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Brunei Economic Bullen Quarter 1 2012 Department of Economic Planning and Development, Prime Minister’s Office, Brunei Darussalam Contents: Page Gross Domesc Product 2 Consumer Price Index 7 External Trade 10 Public Finance 14 Special Arcles 18 Highlights: Gross Domestic Product The growth in the economy in Q1 2012 was propelled by domesc demand, parcularly personal consumpon expenditure (PCE) which expanded by 3.5 per cent y-o-y. The oil and gas sector contracted by 1.3 per cent y-o-y in Q1 2012, following a contracon of 3.5 per cent y-o-y in Q4 2011. Meanwhile, the non-oil and gas sector registered a 2.6 per cent y-o-y growth in Q1 2012. Consumer Price Index Brunei Darussalam’s average consumer price index (CPI) in Q1 2012 was recorded at 107. 0 with an average y-o-y inflaon rate of 0.6 per cent. Between Q1 2011 and Q1 2012, the highest quarterly inflaon was in Q3 2011 at 2.4 per cent y-o-y. The price of Food and Non-Alcoholic Beverages grew by 1.4 per cent y-o-y in Q1 2012; from a 2.8 per cent y-o-y growth in Q4 2011. External Trade Total exports posted a lower growth rate with a 26.8 per cent y-o-y increase in Q1 2012. Total imports in Q1 2012 surged up by 33.0 per cent y-o-y; aſter registering a 17.6 per cent growth in Q4 2011. Trade surplus was at 62.5 per cent of GDP in Q1 2012; up from 61.8 per cent of GDP in Q4 2011. Oil and LNG exports in Q1 2012 accounted for 94.0 per cent of total exports. Public Finance In Q1 2012, Brunei Darussalam recorded a fiscal surplus of BND1,163.2 million, which was about 21.1 per cent of GDP. In comparison to Q4 2011, the oil and gas revenues in Q1 2012 were lower mainly due to the lower levels of producon and exports of crude petroleum. Special Articles: 1. Consumer Protecon in Brunei Darussalam 2. The Tenth Naonal Development Plan
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Page 1: Beb q12012

Brunei Economic Bulletin

Quarter 1

2012

Department of Economic Planning and

Development, Prime Minister’s Office,

Brunei Darussalam

Contents: Page

Gross Domestic Product 2

Consumer Price Index 7

External Trade 10

Public Finance 14

Special Articles 18

Highlights: Gross Domestic Product

The growth in the economy in Q1 2012 was propelled by domestic demand,

particularly personal consumption expenditure (PCE) which expanded by 3.5 per

cent y-o-y. The oil and gas sector contracted by 1.3 per cent y-o-y in Q1 2012,

following a contraction of 3.5 per cent y-o-y in Q4 2011. Meanwhile, the non-oil and

gas sector registered a 2.6 per cent y-o-y growth in Q1 2012.

Consumer Price Index

Brunei Darussalam’s average consumer price index (CPI) in Q1 2012 was recorded

at 107. 0 with an average y-o-y inflation rate of 0.6 per cent. Between Q1 2011 and

Q1 2012, the highest quarterly inflation was in Q3 2011 at 2.4 per cent y-o-y. The

price of Food and Non-Alcoholic Beverages grew by 1.4 per cent y-o-y in Q1 2012;

from a 2.8 per cent y-o-y growth in Q4 2011.

External Trade

Total exports posted a lower growth rate with a 26.8 per cent y-o-y increase in Q1

2012. Total imports in Q1 2012 surged up by 33.0 per cent y-o-y; after registering

a 17.6 per cent growth in Q4 2011. Trade surplus was at 62.5 per cent of GDP in Q1

2012; up from 61.8 per cent of GDP in Q4 2011. Oil and LNG exports in Q1 2012

accounted for 94.0 per cent of total exports.

Public Finance

In Q1 2012, Brunei Darussalam recorded a fiscal surplus of BND1,163.2 million,

which was about 21.1 per cent of GDP. In comparison to Q4 2011, the oil and gas

revenues in Q1 2012 were lower mainly due to the lower levels of production and

exports of crude petroleum.

Special Articles:

1. Consumer Protection in Brunei Darussalam

2. The Tenth National Development Plan

Page 2: Beb q12012

2

Gross Domestic Product

Brunei Darussalam’s gross domestic product (GDP) at constant prices grew

by 0.7 per cent year-on-year (y-o-y) in the first quarter of 2012 (Q1 2012), down

from a 1.3 per cent y-o-y growth in the fourth quarter of 2011 (Q4 2011). As a

result, constant prices GDP in Q1 2011 went up to BND3,042.6 million in Q1 2012.

During the same period, GDP in current prices was BND5,364.4 million. (Table

1.1).

The real GDP growth was contributed primarily by the non-oil and gas

sector at 1.3 percentage points (pp). This sector registered a 2.6 per cent y-o-y

growth in Q1 2012, after a 5.1 per cent y-o-y growth in Q4 2011. The oil and gas

sector, in the meantime, contributed -0.6 pp to the real GDP growth and

contracted y-o-y by 1.3 per cent in Q1 2012. In the previous period, this sector

contracted by 3.5 per cent y-o-y.

In terms of distribution, the oil and gas sector constituted 48.1 per cent of

real GDP; up from 42.3 per cent in the preceding period. In nominal terms, the oil

and gas sector’s share in the economy was 69.4 per cent of GDP in Q1 2012. In Q4

2011, its share was 66.3 per cent.

Table 1.1: Gross Domestic Product (Summary)

Source: Department of Economic Planning and Development, Prime Minister’s Office.

Between Q1 2011 and Q1 2012, GDP was highest in Q1 2011, growing at

2.8 per cent y-o-y (Chart 1.1). The growth rate in Q1 2012 is the lowest in the last

five quarters. Non-oil and gas GDP contributed more towards growth for all five

periods with the exception of Q3 2011. In the previous two periods, the oil and

gas sector contracted and the relatively good performance of the non-oil and gas

sector prevented the overall growth rates to be even lower or negative.

Levels (BND million)

Growth rates (y-o-y % change)

Distribution (% of GDP)

Growth contributions

(pp)

Q4 2011

Q1 2012

Q4 2011

Q1 2012

Q4 2011

Q1 2012

Q1 2012

GDP at constant (2000) prices 3,298.2 3,042.6 1.3 0.7 - - 0.7

Oil and gas 1,394.9 1,464.2 -3.5 -1.3 42.3 48.1 -0.6

Non-oil and gas 1,903.3 1,578.4 5.1 2.6 57.7 51.9 1.3

GDP at current prices 5,521.4 5,364.4 - - - - -

Oil and gas 3,658.2 3,724.8 - - 66.3 69.4 -

Non-oil and gas 1,863.2 1,639.6 - - 33.7 30.6 -

Brunei Darussalam’s

GDP at constant prices

grew by 0.7 per cent

y-o-y in the first quarter

of 2012

Page 3: Beb q12012

3

Chart 1.1: GDP Growth Rates and Contributions (Q1 2011 to Q1 2012)

Source: Department of Economic Planning and Development, Prime Minister’s Office.

The growth in the economy in Q1 2012 was propelled by domestic demand,

particularly personal consumption expenditure (PCE) which expanded by 3.5 per

cent y-o-y. The corresponding rate in Q4 2011 was 8.8 per cent y-o-y (Table 1.2).

