business opportunities in brunei … research incentive scheme (brisc) brisc is a cost-sharing grant...
TRANSCRIPT
BUSINESS OPPORTUNITIES
IN BRUNEI DARUSSALAM
18 March 2013
Land Size : 5,765 sq km
Population : 393, 400
Brunei – “Abode of Peace”
*Exchange Rate USD1=BND1.25
Top 10 in Asia & Oceania Human
Development Index (United Nations 2011)
#7 in Asia for ‘Best Living Standards’ (Mercer Report 2011)
# 3 in ASEAN for Quality of Education (GCR, World Economic Forum, 2011-12)
Politically and Economically Stable
No History of Natural Disasters
No History of Terrorism related incidents
*Exchange Rate USD1=BND1.25
GDP (2012 est) : B$21 billion
GDP per capita (2012) : B$52 ,315
GDP growth (2013 est) : 2.3%
GDP composition (2012)
• Oil & Gas : 67.7%
• Government services : 11.7%
• Private : 20.6%
Inflation (2012) : 0.5%
No Government Debt
#5 Richest Nation in the World
(Forbes 2012)
Economic Overview
#1 in the World
Macroeconomic Environment (GCR, World Economic Forum, 2011-12)
With our strengths well displayed in the Oil & Gas sector, Brunei is more
than ready to look at viable ways to diversify our economy.
Total Exports : BND 15.6 Billion - 95.6% from Oil & Gas (2012 est))
* Others include Manufactured articles, Machinery and Transport Equipments
Successful Oil & Gas Sector
Crude Oil
50.8% LNG 44.8%
Methanol
1.5%
Others
2.9%
Vision for the Future
WAWASAN 2035
“To be one of the Top 10 nations in
the world recognized for its Quality of
Life and Dynamic and Sustainable
Economy”
Under Wawasan 2035, Brunei aims to be one of the Top 10 nations
in the world recognised for its Quality of Life.
High Quality of Life
Politically and Economically Stable
No History of Natural Disasters
No History of Terrorism related
incidents
#7 in Asia for ‘Best Living Standards’
(Mercer Report 2011)
#16 in the world for High Pay and
Productivity (GCR 2011-12)
Innovative Islamic Initiatives
Brunei’s credibility guarantees the highest
Islamic standard and quality in Halal
certification
#1 in the world to issue guidelines on the
production of ‘Halal Pharmaceuticals’ in 2010.
Brunei is currently drafting similar guidelines for
the production of ‘Halal Cosmetics’.
Brunei is currently connected to TWO
major submarine cables:
Asia-America Gateway (AAG)
Southeast Asia- Middle East- Western
Europe Cable (SEA-ME-WE)
A third cable, the ‘South-East Asia-Japan
Cable’ (SJC) will be ready by 2013.
International Network Connectivity
80% of its Capacity is Under-utilised
Access to Key Markets
Population
(million) 2011
GDP (trillion)
2011
ASEAN Economic
Community 597 2.14
ASEAN-NZ 602 2.28
ASEAN-AUS-NZ 623 3.2
ASEAN-CHINA 1,941 9.44
ASEAN-KOREA 647 3.25
ASEAN-JAPAN 725 8.12
ASEAN-INDIA 1,838 3.99
Trans-Pacific Strategic
Economic Partnership 479 17.41
ASEAN-Regional
Comprehensive
Economic Partnership
3,387 19.78
Brunei’s strategic agreements with key international partners
means greater access to significant markets.
The ‘ASEAN Economic Community’ to be established in 2015,
envisages a simple market and production base in a highly
competitive region integrated within the global community
Credible financial support and partnership
through means of co-investment from both
government and private investors.
Potential partners include the Ministry of Finance
and Brunei Government’s private equity funds:
Strategic Development Capital Fund, Aureos-
BICB and Soft Bank Investments Brunei.
‘Build & Lease’
business models also
made available for
strategic projects.
Financial Partnership
Brunei Research Incentive Scheme (BRISc)
BRISc is a cost-sharing grant created to address
the funding needs of private sector R&D, for both
local and foreign companies.
The Government will cost share between 80% -
50% of the costs of R&D activities, at a maximum
of B$5 million per application.
Companies are encouraged to collaborate with
either the Institutes of Higher Learning or
Government Agencies to carry out their R&D.
Five focus areas of research:
Energy
Environment
Food Security
HealthCare / Health Sciences
ICT
Training Grants
Available grants for potential investors to
improve competency and skill sets of local manpower.
Research & Training Grants
Ranked amongst ‘Most Improved’
countries in Innovation Performance
(Global Innovation Index 2012)
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 : 20%
Pioneer Status: Companies can apply to be exempted
from Corporate Income Tax, Import Duties on Raw
Materials and Machinery for up to 8 years.
Tax Incentives
Established by
His Majesty, The Sultan in 2001
Vision
A leading Economic Development Agency
recognised for its Professionalism, Progressive
and Result Driven Culture.
