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Borneo Bulletin Yearbook 2019
The official name for Brunei is Negara Brunei
Darussalam, in which Negara Brunei means the
State of Brunei and Darussalam means Abode
of Peace. True to its name, citizens of Brunei
lead peaceful lives in this wealthy nation, home
of pristine rainforests protected under the Heart
of Borneo agreement signed in 2007. Brunei has
allocated about 58 per cent of its total land area,
equivalent to 346,000 hectares, to be conserved
under the Heart of Borneo agreement.
Brunei’s wealth is due to its vast reserves
of oil and gas, and this can be traced back all
the way to 1929 when commercial oil was first
discovered. For 90 years, the oil and gas industry
has built Brunei’s economy and Brunei continues
to supply oil to many countries.
Marching towards Brunei Vision 2035, Brunei
strives to diversify its economy by attracting
foreign direct investments. Brunei offers one of
the lowest corporate income taxes in the world
at 18.5 per cent. Newly established companies
are exempt from the first BND100,000
chargeable income.
In addition, companies with a pioneer status
are exempt from income tax for up to 20 years
depending on the conditions. Pioneer companies
are exempt from taxes on imported duties and
raw materials. The Ministry of Primary Resources
and Tourism has declared the following to be
pioneer industries: aluminium wall tile, furniture,
glass, ceramic and potteries, toys, plastics and
synthetic, and fertilisers and pesticides.
Over the years, Brunei has established several
organisations to encourage foreign investments.
These organisations work together, smoothening
the process of obtaining permits, approvals and
licenses. In the World Bank’s Ease of Doing
Business 2019 report, Brunei scored an average
of 72.03 and ranked 55
th
out of 190 economies. In
this ranking, only 46 economies improved in three
or more areas of doing business. Brunei made
the list, making improvement in the following
areas: starting a business, getting electricity and
getting credit. In the starting a business area,
Brunei scored 94.92 and ranked at 16.
With Brunei’s strategic location, investors can
access the ASEAN market worth USD2.9 trillion.
Brunei’s access to South China Sea makes Brunei
an important link in the USD1 trillion One Belt
One Road scheme, connecting more than 60
countries across Asia and Europe.
BRUNEI DARUSSALAM