yellowhart's Blog
The Asian financial crisis in 1997 and 1998, coupled with fluctuations in the price of oil have created uncertainty and instability in Brunei's economy. In addition, the 1998 collapse of the AMEDEO Corporation, Brunei's largest construction firm whose projects helped fuel the domestic economy, caused the country to slip into a mild recession. Brunei is the third-largest oil producer in Southeast Asia, averaging about 180,000 barrels (29,000 m³) a day. It also is the fourth-largest producer of liquefied natural gas in the world. Brunei's gross domestic product (GDP) soared with the petroleum price increases of the 1970s to a peak of $5.7 billion in 1980. It declined slightly in each of the next 5 years, then fell by almost 30% in 1986. This drop was caused by a combination of sharply lower petroleum prices in world markets and voluntary production cuts in Brunei. The GDP recovered somewhat since 1986, growing by 12% in 1987, 1% in 1988, and 9% in 1989. In recent years, GDP growth was 3.5% in 1996, 4.0% in 1997, 1.0% in 1998, and an estimated 2.5% in 1999. However, the 1999 GDP was still only about $4.5 billion, well below the 1980 peak. Macro-economic trend This is a chart of trend of gross domestic product of Brunei Darussalam at market prices estimated by the International Monetary Fund with figures in millions of Bruneian Dollars. Year Gross Domestic Product US Dollar Exchange Inflation Index (2000=100) | 1985 | 7,752 | 2.20 Bruneian Dollars | 76 | | 1990 | 6,509 | 1.81 Bruneian Dollars | 82 | | 1995 | 7,394 | 1.41 Bruneian Dollars | 95 | | 2000 | 7,441 | 1.72 Bruneian Dollars | 100 | | 2005 | 10,400 | 1.62 Bruneian Dollars | 100 | For purchasing power parity comparisons, the US Dollar is exchanged at 1.52 Bruneian Dollars only. Average wages in 2007 hover around $161-195 per day. In the 1970s, Brunei invested sharply increasing revenues from petroleum exports and maintained government spending at a low and constant rate. Consequently, the government was able to build its foreign reserves and invest them around the world to help provide for future generations. Part of the reserve earnings were reportedly also used to help finance the government's annual budget deficit. Since 1986, however, petroleum revenues have decreased, and government spending has increased. The government has been running a budget deficit since 1988. The disappearance of a revenue surplus has made Brunei's economy more vulnerable to petroleum price fluctuations. Brunei Shell Petroleum (BSP), a joint venture owned in equal shares by the Brunei Government and the Royal Dutch/Shell group of companies, is the chief oil and gas production company in Brunei. It also operates the country's only refinery. BSP and four sister companies constitute the largest employer in Brunei after the government. BSP's small refinery has a distillation capacity of 10,000 barrels (1,600 m³) per day. This satisfies domestic demand for most petroleum products. The French oil company ELF Aquitaine, became active in petroleum exploration in Brunei in the 1980s. Known as Elf Petroleum Asia BV, it has discovered commercially exploitable quantities of oil and gas in three of the four wells drilled since 1987, including a particularly promising discovery announced in early 1990. Recently, UNOCAL, partnered with New Zealand's Fletcher Challenge has been granted concessions for oil exploration. Brunei is preparing to tender concessions for deep water oil and gas exploration. Brunei's oil production peaked in 1979 at over 240,000 barrels (38,000 m³) per day. Since then it has been deliberately cut back to extend the life of oil reserves and improve recovery rates. Petroleum production is currently averaging some 200,000 barrels (32,000 m³) per day. Japan has traditionally been the main customer for Brunei's oil exports, but its share dropped from 45% of the total in 1982 to 19% in 1998. In contrast, oil exports to South Korea increased from only 8% of the total in 1982 to 29% in 1998. Other major customers include Taiwan (6%), and the countries of ASEAN (27%). Brunei's oil exports to the United States accounted for 17% of the total exported. Almost all of Brunei's natural gas is liquefied at Brunei Liquefied Natural Gas (LNG) plant, which opened in 1972 and is one of the largest LNG plants in the world. Over 82% of Brunei's LNG produced is sold to Japan under a long-term agreement renewed in 