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2008 Oil and gasExports: B$14.6

billion

BSP, BLNG, TotalBrunei Government.Revenue 07/08B$8,841.2m from O & G

BSP, BLNG & Totalpay staff < 5,000,contractors andsuppliers

Brunei Gov. expenditure07/08 $5,601m on staff,

development expendituresetc.

Contractors paytheir staff and

suppliers

Contractors paytheir staff and

suppliers

Staff spend their incomes ongroceries, cars, computers,insurance, travel, school,houses (construction) etc.

GDP B$20.4 billion (2008)

THE BRUNEI ECONOMY

Non-oil and gas private sector >100,000 jobs

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Insights?

We should all be in the Oil and Gas industry!New export industries requiredImports > B$3 billion/year

Machinery, transport, manufactures, food.Consumer expenditure outside the countryOpportunities for SMEs in supply chain(upstream) and to capture expenditure from(downstream) major national initiatives

BEDB, agriculture & aquaculture, tourismetc.

Seek independence from oil and gas andgovernment expenditure.

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Economic Downturn?

Government expenditure/policy rather thanmacro environmentExample: Credit cards/ private debt.

$1,000 paid back at 8% per month of outstanding balance and 2% monthly interest

Consumer pays $1,333 for $1,000 worth of goods. 33% interest rather than 33% moregoods when paying cash!

If consumers use less credit, firms will sellmore goods!Get debt under control.