55 / 276
53
INVESTMENT POTENTIAL
Brunei Darussalam through its 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 proactively seeks FDI
that will contribute towards economic
diversification and development by
increasing export oriented industries,
while providing spin-off business
opportunities for local businesses and
meaningful employment opportunities
for locals.
According to statistics published by the
Department of Economic Planning and
Statistics (JPES), FDI inflow in Brunei
recorded a positive value of BND169.0
million in Q2 2022, comprising equity
positive value of BND201.6 million and
debts instruments negative value of
BND 32.6 million. This increase is due
to a large increase in equity in Q2 2022.
FDI stock has also increased by 41.1
per cent from BND9,638.9 million to
BND9,775.5 million in Q2 2022 which
comprise equity of BND8,288.0 million
and debt instruments of BND1,487.5
million.
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.
The last few years saw the country
accelerating its pace on bringing
in more FDIs thanks to a slew of
investment
incentives,
political
stability and peaceful environment
in Brunei. 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) which provides equity financing
for local development projects.
Through this fund where Brunei is
willing to share capital risk, the country
has already attracted a number of
significant FDIs from foreign investors.
While foreign companies are allowed to
have 100 per cent ownership, credible
and reliable co-investment partnership
is also available through the Strategic
Development Capital Fund. This gives
foreign investors a peace of mind,
Foreign Direct Investment
assuring that their investments are
perfectly secured.
One example of such partnership
is Hengyi Industries at Pulau Muara
Besar, a USD3.4 billion joint venture
between China’s Zhejiang Hengyi
Group and Damai Holdings - a wholly
owned subsidiary under the Brunei
Government’s Strategic Development
Capital Fund - owning 70 per cent
and 30 per cent stakes respectively.
Through the Strategic Development
Capital Fund, the Brunei government
also has holdings in Amann Shipping
Group Sdn Bhd, CAE, SBI Islamic Fund
Sdn Bhd, Simpor Pharma Sdn Bhd,
Brunei Fertilizer Industries Sdn Bhd and
Western Foods and Packaging Sdn Bhd.
As an investment destination, Brunei
provides market access to more than
two billion people with its engagement
in various free trade agreements (FTAs)
including through ASEAN FTA and the
Regional Comprehensive Economic
Partnership (RCEP). Brunei is also part
of a close knit sub-regional economic
grouping of Brunei Darussalam-
Indonesia-Malaysia-Philippines
East
ASEAN Growth Area (BIMP-EAGA) with
a population of 75 million people.
These factors make Brunei a viable
investment home and a trading partner
in the BIMP-EAGA, a fast-growing
economy in the region and beyond,
through partnership in transshipment,
repackaging and processing activities.