, Brunei Darussalam is 16th in the world’s rankings regarding GDP Per Capita at purchasing power parity.
Free healthcare, free education, affordable housing and 0% income tax are among the perks for the country’s people. Nevertheless, oil supplies are finite. According to the BP World Energy Outlook, at its current pace of extraction, Brunei has hydrocarbon resources left for just 15 years.
To sustain a high quality of life for its citizens, the country’s government — with monarch Sultan Hassanal Bolkiah as a figurehead – recognises the need for a more diversified economy. As such, the development of digital technologies such as cybersecurity, big data, Internet of Things (IoT), AI and 5G are key areas of focus that are being actively implemented to empower innovation and drive sustainable progress.
Sector Overview
Digitalisation & IT in Brunei Darussalam — at a glance
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General characteristics of the local food industry
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Main products, services and segments
Digital transformation in Brunei’s financial sector is well underway. In 2018, Brunei’s central bank Brunei Darussalam Central Bank (BDCB), announced the development of a ‘digital payment roadmap’ aimed at driving the process.
According to BDCB, the digital transformation strategies contained in the roadmap will focus on three key strategic areas, namely balancing regulation and innovation, adoption of an open digital payment and public awareness and education. Through its roadmap, BDCB is pushing for integrated collaboration with relevant stakeholders in developing platforms for digital payments that are safe, efficient, and resilient.
REGULATIONS
Understand the key rules before entering the market.
Brunei is currently undergoing a major transformation in the ICT sector. Moving to a single network provider (UNN) means that all retail companies – Datastream Digital, Imagine, and Progresif can have equal access to the technology and infrastructure, thereby creating a more level playing field and actually increasing competition and innovation.
Brunei has a relatively uncensored and active online community. The Government of Brunei practices a soft touch approach to content regulation which does not block active online community discussion so long as it adheres to the Broadcasting Act (S 44/1998) and the Broadcasting and Internet Code of Practice Notification (S 12/2001). Internet service providers and internet café operators are required to register with MTIC. MTIC co-chairs the Content Advisory Council together with the Prime Minister’s Office.
In the banking sector, a string of new digital payments and digital signatures has opened the e-payment and e-commerce sector. BDCB declared that it will continue to strengthen and manage the industry’s technology risk and cybersecurity matters by providing regulatory guidance to financial institutions and conducting on-site and off-site assessments to monitor and supervise technology risk and cybersecurity in financial institutions. Recent developments include issuance of Guidelines on Technology Risk Management and Guidelines on IT Third Party Risk Management for banks and financial institutions in January 2022, and enhancement of BDCB’s supervisory framework for the assessment and monitoring of technology risk of the banks and financial institutions in December 2021.
Although Brunei’s ride-hailing sector is limited to just one operator (DART) it is well regulated by the country’s Land Transport Department (JPD). Dart drivers will have to be using cars less than seven years old and pass a roadworthy inspection, as part of JPD regulations. Those looking to drive specifically as a taxi driver will have to apply for a permit with the Motor Transport Licensing Authority as well as obtain the Class 12 driving license. Dart can assist potential drivers in their application, with the overall process simplified and streamlined to take about two months.
MARKET ENTRY
How to get in
Setting up a business in Brunei
Brunei’s population in 2021 is just 429,999, which makes the country’s local market relatively small.
Foreign enterprises are allowed 100% ownership of business scope, operation, and investment. As such, foreign investors are not required to find a local partner to enter the market. However, in certain cases, foreign companies may be required to find a local partner to qualify for certain government and Brunei Shell Petroleum projects. The relatively small population of Brunei is an asset in that product exported to the country, once established, may gain national prominence relatively quickly.
There are other compelling factors in Brunei’s favour when it comes to setting up an SME. Advantages include a stable political environment and an average inflation rate of 1.5% over the past couple of decades.
Brunei is ranked 66 among 190 economies in the ease of doing business, according to the 2020 edition of the annual World Bank Doing Business report which measures the domestic business regulatory environment and provides a general outlook of the ease of doing business in a country. Under the indicators for the report, Brunei was ranked highly in the “Getting Credit” category while substantive improvements were also seen in the local regulatory framework for the indicators on “Enforcing Contracts” and “Resolving Insolvency”.
