IntroductionIntroductionThe BEDBThe BEDB

The Brunei Economic Development BoardThe Brunei Economic Development Board

Brief HistoryBrief History

26th November 2001 BEDB was formed under the Brunei Economic Development Board (Amendment) Order 2001

29th December 2001 Appointment of Board of Directors

July 2002 Appointment of CEO and Staff Dialogues with Private and Public Sectors BEDB’s Strategic Plans (Corporate and Development)Industrial Cluster AnalysisFacilitating Prospective InvestorEstablishing Benchmark

Organisation StructureOrganisation Structure

Chairman

Deputy Chairman

CEO

ACEO

Corporate

ACEO

Business Development

Deputy CEO

Strategy & Planning

ACEO

International Business

Brunei Economic Development BoardBrunei Economic Development Board

Mission StatementMission Statement

“Powering Sustainable Economic Growth in Brunei Darussalam”

Our Objectives

1.1. To promote and facilitate foreign and domestic investment in To promote and facilitate foreign and domestic investment in Brunei Darussalam Brunei Darussalam

2.2. To develop human, physical and natural assets of Brunei To develop human, physical and natural assets of Brunei DarussalamDarussalam

3.3. Create a proactive business environment that is conducive to Create a proactive business environment that is conducive to investment within Brunei Darussalam investment within Brunei Darussalam

4.4. Improve transparency of investment regimeImprove transparency of investment regime

Our FocusOur Focus

1.1. Promote and develop business enterprises especially Promote and develop business enterprises especially SMEsSMEswith growth potentialwith growth potential

2.2. Facilitate and assist in the development of industrial activitieFacilitate and assist in the development of industrial activities s including export oriented activitiesincluding export oriented activities

3.3. Formulate marketing strategies, investment policies and Formulate marketing strategies, investment policies and incentives to attract investmentsincentives to attract investments

4.4. Encourage industries to upgrade skill through investment in Encourage industries to upgrade skill through investment in new technology, training, RnD activitiesnew technology, training, RnD activities

The Brunei Economic Development BoardThe Brunei Economic Development Board

A Two Pronged Investment Strategy To Kickstart The Diversification Of Brunei

Darussalam’s Economy

The Two Pronged Investment StrategyThe Two Pronged Investment Strategy

SG LIANG PMB FDI

First Prong Second Prong

Quantitative Objectives Through to 2008§ Direct Investment Of US$4.4 billion§ Creation of 6000 jobs

Quantitative Objectives Through to 2008§ Direct Investment Of US$4.4 billion§ Creation of 6000 jobs

InfrastructureUS$350M

JettyUS$250M

Power StationUS$400M

Ammonia/UreaUS$250M

MethanolUS$250M

Aluminum SmeltingUS$1.5B

Sg LiangUS$3B

First Pool – Sungai LiangFirst Pool – Sungai LiangFirst Prong: The Two Pool Investment StrategyFirst Prong: The Two Pool Investment Strategy

• Total US$3 Billion• US$2.65B FDI• US$0.35B Govt Spent• 4000 jobs during construction• 2000 permanent jobs

• Total US$3 Billion• US$2.65B FDI• US$0.35B Govt Spent• 4000 jobs during construction• 2000 permanent jobs

UREAUREAALUMINIUMALUMINIUM

METHANOLMETHANOLPOWER STATION POWER STATION

JETTYJETTY

PMB Megaport

US$1.5B

Causeway to Temburong

Free Trade Zone

Bridge to PMB

Supporting Industries for Ports

Other Potential Projects

• Total US$1.5 Billion• 2000 permanent jobs

• Total US$1.5 Billion• 2000 permanent jobs

Second Pool – Pulau Muara BesarSecond Pool – Pulau Muara BesarFirst Prong: The Two Pool Investment StrategyFirst Prong: The Two Pool Investment Strategy

Undeveloped 900 Ha

Undeveloped 900 Ha

MegaportMegaport

The Second Prong: FDIThe Second Prong: FDI

Manufacturing& Retail

?

Automotive Financial Centre

ICT

Halal Hub

Tourism

FDI

• Total US$300-400 Million• 1000-2000 permanent jobs

• Total US$300-400 Million• 1000-2000 permanent jobs

Foreign Direct Investment (Non-Oil)

Existing Project 1989 – 2001

108.6Total19.3Other Countries89.32ASEAN

Investment Value (Equity) B$Mil

Country

For Manufacturing Industry

(Source: BINA)

Approved Project 1989 – 2001

7.17USA

208.7Total

0.99Others

1.42United Kingdom

3.32Hong Kong

5.8Korea

9.7Australia

11.4Taiwan

168.9ASEAN

Investment Value (Equity) B$milCountry

Foreign Direct Investment

Source: BINA

Industrial Site

Location of Industrial Site

Industrial SiteIndustrial Site

Furniture, Warehousing & Cold Storage56400,000Kampung Salar

Downstream, Hi-Tech100283,000Sungai Liang

Hi-Tech, Tourism100950,000Pulau Muara Besar

Manufacturing & Services9050,000Batu Apoi, Temburong

Manufacturing & Services89.5400,000Serambangun, Tutong

Manufacturing & Services78.2500,000Sungai Bera

Manufacturing & Services58.2830,000Serasa Muara

Manufacturing & Services80.8380,000Pekan Belait

Manufacturing & Services59.1470,000Beribi II

Food Processing & Services79.6450,000Lambak Kanan (West)

Hi-Tech 99.7740,000Lambak Kanan (East)