1993. The agreement calls for Brunei to provide over 5 million tons of LNG per year to three Japanese utilities. The Japanese company, Mitsubishi, is a joint venture partner with Shell and the Brunei Government in Brunei LNG, Brunei Coldgas, and Brunei Shell Tankers, which together produce the LNG and supply it to Japan. Since 1995, Brunei has supplied more than 700,000 tons of LNG to the Korea Gas Corporation as well. In 1999, Brunei's natural gas production reached 90 cargoes per day. A small amount of natural gas is used for domestic power generation. Brunei is the fourth-largest exporter of LNG in the Asia-Pacific region behind Indonesia, Malaysia, and Australia. Brunei's proven oil and gas reserves are sufficient until at least 2015, and planned deep sea exploration is expected to find significant new reserves. The government sought in the past decade to diversify the economy with limited success. Oil and gas and government spending still account for most of Brunei's economic activity. Brunei's non-petroleum industries include agriculture, forestry, fishing, and banking. The government regulates the immigration of foreign labor out of concern it might disrupt Brunei's society. Work permits for foreigners are issued only for short periods and must be continually renewed. Despite these restrictions, foreigners make up a significant portion of the work force. The government reported a total work force of 122,800 in 1999, with an unemployment rate of 5.5%. Oil and natural gas account for almost all exports. Since only a few products other than petroleum are produced locally, a wide variety of items must be imported. Brunei statistics show Singapore as the largest point of origin of imports, accounting for 25% in 1997. However, this figure includes some transshipments, since most of Brunei's imports transit Singapore. Japan and Malaysia were the second-largest suppliers. As in many other countries, Japanese products dominate local markets for motor vehicles, construction equipment, electronic goods, and household appliances. The United States was the third-largest supplier of imports to Brunei in 1998. Brunei's substantial foreign reserves are managed by the Brunei Investment Agency (BIA), an arm of the Ministry of Finance. BIA's guiding principle is to increase the real value of Brunei's foreign reserves while pursuing a diverse investment strategy, with holdings in the United States, Japan, western Europe, and the Association of South East Asian Nations (ASEAN) countries. The Brunei Government actively encourages more foreign investment. New enterprises that meet certain criteria can receive pioneer status, exempting profits from income tax for up to 5 years, depending on the amount of capital invested. The normal corporate income tax rate is 30%. There is no personal income tax or capital gains tax. One of the government's most important priorities is to encourage the development of Brunei Malays as leaders of industry and commerce. There are no specific restrictions of foreign equity ownership, but local participation, both shared capital and management, is encouraged. Such participation helps when tendering for contracts with the government or Brunei Shell Petroleum. Companies in Brunei must either be incorporated locally or registered as a branch of a foreign company and must be registered with the Registrar of Companies. Public companies must have a minimum of seven shareholders. Private companies must have a minimum of two but not more than 50 shareholders. At least half of the directors in a company must be residents of Brunei. The government owns a cattle farm in Australia that supplies most of the country's beef. At 2,262 square miles (5,859 km²), this ranch is larger than Brunei itself. Eggs and chickens are largely produced locally, but most of Brunei's other food needs must be imported. Agriculture and fisheries are among the industrial sectors that the government has selected for highest priority in its efforts to diversify the economy. Recently the government has announced plans for Brunei to become an International Offshore Financial Center as well as a Center for Islamic Banking. Brunei is keen on the development of Small and Medium Enterprises and also is investigating the possibility of establishing a "cyber park" to develop an information technology industry. Brunei also hopes to foster tourism through its "Visit Brunei 2009" campaign.
