BUSINESS OPPORTUNITIES IN BRUNEI DARUSSALAM 18 APRIL 2011
ABOUT BRUNEI Land Size : 5,765 sq km Population : 406,200 (2009) Capital : Bandar Seri Begawan Religion: Muslim Majority Currency : Brunei Dollar (par to Singapore Dollar) Language : Malay, English, Chinese Legal System of Commerce: British Common Law Adult Literacy Rate (HDI 2009) 94.9 %
Macroeconomic stability (GCR, World Economic Forum, 2010-11)
#1 out of 139
No History of Natural Disasters
OVERVIEW OF BRUNEI’S ECONOMY
GDP (2008) : U$14.6bil (f)
GDP per head (2008) : U$36,600 (f) GDP composition (2008) • Oil & Gas : 70% • Government services : 11.0% • Private : 19% Inflation (2009) : 1.8% Crude oil exports (2008) : 152,905 BPD LNG exports (2008) : 999,622 MMBTU PD Source: JPKE
*Exchange Rate USD1=BND1.4
OVERVIEW OF BRUNEI’S ECONOMY
Largest corporation Brunei Shell Petroleum (BSP) Group Leading local banks
Leading foreign banks
Bank Islam Brunei Darussalam (BIBD) Baiduri Bank Berhad (BBB)
Sovereign Wealth Fund Brunei Investment Agency (BIA) Lead Economic Agency Brunei Economic Development Board (BEDB)
Corporate income tax : 22% Personal income tax : nil
STRONG OIL & GAS INDUSTRY Economy is dominated by oil and gas since its discovery in 1929 1920s
1929 Oil discovery at Seria by Shell
1930s
1932 Brunei’s first exports
1940s 1950s 1960s
1963 First offshore oilfield discovered
1970s
1971 Mitsubishi Corp. commence operations 1972 BLNG commence LNG Production
Others^: 4%
1980s Oil & Gas 96%
^ Others include Manufactured articles, Machinery and Transport Equipments
1986 TOTAL commence operations
1990s 2000s
Total Exports (2009) U$1 = B$1.4
1982 Seria Crude Oil Refinery started operations
2001 Formation of Brunei National Petroleum Company 2002 Award of Block J & K (Now renamed CA1 & CA2) 2006 Award of Block L & M 2010 Methanol plant commence production
STABILITY UNDER MONARCHY
Under the Wawasan 2035, Brunei aims to be one of the Top 10 nations in the world, recognised for its Quality of Life and Dynamic and Sustainable Economy
STRONG ISLAMIC HERITAGE
66% of population is Muslim
EXTRAORDINARY BIODIVERSITY
58% of Brunei’s total land is reserved for conservation
INTERNATIONAL NETWORK CONNECTIVITY
80% of Brunei’s bandwidth is
under-utilised
MANPOWER CAPABILITIES
Brunei has a highly educated, skilled and affordable workforce Brunei has a multilingual speaking population Common languages include English, Malay, Chinese Dialects and Indian Dialects
Brunei adopts a flexible employment and immigration policies. In World Bank Group’s Doing Business 2010, Brunei ranked 4th out of 183 in employing talent. 10
FINANCIAL PARTNERSHIP
Credible financial support and partnership through means of coinvestment from both government and private investors. Potential partners include the Ministry of Finance and Brunei Government’s private equity funds: Aureos-BICB and Imprimis and SBI Holdings.
ATTRACTIVE TAX ENVIRONMENT & COMPETITIVELY PRICED UTILITIES Tax Exemptions in Brunei No Personal Income Tax No Sales Tax No Payroll Tax No Capital Gains Tax No Export Tax
No Manufacturing Tax Corporate Income Tax in Brunei : 22% Companies can apply for Pioneer Status to be exempted from Corporate Income Tax, Import Duties on Raw Materials and Machinery for up to 8 years.