This expansion was partly brought about by a 2.9 per cent real improvement in

the wholesale and retail sector.

Gross fixed capital formation (GFCF) recorded a y-o-y growth rate of 0.6 per

cent, following a 3.2 per cent y-o-y growth in Q4 2011. The expansion was

supported by a 2.8 per cent y-o-y rise in investment in machinery and equipment.

Other charges special expenditure (OCSE) which principally consisted of the

government’s procurement of capital goods, increased by 10.7 per cent. On the

other hand, government consumption expenditure (GCE) posted a reduction of

0.2 per cent y-o-y in Q1 2012 after growing by 3.3 per cent y-o-y in Q4 2011. This

was caused by the 23.2 per cent decrease in the government’s other charges

annually recurrent (OCAR) expenditure in Q1 2012.

The period of Q1 2012 also saw a fall in exports of goods and services by

1.6 per cent y-o-y, following a drop of 17.5 per cent y-o-y in Q4 2011. This was

primarily due to the 11.7 per cent y-o-y contraction in the export of services in Q1

2012. Despite the positive y-o-y growth of merchandise exports of 0.3 per cent;

an improvement from the 20.3 per cent y-o-y contraction in the previous period,

the overall external demand still contracted. The main reason for the expansion in

merchandise trade was the increase in the export of methanol from 175,693

tonnes in Q1 2011 to 259,526 tonnes in Q1 2012, a 47.7 per cent rise.

Total GDP

Non-oil and gas GDP

Oil and gas GDP

The period of Q1 2012

also saw a fall in exports

of goods and services by

1.6 per cent y-o-y,

following a drop of 17.5

per cent y-o-y in Q4

2011

The growth in the

economy in Q1 2012

was propelled by

domestic demand,

particularly PCE which

expanded by 3.5 per

cent y-o-y

% c

han

ge a

nd

pp

Total GDP

Non oil and gas GDP

Oil and gas GDP

Page 4: Beb q12012

Imports of goods and services registered a 5.0 per cent y-o-y growth in Q1

2012, after a 17.4 per cent y-o-y growth in the previous quarter. This was

attributed to the 12.3 per cent y-o-y growth in the imports of goods. In the

preceding period, it rose by 25.8 per cent y-o-y.

In Q1 2012, total aggregate demand was up by 0.2 per cent y-o-y, with

domestic demand being the principal contributor at 0.8 pp. (Table 1.2). Within

domestic demand, PCE registered a growth contribution of 0.8 pp to the growth

in total demand, while GCFC also contributed positively to growth, at 0.1 pp. On

the other hand, GCE reduced the overall growth by 0.04 pp. The positive

contribution of the domestic economy was undermined by external demand,

which shaved 0.7 pp off the overall growth.

Table 1.2: GDP by Expenditure

Source: Department of Economic Planning and Development, Prime Minister’s Office.

Types of expenditures

Growth rates

(y-o-y % change)

Q1 2012 Q1 2012 Q4 2011 Q1 2012 Q1 2012

Gross domestic product 3,042.6 5,364.4 1.3 0.7 -

Personal consumption expenditure (PCE) 968.8 998.6 8.8 3.5 0.8

Government consumption expenditure (GCE) 774.6 667.4 3.3 -0.2 -0.04

Capital formation 587.1 638.2 3.2 0.6 0.1

Gross fixed capital formation (GFCF) 587.0 638.1 3.2 0.6 0.1

Construction 392.5 410.6 5.6 -0.5 -0.0

Machinery and equipment 194.4 227.5 -1.3 2.8 0.1

Change in stocks 0.1 0.1 - - -

Exports of goods and services 1,725.0 4,757.4 -17.5 -1.6 -0.7

Exports of goods 1,486.8 4,422.7 -20.3 0.3 0.1

Exports of services 238.3 334.7 1.7 -11.8 -0.8

Imports of goods and services 1,448.8 1,598.8 17.4 5.0 1.7

Imports of goods 1,008.8 1,073.5 25.8 12.3 2.7

Imports of services 440.0 525.3 1.3 -8.7 -1.0

Statistical discrepancy 435.8 -98.3 - - -

Total aggregate demand 4,055.6 7,061.6 -4.6 0.2 0.2

Domestic demand 2,330.6 2,304.2 5.1 1.5 0.8

External demand 1,725.0 4,757.4 -17.5 -1.6 -0.7

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odd pages

The oil and gas sector contracted by 1.3 per cent y-o-y in Q1 2012,

following a contraction of 3.5 per cent y-o-y in Q4 2011 (Table 1.3). The fall was

due to a y-o-y contraction of 1.6 per cent in the oil and gas mining sub-sector;

brought about by a 3.5 per cent decrease in the production of crude petroleum

from 170,700 barrels per day (bpd) in Q1 2011 to 164,736 bpd in Q1 2012.

Manufacture of liquefied natural gas (LNG) and methanol sub-sector also

contracted by 0.4 per cent y-o-y after a 1.0 per cent y-o-y growth in Q4 2011

mainly as a result of the decrease in the production of LNG from 1,130,757 million

British thermal units (MMBtu) in Q1 2011 to 1,064,490 MMBtu in Q1 2012; a 5.9

per cent y-o-y drop.

Meanwhile, the non-oil and gas sector registered a 2.6 per cent y-o-y

growth in Q1 2012, maintaining its good momentum in growth after a 5.1 per

cent y-o-y growth in the previous period. Having recorded a 3.6 per cent y-o-y

growth in Q4 2011, the government services sector’s growth in Q1 2012 stood at

3.9 per cent y-o-y. Private sector services also registered an expansion of 1.9 per

cent y-o-y; following a 6.2 per cent y-o-y growth in the previous quarter.

Q1 2012 saw strong growth in several non-oil and gas sub-sectors

particularly forestry, vegetable, fruits & other agriculture and electricity and

water.

The forestry sub-sector’s growth greatly improved by 185.7 per cent y-o-y

in Q1 2012, following a growth of 41.7 per cent y-o-y in Q4 2011. The vegetable,

fruits & other agriculture sub-sector also grew significantly at 42.3 per cent y-o-y

in Q1 2012; having recorded a growth of 15.8 per cent y-o-y in Q4 2011. The

growth was brought about by the increases in the production of fruits and

vegetables. The production of fruits shot up by 160.9 per cent y-o-y from 649.6

metric tonnes (mT) in Q1 2011 to 1,695.0 mT in Q1 2012. Vegetable production

increased by 29.0 per cent y-o-y from 2,812.1 mT in Q1 2011 to 3,627.5 mT in Q1

2012.

The electricity & water sub-sector grew by 7.5 per cent y-o-y in Q1 2012;

higher than the previous quarter’s growth of 1.5 per cent y-o-y. The growth was a

result of the increase in electricity production by 9.7 per cent y-o-y to 951.0

gigawatt hour (gWh) in Q1 2012 from 866.8 gWh in Q1 2011.

The oil and gas sector

contracted by 1.3 per

cent y-o-y in Q1 2012,

following a contraction

of 3.5 per cent y-o-y in

Q4 2011

5

Page 6: Beb q12012

Table 1.3: GDP by Production

Source: Department of Economic Planning and Development, Prime Minister’s Office.

