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INVESTMENT POTENTIAL
CO-INVESTMENT PARTNERSHIP
Through its Brunei Vision 2035, Brunei
Darussalam has set out strategic routes to attract
more foreign direct investments (FDIs), which
will lead to a sustainable economic growth.
The country’s economic goals mainly focus
on economic activities that will attract new
industries, knowledge, technologies, markets
and businesses. At the same time, the country
aims to hone the skills of Bruneians and create
job opportunities.
Through an open economy policy favourable to
foreign trade and FDIs, the government continues
its economic diversification efforts to limit its
long reliance on oil and gas exports. This is part
of the government’s reform agenda to ensure a
pro-business and conducive investment climate.
Thanks to a slew of investment incentives,
political stability and peaceful environment
in the country, the last few years saw the
country accelerating its pace on bringing in
more FDIs. Some of these incentives include
programmes such as the Strategic Development
Capital Fund, a government trust fund under
the Ministry of Finance and Economy (MoFE).
The trust fund provides equity financing for
local development projects and has attracted
a number of significant FDIs from foreign
investors, such as the Hengyi Industries.
While foreign companies are allowed to have 100
per cent ownership, the Strategic Development
Capital Fund also allows co-investment
partnerships. This gives foreign investors a
peace of mind, assured that their investments
are perfectly secured. A good example is Hengyi
Industries.
Located at Pulau Muara Besar, Hengyi
Industries is a USD3.4 billion joint venture
between China’s Zhejiang Hengyi Group and
Damai Holdings, a wholly owned subsidiary
under
Brunei
government’s
Strategic
Development Capital Fund. In this joint
venture, the Hengyi Group holds 70 per cent
of the stakes, while Damai Holdings holds 30
per cent.
Through the Strategic Development Capital
Fund, the Brunei government also has holdings
in Amann Shipping, CAE, SBI Islamic Fund,
Simpor Pharma, Brunei Fertilizer Industries
and Western Foods and Packaging.
With the main objective to support foreign
companies investing in Brunei so that they
become the national engine towards Brunei’s
diversification efforts, the fund provides risk
capital and broadens the revenue base of the
government. This initiative has resulted in signs
of increased confidence in Brunei as a destination
for investments, manifested in the recent healthy
influx of FDIs from different sectors.
Improving the business environment and
ultimately Brunei’s global competitiveness is
a key priority of His Majesty’s Government,
ensuring the country sustains the right trajectory
to achieve Brunei Vision 2035.