[edit] Overview This small, wealthy economy is a mixture of foreign and domestic entrepreneurship, government regulation and welfare measures, and village tradition. It is almost totally supported by exports of crude oil and natural gas, with revenues from the petroleum sector accounting for over half of GDP. Per capita GDP is far above most other Third World countries, and substantial income from overseas investment supplements income from domestic production. The government provides for all medical services and subsidizes food and housing. The government has shown progress in its basic policy of diversifying the economy away from oil and gas. Brunei's leaders are concerned that steadily increased integration in the world economy will undermine internal social cohesion although it has taken steps to become a more prominent player by serving as chairman for the 2000 APEC (Asian Pacific Economic Cooperation) forum. Growth in 1999 is estimated at 2.5% due to higher oil prices in the second half.  Brunei, shell, reservior, oil, gas, field, travel, event, work, sea, drilling, economy, overview, domestic, investment
 |
| |
History of Oil & Gas | | Introduction |  Brunei Darussalam has been known for its vast reserves of petroleum and gas, which has fuelled the nation’s economy for the past 75 years and more.
Exploration started in 1899 with the first recorded well drilled close to Brunei town, now known as Bandar Seri Begawan. Enthusiasm was high and six companies were involved in the oil search including Royal Dutch Shell, which started operations in 1913 after discovering the Miri field in Sarawak, Malaysia.
 By 1918, all other companies had pulled out except Royal Ducth Shell, which continued to search and found some accumulation of oil and gas in Labi, Belait in 1924. The find was too small to be commercialised.
In 1925, the search shifted to the Seria, Belait coastal strip in the west of the state and it was in 1929 when first commercial find was made at Seria, Belait in1929 by the British Malayan Petroleum Company, owned by Royal Dutch Shell, which was the forerunner to the present Brunei Shell Petroleum Company Sdn Bhd (BSP).
For a long time, this onshore Seria oil field was Brunei Darussalam’s only producing field despite some 48 exploration wells being drilled between 1914 and 1960. It was developed further in 1940 and production had risen to 17,000 barrels per day. Despite extensive damage to the field caused in World War II, post war production peaked to 15,000 barrels per day.
 The breakthrough came in the 1960’s when technological advances made offshore exploration feasible and the South West Ampa field was discovered in 1963, thirteen kilometres off Kuala Belait.
It was the discovery of the South West Ampa gas field, which sparked plans for the Brunei LNG plant project. The Brunei LNG plant began its operation in 1972 as one of the world’s first large scale liquefied natural gas (LNG) plant on the coast of Brunei Darussalam.
Setting new standards in engineering technology, Brunei LNG proved that large quantities of gas could be liquefied safely and shipped over long distances becoming a model for similar ventures throughout the world.
 In 1969, a major discovery was found in the Fairley field which is close to Ampa and in 1970, Champion was discovered about 70 kilometres north-east of Seria. Two more oilfields were discovered namely the Magpie which was found in 1975 and Rasau in 1979. These new oilfields increased the production to 250,000 barrels per day at that time.
A milestone was achieved in 1991 when the Seria field produced its billionth barrel and a monument was built near the original site of Well No. 1 to mark the achievement. The Billionth Barrel Monument was officially opened by His Majesty Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah, Sultan dan Yang Di-Pertuan Negara Brunei Darussalam on 18 July 1991.
 In a speech given by the Managing Director at that time, George Innes (MD) said, "The celebration today is to mark the coming of age of the Seria Field which has produced one billion barrels of oil and deservedly merits its place in the ranks of the world's giant oil fields. This has not been solely achieved by technological advances but also by consistent human endeavor over the past six decades.”
The signing of two new Petroleum Mining Agreements (PMAs) on 17 December 2003, between the Government of Brunei Darussalam and BSP, marked a significant milestone for Brunei Darussalam, BSP and the Shell Group.
