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INVESTMENT POTENTIAL
CO-INVESTMENT PARTNERSHIP
Brunei Darussalam through Brunei Vision 2035
has set out strategic routes for its economic
goals with a focus on attracting more foreign
direct investments (FDIs) as a key driver for
sustainability and growth.
The country focusses mainly on economic
activities that will attract new industries,
knowledge,
technologies,
markets
and
businesses, as well as upskill the local workforce
and create job opportunities.
Through an open economy policy favourable to
foreign trade and FDIs, the government continues
its economic diversi cation 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.
While foreign companies are allowed to have 100
per cent ownership, co-investment partnerships
are also available with various incentives.
One such incentive is the Strategic Development
Capital Fund (SDCF), a government trust fund
under the Ministry of Finance and Economy
(MoFE) that provides equity nancing for local
development projects.
Through this fund where Brunei is willing to
share capital risk, the country has already
attracted a number of signi cant FDIs over the
last few years.
One great example is Hengyi Industries Sdn Bhd,
with an investment of USD3.4 billion to establish
a world-class petrochemical plant. The project is
a joint venture between China’s Zhejiang Hengyi
Group and Damai Holdings, a wholly-owned
subsidiary under the Brunei government’s SDCF.
Damai Holdings owns a 30-per-cent stake in the
project, while the rest is owned by the Zhejiang
Hengyi Group.
Aside from the Hengyi Industries, the Brunei
government also has holdings in Amann
Shipping, CAE, SBI Islamic Fund, Western Foods
and Packaging, Simpor Pharma and Brunei
Fertilizer Industries through the SDCF.
With the main objective to support foreign
companies investing in Brunei so that they
become the national engine towards Brunei’s
diversi cation efforts, the fund provides risk
capital and broadens the revenue base of the
government.
This initiative has resulted in signs of increased
con dence in Brunei as a destination for
investments, manifested in the recent healthy
in ux of FDIs from different sectors.
Improving the business environment and
ultimately Brunei’s global competitiveness
is a key priority of His Majesty’s Government
to ensure the country achieves Brunei Vision
2035.