In Q1 2012, the non-oil and gas sector continued to be the leading

contributor to the country’s real GDP growth at 1.3 pp (Table 1.3). Within this

sector, the government services sector contributed relatively more at 0.7 pp in

comparison to the private sector’s contribution of 0.6 pp.

Within the private sector, the highest contributions came from the business

services and wholesale & retail trade sub-sectors at 0.2 pp each, followed by the

vegetables, fruits & other agriculture, electricity & water as well as private health

& education services sub-sectors at 0.1 pp each.

On the other hand, the oil and gas sector contributed negatively to GDP

growth in Q1 2012, reducing 0.6 pp from the overall growth rate. This was due to

the negative contribution of both the oil and gas mining, and manufacture of LNG

and methanol sub-sectors.

Type of economic activities

Growth (y-o-y % change)

Q1 2012 Q1 2012 Q4 2011 Q1 2012 Q1 2012

Gross domestic product 3,042.6 5,364.4 1.3 0.7 0.7

Oil and gas sector 1,464.2 3,724.8 -3.5 -1.3 -0.6

Oil and gas mining 1,080.6 3,188.7 -5.1 -1.6 -0.6

Manufacture of liquefied natural gas (LNG) & methanol

383.7 536.2 1.0 -0.4 -0.1

Non-oil and gas sector 1,578.4 1,639.6 5.1 2.6 1.3

Government services 569.1 586.7 3.6 3.9 0.7

Private sector 1,009.3 1,052.9 6.2 1.9 0.6 Vegetables, fruits & other agriculture 10.4 9.7 15.8 42.3 0.1 Livestock & poultry 15.7 13.4 24.7 -1.4 -0.0 Forestry 1.9 1.9 41.7 185.7 0.0 Fishery 9.9 12.7 1.0 4.2 0.0 Manufacture of wearing apparel & textile 10.9 14.1 -8.5 -7.0 -0.0 Other manufacturing 21.9 19.5 0.8 3.3 0.0 Electricity & water 26.5 36.1 1.5 7.5 0.1 Construction 113.2 122.5 6.7 -0.8 -0.0 Wholesale & retail trade 169.8 183.2 9.2 2.9 0.2 Water transport 64.3 44.0 3.1 -0.4 -0.0 Air transport 18.3 34.2 6.7 -0.4 -0.0 Other transport services 38.5 51.8 11.5 -0.4 -0.0 Communication 22.5 20.8 8.8 -0.4 -0.0 Finance 107.5 117.2 1.3 0.5 0.0 Real estate & ownership of dwellings 107.6 109.2 5.7 0.1 0.0 Hotels & restaurants 21.0 19.6 14.0 3.5 0.0 Private health & education services 44.8 45.6 4.9 3.5 0.1 Business services 177.6 166.1 7.4 3.5 0.2 Domestic services 13.7 14.1 7.9 3.5 0.0 Other private services 13.2 17.1 13.2 3.9 0.0

In Q1 2012, the non-oil

and gas sector continued

to be the leading

contributor to the

country’s real GDP

growth at 1.3 pp

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Page 7: Beb q12012

Consumer Price Index

Brunei Darussalam’s average consumer price index (CPI) in Q1 2012 was

recorded at 107.0 (Table 2.1). This translated into an average y-o-y inflation rate of

0.6 per cent. The inflation rate for Food and Non-alcoholic Beverages was 1.4 per

cent y-o-y in Q1 2012; down from 2.8 per cent y-o-y in Q4 2011. For non-food

items, average inflation rate was 0.4 per cent y-o-y in Q1 2012; lower than the 1.8

per cent y-o-y recorded in Q4 2011.

Table 2.1: Consumer Price Index and Inflation (Summary)

Source: Department of Economic Planning and Development, Prime Minister’s Office.

Between Q1 2011 and Q1 2012, the highest quarterly inflation was in Q3

2011 at 2.4 per cent y-o-y (Chart 2.1). The lowest rate of inflation in the five

quarter period was recorded in in Q1 2012, when the inflation rate was 0.7 per

cent. For the food and alcoholic beverages, the highest was recorded in Q2 2012.

Chart 2.1: Overall, Food & Non-alcoholic Beverages and Non-food Inflation

(Q1 2011 to Q1 2012)

Source: Department of Economic Planning and Development, Prime Minister’s Office.

Between Q1 2011 and

Q1 2012, the highest

quarterly inflation was in

Q3 2011 at 2.4 per cent

y-o-y

Consumer price index

(CPI) levels

Inflation rates

(y-o-y % change)

Q4 2011 Q1 2012 Q4 2011 Q1 2012

Overall 107.3 107.0 2.0 0.6

Food and Non-alcoholic Beverages 114.4 115.1 2.8 1.4

Non-food 105.6 105.1 1.8 0.4

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

Food & Non-alcoholic Beverages

Overall

Non-food y-o

-y %

ch

ange

7

Page 8: Beb q12012

In Q1 2012, four major groups; Health, Education, Communication and

Transport experienced a y-o-y decline by 1.4 per cent, 0.8 per cent, 0.7 per cent

and 0.1 per cent, respectively (Table 2.2). Other groups recorded a y-o-y

increase; with Recreation and Culture showing the highest y-o-y increase at 3.3

per cent in Q1 2012.

Based on contribution to inflation, Food and Non-alcoholic Beverages

contributed the most at 0.3 pp (Table 2.2). Recreation and Culture came second

at 0.2 pp. These are followed by Clothing and Footwear and Miscellaneous Goods

and Services at 0.1 pp each.

Note: 0.0 means less than 0.05 . Source: Department of Economic Planning and Development, Prime Minister’s Office.

The price of Food and Non-alcoholic Beverages grew by 1.4 per cent y-o-y

in Q1 2012, from a 2.8 per cent y-o-y growth in Q4 2011 (Table 2.2). This was

mostly generated by the 9.9 per cent y-o-y increase in the price of Chicken.

In Q1 2012, the price of Clothing and Footwear grew by 1.3 per cent y-o-y

after a 3.8 per cent y-o-y growth in Q4 2011. This was mainly attributed to the

higher prices of Women’s Outer Clothing (1.1 per cent y-o-y).

The cost of Housing, Water, Electricity, Gas and Other Fuels increased by

0.1 per cent y-o-y in Q1 2012; down from a y-o-y growth of 1.1 per cent in Q4

2011. The price of Materials for the Maintenance and Repair of the Dwelling rose

the highest; by 3.6 per cent y-o-y.