These agreements called the Onshore Petroleum Mining Agreement and the Consolidated First and Second Offshore Petroleum Mining Agreement, respectively, give effect to an extension of BSP’s rights for a period of 19 years, with a potential further extension thereafter for up to 15 years. BSP’s rights under the Second Offshore concession agreement have also been extended for a period of 15 years, with a similar potential further extension. | | | | |
| The Offshore and Onshore Fields |  The most prolific offshore field is Champion, which is in 30 metres of water, about 70 kilometres northeast of Seria. It holds 40 percent of the country’s known reserves and produces around 100,000 barrels a day. The field already has more than 260 wells drilled from 40 platforms. A central field complex, Champion-7, has living quarters for about 160 personnel, gaslift and compression facilities and water injection facilities.
 The oldest field offshore is South West Ampa, 13 kilomtres off Kuala Belait. Its reservoirs hold more than half of Brunei Darussalam’s total gas reserves and gas production and accounts for 60 per cent of the company’s total production. Gas from its 56 gas wells is piped 39 kilometres to the Brunei LNG plant in Lumut. South West Ampa also has substantial oil reserves with 164 oil producing wells.
Close to Ampa are the Fairley and Gannet fields which produce both oil and gas. Fairley has 29 oil and 22 gas wells.
 The other major offshore filed is Magpie, 60 kilometres north-east of Seria, which has been producing since 1977. Production is now maintained at some 6,000 barrels a day from its 32 wells, drilled from three platforms.
BSP also has a share of production from the Fairley-Baram field, which straddles the border with Sarawak.
In January 1992, BSP’s seventh field came on stream at Iron Duke, 13 kilometres south-west of Champion. It was the first new field to start production since Gannet in 1988. Production is from three wells hooked up to Champion via the company’s multiphase pipeline.
 Onshore, the Seria field was Brunei Darussalam’s major producer until the 1970s. Today it still contributes some 28,000 barrels per day from a coastal corridor 13 kilometres long by 2.5 kilometres wide and in 1991 produced its billionth barrel, commemorated by a monument near the site of the first well. The other onshore field is Rasau, west of the Belait River. |
Brunei, shell, reservior, oil, gas, field, travel, event, work, sea, drilling
|
| |
Flag Description
 The rectangular shaped State flag of four component portion, two parallelograms and two trapeziums - is cut across by a parallelogram from a point 6.35 cm below the top left corner to a point of the same distance from the bottom corner on the right side. The standard measures 82 cm long by 91.4 cm wide. The parallelogram dividing the rectangle in this manner leaves two similar trapeziums at the top and bottom of the flag, with the lower trapezium assuming the inverted form of the upper trapezium. The parallelogram is again divided into two parallelograms of unequal depths, the upper being 2.54 cm wider that the lower which is 19.05 cm in width. The State crest in red superimposes the center of the flag. The forefingers of the upright arms, which support the red crest, are equidistant at 61 cm from the left and right sides of the flag. Embodied in the crest in yellow Arabic script is the state motto, which can be roughly translated: Always Render Service by God's Guidance Four colours are incorporated in the flag, red for the crest, yellow for the trapeziums, white for the upper parallelogram and black for the lower parallelogram. The National Crest of Brunei Darussalam
The National Crest of Brunei Darussalam has developed from a Royal emblem and in its original form still maintains its status as one of the Royal emblems.
The present National Crest was superimposed on the National flag after promulgation of the 1959 Brunei Constitution.
The crest consists of:
Bendera - the flag.
Payung Ubor-Ubor - the Royal Umbrella.
Sayap - the wing.
Tangan (Kimhap) - the hand
Bulan - the crescent.
The Bendera and Payung Ubor-Ubor have been Royal regalia's since the creation of the crest.
The Sayap - the wing of four feathers - symbolizes the protection of justice, tranquility, prosperity and peace.
Tangan or Kimhap - the hand - signifies the Government's pledge to promote welfare, peace and prosperity.
Bulan - the crescent - is the symbol of Islam, the national religion of Brunei Darussalam.
The characters inscribed on the crescent is the National slogan, "Always in service with God's guidance".