UseUseVacancy Rate Vacancy Rate (%)(%)

Gross Area Gross Area (in m(in m22))

Industrial SiteIndustrial Site

Why Invest in Brunei

ü Stable Economy

ü Government’s Strong Commitment to Draw FDI

ü Well-Educated and Flexible Workforce

ü Strategic Location Within ASEAN region

ü Excellent Infrastructure

ü Excellent, Peaceful Living Experience

Stable Economy

Strong Upstream Sector

Trade / Revenue from Oil

Ø 54% GDP

Ø 90% Export

Ø 83% Revenue

Stability – Medium / Long TermØGDP = $7.5 billion ØGDP Growth 2-3% ØPer Capita GDP B$22,000 Ø4th Highest Per Capita GDP in Asia (2000)ØLow Inflation between 1 – 1.5%ØLow Unemployment 4%

Government InitiativesGovernment Initiatives

Government’s Strong Commitment to Draw FDI

Ø Brunei Economic Development Board (Amendment) Order 2001

Ø Investment Incentives Order 2001

Ø Industrial Coordination Order 2001

Ø Income Tax (Amendment) Order 2001

Investment IncentivesInvestment Incentives

The Investment Incentives Order 2001• To encourage the diversification of the economic activities by

providing a broad tax based incentives and facilitation measures to promote the activities

• To encourage new investment and reinvestment activities to upgrade technology, undertake RnD, increase production capacities and expand markets such as venture capital activities, overseas investment companies and new technology companies.

Tax Exemptions– Relief from Corporate Tax– Relief from Import Duties on Capital Goods and Raw Material – Carry Forward Losses and Unabsorbed Allowances

Industrial CoIndustrial Co--ordination Order 2001ordination Order 2001

• To coordinate and regulate the development of manufacturing activities in Brunei Darussalam

• To regulate the approval and operation of all manufacturing activities

• To enable the government of His Majesty to streamline rules and procedures necessary to speed up the approval of manufacturing activities and its implementation plan

Income Tax (Amendment) Order 2001Income Tax (Amendment) Order 2001

Carry Forward of Loss and Unabsorbed Allowancesa. Carry forward of unabsorbed losses for 6 years and can be

set off against future incomeb. Balance of any allowance which remains unabsorbed can be

made available after the tax relief period but must be set off against income from the same trade

Certain Dividends Exempted from Income Tax• Dividend distributed by company during tax relief period

may be exempted from tax in the hand of shareholders

Double Deduction on Expenses• For export promotion and RnD activities and an underwriting

allowances for the cost of buying patent information

Foreign OwnershipForeign Ownership• Normally minimum 30% local ownership • Full foreign ownership possible for

– High Tech Industry – 100% Export-Oriented Businesses

High Tech Industries (Non-Exhaustive)– Biotechnology– Pharmaceutical– Healthcare– Fine Chemical– Information and Communication Technology (ICT)

Others not stated in list will be considered, as part of BEDB’s business initiative

WorkforceWorkforceü Well-Educated and Flexible Workforce

ü Literacy Rate 93%

ü Labour Force Participation Rate 67%

ü Universal Enrolment Ratio

Workforce by Major Occupation GroupWorkforce by Major Occupation Group

6.6%Others

7.3%Plant and Machine Operators and Assemblers

21.7%Labourers

15.1%Production Craftsmen

4.4%Legislators, Administration, Managers

1.3%Agricultural and Fisheries Workers

12.6%Service, Market and Sales Workers

11.8%Clerical

12.3%Technicians and Associate Professionals

6.9%Professionals

Labour RatesLabour Rates

• No minimum or maximum wage as long as both parties agree

• Wages are generally determined by market forces

• As a guide, average monthly wage rate for selected profession in Brunei Dollars are:

$750Laboratory Technician$750Plant Maintenance Mechanic$1000Construction SupervisorMore than $1000Professional

$1000Secretary$450Typist, Clerk

Source: Labour Department.Note: Wages vary depending on the size and type of industry

Brunei’s Strategic Location Within ASEAN Region

InfrastructureInfrastructure

Excellent Infrastructure

ü Piped Water Supply 99%ü Electricity Supply 99%ü Water 400 million litre (99%)ü Power 710 MW (99%)ü Length of Road 3200 km

• Public Utilities & Transport– B$1.9 billion or 26% of total 8th NDP budget of B$7.5 billion

• ICT– B$1.1 billion or 15% of total 8th NDP budget

Communications Indicators

131.236Mobile Phone (‘000) from 1995

13,250816BruNet Subscribers1

1,021187E-Speed2

10,3009,200Pager3

2515Phone Density (per 100 pop)

8339.1Direct Exchange (000)

20011991

1 In 2000 the number peaked at 16,6602 Figures from 20003 The Number peaked to 15,400 in 2000

PC Utilisation• Imports from 1996 – 2000 is 387,000 Units

Living ExperienceLiving Experience

• Excellent Place To Live In

• Modern Appearance

• Unexploited And Untouched Tropical Rainforests

• Voted As The 7th Most Livable City By AsiaWeek

• Orderly, Clean And Green City

• Serene And Relaxing Surrounding

• Health and Education Facilities of International Standard

Brunei Economic Development BoardBrunei Economic Development Board

Thank You

Brunei Economic Development BoardBrunei Economic Development Board

Contact Details

Business Development Division, Block 2K, Jalan Ong Sum Ping, Bandar Seri Begawan BA 1311, Brunei Darussalam

Tel: 6732-230111Fax: 6732-230063

Email: info@bedb.com.bn