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