RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/196 
21 January 2008  
 
(08-0237) 
Trade Policy Review Body Original: English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
BRUNEI DARUSSALAM 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Brunei Darussalam is attached. 
 
 
Note: This report is subject to restricted ci rculation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Brunei Darussalam. Brunei Darussalam WT/TPR/G/196 
 Page 3 
 
 
CONTENTS 
 
    Page 
I. GENERAL POLICY STATEMENT 5 II. INSTITUTIONAL FRAMEWORK 5 
III. INTERNATIONAL TRADE RELATIONS 5 
(i) International organisations 5 (ii) Regional efforts 6 
(iii) Free Trade Agreements 6 
IV. ECONOMIC ENVIRONMENT 7 V. TRADE POLICY FRAMEWORK 7 
 (1) T
ARIFFS   7 
 (2) S ERVICES  8 
 (3) I NVESTMENT  8 
 (4) I NTELLECTUAL PROPERTY RIGHTS  9 
 (5) S TANDARDS  10 
 (6) G OVERNMENT LINKED COMPANIES  11 
VI. SECTORAL POLICIES AND DEVELOPMENT 11 
 (1) O IL AND GAS 11 
 (2) D OWNSTREAM INDUSTRIES  12 
 (3) S MALL AND MEDIUM ENTERPRISES  12 
 (4) A GRICULTURE , FORESTRY AND FISHERIES  13 
 (5) M ANUFACTURING  13 
 (6) B RUNEI INTERNATIONAL FINANCIAL CENTRE  14 
 (7) T ELECOMMUNICATIONS  15 
 (8) I NFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) 15 
 (9) A IR TRANSPORT SERVICES  16 
 (10) P ORTS   16 
 (11) T OURISM  17 
VII. STRATEGY FOR FUTURE GROWTH 17 
VIII. CONCLUDING REMARKS 18 
 