Electricity Charges: USD 0.04 per kVA Industrial Diesel: USD 0.22 per litre Water Charges: USD 0.47 per m3 12
INTERNATIONAL TAX AND TRADE AGREEMENTS Europe Belgo-Luxembourg Economic Union ^ Finland ^ France ^ Germany # ^ Russian Federation ^ UK* Ukraine # Others Trans-Pacific Strategic Economic Partnership : Australia, Chile, NZ, Peru, Singapore, US, Vietnam @
* Double Taxation Agreements # Bilateral Investment Treaties @ Free Trade Agreements ^^^ Ongoing negotiations
Middle East Bahrain* # Iran ^ Kuwait *# Oman * # Qatar ^ UAE ^
Asia ASEAN #@ ASEAN-China@ ASEAN-Japan@ ASEAN-Korea@ China*# Hong Kong* India # Indonesia* Japan*@ Korea #@ Laos* Malaysia* Pakistan* Philippines ^ Singapore* Tajikistan* Thailand ^ Vietnam*
Australasia ASEAN-Australia-NZ@
ABOUT THE BEDB Established by His Majesty, The Sultan in 2001 Mission To contribute to Brunei Darussalam’s success as a Land of Opportunity for its people and all investors Strategy To work with foreign and domestic investors to develop new economic opportunities where Brunei has competitive advantage Focus Areas 1.Attracting FDI 2.Developing Local Businesses 3.Delivering Assigned Infrastructure Projects International Recognition The World Bank ranked the among the Top 4 Investment Promotion Agencies in the East Asia and Pacific region.
REPORTING LINE
HIS MAJESTY SULTAN HAJI HASSANAL BOLKIAH SULTAN AND YANG DI-PERTUAN OF BRUNEI DARUSSALAM
CHAIRMAN & BOARD CHIEF EXECUTIVE OFFICER
BUSINESS OPPORTUNITIES
ATTRACTING INVESTMENTS
DEVELOPING LOCAL BUSINESSES
DELIVERING ASSIGNED INFRASTRUCTURE PROJECTS
SUMMARY OF TARGETED INDUSTRY CLUSTERS Tapping on our Hinterland
Pharmaceuticals e.g. vaccines
Vitamins & Supplements
Food & Food Ingredients
New Materials e.g. polymers, high perf. plastics
Adding Value to Brunei’s Resources Integrated Petrochemical Refinery
Petrochemicals
Focus on Emerging New Technologies
Renewable Energy e.g. solar
Biomedical Engineering
Regional Hub for Information & Communication
Software Dev / New Media
Data Centre/ Disaster Recovery Centre
Wireless Communication e.g. RFID, GPS
Multimedia & Game Development
Biotechnology
e.g. Apple, Android, Linux
Growing our Supporting Industries Air & Sea Logistics
Aviation Support Services
Marine Support Services
Oil Field Services
Nanotechnology
TAPPING ON OUR HINTERLAND BRUNEI IS STRATEGICALLY LOCATED IN THE BIMPEAGA REGION WHERE KEY RAW MATERIALS CAN BE DRAWN IN FROM NEIGHBOURING COUNTRIES. FOOD AND PHARMACEUTICAL • • • • •
Manufacturing Packaging Licenced Producer/Distributor Research & Development Halal Certification
R&D CENTRE FOR ACTIVE COMPOUNDS Utilising Brunei’s rich biodiversity and incorporating undiscovered and unique species in to pharmaceutical products. R&D CENTRE FOR LOCAL CONTEXT Innovative nutritional products tailored specifically to Asian tastes using authentic local food ingredients. This can then lead to the manufacturing of customised food products for specific markets.
ADDING VALUE TO BRUNEI’S RESOURCES
BRUNEI’S ABUNDANT NATURAL RESOURCES CAN BE OPTIMISED. CRUDE OIL • Integrated Refinery (PMB) • Petrochemicals (SPARK) NATURAL GAS • Methanol • Derivatives - i.e. Ammonia/Urea & derivatives SILICA SAND
• Solar glass manufacturing • PV Solar cells / Modules production
WORLD CLASS INDUSTRIAL HUB Brunei Methanol Company (BMC) US$600mil & employment of 181 jobs 850,000 tons per year Mitsubishi Gas Chemicals (Japan) Petroleum Brunei (Brunei) ITOCHU Corporation (Japan) Start May 2010 2010 Start Operation: Operation: May
Methanol Export Facility Brunei Methanol Company 24 ha
Future Downstream Project 20 ha
Methanol Derivative 8 ha Future Utilities (Power Plant, Industrial Water, Industrial Gas)
SPARK Center
Single Point Mooring & Subsea Pipeline System (13.8 km) Start Operation: May 2010
Second Petrochemical Project 90 ha
Next Petrochemical Project Estimated Investment of USD$1-3bil & employment of 470 jobs Under Evaluation NEW OPPORTUNITIES Methanol Derivatives Gas-Based Petrochemicals Supporting Industries: Industrial Gases, Industrial Waste Management Independent Power Plant Common Utilities: Industrial Water Treatment, Common Jetty
REGIONAL HUB FOR INFORMATION & COMMUNICATION
• STABLE, SECURE AND FREE OF NATURAL DISASTERS. • STRATEGICALLY LOCATED WITHIN ASIA-PACIFIC AND THE BIMP-EAGA REGION- BRUNEI IS CENTRAL TO ACCESS NEIGHBOURING MARKETS. • UTILITIES AMONGST THE LOWEST IN THE REGION.
