introduction the bedb - brunei resourcesbruneiresources.com/pdf/bedb_intro.pdfintroduction the bedb...
TRANSCRIPT
IntroductionIntroductionThe BEDBThe BEDB
The Brunei Economic Development BoardThe Brunei Economic Development Board
Brief HistoryBrief History
26th November 2001 BEDB was formed under the Brunei Economic Development Board (Amendment) Order 2001
29th December 2001 Appointment of Board of Directors
July 2002 Appointment of CEO and Staff Dialogues with Private and Public Sectors BEDB’s Strategic Plans (Corporate and Development)Industrial Cluster AnalysisFacilitating Prospective InvestorEstablishing Benchmark
Organisation StructureOrganisation Structure
Chairman
Deputy Chairman
CEO
ACEO
Corporate
ACEO
Business Development
Deputy CEO
Strategy & Planning
ACEO
International Business
Brunei Economic Development BoardBrunei Economic Development Board
Mission StatementMission Statement
“Powering Sustainable Economic Growth in Brunei Darussalam”
Our Objectives
1.1. To promote and facilitate foreign and domestic investment in To promote and facilitate foreign and domestic investment in Brunei Darussalam Brunei Darussalam
2.2. To develop human, physical and natural assets of Brunei To develop human, physical and natural assets of Brunei DarussalamDarussalam
3.3. Create a proactive business environment that is conducive to Create a proactive business environment that is conducive to investment within Brunei Darussalam investment within Brunei Darussalam
4.4. Improve transparency of investment regimeImprove transparency of investment regime
Our FocusOur Focus
1.1. Promote and develop business enterprises especially Promote and develop business enterprises especially SMEsSMEswith growth potentialwith growth potential
2.2. Facilitate and assist in the development of industrial activitieFacilitate and assist in the development of industrial activities s including export oriented activitiesincluding export oriented activities
3.3. Formulate marketing strategies, investment policies and Formulate marketing strategies, investment policies and incentives to attract investmentsincentives to attract investments
4.4. Encourage industries to upgrade skill through investment in Encourage industries to upgrade skill through investment in new technology, training, RnD activitiesnew technology, training, RnD activities
The Brunei Economic Development BoardThe Brunei Economic Development Board
A Two Pronged Investment Strategy To Kickstart The Diversification Of Brunei
Darussalam’s Economy
The Two Pronged Investment StrategyThe Two Pronged Investment Strategy
SG LIANG PMB FDI
First Prong Second Prong
Quantitative Objectives Through to 2008§ Direct Investment Of US$4.4 billion§ Creation of 6000 jobs
Quantitative Objectives Through to 2008§ Direct Investment Of US$4.4 billion§ Creation of 6000 jobs
InfrastructureUS$350M
JettyUS$250M
Power StationUS$400M
Ammonia/UreaUS$250M
MethanolUS$250M
Aluminum SmeltingUS$1.5B
Sg LiangUS$3B
First Pool – Sungai LiangFirst Pool – Sungai LiangFirst Prong: The Two Pool Investment StrategyFirst Prong: The Two Pool Investment Strategy
• Total US$3 Billion• US$2.65B FDI• US$0.35B Govt Spent• 4000 jobs during construction• 2000 permanent jobs
• Total US$3 Billion• US$2.65B FDI• US$0.35B Govt Spent• 4000 jobs during construction• 2000 permanent jobs
UREAUREAALUMINIUMALUMINIUM
METHANOLMETHANOLPOWER STATION POWER STATION
JETTYJETTY
PMB Megaport
US$1.5B
Causeway to Temburong
Free Trade Zone
Bridge to PMB
Supporting Industries for Ports
Other Potential Projects
• Total US$1.5 Billion• 2000 permanent jobs
• Total US$1.5 Billion• 2000 permanent jobs
Second Pool – Pulau Muara BesarSecond Pool – Pulau Muara BesarFirst Prong: The Two Pool Investment StrategyFirst Prong: The Two Pool Investment Strategy
Undeveloped 900 Ha
Undeveloped 900 Ha
MegaportMegaport
The Second Prong: FDIThe Second Prong: FDI
Manufacturing& Retail
?
