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SECRETARIAT OF THE BRUNEI DARUSSALAM ECONOMIC COUNCIL

The Council’sRecommendations &

Implementation

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Economic Council’s Recommendations

Action Plan for Recovery 3 point action plan Short Term

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1. Stimulus Package Introduce Payment Scheme & Credit Fund Boost Spending in Select Strategic Areas

More Public Housing Projects More Small Scale Tourism Infrastructure More IT infrastructure

Invest in People through Hospitality Industry Training Program National IT Training Program

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Stimulus Package Banks will provide credit to SMEs at low

interest rates with government guarantees A Special budget has been allocated 512 new housing projects have started Infrastructure work will be undertaken 25 tourism projects will be implemented BruNet expansion & IT projects for schools

have begun Canberra Institute of Technology is providing

hospitality & tourism training to 1300 people

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2. Implementation Strategy

Coordination at Senior Ministerial Level

3 bodies to be set up International Business Advisory Panel Public Policy Think Tank Permanent Business Council

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Implementation Strategy

HRH The Minister of Foreign Affairs is undertaking the role of the Coordinating Minister as Chairman of the Economic Council

The Terms of Reference for the 3 advisory panels have been prepared and are being reviewed

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3. Communications Initiative

Program to communicate the Action Plan to government agencies and private sector

Maximum transparency be accorded to government’s economic initiatives

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Communications Initiative

The Council’s report is available to the public both through the internet or hardcopy

All relevant ministries have been briefed Press releases are issued every time there

is a new project The Council is now monitoring the progress

undertaken by the various ministries in implementing the Council’s recommendations

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Economic Council’s Recommendations

Strategy for Sustainable Growth 3 strategies Medium & Long Term

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1. Strengthening Government Finances

Control government expenditure through clear prioritization and eliminate wastage

Reduce the size of the public sector through privatisation

Broaden and strengthen the government’s revenue base through broadening the tax base, gradual removal of subsidies as well as corporatisation and privatisation

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(continued)

Develop mechanisms to meet temporary liquidity shortfalls such as the issue of government bonds and other financial instruments

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Strengthening Government Finances

Government expenditures & budgeting system are currently being reviewed

Tax laws are currently being reviewed Corporatisation of Brunei Telecoms

have begun (Provident Fund and Electricity are currently undertaken)

Subsidies are currently being reviewed Govt bonds at primary trading can be

introduced by MOF when required

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2. Strengthening the Private Sector

Expand the size of the private sector through privatisation and foreign investment

Encourage local and foreign investment through reducing and simplifying government policies and procedures which have a bearing on private enterprise

Develop local SMEs through easier access to financing

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(continued) Encourage investment in Brunei by reviewing

and revising restrictions on the ownership and development of land and its use as collateral to raise financing

Facilitate private sector liquidity through ensuring prompt government payments

Expand and enhance the competitiveness of the oil and gas industry

Promote economic diversification through the provision of incentives and first class infrastructure

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Strengthening the Private Sector Acts related to Investment Promotion &

Incentives have been reviewed and amended:- Economic Development Board Act Industrial Coordination Act Investment Incentives Act

Other laws and regulations related to businesses are currently being reviewed

Land ownership policies are currently being reviewed

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(cont.) – Enhancing SME’s Capability

An IDF is currently available with the IDBB as well as a new Credit Fund with other banks

Preliminary study by PSB of Singapore has been issued & will be discussed

MIPR currently undertaking study on local participation in business (with MIER)

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(cont.) - Enhancing HRD

MOE is currently reviewing education policy

MOH (Labour Dept) are currently undertaking some of the recommendations (eg. apprentice scheme for unemployed graduates)

PMO has issued new circular outlining rules on the placement of civil servants with private/public companies

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(cont.) – Expanding Oil Industry BSP is pumping oil at maximum capacity

207,000 barrels per day BSP is currently rehabilitating many of

its existing fields BOGA is undertaking a study on the

formation of a national oil company Another company has been awarded the

right to explore – Fletcher Downstream industry possibilities are

being undertaken

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(cont.) – Other Actions

Avoidance of Double Taxation Agreements and Bilateral Investment Treaties are currently being negotiated with ASEAN, Asian, African and European Countries

Privatisation - Sale of corporatised agencies’ shares are expected to be done within 5 years of its corporatisation

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3. Establishing the Foundations for Sustainable Growth

Modernise Brunei Darussalam’s legal and regulatory framework

Enhance human resource development and deployment

Launch a concerted drive to enhance productivity within the public and private sectors

Establish a first class ICT through public and private sector investment

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Establishing the Foundations for Sustainable Growth

A National Law Review Committee is undertaking a review of all existing laws

The HR Committee is currently undertaking a National HR Policy

The Formation of a National Productivity body is currently being studied

An IT Council has been formed

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Preparation of Brunei Darussalam Economic Blue Print

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