The scroll beneath the crest reads "Brunei Darussalam" which means "Brunei, the abode of peace".
brunei, flag, crest, tourism, travel, event, heritage, peace, oil, gas, culture
|
| |
Brunei Darussalam welcomes foreign investment. Foreign investors are invited to actively participate in the current economic diversification programme of the country. The programme hinges on the development of the private sector. The Ministry of Industry and Primary Resources was formed in 1989 with the responsibility of promoting and facilitating industrial development in Brunei Darussalam. Brunei Darussalam offers all investors security, stability, continuity, confidence and competitiveness.
Competitive investment incentives are ready and available for investors throughout the business cycle of start up, growth, maturity and expansion. The Investment Incentive Act which was enacted in 1975 provides tax advantages at start up and ongoing incentives throughout growth and expansion that are comparable if not better than those offered by other countries in the region.
Industrial activities are classified into four categories:- -
- Industries related to national food security
- Industries for local market
- Industries based on local resources
- Industries for export market
Flexible Policies
Industrial policies including manpower, ownership, government support and facilities remain open and flexible for all categories of industrial activities. Brunei Darussalam maintains a realistic approach where a variety of arrangements are feasible. Policies relating to ownership allow for full foreign ownership, majority foreign ownership and minority foreign ownership, as per the type of industry and situation. Only activities relating to national food security and those based on local resources require some level of local participation. Industries for the local market not related to national food security and industries for total export can be totally foreign owned. Overall, in Brunei Darussalam, any industrial enterprise will be considered.
Supportive Environment
Brunei Darussalam offers vast land and a variety of facilities throughout all four districts of the country. The majority of the 12 industrial sites presently developed are ready and available for occupation. Large expanses for agroforestry and aquaculture are also available. Rental terms and tenancy agreements are competitive and the sites offer a range of facilities, infrastructure and resources.Brunei Darussalam gives priority to ensuring the stability of the natural environment. As such, all sites are free from pollution and are ecologically well balanced. The Government philosophy is for sustainable development. Therefore, all polluting industries are banned and one of the continuing criteria for engaging any industry's participation is the impact on the environment.
One-Stop Agency
As the focal point for all industrial development, the Ministry of Industry and Primary Resources coordinates all industrial development activities. For investments in Brunei Darussalam, the Ministry is a One-Stop Agency.
It is remarkably easy to start an industry in Brunei Darussalam. A totally private development which does not require Government facilities needs only the approval to start. Those requiring Government facilities and assistance need only deal with the Ministry, which will liaise with other agencies and expedite applications.
The Ministry realizes the importance of time frames and clear decision making processes to your business. The entire procedure has only four stages:-
-
- Approval of the concept
- Approval of firm proposal
- Approval of physical plans
- Approval to operate
In all four stages, the Ministry of Industry and Primary Resources is your contact as a One-Stop Agency. In Brunei Darussalam, we make it easy and look forward to being Your Profitable Partner. We invite you to invest in Brunei Darussalam as a Partner in Success.
Please contact the Ministry of Industry and Primary Resources directly - we are ready and available to help.
For further enquiries, please contact the following:-
Chairman
One-Stop Agency
The Ministry of Industry and Primary Resources
Bandar Seri Begawan 1220
Brunei Darussalam
Telefax: (02) 244811
Telex: MIPRS BU 2111
Cable: MIPRS BRUNEI
| |
|
| |
GENERAL OVERVIEW OF THE ECONOMY Brunei Darussalam is still very much dependent on revenues from crude oil and natural gas to finance its development programmes. Aside from this, Brunei Darussalam also receives income from rents, royalties, corporate tax and dividends. Due to the non-renewable nature of oil and gas, economic diversification has been in Brunei Darussalam's national development agenda. In the current Seventh national Development Plan, 1996-2000, the government has allocated more than $7.2 billion for the implementation of various projects and programmes.