Based on contribution to

inflation, Food and

Non-alcoholic Beverages

contributed the most at

0.3 pp

The price of Food and

Non-alcoholic Beverages

grew by 1.4 per cent

y-o-y in Q1 2012, from a

2.8 per cent y-o-y

growth in Q4 2011

8

Table 2.2: Consumer Price Index and Inflation

Major Groups CPI levels

Inflation rates (y-o-y % change)

Contribution to inflation

(pp)

Q1 2012 Q4

2011 Q1

2012

Overall 100.0 107.0 2.0 0.6 0.6

Food and Non-Alcoholic Beverages 19.1 115.1 2.8 1.4 0.3

Tobacco 0.4 246.6 23.9 0.0 0.0

Clothing and Footwear 4.3 104.8 3.8 1.3 0.1

Housing, Water, Electricity, Gas and Other Fuels

10.7 101.1 1.1 0.1 0.0

Furnishings, Household Equipment and Routine Household Maintenance

10.3 106.2 0.4 0.1 0.0

Health 0.9 103.9 -2.9 -1.4 0.0

Transport 22.5 104.0 1.8 -0.1 0.0

Communication 6.4 97.6 0.4 -0.7 0.0

Recreation and Culture 7.4 105.3 2.9 3.3 0.2

Education 5.7 99.8 -1.8 -0.8 0.0

Restaurants and Hotels 7.2 105.9 0.8 0.3 0.0

Miscellaneous Goods and Services 5.3 117.4 6.7 2.0 0.1

Wei

ghts

(%

)

Page 9: Beb q12012

9

Despite noticeable y-o-y declines in the costs of Household Utensils

(Non-electrical) and Other Household Textiles; by 8.0 per cent and 7.4 per cent

respectively in Q1 2012, the overall cost of Furnishing, Household Equipment and

Routine Household Maintenance recorded a lower growth of 0.1 per cent y-o-y

following a 0.4 per cent y-o-y growth in Q4 2011. Cleaning and Maintenance Prod-

ucts registered the highest rate of inflation with 6.3 per cent.

The Recreation and Culture price grew by 3.3 per cent y-o-y in Q1 2012;

following a 2.9 per cent y-o-y growth in Q4 2011. This was mainly due to the higher

price for Television and Radio Broadcasting; which grew by 7.6 per cent y-o-y.

As for Restaurants and Hotels, the cost rose by 0.3 per cent y-o-y from a

positive y-o-y growth of 0.8 per cent in Q4 2011; mainly as a result of inflationary

pressure in the Restaurant and Cafes sub-class, which increased by 0.7 per cent

y-o-y.

The prices of Miscellaneous Goods and Services increased by 2.0 per cent

y-o-y in Q1 2012 from a positive y-o-y growth of 6.7 per cent in Q4 2011. This was

primarily caused by the higher price of Jewellery, Made of Precious Stone which

increased by 19.4 per cent y-o-y.

After a negative growth of 2.9 per cent y-o-y in Q4 2011, the cost of Health

continued to fall by 1.4 per cent y-o-y in Q1 2012. The fall in the prices of Medical

Preparations and Patent Medicines, by 2.9 per cent y-o-y contributed to the

decline.

Education cost also continued to fall by 0.8 per cent y-o-y in Q1 2012 follow-

ing a 1.8 per cent y-o-y decline in Q4 2011. This was principally due to the drop in

price of Primary Education (1.9 per cent y-o-y).

The cost of Communication, fell by 0.7 per cent y-o-y in Q1 2012 following a

positive growth of 0.4 per cent y-o-y in Q4 2011.This was mainly due to the fall in

the Telephone and Telefax Services (0.2 per cent y-o-y).

For Transport, the cost fell by 0.1 per cent y-o-y in Q1 2012 after a 1.8 per

cent y-o-y growth in Q4 2011. This was due to the lower cost of Passenger

Transport by Air; which dropped by 5.9 per cent y-o-y.

Page 10: Beb q12012

10

External Trade

Trade balance (surplus) in Q1 2012 was at 62.5 per cent of GDP up from 61.8

per cent of GDP in Q4 2011 (Table 3.1). In absolute terms, this translated to a

quarterly trade surplus of BND3,505.1 million. In terms of y-o-y growth rates, trade

surplus increased by 25.0 per cent; lower than the 39.7 per cent recorded in Q4

2011.

Total exports of goods was 83.3 per cent of GDP in Q1 2012; higher than the

corresponding figure in Q4 2011 (79.5 per cent). Imports in Q1 2012 constituted

about 20.8 per cent of GDP; which was also higher than the 17.7 per cent registered

in Q4 2011.

In terms of growth, total exports posted a lower growth rate with a 26.8 per

cent y-o-y increase in Q1 2012, after a 34.1 per cent growth in Q4 2011. Total

imports in Q1 2012 surged up by 33.0 per cent y-o-y; after registering a 17.6 per

cent growth in Q4 2011.

Table 3.1: External Trade (Summary)

Source: Department of Economic Planning and Development, Prime Minister’s Office.

In terms of per cent of GDP, the highest amount of trade surplus in the last

five periods was recorded in the latest quarter (Chart 3.1). The lowest trade surplus

was registered in Q2 2011; at 53.8 per cent of GDP.

Chart 3.1: Exports, Imports and Trade Balances (Q1 2011 to Q1 2012)

Source: Department of Economic Planning and Development, Prime Minister’s Office.

Trade surplus was at

62.5 per cent of GDP in

Q1 2012; up from 61.8

per cent of GDP in Q4

2011

In Q1 2012, total exports

and imports were 83.3

per cent and 20.8 per

cent of GDP respectively

Levels (BND million)

Growth rates (y-o-y % change)

Distribution (% of GDP)

Q4 2011 Q1 2012 Q4 2011 Q1 2012 Q4 2011 Q1 2012

Trade balance 3,411.9 3,505.1 39.7 25.0 61.8 62.5

Exports of goods 4,387.6 4,578.6 34.1 26.8 79.5 83.3

Domestic exports of goods

4,280.8 4,415.8 36.1 26.6 77.5 82.4

Re-exports of goods 106.8 162.8 -16.6 32.3 1.9 0.9

Imports of goods 975.7 1,073.5 17.6 33.3 17.7 20.8

The highest trade

surplus during the last

five quarters was

recorded in Q1 2012

% o

f G

DP

Exports

Imports

Trade Balances

Page 11: Beb q12012

11

The Q1 2012 export proceeds of BND4,578.6 million were mainly generated

by two main commodities; crude oil and LNG. These two export products

constituted about 94.0 per cent of total exports.

Oil exports, the largest source of foreign exchange receipts in Q1 2012 (48.7

per cent in terms of share) increased by 19.5 per cent y-o-y to BND2,231.4 million

(Table 3.2). The increase was attributed to a higher weighted average crude oil

price (WACOP); which was estimated at USD125.84 per barrel in Q1 2012 compared

to USD105.50 per barrel in Q1 2011.

LNG, which accounted for 45.3 per cent of total exports in Q1 2012, was the

second biggest source of foreign exchange earnings. Export of this commodity in Q1

2012 expanded by 33.7 per cent y-o-y due to higher prices of LNG in that period by

23.5 per cent y-o-y which was estimated at USD17.71 per million British thermal

unit (MMBtu).

Methanol ,in Q1 2012, only made up of 2.3 per cent of total exports as its

first production only started in the second quarter of 2010. However during Q1

2012, methanol exports went up by 67.2 per cent y-o-y.

The US dollar depreciated against the Brunei dollar by about 1.9 per cent

from an exchange rate of 1.29 in Q4 2011 to 1.26 in Q1 2012. Despite this, the

overall merchandise export earnings still increased.

Re-exports, accounted for 3.6 per cent of total exports; of which machinery

and transport equipment made up the biggest share; 76.2% of total re-exports .

Table 3.2: Major Exports of Goods

*Note: Methanol’s first shipment was at the end of May 2010.