Trade Promotion
In line with Brunei Vision 2035’s goals towards becoming a dynamic and sustainable economy, Trade Division together with the relevant agencies under the Ministry of Finance and Economy is actively promoting Brunei made products and assisting local businesses especially export-ready companies to access regional and international markets by identifying key international expos for Brunei companies’ participation, publishing relevant promotion materials, and conducting outreach programmes to enhance capacities of SMEs in trade related matters including raising awareness on Free Trade Agreements and Certificates of Origin utilisation to further facilitate exports and attract investments.
Recommendations and Trends
Brunei is expected to enter into a phase that will witness the most rapid growth yet in regards to digital and IT services and products in the country, propelled by challenges encountered during the global pandemic. Further challenges and opportunities include:
5G adoption: Brunei has set its sights on launching 5G services by mid-2022, promising faster mobile connection and minimal delay in processing a large amount of data. It kickstarted its 5G pilot project in April 2021 with 5G mobile networks deployed at five testing sites. Implemented in phases, the pilot project has identified five indoor and outdoor venues to study the potential of 5G in Brunei. The locations include outdoor coverage at The Airport Mall, Mulia Hotel, Universiti Teknologi Brunei as well as indoor coverage at The Mall’s ground floor and the Design and Technology Building in Anggerek Desa. Spearheaded by AITI, the pilot project aims to test the feasibility of high-speed 5G mobile communications and raise awareness in accelerating 5G adoption. In a press statement, the ICT regulator said 5G technology has the potential to improve productivity, enhance virtual experiences and achieve digitalisation towards becoming a Smart Nation.
Industry digitalisation: The digitalisation of MSMEs was one of five key performance indicators in Brunei’s AITI five-year strategic plan launched in 2021. In it, it set a target of increasing the use of digital technology among 1200 MSMEs by 2025. It said that MSMEs should use advanced digital tools to run their business, including digital payment gateways, inventory management systems and analytics solutions. AITI is also aiming to facilitate the development of at least a quarter of 110 digital businesses by 2025 as part of efforts to transform Brunei into a Smart Nation.
Social media potential: Among the ASEAN member states, Brunei achieved the status of the highest Internet penetration. Social media usage in the country is also among the highest in the region. Social media such as Instagram, Facebook and Twitter is used as a business initiative to disseminate information efficiently and effectively to the public. Despite being widely accepted by both consumers and entrepreneurs, SMEs have still not fully utilised the potential of social media as a marketing and sales tool.
Manpower and talent development: One of the key strategic thrusts of Brunei’s digital economy master plan is prioritising manpower and talent development. The country’s future workforce needs to be digitally capable and equipped with the right skills to adapt to rapid developments in technology. To that end, the government and other key stakeholders including SMEs will support education programs to develop local capabilities, create a digital lifelong learning framework and enhance the capabilities of the existing workforce by reskilling and redeployment of human capital.
Country Overview
How Brunei Darussalam's economy shapes Food & Beverage
Brunei Darussalam is located on the north coast of the island of Borneo, facing the South China Sea, surrounded by East Malaysia. The monarchy gained its independence from the United Kingdom in 1984; the head of state is His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam. The country has the lowest population in the ASEAN, with2019 estimates at 459,500 people, though with one of the highest per-capita GDP level in the region. Brunei has abundant natural resources, and oil and gas is the base of the economy, contributing about 56% of GDP, 86% of total exports and 77% of fiscal revenue in 2019. Brunei Darussalam has a low tariff regime and no personal income tax. Corporate income tax is 55% for oil and gas companies and 18.5% for other companies.
The economic challenges that resulted from the COVID-19 pandemic brought recession to Brunei Darussalam, especially because of the collapsed demand for energy from abroad and shrinking oil-prices. The government announced a fiscal stimulus, providing discounts of up to 50% for corporate income tax in the annual assessment for 2021. Further economic forecasts can be found on www.focus-economics.com.