  Brunei Darussalam WT/TPR/G/196 
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I. GENERAL POLICY STATEMENT 
1. Since the last trade policy review in 2001, Brunei Darussalam maintains its strong support for 
an open, rules-based and non-discriminatory multilat eral trading system as prescribed by the WTO, 
and continues to support the process of the Doha Development Agenda. 
2. Brunei Darussalam continues to pursue free trade policies aimed at fostering economic 
growth, with the responsibility for allocating res ources and determining economic decisions left to 
market forces. 
3. Participation in regional economic forums  remains based on the concept of "open 
regionalism", in which regional ec onomic cooperation is seen as a building block towards multilateral 
trade liberalization. 
II. INSTITUTIONAL FRAMEWORK 
4. The Constitution of Brunei Darussalam was revi sed in 2004 and 2006 which led to the re-
establishment of the Legislative Council on 15 July 2004.  On 6 September 2004, 21 Legislative 
Council  members were appointed, eleven of whom  were state officials, including selected 
Government Ministers, while 10 were nominated members.  Some Council members had also served 
in the previous Legislative Council in the 1960's.  The Legislative Council had its first official 
meeting on 25 September 2004. 
5. On 2 September 2005, new Legislative Council members were appointed and there are now 
29 members in total, representing Government Ministers, local dignitaries and district representatives.  
6. On 1 August 2005 the Ministry of Foreign Affa irs (MFA) was re-named the Ministry of 
Foreign Affairs and Trade (MoFAT).  This came with  the incorporation of the International Relations 
and Trade Development (IRTD) Division from the Mini stry of Industry and Primary Resources to the 
Ministry of Foreign Affairs.  Upon the transfer, the IRTD division and the Department of Multilateral 
Economics of MFA were merged and divided into the three trade departments under the Ministry.  
International trade relations have always been of importance to Brunei and th is change is aimed at 
strengthening and facilitating nationa l coordination.  This underscor es the importance the Government 
continues to place on sustainable economic diversif ication, Brunei Darussalam's recognition of the 
increasing significance of and focus on trade in the global arena, and the link between political and 
economic security.  The move is hoped to enable  Brunei Darussalam to comprehensively establish 
and conduct foreign policies on trade, trade negotiation and foreign economic affairs. 
III. INTERNATIONAL TRADE RELATIONS 
(i) International organisations 
7. Brunei Darussalam is also a member of the Asia Europe Meeting (ASEM) and the Asia 
Pacific Economic Communities (APEC) organisa tions which, among others, hold informal 
consultations on WTO matters, thus complementi ng and reinforcing efforts to strengthen the 
multilateral trading system.  In the last APEC Su mmit in Australia, APEC leaders came out with a 
'Statement on WTO Negotiations', in which, lead ers underlined the crucial importance of the WTO 
rules-based, global trading system and determination to bring the Doha Round to an early and successful conclusion.  APEC has pledged politi cal will, flexibility and ambition in ensuring a 
successful Doha round negotiations, and to resume nego tiations on the basis of the draft text tabled by 
the Chairs of the negotiating groups on agri culture and non agricultural market access. WT/TPR/G/196 Trade Policy Review 
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(ii) Regional efforts 
8. Regionally, Brunei Darussalam enjoys strong and friendly relations with the other ASEAN 
(Association of South East Asian Nations) member  countries through political and security as well as 
socio-cultural cooperation.  Trade relations have also been strengthened with the advent of the 
ASEAN Free Trade Area (AFTA), the ASEAN Framework Agreement on Services (AFAS) and the 
ASEAN Investment Area (AIA).  With a populat ion of 383,000 people, the smallest among the 
ASEAN member countries, the Government sees th e great economic potentia ls and benefits in 
working closely with the larger population of over  500 million people in ASEAN, and therefore views 
ASEAN as an important cornerstone of our foreign and trade policy. 
9. Brunei Darussalam continues to support ASEAN’s efforts particularly to establish the 
ASEAN Community by 2015, which ai ms to transform ASEAN into a stable, prosperous and highly 
competitive region through 3 pillars;  the AS EAN Security Community, the Socio-Cultural 
Community and the ASEAN Economic Community.  The establishment of the ASEAN Economic 
Community (AEC) is to be facilitated by the AEC Bl ueprint, which essentially provides a clear focus 
of work for economic integration, by setting out  defined measures, timelines and implementation 
targets for the realization of the AEC by 2015. ASEAN Leaders signed the Declaration on the AEC 
Blueprint at the 13th ASEAN Summit held in Singapore on 20 November 2007, which thus gives the 
political impetus for all ASEAN member c ountries to abide by their commitments. 
10. Under the umbrella of ASEAN, Brunei Darussalam  is also involved in FTA negotiations with 
China, Japan, the Republic of Korea, India and Au stralia & New Zealand.  ASEAN will also begin 
negotiations for an FTA with the EU in the near future.  
11. Brunei is also a member of the Brunei Indonesi a Malaysia Philippines – East Asian Growth 
Area (BIMP-EAGA), which seeks to progress economic growth and development in the ASEAN sub-region.  BIMP-EAGA was formed in 1994, and aims to increase economic cooperation, trade, 
investment and tourism among partic ipating economies in the sub-region.
1  BIMP-EAGA currently 
has four priority areas of cooperation:  transport, infrastructure and ICT development; natural resource 
development; joint tourism devel opment and SME development.  The designated lead country in the 
transport area is Brunei, which oversees a number of  working groups dealing with air linkages;  sea 
linkages;  construction and cons truction materials and ICT.  BIMP-EAGA is also pioneering 
environmental initiatives to address global concerns on climate change with the Heart of Borneo and 
Coral Triangle initiatives.  The trilateral of BIMP-E AGA countries involved with the Heart of Borneo 
initiative have made arrangements to ensure  that the designated areas are protected.  
(iii) Free Trade Agreements  
12. Bilaterally, Brunei Darussalam has also been involved in several Free Trade Agreements, 
which it believes will complement its aim for a mu ltilateral trading regime.  Brunei Darussalam is a 
party to the Brunei-Japan Economic Partnership Ag reement (BJEPA) and the Trans-Pacific Strategic 
Economic Partnership Agreement (P4). 
13. The Brunei-Japan Economic Partnership Agreemen t is Brunei Darussalam’s first bilateral free 
trade agreement.  The Agreement was signed by the leaders of both Brunei Darussalam and Japan on 
18 June 2007, and is expected to enter into for ce in 2008. The Agreement is hoped to enhance Brunei 
Darussalam’s investment climate and encourage foreign direct i nvestments (FDI) through greater 
                                                      