Source: Department of Economic Planning and Development, Prime Minister’s Office.

Brunei Darussalam’s top four export destinations in Q1 2012 were Japan,

South Korea, India and Australia (Table 3.3). Altogether, they accounted for almost

three-quarters of Brunei Darussalam’s total exports during that period. Mineral

fuels were the major exports commodities; which accounted for almost 100 per

cent of the total exports to these countries.

Oil and LNG exports in

Q1 2012 accounted for

94.0 per cent of total

exports

Levels (BND

million)

Growth rates (y-o-y % change)

Distribution (% of total exports)

Q1 2012 Q4 2011 Q1 2012 Q4 2011 Q1 2012 Total exports of goods 4,578.6 34.1 26.8 - -

Crude oil 2,231.4 32.0 19.5 51.5 48.7

Liquefied Natural Gas (LNG) 2,074.8 43.6 33.7 44.7 45.3 Methanol 106.7 -8.1 67.2 1.3 2.3

Page 12: Beb q12012

Japan remained the dominant export market for Brunei Darussalam

accounting for 39.7 per cent of total exports, followed by South Korea (18.0 per

cent), India (8.3 per cent), and Australia (7.5 per cent).

Table 3.3: Top Four Export and Import Markets

Source: Department of Economic Planning and Development, Prime Minister’s Office.

Brunei Darussalam’s total imports in Q1 2012 stood at BND1,073.5 million.

Accounting for 26.8 per cent of the aggregate imports bill was payment for

machinery and transport equipment; which in Q1 2012 increased by 1.9 per cent

y-o-y (Table 3.4). In the previous period, it fell by 4.4 per cent.

Manufactured goods, contributed 25.3 per cent to Brunei Darussalam’s

total imports. In Q1 2012, it increased by per cent 54.3 y-o-y. In comparison, the

Q4 2011 figure was 33.2 per cent.

Imports of mineral fuels, lubricants and related materials in Q1 2012 rose

further by 210.8 per cent y-o-y, after a 171.5 per cent increase in Q4 2011. This

group of commodity accounted for 17.1 per cent of total imports.

Food and live animals accounted for 12.3 per cent of total imports. The

imports of this commodity group recorded a lower growth rate of 12.0 per cent

y-o-y compared to a 12.5 per cent y-o-y growth in Q4 2011.

Japan remained the

dominant export market

with a 39.7 per cent

share in Q1 2012

Countries

Exports Imports

Levels (BND

million)

Distribution (% of total exports)

Distribution (% of total exports)

Levels (BND

million)

Distribution (% of total imports)

Distribution (% of total imports)

Q1 2012 Q4 2011 Q1 2012 Q1 2012 Q4 2011 Q1 2012

Export markets

Japan 1,816.4 41.7 39.7 - - -

South Korea 823.1 17.4 18.0 - - -

India 379.8 6.0 8.3 - - -

Australia 342.2 9.3 7.5 - - -

Import markets

Singapore - - - 316.6 23.7 29.5

Peninsular Malaysia

- - - 163.5 19.9 15.2

United States - - - 93.3 8.6 8.7

China - - - 93.2 9.0 8.7

Machinery and

transport equipment

formed the largest

import commodity

group with a 26.8 per

cent share

12

Page 13: Beb q12012

Table 3.4: Imports of Goods

Source: Department of Economic Planning and Development, Prime Minister’s Office.

In Q1 2012, Singapore retained its position as the biggest source of imports

with a 29.5 per cent share (Table 3.3). Since Q1 2011, Brunei Darussalam

imported more mineral fuels from Singapore rather than machinery and transport

equipment.

Peninsular Malaysia was the second biggest source of imports in Q1 2012;

accounting for 15.2 per cent share. Brunei Darussalam’s imports from Peninsular

Malaysia constituted mostly of food items.

The next biggest source of imports in Q1 2012 was the United States with

an 8.7 per cent share. The biggest import commodity from that market was

machinery and transport equipment.

Levels (BND

million)

Growth rates (y-o-y % change)

Distribution (% of total imports)

Q1 2012 Q4 2011 Q1 2012 Q4 2011 Q1 2012

Total imports of goods 1,073.5 17.6 33.3 - -

Food & live animals 132.0 12.5 12.0 14.6 12.3

Beverages & tobacco 15.1 13.5 42.1 1.7 1.4

Crude materials, inedible except fuels

16.8 44.0 48.7 1.6 1.6

Mineral fuels, lubricants & related materials

184.0 171.5 210.8 13.4 17.1

Animal & vegetable oils & fats 5.0 16.7 42.0 0.4 0.5

Chemicals 69.6 -2.2 -2.6 7.9 6.5

Manufactured goods 272.0 33.2 54.3 22.7 25.3

Machinery & transport equipment 288.1 -4.4 1.9 28.0 26.8

Misc. manufactured articles 85.2 -4.4 27.2 8.7 7.9

Misc. transactions & commodities, n.e.c

5.7 50.0 9.0 1.0 0.5

Singapore was the

biggest import market

with a 29.5 per cent

share in Q1 2012

13

Page 14: Beb q12012

Public Finance

In Q1 2012, Brunei Darussalam recorded a fiscal surplus of BND1,163.2

million; which was about 21.1 per cent of GDP (Table 4.1). In the previous quarter,

fiscal surplus was BND1,839.6 million (33.3 per cent of GDP).

In terms of y-o-y growth, the fiscal balance increased by 12.1 per cent in Q1

2012; while the corresponding figures was 266.8 per cent in Q4 2011. The lower

percentage increase was due to the relatively lower growth in total revenues in Q1

2012 compared with Q4 2011 (0.5 per cent versus 68.2 per cent). Total

expenditures actually fell by 5.3 per cent y-o-y; compared to a 9.2 per cent y-o-y

increase in Q4 2011.

In terms of distribution, fiscal revenues and expenditures made up around

56.0 per cent and 35.0 per cent of GDP, respectively. In Q4 2011, fiscal revenues

were 66.7 per cent of GDP, while fiscal expenditures were 33.4 per cent of GDP.

Table 4.1: Public Finance (Summary)

Sources: Ministry of Finance. Department of Economic Planning and Development, Prime Minister’s Office.

In the last five quarters, the highest fiscal surplus was registered in Q3 2011

at 35.0 per cent of GDP (Chart 4.1). In contrast, Q1 2011 recorded the lowest fiscal

balance in terms of per cent of GDP at 20.8 per cent.

Chart 4.1: Revenues, Expenditures and Fiscal Balances (Q1 2011 to Q1 2012)

Sources: Ministry of Finance Department of Economic Planning and Development, Prime Minister’s Office.