Mission
To grow and diversify Brunei Darussalam’s
economy by attracting investments and
strengthening local businesses enabled
through research and innovation.
The BEDB
REPORTING LINE
INCREASING R&D AND INNOVATION
Develop a National
Innovation System that encourages Knowledge
Creation and Commercialisation in
Science & Technology and Creative Sectors.
Key Focus Areas
ENHANCING THE VALUE OF INNOVATION
Supporting and
Promoting Intellectual Property, Strengthening
the Tangibility of Creative and Innovative Output.
STRENGTHENING LOCAL BUSINESSES
Grow Micro Businesses and Strengthen Local
Enterprises towards Internationalisation.
DELIVERING INFRASTRUCTURE
PROJECTS
Complete Infrastructure Projects On Time, On
Budget and To Quality.
ATTRACTING INVESTMENTS Promote Foreign Direct Investments in Export-Oriented Manufacturing and Services as well as Research Collaboration in Brunei.
Food & Food
Ingredients
Petrochemicals Integrated
Petrochemical
Refinery
Oil Field
Services
Aviation
Support Services
Renewable Energy
e.g. solar
Pharmaceuticals
e.g. vaccines
Air & Sea
Logistics
Software Dev /
New Media
Wireless
Communication e.g. RFID, GPS
Multimedia
& Game
Development
e.g. Apple, Android, Linux
Data Centre/
Disaster
Recovery
Centre
Vitamins &
Supplements
Adding Value to Brunei’s Resources
Tapping into our Hinterland
Regional Hub for Information & Communication
Growing our Supporting Industries
Focus on Emerging
New Technologies
Financial
Services Food Security
Energy
ICT
Environment
Health Care &
Health
Sciences
Cosmetics &
Personal Care
Economic Diversification
Industrial Sites
SUNGAI LIANG INDUSTRIAL PARK
(SPARK)
Total Site Size : 271ha
Brunei Methanol Company (BMC)
US$600mil /181 jobs
* First downstream petrochemical
plant in Brunei. 850,000 tons per year Methanol Plant Mitsubishi Gas Chemicals (Japan)
ITOCHU Corporation (Japan)
Petroleum Brunei (Brunei)
Started operations : May 2010
Second Petrochemical
US$2.8bil / 470 jobs Integrated Petrochemical Complex
including ammonia, urea &
derivatives
New Opportunities: Methanol Derivatives
Gas-Based Petrochemicals
Ammonia-Urea based downstream
(e.g. for the fertilisers/plastics/textile
industries)
*80 km to Brunei International Airport
Petrochemical Industries
BMC (24 ha)
PROPOSED
PETROCHEMICAL
PROJECT (90 ha)
Methanol Export Facility
Start Operation: May 2010
PULAU MUARA BESAR (PMB)
Total Site Size : 955ha
Zhejiang Hengyi (China)
Refinery and Aromatics Complex
US$4bil (Phase 1) / 800 jobs / 260 ha
Target Start Operation : 2015
Infrastructure
Bridge to PMB
Main Road across PMB Island Target Start Construction : 2013
Integrated Marine Supply Base
Centralised facility providing
fabrication yard, storage, berthing
facilities, etc to cater for the Oil & Gas
Upstream development.
Target Request For Proposals: 2013
New Opportunities: Oil and Gas Based Petrochemicals
Metal Smelting
Oil & Gas Related Industries
*11 km to Brunei International Airport
Youth
Development
Centre
Lambak Kanan
Vocational
School
LAMBAK KANAN EAST (LKE)
INDUSTRIAL PARK
Total Site Size : 137.2ha Food & Beverage, Pharmaceuticals
and Light Manufacturing Industries
Viva Pharmaceutical (Canada)
Halal Pharmaceuticals and
Nutraceuticals Manufacturing
US$18.5mil / 100 jobs / 2ha
Potential Investors
Value add service to Oil Country
Tubular Goods (OCTG)
LED light assembly plant
Light Manufacturing Industries
*11 km to Brunei International Airport
(2.77ha)
Proposed
MPTC
Lot 2 (3.0ha)
Proposed
National
Data Centre
Potential Data
Centre/Disaster
Recovery Centres
(7.2ha)
RIMBA DIGITAL JUNCTION
Total Site Size : 15ha Information and Communication
Technology and other High-Tech
Industries
CAE Multi-Purpose Training Centre
(Canada)
Multi-Purpose Training Centre
US$102mil / 35 jobs / 2.4ha
Co-investment with Brunei Government
National Data Centre
Data Centre for Energy & e-Government
US$80mil / 250 jobs / 5ha
Executive
Housing
InfoComm & High-Tech Industries
*40 km to Brunei International Airport
Existing Bukit
Panggal Power
Station Boundary
Proposed Papermill
15ha (600m x 250m)
BUKIT PANGGAL INDUSTRIAL PARK
• Total Site Size : 50ha • Energy Intensive Manufacturing
activities
Potential Investors
• Specialty Paper Mill • Silica Sand
Energy Intensive Industries
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