Brunei - A country profile

Brunei - A country profile

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This article provides an overview of Brunei for those keen on exploring the possibility of living and working there. The information presented is gathered from open sources and is not exhaustive or meant to supplement or substitute legal and professional advice.

Key Facts

  • Official name: Brunei Darussalam
  • Capital: Bandar Seri Begawan
  • Land area: 5,765 sq km1
  • Population (2022): 445,4002
  • Head of state: His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah
  • Official language: Malay
  • Currency: Brunei Dollar (BND)3
  • GDP (2019): BND18.375 billion
  • GDP per capita (2019): BND39,9894

Introduction

Brunei Darussalam is located at the northwestern part of the island of Borneo, facing the South China Sea and surrounded by East Malaysia.5 Oil and gas has been the backbone of the country’s economy since its discovery in 1929.6 The country’s culture is deeply rooted in its Malay origins. These are reflected in its language, architecture, ceremonies and customs.7

Brunei’s commitment to continued prosperity and stable macroeconomics is underscored by Wawasan 2035, its government’s national vision.8 Wawasan 2035 provides for the promotion of investments both in downstream industries and economic clusters beyond the oil and gas industry. It comprises 13 strategies that include education, political stability and security, institutional development, local business development, infrastructure, social security, and environment.9

Demographic Profile

In 2023, the Bruneian population was 445,400, up from 440,715 the previous year. Brunei citizens accounted for the largest share of the population with 75.9 percent (338,300 persons), while permanent residents and temporary residents made up 5.7 percent (25,800 persons) and 18.2 percent (81,300 persons) of the population respectively. More than 73 percent of its population were aged between 15 and 64 years old, 20.5 percent were below 15 years of age and 6.4 percent were 65 years and older. Malays form the majority of the population at 72.6 percent.10

Economic Profile

In 2022, Brunei’s gross domestic product (GDP) reached BND20.003 billion, with a GDP per capita of BND51,645. Its GDP was valued at BND18.822 billion and the per-capita GDP was BND43,772 in 2021. The economic growth in 2019 was attributed to the growth in the non-oil and gas sectors.11

Foreign trade and investment

Brunei’s foreign direct investment (FDI) totalled BND1.245 billion in 2018. Hong Kong SAR contributed the largest share of total investment with BND902.4 million (72.5 percent) – an increase from the BND651.5 million recorded the previous year. The manufacturing sector was the largest recipient of FDI inflows in 2018, which amounted to BND945.6 million.12

One of the Singapore companies in Brunei is Ley Choon Group Holdings Ltd. In 2013, it received new contracts totalling BND29.6 million for the building of a flyover bridge at Jalan Gadong and Jalan Telanai and for infrastructure works involving the supply and installation of sewerage systems at Berangan, Kianggeh and Subok.13 In 2010, ST Engineering secured a S$66.5 million project in Brunei to design and construct a waste management facility in Sungai Paku.14

Industries

The energy sector – which includes oil and gas exploration and production, petrochemical and refineries, fuel, power, energy efficiency and conservation and renewable energy – is a core pillar of Brunei’s economy. A significant contributor to the government’s revenue, the energy sector also spurs development in other sectors of the economy.15

In recent years, the Brunei government is increasingly reducing the country’s reliance on its hydrocarbon exports. It is shifting its focus to diversify its economy by investing on industries such as information and communication technology and halal manufacturing.16

Tourism

Brunei aimed to double the number of tourist arrivals by air from 218,000 in 2015 to 450,000 by 2020, and increase services relating to tourism which can contribute significantly to its GDP growth.17 In 2018, the country saw a total of 278,136 international tourist arrivals by air, up from 258,955 recorded in the previous year.18

To boost tourism, the country is focusing on strengthening the attractiveness and diversity of its tourism products and improve the quality of tourism services. To this end, it is working on refining existing tourist destinations such as Temburong, Bandar Seri Begawan, Kampong Ayer, Tutong, Belait, and other recreational destinations including its beaches, forests and parks. Brunei is also enhancing some activity-based products such as diving and birdwatching, as well as community-based tourism such as homestays and village activities.19

References

  1. About Brunei. (2020). Information Department Prime Minister’s Office Brunei Darussalam. Retrieved October 13, 2020, from http://www.information.gov.bn ↩

  2. Population. (2022). Department of Economic Planning and Statistics. Retrieved August 8, 2023, from https://deps.mofe.gov.bn ↩

  3. About Brunei. (2020). Information Department Prime Minister’s Office Brunei Darussalam. Retrieved October 13, 2020, from http://www.information.gov.bn ↩

  4. National accounts. (2022). Department of Economic Planning and Statistics. August 8, 2023, from https://deps.mofe.gov.bn ↩

  5. About Brunei Darussalam. (2017). Government of Brunei Darussalam. Retrieved October 13, 2020, from http://www.mfa.gov.bn ↩

  6. Business in Brunei. (2018, September). Ministry of Foreign Affairs. Retrieved October 13, 2020, from http://www.mfa.gov.bn ↩

  7. Brunei. (2018). Islamic Chamber of Commerce, Industry & Agriculture. Retrieved October 13, 2020, from http://www.iccia.com ↩

  8. Brunei Darussalam. (2020, June). Ministry of Finance and Economy, p. 2. Retrieved October 13, 2020, from https://sustainabledevelopment.un.org ↩

  9. Brunei Darussalam. (n.d.). Invest in Asean. Retrieved October 13, 2020, from http://investinasean.asean.org ↩

  10. Population. (2022). Department of Economic Planning and Statistics. Retrieved August 8, 2023, from https://deps.mofe.gov.bn ↩

  11. National accounts. (2022). Department of Economic Planning and Statistics. August 8, 2023, from https://deps.mofe.gov.bn ↩

  12. Brunei Darussalam statistical yearbook. (2019). Department of Economic Planning and Development, pp. 127-130. Retrieved October 13, 2020, from http://www.deps.gov.bn ↩

  13. Ley Choon makes further inroads into Brunei with B$29 million new project wins. (2013, July 17). Ley Choon Group Holdings Limited. Retrieved October 13, 2020, from http://www.leychoon.com ↩

  14. ST Engineering secures $66.5mln project in Brunei. (2010, June 14). Singapore Business Review. Retrieved October 13, 2020, from http://sbr.com.sg ↩

  15. Energy white paper. (n.d.). Energy Department, p.2. Retrieved April 4, 2024, from https://policy.asiapacificenergy.org/ ↩

  16. Garcia, Z. S (2019, February 14). Brunei’s investment outlook for 2019. ASEAN Briefing. Retrieved October 13, 2020, from https://www.aseanbriefing.com/ ↩

  17. Mission, vision and strategic objectives. (2017). Ministry of Primary Resources and Tourism. Retrieved October 13, 2020, from http://www.tourism.gov.bn ↩

  18. Tourism statistics for the year 2018. (2019). Ministry of Primary Resources and Tourism. Retrieved October 13, 2020, from http://www.tourism.gov.bn ↩

  19. Brunei show development in tourism industry the last 18 months. (2017, January 18). Energy and Industry Department. Retrieved October 13, 2020, from https://brudirect.com ↩

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