INVESTMENT POTENTIAL
A Gateway to Pioneering Investor
In the shifting currents of global markets, investors are increasingly drawn to destinations that offer a harmonious blend of stability, opportunity and strategic advantage. In Southeast Asia, Brunei is emerging as a key player with its robust governance and untapped potential that sets it apart from other countries. Once synonymous with its is redefining its economic identity. The nation is on a mission to diversify its economic landscape, anchored by the Brunei Vision 2035 framework. With various investment incentives offered by the Ministry of Finance and Economy, Brunei positions itself as an attractive destination for foreign direct investment (FDI)
A Stable Foundation
Brunei’s political and economic stability provides an ideal foundation for businesses looking to establish long- term operations. Its strategic location within ASEAN, grants investors access to over 680 million consumers, while its pro-business policies create fertile ground for sustained growth. The country has witnessed a steady rise in FDI in recent years. More recently, the second quarter of 2024 recorded FDI inflows of BND13.2 million.
With a diversified FDI stock valued at BND8.28 billion, key industries such as manufacturing and mining account for over 70 per cent of total inflows, cementing Brunei’s position as an emerging investment powerhouse.
Trade Dynamics
Brunei’s trade performance further highlights its economic resilience. In September 2024, Brunei’s total trade was valued at BND1.989 billion, made up of exports (58.6 per cent) and imports (41.4 per cent).
Major contributors to the export value were mineral fuels (75.4 per cent), followed by chemicals (22.6 per cent). China, Australia and Thailand were among Brunei’s largest trading partners, underscoring the nation’s strategic ties within the region and beyond.
The three main import commodities were mineral fuels (64.6 per cent), machinery and transport equipment (11.6 per cent), and food (7.6 per cent). United Arab Emirates, Malaysia and China were the top suppliers.
While September saw a 30.9 per cent decline in the trade balance compared to August, this was influenced by a reduction in export value and a corresponding rise in imports – indicative of evolving market dynamics and internal demand.
Investor-Friendly Policies
Brunei’s appeal extends beyond just numbers. Its investment incentives include tax exemptions, streamlined business registration processes, and access to world-class infrastructure.
The country’s strategic focus on high- growth sectors like halal industries, advanced manufacturing, and information technology further enhances its attractiveness. With government- backed initiatives fostering innovation and sustainability, Brunei is setting the stage for industries of the future.
For investors, Brunei offers a low- risk environment to do business. The regulatory framework is transparent and efficient, with clear processes that minimise red tape. Moreover, the country boasts a highly educated workforce and modern infrastructure that supports the needs of contemporary enterprises.
Darussalam Enterprise (DARe) serves as a one-stop shop for business registration, funding and advisory services, streamlining the path for companies to set up and thrive in Brunei.
A Vision For The Future
While energy may remain a cornerstone of Brunei’s economy, the country is increasingly focusing on green technologies and sustainability, paving the way for eco- conscious investments. Sectors like pharmaceuticals, agribusiness, and information and communications technology are gaining momentum as Brunei continues to diversify.
Brunei is no longer solely defined by its oil and gas resources. With its emphasis on innovation, sustainability and market access, Brunei is rapidly emerging as a key player in the investment landscape.
For businesses seeking a competitive edge in Southeast Asia, Brunei is not just a destination – it’s a strategic advantage.