HIGH TECHNOLOGY • • • • •
Data Centre / Disaster Recovery Centre Satellite Gateway Wireless Communications Software Development / New Media Multimedia & Game Development
GROWING OUR SUPPORTING INDUSTRIES DEVELOPING SUPPORTING SERVICES. AIR & SEA LOGISTICS • Export Processing Zone • Warehousing • Distribution Centre AVIATION SUPPORT SERVICES • • • •
Maintenance, Repair and Overhaul (MRO) Simulator Training Centre Flight Crew Training Academy Aircraft Maintenance Training Academy
MARINE SUPPORT SERVICES • Bunkering, Channeling & Refueling services • Ship Building & Repair OIL FIELD SERVICES • Supporting services for Petroleum E&P
FOCUSING ON EMERGING NEW TECHNOLOGIES
POSITIONING BRUNEI IN THE NEXT 20-30 YEARS. KNOWLEDGE AND INNOVATION • • • • • • •
Renewable Energy Security Technology Advanced Manufacturing Process New Materials Biomedical Engineering Biotechnology Nanotechnology
* Subject to further dialogue with experts.
BRUNEI INDUSTRY DEVELOPMENT SITES 23
BUSINESS OPPORTUNITIES
ATTRACTING INVESTMENTS
DEVELOPING LOCAL BUSINESSES
DELIVERING ASSIGNED INFRASTRUCTURE PROJECTS
KNOWLEDGE BASED ENTERPRISES PHASE 1: iCENTRE Incubates technology based start up companies • • • •
Managed by KR Consulting (Singapore) Incubatees: 12 physical & 1 virtual Technology Partner: Skali (Malaysia) Strategic Partners: TelBru (Brunei)
Activities: Mobile, Web, GPS, RFID, Smart Technology & Intranet Apps PHASE 2: KNOWLEDGE HUB Houses companies doing research and development activities • • • •
ICT Professional Training & Skills Development Energy & Environment Research & Development Lab Microsoft Showcase & Experiential Lab National Modeling & Simulation Centre
POTENTIAL DEVELOPMENTS PHASE 3: KNOWLEDGE PARK
ANGGEREK DESA TECH PARK
• High Tech-High Growth sectors • Multimedia • Arts & Crafts
BUSINESS OPPORTUNITIES
ATTRACTING INVESTMENTS
DEVELOPING LOCAL BUSINESSES
DELIVERING ASSIGNED INFRASTRUCTURE PROJECTS
EFFICIENT INFRASTRUCTURE IMPLEMENTATION 2000 HOUSES (PANAGA)
STATUS : On-going construction TIMELINE 2009
Construction by Bina Puri (Malaysia)
2011
Completion
4000 HOUSES (MENGKUBAU) STATUS : On-going construction TIMELINE 2010
Construction by UEM Builders (Malaysia)
2014
Completion
1500 HOUSES (BUKIT BERUANG) STATUS : On-going construction TIMELINE
NATIONAL HOUSING SCHEME
2010
Construction by Tee International (Singapore)
2012
Completion
EFFICIENT INFRASTRUCTURE IMPLEMENTATION
MODERNISATION OF BRUNEI INTERNATIONAL AIRPORT TERMINAL STATUS : Tender Preparation
TIMELINE 2010
Consultation by Changi Airport Consultant/AECOM (Singapore)
18.6 KM DUAL CARRIAGEWAY LUMUT-TELISAI HIGHWAY STATUS : On-going construction TIMELINE 2010
Construction by Surati Construction/ Xing-An-Ji Engineering (Brunei/China)
2014
Completion
MODERN WASTE MANAGEMENT SYSTEM REHABILITATING EXISTING DUMP SITE (SG AKAR) STATUS : Rehabilitation on-going by Jurusy Perunding (Brunei) TIMELINE 2009 Closure of former dump site 2011 On going service contract for disposal MODERN ENGINEERED LANDFILL (SG PAKU) & TRANSFER STATION STATUS : Awarded TIMELINE 2010
Construction by ST Marine/QAF (Singapore/Brunei)
2012
Completion and on going operation
POTENTIAL DEVELOPMENTS Energy Efficient Waste Management System, Eg: Incinerator, composting
THANK YOU THE BRUNEI ECONOMIC DEVELOPMENT BOARD Block 2K, Bangunan Kerajaan, Jalan Ong Sum Ping Bandar Seri Begawan BA1311, Brunei Darussalam Tel: +673-223 0111 Fax: +673-223 0082 www.bedb.com.bn