Brunei Darussalam’s strategic goals for the future have not been diverted by the COVID-19 pandemic. On the contrary, food safety has been highlighted and increasing agriculture and fishery production output remains integral. This can be achieved through encouraging investment, both domestic and foreign, with emphasis on increasing productivity using high-tech solutions. The country’s masterplan for economic and social transformation, Vision Brunei 2035 (or Wawasan Brunei 2035) has the main goal of diversifying the country’s economy in order to reduce its dependency on income from oil and gas reserves.
The latest national development plan and information on Vision Brunei 2035, can be found here.
Sector Overview
Food & Beverage in Brunei Darussalam — at a glance
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General characteristics of the local food industry
In the last decade, crop processing sector has seen yearly outputs ranging from B$9.33 million up to B$87.83 million B$ in 2019. On the other hand, livestock processing showed an outstanding growth, from B$53.76 million B$ in 2010 to B$132.47in 2019, according to www.agriculture.gov.bn.
The latest detailed survey on the agrifood industry in Brunei Darussalam in 2019 showed the following distribution of the main categories:
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Halal in Brunei Darussalam
Majlis Ugama Islam Brunei (MUIB) is the body responsible for all Islamic administrative policy in Brunei Darussalam, including the issuance of halal certifications and halal permits. It plays a significant role in protecting Muslim consumers in Brunei Darussalam and it has always been the Majlis’s responsibility to encourage consumers to seek for halal products as urged by syariah.
REGULATIONS
Understand the key rules before entering the market.
Recently, Brunei Darussalam has been applying significantly lower tariffs under bilateral free trade agreements and through ASEAN schemes. Generally, the number of tariff lines designated the most favoured nation (MFN) tariff were reduced from 23.06% (in 2011) to 4.29% (in 2017). The highest tariff is on headgears and musical instruments, but most importantly, there is no tariff on agricultural items. In Brunei’s trade regulation system, there are import and excise duties, but no value-added tax.
Four international, multilateral conventions have been ratified by Brunei. The Montreal Protocol, which affects customs, the Basel Convention about the control of export, import and transit of hazardous waste, the CITES convention on the international trade of endangered species of wild flora and fauna, and the Convention on Narcotic Drugs, Psychotropic Substances, ratified in the Misuse of Drugs Act in Brunei.
While lowering tariffs, Brunei has been updating its non-tariff measures (NMT) as well. From 2015 to 2018, the country’s government updated 254 trade regulations, of which 70 were different non-tariff measures. For the benefit of SMEs , there is now an online one-stop source of regulations online (see below).
Most NTMs are specified in regulations that are lower in the legislative hierarchy, mainly rules, while higher regulations would be acts and orders. Fortunately, most of the NTM regulations are now available in English. Non-tariff measures are published on the Attorney General’s Chambers website, which serves as a very useful source of information for the ASEAN exporters.
The most frequent NTMs are technical barriers to trade, sanitary and phytosanitary measures, and price control with these three types accounting for more than 85% of total non-tariff regulations. Brunei’s strictest import regulations, regulated by the Halal Meat Act, are on halal certified products (see national halal brand) and on chilled and frozen meat. For exporters from other ASEAN countries, this means they have to provide halal accreditation and all other relevant documents, like veterinary documents and certifications of the production premises, beforehand.
Sale of all alcohol is banned in Brunei, that also applies to hotels. However, non-Muslim visitors over 17 years of age are allowed to bring two (2) bottles of hard alcohol and 12 cans of beer into Brunei for their personal consumption, subject to terms and conditions, including only allowing an import 48 hours after a previous import.
The Food Safety and Quality Control Division (FSQCD) under the Department of Environmental Health Services, Ministry of Health aims to prevent and control food-borne diseases through monitoring and regulating the quality and safety of food, in addition to the promotion of public awareness on food related issues.
To ensure the safety of food in Brunei Darussalam is safe for consumption, food vendors, importers, traders and establishments are required to comply with Chapter 182 of the Public Heath (Food) Act, and with R1 Chapter 182 of the Public Health (Food) Regulations. All food products imported into Brunei Darussalam, whether they came by land, sea or air, must be registered in order to ensure that food imported and distributed in Brunei Darussalam is safe for consumption; and complies with the relevant regulations. Every package of prepacked food is required to bear a label, marked on or securely attached in a prominent and conspicuous position to the package, containing information in Malay or English, or a translation into Malay or into English as required.