1 Consists of Brunei Darussalam, the Indonesian provinces of Kalimantan, Sulawesi, Maluku and Irian 
Jaya; Sabah, Sarawak and the Federal territory Labua n in Malaysia; and Mindanao and Palawan in the 
Philippines.  EAGA covers a land area of 1.54 million sq. km and is home to 57 million people.  Brunei Darussalam WT/TPR/G/196 
 Page 7 
 
 
predictability and transparency.  Market access be tween Brunei Darussalam and Japan will also be 
improved in terms of goods (through the reduction of import duties) and services. 
14. Brunei signed the Trans-Pacific Strategic Econom ic Partnership Agreement on 2 August 2005 
and deposited its Instrument of Provisional Applic ation to New Zealand as the depository of the 
Agreement on 12 June 2006.  The Agreement came in to force for Brunei Darussalam on 12 July 2006, 
and will bring about strategic benefits for all f our partners, Brunei Darussalam, Chile, New Zealand 
and Singapore, and in effect build a bridge betwee n Latin America, the Pacific and Asia.  It will 
encourage Brunei, Chile, Singapore and New Zealand to pool their expertise, ideas, technology and 
resources to improve their competitiveness on the global market.  The Agreement will also help 
advance shared objectives in APEC and the WTO.  
15. The Trans-Pacific Strategic Economic Partners hip Agreement also has side agreements, 
namely the Environment Cooperation Agreem ent and Labour Coopera tion Memorandum of 
Understanding, to reflect a shared desire to en courage and promote sound labour and environment 
practices.  These agreements establish mechanisms for ongoing cooperation a nd dialogue on labour 
and environment issues.  Brunei Darussalam is also  preparing its non-conforming measures list for the 
Services Chapter as well as the list for entities under the Government Procurement chapter to be 
submitted to the Parties.  Negotiations on invest ment and financial services will resume within 
two years after the entry into force of the Agreement. 
IV. ECONOMIC ENVIRONMENT 
16. Hydrocarbon exports and the steady accumulation of long-term foreign assets continue to 
provide Brunei Darussalam with a comfortable extern al position, and have helped Brunei to maintain 
its liberal trade and exchange system.  The Government continues to place great importance on economic diversification and encourages foreign inv estment into the country.  In recent years, both 
trade and current account balances have further im proved, as value of exports earning strengthens 
with the increase in oil prices and production while value of imports remains lower then exports. 
17. In 2006, Brunei Darussalam's economy improved,  as it grew by 5.1% compared to 2.7% in 
2001.  GDP growth was largely due to positive de velopments in the hydrocarbon, financial and 
private services sectors.  The growth rate for the next five years is expected to be within the range of 
2 to 4%.   
18. The Department of Economic Planning a nd Development (DEPD) is embarking on a new 
development plan that will further stimulate and a ccelerate the pace of econom ic growth and ensure 
the realisation of a more diversified and sust ainable economic development in the long term. 
V. TRADE POLICY FRAMEWORK 
(1) T
ARIFFS  
19. Brunei Darussalam's tariff structure remains lib eral and transparent consisting of 10,702 tariff 
lines – of which 68% of tariff lines are duty free, 30.68 % are ad valorem  rates (5-30 %) and 1.2% are 
specific tariffs (131 lines).  Tariffs have been elimin ated or progressively reduced over the years, and 
in 2004, the average MFN tariff was 4.8%.  In 2004, the categorisation of the tariff lines with 
ad valorem  rates is as follows:  
 WT/TPR/G/196 Trade Policy Review 
Page 8 
 
