Brunei Darussalam’s economy is heavily reliant on the oil and gas industry, which accounts for over 50% of its GDP and over 90% of its exports. The country is a member of the Organisation of the Petroleum Exporting Countries (OPEC), and its oil reserves are estimated to last for another 25 years. Brunei is one of the wealthiest countries in Southeast Asia, with a high standard of living and a well-developed infrastructure.
The government plays a dominant role in the economy, with state-owned enterprises and government-linked companies being the main drivers of growth. The financial sector is relatively small but is expanding rapidly, with Islamic banking playing an increasingly important role. Brunei has also been making efforts to diversify its economy, with a focus on developing its tourism, agriculture, and services sectors.
In recent years, the COVID-19 pandemic has had a significant impact on Brunei’s economy, particularly on its oil and gas industry. However, the government’s strong financial position and proactive measures to contain the virus have helped to mitigate the impact. Going forward, Brunei will continue to face challenges in diversifying its economy and reducing its dependence on oil and gas exports.
The country has established several industrial parks to attract foreign investment and promote exports. One of the most prominent is the Sungai Liang Industrial Park (SPARK), which covers an area of 271 hectares and is located near Brunei’s major oil and gas fields. SPARK offers various facilities and incentives to investors, including tax exemptions, land leases, and infrastructure support.
Brunei’s industrial exports include refined petroleum, chemicals, and wooden furniture. In recent years, the country has been making efforts to expand its exports to other countries and diversify its manufacturing base. To achieve this, Brunei has been developing partnerships with other countries to increase investment and technological transfer.
Overall, Brunei’s industrial sector is well developed, thanks to its abundant natural resources and government initiatives to diversify the economy. The establishment of industrial parks and partnerships with foreign countries has enabled the country to promote exports and attract foreign investment.