Value (BND million)

Growth rates (y-o-y % change)

Distribution (% of GDP)

Q4 2011 Q1 2012 Q4 2011 Q1 2012 Q4 2011 Q1 2012

Fiscal balance 1,839.6 1,163.2 266.8 12.1 33.3 21.1

Total revenues 3,682.5 3,093.0 68.2 0.5 66.7 56.0

Total expenditures 1,842.9 1,929.8 9.2 (5.3) 33.4 35.0

% o

f G

DP

Revenues

Expenditures

Fiscal balances

In Q1 2012, Brunei

Darussalam recorded a

fiscal surplus of

BND1,163.2 million,

which was about 21.1

per cent of GDP

14

Page 15: Beb q12012

Total revenues in Q1 2012 were BND3,093.0 million; which was a y-o-y

increase of 0.5 per cent. In Q4 2011, total revenues stood at BND3,682.5 million

when it increased y-o-y by 68.2 per cent. Oil and gas revenues went up by 8.5 per

cent y-o-y in this period, lower than the 72.0 per cent y-o-y increase recorded in

Q4 2011. This component constituted about 94.0 per cent (BND2,934.1 million)

of the total revenues; which was 0.9 per cent lower than that of Q4 2011 (Table

4.2). In comparison to Q4 2011, the oil and gas revenues in Q1 2012 were lower

mainly due to the lower levels of production and export volume of crude petrole-

um as well as the weaker US dollar.

Table 4.2: Government Revenues

Sources: Ministry of Finance. Department of Economic Planning and Development, Prime Minister’s Office.

In Q1 2012, production and exports of crude petroleum were 164,736

bpd and 157,182 bpd, respectively. In Q4 2011, the corresponding figures were

167,058 bpd and 170,621 bpd, respectively. The WACOP was USD125.84 per

barrel in Q1 2012; higher than the corresponding price in Q4 2011 (USD 117.34

per barrel).

Unlike crude petroleum, the production and exports of LNG were higher in

Q1 2012 compared to those in Q4 2011. The weighted average price of LNG was

also higher. In Q1 2012, LNG production and exports were 1,064,490 million

British thermal units (MMBtu) per day and 1,049,475 MMBtu per day,

respectively. In Q4 2011, LNG production was 960,468 MMBtu per day, while

exports were 923,566 MMBtu per day. The weighted average price for LNG in Q1

2012 was USD17.71 per MMBtu; higher than the price recorded in Q4 2011 (USD

17.14 per MMBtu ).

Revenues from government operations fell by 15.2 per cent y-o-y after

rising by 24.9 per cent y-o-y in Q4 2011. In Q1 2012, these constituted around 5.9

per cent of total revenues in Q1 2012; higher than 5.1 per cent share recorded in

Q4 2011.

Types of revenues

Value

(BND million)

Growth rates

(y-o-y %

change)

Distribution

(% of Total

revenues)

Q4

2011

Q1

2012

Q4

2011

Q1

2012

Q4

2011

Q1

2012

Total revenues 3,682.5 3,093.0 68.2 0.5 100.0 100.0

Oil and gas revenues 3,462.9 2,934.1 72.0 8.5 94.9 94.0

Revenues from government operations 218.0 156.5 24.9 (15.2) 5.1 5.9

Taxes 132.6 70.2 35.2 (16.9) 2.3 3.6

Fees, charges and rent 81.3 78.1 11.9 (7.1) 2.5 2.2

Other 4.1 8.2 7.1 (48.8) 0.3 0.1

Returns from investments and savings 1.6 2.5 96.0 (98.7) 0.1 0.0

The oil and gas revenues

in Q1 2012 were lower

mainly due to the lower

levels of production and

export volume of crude

petroleum, as well as the

weaker US dollar

15

Page 16: Beb q12012

Out of this, taxes were the largest component (3.6 per cent); followed by

fees, charges and rent (2.2 per cent) and other (0.1 per cent). All the components

from government operations experienced drops in the revenue levels; with taxes

falling by 16.9 per cent, fees, charges and rent by 7.1 per cent and other by 48.8

per cent. Despite the fall in absolute values, taxes from government operations

actually grew in terms of the overall share in total revenues.

The returns from investments and savings also fell in terms of its absolute

value and share. In Q1 2012, it went down by 98.7 per cent y-o-y after growing

96.0 per cent y-o-y in Q4 2011. The value in Q1 2012 was BND2.5 million; which

was about 0.04 per cent of total revenues.

The government’s total expenditures in Q1 2012 fell by 5.3 per cent y-o-y

after growing by 9.2 per cent y-o-y in Q4 2011 (Table 4.3). This brought the total

expenditures figure to BND1,929.8 million in Q1 2012. The fall in total expenditures

was attributed to the 7.5 per cent y-o-y decrease in current expenditures. In Q1

2011, current expenditures were BND1,383.8 million. Capital expenditures actually

increased to BND546.0 million; a y-o-y increase of 0.8 per cent in the same period.

In the previous period of Q4 2011, current expenditures rose by 13.3 per

cent y-o-y, while capital expenditures dropped by 2.6 per cent y-o-y. Despite the

fall in current expenditures, it was still the biggest component of government

spending in Q1 2012 (76.9 per cent of total expenditures). By comparison, capital

expenditures made up around 23.1 per cent.

Table 4.3: Government Expenditures

Source: Ministry of Finance. Department of Economic Planning and Development, Prime Minister’s Office.

Types of expenditures

Value

(BND

million)

Growth rates

(y-o-y % change)

Distribution

(% of

total expenditures)

Q1 2012 Q4 2011 Q1 2012 Q4 2011 Q1 2012

Total expenditures 1,929.8 9.2 -5.3 100.0 100.0

Current expenditures 1,383.8 13.3 -7.5 71.7 76.9

Charged expenditures 421.7 25.0 12.0 21.9 23.9

Personal emoluments (PE) 442.3 7.3 -0.3 22.9 30.7

Other charges annually recurrent (OCAR)

519.8 10.8 -23.2 26.9 22.4

Capital expenditures 546.0 -2.6 0.8 28.3 23.1

Development expenditure (DE) 323.3 20.9 -5.1 16.8 16.7

Other charges special expenditure (OCSE)

222.6 -35.3 10.7 11.5 6.4

16

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In Q1 2012, personal emoluments (PE) was the biggest share of current

expenditures with 30.7 per cent of total expenditures; despite experiencing a 0.3

per cent y-o-y decrease. OCAR was the smallest component of current

expenditures making up 22.4 per cent of GDP after falling by 23.2 per cent y-o-y.

In terms of capital expenditures, development expenditures (DE) for the

implementation of infrastructural projects of the National Development Plan

(RKN) fell by 5.1 per cent y-o-y in Q1 2012. By contrast, OCSE which was mainly

made up of the government’s purchases of capital goods went up by 10.7 per

cent. Despite these, DE was the biggest component of the government’s capital

spending with a 16.7 per cent share of total expenditures. OCSE made up 6.4 per

cent of total expenditures in Q1 2012.

In Q1 2012, personal

emoluments (PE) was the

biggest share of current

expenditures with 30.7

per cent of total

expenditures, despite

experiencing a 0.3 per

cent y-o-y decrease

17

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Special Article 1. Consumer Protection in Brunei Darussalam

Introduction

The subject of consumer protection can be seen as a relatively new area of

development in Brunei Darussalam. The Consumer Protection (Fair Trading) Order

2011 (CPFTO 2011) was enacted on 10 November 2011 and was enforced on 1 Jan-

uary 2012. The Order was under the initiative of the Department of Economic Plan-

ning and Development (JPKE) which will also be the government agency respon-

sible for its implementation. Before the enforcement of the Order, complaints

have only been dealt with administratively.