 
Ad Valorem  Rates (%) Number of Tariff lines 
0 7,285 
5 876 
10 124 
15 99 
20 2,181 
30 6 
Total 10,571 
20. Non-tariff measures are few and maintained only to discharge Brunei's obligations under 
international commitments, or for public health and safety, environmental, religious, or national 
security considerations. 
21. The Department of Information Technology and State Stores continues to administer the 
importation and stockpiling of sugar and certain types of rice, to ensu re security of supplies and price 
stability. 
(2) SERVICES  
22. The services sector is an area of focus in effo rts to diversify the economy and the policy of 
each Services sector remains under the purview  of the relevant Ministry/agency.  
23. Brunei Darussalam continues to liberalise its  services sectors progressively, in accordance 
with its domestic capabilities and priorities, and commitments under the WTO and bilateral/regional 
arrangements.  As such technical cooperation is welcome.  To date, Brunei Darussalam has made 
liberalisation commitments in the following sectors:  
(i) Business (Professional services); 
(ii) Business (Computer and related services); 
(iii) Business (Rental/Leasing services without operators); 
(iv) Communication (Telecommunication services); 
(v) Financial (Insurance and Insurance related services); 
(vi) Other Financial Services;  
(vii) Transport (Air Transport Services); and 
(viii) Tourism 
 
(3) INVESTMENT  
24. Brunei Darussalam does not maintain any WTO inconsistent trade-related investment 
measures. A local equity requirement of not less th an 30% applies to joint ventures in agriculture, 
fisheries and food processing, only if government  facilities such as government-developed industrial 
sites are applied for. 
25. The Government also continues to actively pur sue Bilateral Investment Treaties and Double 
Taxation Agreements with interested countries.   Brunei Darussalam has concluded and signed 
Bilateral Investment Treaties with ASEAN, Oman, Germany, Ukraine, the People's Republic of China 
and the Republic of Korea. Brunei Darussalam also  has Double Taxation Agreements with Indonesia, 
Singapore, the United Kingdom, Vietnam, the People's Republic of China and the Lao People's Democratic Republic.  The Brunei-Japan Economic Pa rtnership Agreement (BJEPA) also contains a 
separate chapter on Investment, the first of Brunei's Free Trade Agreements to do so.  Brunei Darussalam WT/TPR/G/196 
 Page 9 
 
 
26. Since the last review, the Government enact ed the Investment Incentives Order 2001 in 
June 2001 to replace the former Investment Incen tives Act (CAP. 97) in order to encourage the 
establishment and development in Brunei Darussalam  of industrial and other economic enterprises for 
economic expansion and for incidental and related purposes.  The authority to administer this 
legislation is currently vested in the Minister  of Industry and Primary Resources.  The new law 
provides guidelines for granting pioneer status to industries and tax relief for foreign and local 
investment, as well as the possibility of extending tax relief periods.2  
27. The Brunei Economic Development Board (BED B) Act was revised in 2003 and is now 
called the Brunei Economic Devel opment Board Act (Chapter 104).3  The Act strengthens the 
BEDB's powers for the promotion of foreign direct investment, development of joint ventures in 
strategic sectors and the provision of efficient services to investors.  The Act was further amended with the Brunei Economic Development Board Ac t (Amendment) Order 2003, which includes a new 
provision on auditing and BEDB is now a corporate body with perpetual succession and a common seal of power, subject to the provisions of the Brunei Economic Development Board Act, to acquire and dispose of property, both moveable and immov eable, may sue and be sued in its corporate name 
and perform such other acts as corporate bodies may by law perform. 
28. The BEDB's main role is to create new econom ic opportunities for the local people and SMEs 
in terms of employment and business respectively;  while it functions as a first-stop agency to attract, 
retain and add value to both local and foreign inv estments and coordinating with relevant ministries 
and agencies to maximize the benefits generated by bo th local and foreign direct investment through 
the strengthening of policy, legal and institutiona l framework and human resources development for 
investment and improving investment promotion capabilities.  
(4) I
NTELLECTUAL PROPERTY RIGHTS  
29. The Registries Division of the Attorney Genera l’s Chambers is responsible for all matters 
concerning intellectual property (IP) including drafti ng of relevant intellectual property legislation, 
registration and administration of intellectual prope rty rights under the respective intellectual property 
legislations as well as promoting awareness and diss eminating information on intellectual property in 
the country. 
30. Currently, the Registries Division administer s the following intellectual property rights 
legislation: 
(i) Trade Marks Act (Cap 98)  
(ii) Trade Marks Rules, 2000 
(iii) Inventions Act (Cap 72) 
(iv) Copyright Order, 1999 
(v) Industrial Designs Order, 1999  
(vi) Industrial Designs Rules, 2000 
(vii) Layout Designs Order, 1999 
 