Further information on importation of prepacked food can be obtained through the Ministry of Health website: www.moh.gov.bn.
MARKET ENTRY
How to get in
Market channels
Agricultural products mainly reach Brunei by sea freight, and arrive at Muara Port, while others are brought in by air cargo or land transportation from neighbouring states.
Most food retail sales take place in supermarkets, in the few hypermarkets, in the minimarkets and “mom and pop” stores. In Brunei, importers who represent foreign brands, are responsible for the market development, but as most foreign products are procured through consolidators, advertising and promotion are undertaken by the supermarkets themselves.
Just like in Malaysia and Singapore, most of the fresh produce can be found in open-air markets, and hawker centres are the common places to eat everyday dishes. For foreign exporters, it can be very difficult to get their products into these channels.
Restaurants must obtain a halal certificate, and ca. 1400 have applied for it successfully, as well as very few other food service providers and food factories. Fast food has become popular in Brunei, with KFC dominating the market with 16 outlets, while McDonald’s has only one in the capital. Bruneians eat out often, and can choose from many street-food outlets and other inexpensive options.
E-commerce in the food sector
As of early 2020, e-commerce is rapidly spreading in Brunei. One of the initiatives by the Authority for Info-communications Technology Industry (AITI) is the development of www.ekadaibrunei.bn, an online portal that connects users to local e-commerce marketplaces and delivery services in Brunei Darussalam. To date, a total of 43 local e-commerce businesses have registered on the portal. Out of the total, several businesses focus on food and beverages. There are three types of e-commerce platforms, i.e., mobile applications, online grocery stores and online market places. Below is the list of food and beverage companies listed by platform type:
- Mobile applications: HeyDomo (www.heydomo.bn), GoMamam (www.gomamam.com) and Ta-Pow (ta-pow.com)
- Online grocery stores: Kadai Runcit (www.kadairuncit.bn) and Shopifull (www.shopifull.com);
- Online marketplaces: Community for Brunei (www.communityforbrunei.com) and Weelago (www.weelago.com)
Recommendations and Trends
Even through the COVID-19 pandemic, it is clear from the comments of experts and industry decision makers, that food safety, especially in terms of local production, logistics and source-diversification will be one of the key issues of any government. Brunei, with its dependency on food import, has two parallel paths:
Increase local production and manufacturing. In order to increase the agricultural production of Brunei, agri-innovation and new processing facilities should be applied. Livestock and meat processing are on the rise, but the country needs to increase its crop, vegetable and fruit production, as well as processing capacity.
Import capital, and attract new investors. Foreign investors often neglect Brunei because of its market size, but recent investment projects by Chinese, Japanese, Singaporean, Korean and Taiwanese companies show that Brunei can be seen as a prime location, strategically due to its proximity to Malaysia, Indonesia, the Philippines and Vietnam.
Other recommendations and noticeable opportunities for the sector:
The national halal brand is a good step to differentiate Brunei’s own products, but country promotion should go at least one more step forward, by creating a positive image of the sector, including using Brunei’s pristine natural resources as an image of healthy and ‘green’ products.
The Western world and the northern countries in Asia have a very positive image of Borneo. The island is associated with nature, abundant greens and fruits, and biodiversity. Brunei could be the initiating centre of building up the Borneo brand on export markets, cooperating with the two neighbouring Malaysian states and Indonesian Kalimantan.
Fruits and processed products based on fruit are much sought after. Development could be concentrated on the most promising product lines in this area.
Country Overview
How Brunei Darussalam's economy shapes Manufacturing
The Sultanate of Brunei has 5,765 km of the main land, is located on the island of Borneo, in Southeast Asia. Brunei is only and completely bordered by Malaysia with the exception of the coast overlooking the South China Sea. The country has a small population of 0.46 million and 79% of them are Muslim.
Brunei has the second-highest GDP per capita among ASEAN countries, following Singapore. Brunei’s GDP in 2019 was approximately US$13.5 billion – the bulk of it contributed by crude oil and natural gas production (accounting for 60% of GDP and more than 90% of export).