Brunei Darussalam is the third largest oil producer in Southeast Asia and it produced 163,000 barrels per day. It is also the fourth largest producer of liquefied natural gas in the world.
Economic Indicators
GDP at current prices (Million B$) : 8.051.0 (1997 estm.)
Average annual inflation rate: 2.7 percent
Unemployment rate: 4.9 percent
 Although Brunei Darussalam is no giant when it comes to landmass, it has been blessed with rich natural resources and a strategic location within the region. The majority of the country is covered in tropical rainforests teeming with exotic flora and fauna. Anxious to promote the conservation of its lush surroundings, eco-tourism has gained importance in the country's economic activities.
Human resources are central to the successful transformation of Brunei Darussalam into a diversified industrial economy. As in most developing nations, there is a shortage of skilled workforce in the country. Therefore, greater emphasis is placed upon education. The main areas of interest in human resources development are managerial and industrial skills, with particular emphasis on entrepreneurial skills as well as vocational and technical training.
Brunei Darussalam's main exports consist of three major commodities - crude oil, petroleum products and liquefied natural gas - sold largely to Japan, the United States and ASEAN countries. The Government's move to promote non-oil and gas activities has been largely successful with figures showing 64% of GDP in 1996 compared to only 24.3% in 1991.
Agriculture
Rice Production
 Various efforts have been made by the government to encourage rice production during the last decade and the yield per acre has increased due to the introduction of better agricultural methods.
Approximately 290 tones of 1 percent of the nation's rice needs are produced locally from 613 hectares of rice fields scattered around the country.
As a first step towards the attainment of self-sufficiency in rice, the government launched in 1978 an experimental large scale mechanized rice planting project at Kampong Wasan. Covering an area of 400 hectares, the project was a joint undertaking between the Agriculture Department and the Public Works Department.
The Public Works Department was responsible for providing the required infrastructure, clearing the land and giving other basic provisions. The Agriculture Department was responsible for actual planting, maintenance, harvesting and processing. The project is also aimed at planting padi twice a year, from April to September and from October to March.
Fruit Farming
Fruit farming is largely performed on a small scale. There is a vast range of locally produced tropical fruits, which supply some 11% of domestic requirements of more than 14,000 tones. In 1975, the Agriculture Department initiated a fruit-farming scheme to encourage fruit cultivation in the country. In an effort to increase the production of local fruits, the government through the agricultural stations in Batang Mitus, Tanah Jambu and Lumapas, planted seedlings of various fruit trees including rambutan, durian and oranges.
Vegetables
Locally grown vegetables constitute about 6,700 tones or just over 65 percent of the country's needs. The amount increases gradually as more people are taking up vegetable farming.
Livestock
The country produces about 1,000 head of cattle and bufaloes for the market annually at about six percent of its own beef consumption, The Government assists local stock farmers with calves, machinery, feed, seedlings, fertilizers and veterinary care. The country requires 3,000 to 5,000 tones of meat annually, with per capita consumption of betweeen 9 and 17 kg. To meet demand, it has to import an average of between 4,000 and 7,000 head of live cattle from its Wileroo Ranch in the Northern of Australia. Local fresh milk production contributes about 199 thousand litters annually.
Research has been carried out to ascertain the best possible way to increase the buffalo population. Towards this end, the agriculture Department has launched a research project covering 4000 hectares in the Batang Mitus area in the Tutong District. So far, over 200 hectares have already been initiated. The farm's main aim will be to assess local and imported stock towards producing highbred buffaloes for commercial purposes.
Forestry
About three quarters of Brunei Darussalam's total land area are covered by forests. However, their contribution to the economy is minimal. Logging, limited to 100 thousand cubic meters annually, is confined to meeting local needs only.
