BBYB 2019

Borneo Bulletin Yearbook 2019

India topping the list. This is a good opportunity

for Brunei to pursue economic diversification

and create job opportunities by developing the

Halal food industry. The amendment to the Halal

Certificate and Halal Label Order in 2017, recently

updated, opens up opportunities for newer

industries to come in. This includes cosmetics,

consumable products, and logistics services

related to transportation, storage, packaging and

others. Several FDI’s Halal-related businesses

have set foot to invest and make production.

Attracting foreign direct investments (FDIs) into

Brunei is one of the main strategies adopted to

diversify Brunei’s local economy. In 2016, an FDI

and Downstream Industry Steering Committee

was established and tasked with implementing

reforms to increase competitiveness in a bid to

attract foreign investors to the nation.

In order to encourage FDIs coming into the

country, the government also set up a fast-track

system allowing FDIs to expedite the processes

of opening up a business in the nation.

BEDB works in tandem with the Invest in Brunei

FDI Action and Support Centre (FAST) – an agency

that helps to coordinate with other stakeholders

– to ensure investors gain easy access to obtain

permits, licenses and approvals, including

development and construction approvals

as well as approvals for the recruitment of

foreign labour. To ensure a smooth operation, a

dedicated account manager will be assigned to

each investor as a single focal point and liaison

officer. BEDB also collaborates with Darussalam

Enterprise (DARe) to provide operational support

for the FDIs.

Through collaborations with these organisations,

BEDB has helped facilitate a large number of

FDI projects in Brunei. One of the biggest is the

establishment of Hengyi Industries Sdn Bhd,

which is a joint venture between the country

and the China-based Zhejiang Hengyi Group.

Under the agreement, Hengyi Industries Sdn

Bhd is expected to operate a multi-billion dollar

oil refinery and aromatics plant on Pulau Muara

Besar (PMB) by July 2019.

The large scale downstream petrochemical

project sits on a massive site area of 260

hectares, transforming PMB into a mega

industrial facility. Once up and running, the

project is expected to deliver eight million

tonnes of petroleum by-products per year such

as aromatics, gasoline and diesel as well as to

meet the local fuel demand.

In 2017, Brunei Fertilizer Industries Sdn Bhd

(BFI) signed an agreement with Germany-based

worldwide engineering and construction services

provider ThyssenKrupp Industrial Solutions AG

(tkIS) to set up an ammonia and urea plant at the

Sungai Liang Industrial Park (SPARK).

Also facilitated by BEDB, the project will begin

production by early 2021, with an estimated

1,000 jobs created during its construction phase,

a further 200 jobs in its operational phase as well

as 600 indirect jobs in the service sector.

Brunei offers a business-friendly environment. In

addition to the dedicated support for investors –

in which BEDB, FAST and relevant government

agencies work closely to provide assistance to

investors from submission of proposals up to

implementation and operation of projects –

there are other attractive factors that will help

business including:

•

100 per cent Foreign Ownership

– Com-

panies incorporated in Brunei are permitted

to have 100 per cent foreign ownership.

•

Credible Co-Investment Partnership

– Credible co-investment partnerships

are available. Partners include Ministry

Finance’s

Strategic

Development

Capital Fund (SDC) and Government Linked

Companies (GLCs).

•

Favourable Tax Regime

– There are no

sales, payroll, capital gains, manufacturing

and personal income tax. Corporate Income

Tax in Brunei is at 18.5 per cent which is one

of the lowest in the region.

•

Sound Legal and Regulatory Framework

– Brunei’s laws foster a pro-business and

pro-investor environment. Brunei also has

a robust and comprehensive Intellectual