Table 1: GDP % According to Economic Sector (source ADB, 2019)
| Sector | GDP% | |
| 2015 | 2018 | |
| Agriculture | 1.1 | 1 |
| Industry | 60.2 | 62.2 |
| Manufacturing | 14.5 | 14.1 |
| Services | 38.7 | 36.7 |
Sector Overview
Manufacturing in Brunei Darussalam — at a glance
The government policies and strategies are favourable to investors in the agri-food processing sector including food ingredients especially for Halal foods. In recent years, aquaculture was a major strategic focus, resulting in the development of the seafood processing industry such as frozen fish, crackers, fish ball and cakes, fish nuggets, shrimp pastes, marinated fish and dried fish. Investors in Halal food are guided by Brunei’s well-established guidelines and standards for handling and manufacturing of Halal food products.
Investors should take note of the the Brunei Economic Development Board efforts which identifies several key industry clusters within export-oriented manufacturing including pharmaceuticals, food and food ingredients, petrochemicals, integrated petrochemicals refinery, and renewable energy.
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Pharmaceuticals
Vivapharm (Brunei) Sdn. Bhd at the Lambak Kanan East Industrial Site is the biggest halal pharmaceutical manufacturing plant in Brunei. It focuses on exporting Halal-certified natural health products, over-the-counter and prescription drugs to the Asia Pacific regional markets, Middle East, Western Europe, and the United States.
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Petrochemicals
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Renewable Energy
REGULATIONS
Understand the key rules before entering the market.
Wawasan 2035, aims to expand both the oil and gas downstream and economic clusters outside of the oil and gas sector. This includes support to expand local business development programs by boosting opportunities for small and medium-sized enterprises (SMEs).
There are increasing opportunities to set up halal-certified manufacturing companies especially premium halal products for global market.
MARKET ENTRY
How to get in
Issues and Challenges
Although Brunei ranked 56th out 190 economies in World Bak Doing Business ranking, Nonetheless, foreign companies will likely experience challenges in the following areas:
- lacking in transparency and less number of regulations and guidelines.
- inefficient bureaucracy
- MSMEs limited access to financing
- very small labour force with narrow skill sets (primarily to the oil and gas sector). Regulations are relatively restrictive regarding the employment of foreign workers and high wages for local labour force.
- expansion of pharmaceutical manufacturing sector faces challenges in terms of limited suppprting infrastructure.
- MSMEs have limited options to link with large manufacturers to integrate into the global value chain.
- MSME access to bank credit is limited and the government-owned Bank Usahawan and DARe were unable to meet MSME demand for financing.
Recommendations and Trends
Investors and businesses in the manufacturing sector could benefit from policies which supports bringing in labour force from neighbours Malaysia and Indonesia for sustainable growth in the manufacturing sector.
References:
Lorenzo Riccardi& Giorgio Riccardi. 2020. Invest in ASEAN: Countries Analysis and Treaties. https://books.google.co.th/books?id=7SjoDwAAQBAJ&pg=PA12&lpg=PA12&dq=Food+%26+Food+Ingredients+manufacturing++in+Brunei&source=bl&ots=dQKhaZOGRS&sig=ACfU3U2N4ktdHmkI8YRclraNY0L9-mrP8g&hl=en&sa=X&ved=2ahUKEwiAx-yKo9jyAhXsyjgGHfOsCEUQ6AF6BAgkEAM#v=onepage&q=Food%20%26%20Food%20Ingredients%20manufacturing%20%20in%20Brunei&f=false
New strategies in Brunei Darussalam’s industrial sector to expand opportunities, https://oxfordbusinessgroup.com/overview/turning-tides-new-strategies-should-lead-expanded-opportunities
Business in Brunei- Embassy of Brunei in Paris http://www.mfa.gov.bn/france-paris/SitePages/businessinbrunei.aspx
MSMEs drive Brunei’s economy, (Oct 31, 2020) Borneo Bulletin, https://borneobulletin.com.bn/msmes-drive-bruneis-economy/
2019 Investment Climate Statements: Brunei – US State Department; https://www.state.gov/reports/2019-investment-climate-statements/brunei/
Bahar, Hafiz. (2020). The Promise of the Pharmaceutical Industry With regards to Brunei’s Economic Situation. 10.13140/RG.2.2.35090.48322.