Fisheries
 With the proclamation of the 200 nautical miles Brunei Fisheries Limits in 1983 and the identification of potential areas for fisheries activities, the value of fisheries industry is estimated to be worth more than B$200 million. At the present exploitation and utilization, the fisheries sector of Brunei Darussalam, comprising capture, aqua-culture and seafood processing contributed about 0.5% of the total Gross Domestic Product (GDP), or about B$37.2 million, at current prices. It provides work to more than 1,500 involved in this sector.
With realistic potential for export, however lacking in relevant resources, including associated technology, the development of fisheries industry needs involvement of foreign investment. The government, through the Fisheries Department therefore has been actively promoting suitable foreign involvement, either in the form of joint partnership or other forms of strategic alliances, aimed at developing the fisheries sector towards a competitive, efficient and commercially lucrative venture.
Oil and Gas
Crude oil and liquefied natural gas are the main exports of Brunei Darussalam. From January to June 1998 it exported 134.77 trillion BTU or 88.94 percent to Japan and 16.75 trillion BTU or 11.06 percent to the Republic of Korea.
Under a Sale and Purchase Extension Agreement signed by BLNG and the Japanese Buyers in 1993, the LNG Plant at Lumut exports annually about 5.54 million metric tons of LNG to Japan. In June 1998, a further amendment made known as the Sale and Purchase Extension Agreement Amendment had been signed which increased the sales for an additional 14 cargoes per annum to Japan starting from 1999 till the year 2013.
In October 1997, a sale and purchase agreement had been signed to deliver 0.7 million metric tons of LNG to the Republic of Korea until the year 2013. In total, 200 'B' class LNG cargoes equivalent will be delivered annually to the buyers in Japan and the Republic of Korea from the year 1999 to 2013.
In March 1998, the Government of His Majesty the Sultan and Yang Di-Pertuan of Negara Brunei Darussalam formed a Joint-venture company the Brunei Gas Carriers Sendirian Berhad (BGC) with Shell International Gas and Mitsubishi Corporation.
Currently, Brunei LNG Plant processes natural gas supplied from offshore gas fields owned by the Brunei Shell Petroleum Company Sendirian Berhad. From 1st April, 1999 LNG will receive additional natural gas from a non-Brunei Shell owned Maharajalela Jamalulalam Field.
Oil and Gas accounted for about 36% of the country's Gross Domestic Product in 1996.
Brunei Darussalam is well served by several commercial banks with branches throughout the country. The first banking was opened more than fifty years ago when the Government set up the Post Office Savings Bank (POSB) in 1935.
Brunei Darussalam operates a Currency Board system and has no Central Bank. The Government under the Banking Acts and Finance Companies Act regulates the banking industry. The Ministry of Finance through the Financial Institutions Division closely regulates all banking activities to ensure a stable and fiscally sound business environment. The Brunei Currency Board is responsible for issuing and managing the currency.
The Brunei Dollar is at par with the Singapore Dollar and are both freely traded in the respective countries. There are currently no exchange controls in Brunei. Money changer facilities are also available.
The banks continue to support local businessmen in their endeavor and thus help in the development of Brunei Darussalam.
There are 9 banks (3 incorporated in Brunei) with branches throughout the country.
List of Banks:
Baiduri Bank Berhad
Citibank
Development Bank of Brunei Berhad
Hongkong Bank
Islamic Bank of Brunei Berhad (IBB) Berhad
Malayan Banking Berhad
Overseas Union Bank (OUB)
Standard Chartered Bank
Sime Bank Berhad
Currency:
The unit currency is the Brunei dollar, divided into 100 cents.
Exchange Rate: US$1.00 = between B$1.43 and B$1.60
Brunei Darussalam's small population accounts for its limited labor force. With the implementation of ambitious plans in recent years, the country has had to recruit both skilled and unskilled labor from abroad.
There are about 36,345 (early 1998) workforce in the government sector and more than 106 thousand wage earners in the private sector. This figure, however, does not include members of the Security Forces, daily-rated employees an domestic servants in private employment.
| |
|
Recent Posts
Top Posts
Recent Comments
Categories
Archive
Syndication Tools
|
|