ASEAN Committee on Consumer Protection

The ASEAN Committee on Consumer Protection (ACCP) was established in

2007 in the attempt to help implement and develop consumer protection policy in

ASEAN. By 2015, ASEAN member states (AMSs) are expected to have consumer

protection policy in place. It is also by the same year that the ASEAN goal of

regional economic integration of becoming ASEAN Economic Community (AEC) is

hoped to be achieved. Consumer interest and welfare are crucial elements to be

considered in all measures implemented in order to achieve the goal of an

integrated economic region.

Since then, the ACCP have had major progress in promoting the importance

of consumer protection around the region. The ACCP introduced and launched The

ASEAN Consumer Complaints leaflet on 3 April 2012. The leaflet contains

information on hotlines and/or national focal points in all AMSs for consumer

complaints to ensure better regional awareness, understanding and information

dissemination among both ASEAN and non-ASEAN consumers; and more generally,

the regional and extra-regional public at large.

Recently, the ACCP introduced and launched the ACCP website

(www.aseanconsumer.org) at its Fifth Meeting on 2-4 May 2012 in Bali, Indonesia.

This website will serve as the main reference point for consumers on matters

pertaining to recalled/banned products (excluding food, pharmaceuticals, health

supplements, traditional medicines, cosmetics and medical equipment), consumer

redress mechanism, training and education information.

18

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Consumer Rights

The consumer rights under the United Nations Guidelines on Consumer

Protection can be summed up as follows:

1. The right to satisfy basic needs

2. The right to safety

3. The right to information

4. The right to choose

5. The right to representation

6. The right to be redress

7. The right to consumer education

8. The right to a healthy environment

Consumer Protection (Fair Trading) Order (CPFTO) 2011

Subsidiary Regulations and Objectives

Consumer protection is an essential tool in safeguarding consumer rights,

interests and welfare. It also helps to promote and ensure the existence of a fair

trading environment.

In Brunei Darussalam, the CPFTO 2011 objectives are to protect

consumers’ interests and uphold their rights against any unfair practices by

suppliers. It too aims in contributing to the economic growth and diversification

by enhancing foreign investors’ confidence to invest in the country.

Under the Order, there are 20 sections and two subsidiary regulations

namely the Cancellation of Contracts Regulations 2011 and the Opt-Out Practices

Regulations 2011. The Cancellation of Contracts Regulations 2011 allows

consumers to cancel direct sales, time-share and time-share related contracts

within a 5-day cancellation period, excluding Saturdays, Sundays and public

holidays.

Under the Opt-Out Practices Regulations, a consumer, unless he has

acknowledged in writing his willingness to accept and pay for unsolicited goods

and services, is allowed to treat all such goods and services as unconditional gifts

from suppliers.

19

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Excluded Transactions

The CPFTO 2011 only covers consumer transactions that are related to

personal, family and household matters. It does not cover any transaction made for

commercial purposes.

The Order also excludes any transactions related to areas that are already

covered by other Acts or Orders in Brunei Darussalam. The excluded transactions

can be summarize as follows:

1. Property 4. Banking 7. Contracts 10. Halal

2. Employment 5. Business 8. Criminal

3. Finance 6. Insurance 9. Fisheries

Unfair Practices, Consumers and Suppliers

The Brunei Darussalam consumer protection order focuses specifically on

fair trading practices in relation to goods or services bought for personal use. There

are 20 specific unfair practices under the Order which amongst others include

deceiving or misleading consumers, making false claims regarding products and

services, and taking advantage of consumers who have no knowledge about the

products and services.

Under the Order, a consumer refers to a person who receives or has the

right to receive goods or services from a supplier. A consumer can also be seen as a

person who has a legal obligation to pay a supplier for goods or services that have

been or able to be supplied to another individual. Hence in general, any person

who is residing or conducting a transaction in Brunei Darussalam; including

foreign residents and tourists, can be considered a consumer.

A supplier on the other hand, is a person who in the course of business,

provides, manufactures, assembles or produces goods or services to consumers. A

supplier is also a person who promotes the use of goods or services, or receives or

is entitled to receive money or other consideration as a result of the provision of

goods or services to consumers.

Consumer Complaints

A consumer aggrieved by an unfair practice can seek redress by lodging a

consumer complaint at JPKE, provided that the claim is within the prescribed limit

and limitation period. The prescribed limit under the order is below BND10,000. A

consumer must file his/her complaint within two years from the occurrence of the

unfair practice or the earliest date when the consumer can reasonably have

discovered the unfair practice.

20

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Standard Operating Procedures (SOP)

The brief standard operating procedures are as follows:

Covered under the CPFTO Complaint forwarded to

the relevant agencies

No

Complaint received

Complaint recorded

Complaint logged and entered into system

Evaluation report

Yes

Preliminary Investigation

Consultation and negotiation

Is it successful?

Case resolved

Yes No

Mediation

Small Claims Tribunal/court

Case resolved

21

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Challenges Ahead

One of the major challenges of the CPFTO 2011 is to ensure the effective

implementation and coordination of the Order. Strong and solid coordination and

cooperation between JPKE, the relevant government agencies and the judiciary is

very important in ensuring the enforcement and implementation of the Order are

done in the most efficient and effective manners possible.

Equally crucial is to carry out continuous consumer awareness and education

programmes for the public. The significance of this is not only in having a better

informed and well-aware public but also to create the much needed support from

the public to the newly-enforced consumer protection order. Furthermore, in

order to implement and enforce the CPFTO 2011 efficiently, adequate human and

financial resources are necessary as well as advanced trainings for officers and staff

such as in handling complaints, managing negotiations and mediation.

Contact Details:

Hotline/fax: 673-2230223

Email address: [email protected]

[email protected]

Facebook: www.facebook.com/AduanPenggunaJPKE

Building address: Room 3.04, Level 3, West wing, , Block 2A, Jalan Ong Sum Ping,

Bandar Seri Begawan, BA 1311

Written by:

Haji Muhamad Azim bin Haji Abdul Hamid and Nurulizzati binti Haji Jahari,

Price Control Division (Consumer Protection),

Department of Administration and Info Communication Technology,

Department of Economic Planning and Development,

Prime Minister’s Office

22

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References:

Consumer Protection (Fair Trading) Order 2011, Available on:

http://www.depd.gov.bn

Consumer Protection in ASEAN, Available on:

http://www.aseansec.org/Fact%20Sheet/AEC/AEC-07.pdf

ASEAN Economic Community, Available on:

http://www.aseansec.org/18757.htm

ACCP Website, Available on:

http://aseanconsumer.org

The ASEAN consumer complaints leaflet, Available on:

http://www.asean.org/26836.htm

23

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Special Article 2. The Tenth National Development Plan

(Excerpt from the Tenth National Development Plan publication of the

Department of Economic Planning and Development)

Introduction

The Tenth National Development Plan, 2012-2017 (RKN10) is the second five

-year national development plan under the Brunei Darussalam Long-Term

Development Plan (2007-2035).

Through the five-year national development plans, development

programmes in the forms of physical infrastructure as well as non-physical

infrastructure were planned and implemented. Such programmes have been one

of the key drivers to economic prosperity, improvements in quality of life and po-

litical stability enjoyed by the citizens and people of this country.