Automotive Financial Centre
ICT
Halal Hub
Tourism
FDI
• Total US$300-400 Million• 1000-2000 permanent jobs
• Total US$300-400 Million• 1000-2000 permanent jobs
Foreign Direct Investment (Non-Oil)
Existing Project 1989 – 2001
108.6Total19.3Other Countries89.32ASEAN
Investment Value (Equity) B$Mil
Country
For Manufacturing Industry
(Source: BINA)
Approved Project 1989 – 2001
7.17USA
208.7Total
0.99Others
1.42United Kingdom
3.32Hong Kong
5.8Korea
9.7Australia
11.4Taiwan
168.9ASEAN
Investment Value (Equity) B$milCountry
Foreign Direct Investment
Source: BINA
Industrial Site
Location of Industrial Site
Industrial SiteIndustrial Site
Furniture, Warehousing & Cold Storage56400,000Kampung Salar
Downstream, Hi-Tech100283,000Sungai Liang
Hi-Tech, Tourism100950,000Pulau Muara Besar
Manufacturing & Services9050,000Batu Apoi, Temburong
Manufacturing & Services89.5400,000Serambangun, Tutong
Manufacturing & Services78.2500,000Sungai Bera
Manufacturing & Services58.2830,000Serasa Muara
Manufacturing & Services80.8380,000Pekan Belait
Manufacturing & Services59.1470,000Beribi II
Food Processing & Services79.6450,000Lambak Kanan (West)
Hi-Tech 99.7740,000Lambak Kanan (East)
UseUseVacancy Rate Vacancy Rate (%)(%)
Gross Area Gross Area (in m(in m22))
Industrial SiteIndustrial Site
Why Invest in Brunei
ü Stable Economy
ü Government’s Strong Commitment to Draw FDI
ü Well-Educated and Flexible Workforce
ü Strategic Location Within ASEAN region
ü Excellent Infrastructure
ü Excellent, Peaceful Living Experience
Stable Economy
Strong Upstream Sector
Trade / Revenue from Oil
Ø 54% GDP
Ø 90% Export
Ø 83% Revenue
Stability – Medium / Long TermØGDP = $7.5 billion ØGDP Growth 2-3% ØPer Capita GDP B$22,000 Ø4th Highest Per Capita GDP in Asia (2000)ØLow Inflation between 1 – 1.5%ØLow Unemployment 4%
Government InitiativesGovernment Initiatives
Government’s Strong Commitment to Draw FDI
Ø Brunei Economic Development Board (Amendment) Order 2001
Ø Investment Incentives Order 2001
Ø Industrial Coordination Order 2001
Ø Income Tax (Amendment) Order 2001
Investment IncentivesInvestment Incentives
The Investment Incentives Order 2001• To encourage the diversification of the economic activities by
providing a broad tax based incentives and facilitation measures to promote the activities
• To encourage new investment and reinvestment activities to upgrade technology, undertake RnD, increase production capacities and expand markets such as venture capital activities, overseas investment companies and new technology companies.
Tax Exemptions– Relief from Corporate Tax– Relief from Import Duties on Capital Goods and Raw Material – Carry Forward Losses and Unabsorbed Allowances
Industrial CoIndustrial Co--ordination Order 2001ordination Order 2001
• To coordinate and regulate the development of manufacturing activities in Brunei Darussalam
• To regulate the approval and operation of all manufacturing activities
• To enable the government of His Majesty to streamline rules and procedures necessary to speed up the approval of manufacturing activities and its implementation plan
Income Tax (Amendment) Order 2001Income Tax (Amendment) Order 2001
Carry Forward of Loss and Unabsorbed Allowancesa. Carry forward of unabsorbed losses for 6 years and can be
set off against future incomeb. Balance of any allowance which remains unabsorbed can be
made available after the tax relief period but must be set off against income from the same trade
Certain Dividends Exempted from Income Tax• Dividend distributed by company during tax relief period
may be exempted from tax in the hand of shareholders
Double Deduction on Expenses• For export promotion and RnD activities and an underwriting
allowances for the cost of buying patent information
Foreign OwnershipForeign Ownership• Normally minimum 30% local ownership • Full foreign ownership possible for
– High Tech Industry – 100% Export-Oriented Businesses
High Tech Industries (Non-Exhaustive)– Biotechnology– Pharmaceutical– Healthcare– Fine Chemical– Information and Communication Technology (ICT)
Others not stated in list will be considered, as part of BEDB’s business initiative
WorkforceWorkforceü Well-Educated and Flexible Workforce
ü Literacy Rate 93%
ü Labour Force Participation Rate 67%
ü Universal Enrolment Ratio
Workforce by Major Occupation GroupWorkforce by Major Occupation Group
6.6%Others
7.3%Plant and Machine Operators and Assemblers
21.7%Labourers
15.1%Production Craftsmen
4.4%Legislators, Administration, Managers
1.3%Agricultural and Fisheries Workers
12.6%Service, Market and Sales Workers
11.8%Clerical
12.3%Technicians and Associate Professionals
6.9%Professionals
Labour RatesLabour Rates
• No minimum or maximum wage as long as both parties agree
• Wages are generally determined by market forces
• As a guide, average monthly wage rate for selected profession in Brunei Dollars are:
$750Laboratory Technician$750Plant Maintenance Mechanic$1000Construction SupervisorMore than $1000Professional
$1000Secretary$450Typist, Clerk
Source: Labour Department.Note: Wages vary depending on the size and type of industry
Brunei’s Strategic Location Within ASEAN Region
InfrastructureInfrastructure
Excellent Infrastructure
ü Piped Water Supply 99%ü Electricity Supply 99%ü Water 400 million litre (99%)ü Power 710 MW (99%)ü Length of Road 3200 km
• Public Utilities & Transport– B$1.9 billion or 26% of total 8th NDP budget of B$7.5 billion
• ICT– B$1.1 billion or 15% of total 8th NDP budget
Communications Indicators
131.236Mobile Phone (‘000) from 1995
13,250816BruNet Subscribers1
1,021187E-Speed2
10,3009,200Pager3
2515Phone Density (per 100 pop)
8339.1Direct Exchange (000)
20011991
1 In 2000 the number peaked at 16,6602 Figures from 20003 The Number peaked to 15,400 in 2000
PC Utilisation• Imports from 1996 – 2000 is 387,000 Units
Living ExperienceLiving Experience
• Excellent Place To Live In
• Modern Appearance
• Unexploited And Untouched Tropical Rainforests
• Voted As The 7th Most Livable City By AsiaWeek
• Orderly, Clean And Green City
• Serene And Relaxing Surrounding
• Health and Education Facilities of International Standard
Brunei Economic Development BoardBrunei Economic Development Board
Thank You
Brunei Economic Development BoardBrunei Economic Development Board
Contact Details
Business Development Division, Block 2K, Jalan Ong Sum Ping, Bandar Seri Begawan BA 1311, Brunei Darussalam
Tel: 6732-230111Fax: 6732-230063
Email: [email protected]