NDP10 Theme

In line with the Outline of Strategies and Policies for Development (OSPD) in

the Wawasan Brunei 2035, NDP10 will continue towards achieving the average

annual economic growth target of 6.0 per cent. However, to achieve this growth

target, significant structural changes in the economy are vital. Brunei Darussalam

has to explore new frontiers in development that can transform it into a fast

growing economy. In this respect, the theme for RKN10 has been formulated:

Figure 1: NDP10 Theme

In realising this theme, RKN10 will thus focus on the acceleration of

economic growth. High economic growth will help the nation increase income and

accelerate development. It will also create numerous job opportunities for its

citizens and permanent residents and will enable the private sector to become

more active as envisioned.

24

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Sustainable high growth rates can be achieved through continuous

increases in productivity in the public and private sectors, including in existing

industries and new ones. Such increases in productivity will help reduce costs,

improve work quality continuously and ensure continuous increases in output.

Efforts towards the generation of high productivity may not be a simple task and

will require integrated efforts from all parties. This includes maintaining and

strengthening existing efforts such as investments in human resources, research

and innovation as well as encouraging the use of latest technologies.

In this challenging era of globalisation and in realising the need for efforts

that are more effective and relevant, NDP10 will give high priority in exploring

approaches for increasing productivity through the use of knowledge and

innovation. The concept of knowledge and innovation emphasised in NDP10

focuses on the generation of high productivity through increasing knowledge,

skills and competency of the workforce in strategic areas; increasing research

activities that have high commercial value; and instilling the culture of innovation

and creativity among local youths. All of these will contribute to economic

growth, particularly through the generation of high value-added industries. A

highly skilled and competent workforce equipped with the latest technology will

not only be able to increase their productivity but will also improve the nation’s

competitiveness in the global market.

Research activities that have high commercial values will boost

productivity and also enhance the diversification of high value added non-oil and

gas industries. Nevertheless, efforts in commercialising researches are expected

to face numerous external challenges. Therefore it is necessary to have

concerted efforts; not only from the public sector especially higher learning

institutions but also commitment from the private sector to be active in research

and development (R&D). A conducive environment will be put in place to further

encourage research activities that can eventually produce commercially valuable

research output.

Innovation and creativity among youths are also important foundations for

the development of a knowledge-based economy. The outcome of innovation

and creativity can be transformed into intellectual property that will enhance the

nation’s ability to compete globally. The contribution to the economy can be

significantly increased if the locals are also equipped with entrepreneurial skills.

25

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NDP10’s Strategic Development Thrusts

In supporting the NDP theme, six strategic development thrusts have been

outlined to provide directions in the selection of programmes and projects under

NDP10 (Figure 2). With this, Brunei Darussalam will be able to achieve its desired

development objectives and work towards realising the goals of Wawasan Brunei

2035.

Figure 2: NDP10’s Strategic Development Thrusts

Thrust One is Educated and Highly Skilled Population. Seven factors contrib-

uting to this thrusts are 1) Quality education infrastructure and facilities; 2) Quality

teachers; 3) Professional and highly skilled workforce; 4) Life-long education; 5)

Entrepreneurship education; 6) Science, technology and innovation; and 7) Private

sector involvement. All these factors will focus on enhancing the levels of educa-

tion and skills of the human workforce.

Thrust Two is High Quality of Life, which includes seven factors: 1) Sustaina-

ble and inclusive development; 2) Quality and sufficient housing; 3) Comprehensive

medical and health services; 4) Clean and healthy environment; 5) Public security;

6) Access to basic amenities: water, electricity, communication and transportation;

and 7) Cultural, sports and recreational infrastructure. These factors aim to en-

hance the quality of life of the population of the nation and henceforth towards

the achievement of better welfare.

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Thrust Three is Conducive Business Environment. This thrust focuses on

efforts that can flourish the nation’s private sector and further enhance its

attractiveness as a destination for foreign direct investment, that is: 1) Fast and

easy process for starting a business; 2) Strong business capacity and capability;

and 3) Protection of intellectual property rights.

Thrust Four is Progressive and Productive Economy Based on Knowledge

and Innovation which focuses on the generation of high and sustainable

economic growth through investments in knowledge and innovation, high

technology, as well as non-oil and gas exports towards diversifying the economy.

This thrust has five main factors: 1) Knowledge infrastructure and facilities;

2) R&D that has commercial value; 3) High technology private investments;

4) Entrepreneurship development; and 5) Non-oil and gas investment and

exports.

Thrust Five is Good Governance and Government Modernisation. This

thrust concentrates on efforts that enhance the quality and productivity level of

the public sector. Three factors identified in establishing and enhancing public

sector productivity are: 1) Quality public infrastructure and facilities;

2) Professional public sector workforce; and 3) Laws and regulations that meet

current needs.

Thrust Six is High Quality and Sustainable Development Infrastructure. This

thrust includes six factors that prepare the nation for the development of the

private sector in general and in attracting foreign direct investment specifically:

1) Water supply, drainage and sewerage infrastructure; 2) Electric power

infrastructure; 3) Communication and transportation infrastructure;

4) Info-communication network infrastructure; 5) Sustainable and environmental

friendly growth and development; and 6) Industrial sites.

Budget Allocation of NDP10

The government has allocated BND6.5 billion in implementing 682 projects

of which BND2.7 billion is allocated to finance 202 new projects and BND3.8 bil-

lion is allocated to finance 480 carried forward projects from NDP 2007-2012.

This allocation represents an increase of 25.1 per cent from RKN2007-2012’s

allocation of BND5.2 billion. The social services sector received the biggest share

with a total allocation of BND2.0 billion (Figure 3).

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Several special funds have been provided in the NDP10. An amount of

BND250 million has been allocated under the Human Resources Development

Fund. Another BND200 million has been allocated to expand research activities and

BND100 million has been allocated under the Small and Medium Enterprises

Development Fund.

Figure 3: Allocation of NDP10 by Sectors

Source: Department of Economic Planning and Development, Prime Minister’s Office.

Concluding remarks

As a conclusion, NDP10 emphasizes and places priority on efforts to

accelerate economic growth through continuous increases in productivity that is

based on knowledge and innovation. High economic growth based on productivity,

knowledge and innovation will not only contribute to high added value in economic

sectors but will also improve Brunei Darussalam’s competitiveness in the global

economic climate which is challenging, competitive and rapidly changing.

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Brunei Economic Bulletin Editorial Team

Editors

Director General,

Department of Economic Planning and Development

Deputy Director General,

Department of Economic Planning and Development

Directors,

Department of Economic, Planning and Development

Contributors

Haji Aminuddin bin Haji Mohamad Taib

Asnawi Faisal bin Haji Kamis

Hajah Zureidah binti Haji Abit

Dayangku Norhanidah binti Pengiran Haji Masshor

Nur Edzalina binti Haji Idris

Mohamad Adi Hamdi bin Haji Aminuddin

Lai Yea Liang

Haji Muhamad Azim bin Haji Abdul Hamid

Nurulizzati binti Haji Jahari

National Statistics provided by the Department of Statistics

Layout and Design

Awangku Muhammad Hazwan bin Pengiran Haji Kamarulzaman

Contact Address:

Department of Economic Planning

and Development

Block 2A Jalan Ong Sum Ping

Bandar Seri Begawan BA1311

Telephone: 673-2233344

Fax: 673-2230226

Website: www.depd.gov.bn