                                                      
2 The investment incentives include corporate tax relief of up to 5 years for companies that would 
invest between B$500,000 to B$2.5 million in approved ventures;  8-year tax relief for investing more than 
B$2.5 million and an 11-year tax break if the venture is lo cated in a high-tech industri al park.  Other incentives 
include deduction of losses, adjustment of capital allowances and losses, exemption from import duties on 
machinery, equipment, component parts, accessories, building structures and raw material, as well as waiver of 
20% withholding tax on foreign loans for productive equipment.   
3 2003 edition. WT/TPR/G/196 Trade Policy Review 
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31. Enforcement of intellectual property rights (IP R) is based on complaints lodged by the 
registered owner.  Both civil remedies and criminal sanctions are available in infringement cases.  The 
Commercial Crime Unit of the Royal Brunei Police Fo rce is responsible for criminal enforcement 
activities while border enforcement measures are ca rried out by the Royal Customs and Excise 
Department.  Prosecution of offences is initiated by  the Criminal Justice Division of the Attorney 
General's Chambers.   
32. There are no provisions on parallel importation in the IP laws currently in force.  While the 
Inventions Act (Cap 72) does not prohibit paralle l importation, the Emergency (Patents) Order does 
not give the patent holder an opportunity to interfere  with a parallel trader.  Section 66(2)(g) indicates 
that the proprietor of the patent has no right to prev ent acts with regard to products that have been put 
on the market by him (or with his consent), including products that were put on the market outside Brunei Darussalam under his equivalent patents.  Parallel importation is t hus allowed under the new 
Patents Order which is yet to be fully implemented. 
33. Unfortunately, the lack of technical support from the right-holders is one of the failures of IP 
enforcement in Brunei Darussalam.  Some refuse to rely on the border enforcement provisions under 
the relevant IP legislations. Most of the time sec ond-hand evidence has to be relied on and more often 
than not most cases do not go to court as the right  owners enter into agreements with alleged 
offenders. 
(5) S
TANDARDS  
34. The Construction Planning and Research Unit (CPR U) at the Ministry of Development is the 
focal point for standards and conformity assessment activities.  They are the focal point in Brunei 
Darussalam for international and regional standards organisation and fora (e.g. ISO, IEC, Pacific Area 
Standards Congress (PASC), Asia Pacific Labor atory Accreditation Cooperation (APLAC). CPRU 
manages the National Technical Committees (TEC O) in the various sectors for standards 
development, including the adoption of internati onal standards as national standards.  CPRU also 
manages the accreditation programme for testing an d calibration laboratories to ISO 17025:2005 and 
promotes the recognition of certification and accreditation from ILAC/APLAC, IAF/PAC signatories 
and have signed an MOU with the Singapor e Accreditation Council (SAC-SINGLAS) on 
9 April 2001 to cover accreditation activities not pr ovided under the CPRU scope of accreditation. 
35. The National Standards and Accreditation Centre  (NSAC) was formed in 2006 as a division 
under the Ministry of Industry and Primary Resources.  It has the task of assisting companies 
producing local products to comply with international standards in order to be able to penetrate the 
export market.  The services currently provided by NSAC include assistance in obtaining international 
certification (e.g. HACCP, GMP); standard and quality product training; quality and promotion 
development;  and consultation services. The establis hment of a Calibration Laboratory, which will be 
traceable to the International System of Units as ma intained by the Bureau In ternational des Poids et 
Measures (International Bureau of Weights and Measur es) is currently in progress and NSAC is also 
proposing to establish a National Metrology Laboratory under the 9th National Development Plan4. 
NSAC is working together with various other mini stries in moving towards centralising standards in 
Brunei Darussalam 
                                                      
4 Brunei makes use of measurement systems used in other countries; measurement and metrology 
facilities in Singapore (PSB) and Malaysia (SIRIM) are used frequently by Brunei's laboratories in their calibration activities. Currently, several test laboratories  rely on overseas calibration services or utilises limited 
services provided by Ministry of Defence laboratory, which is UKAS Ac credited for calibration traceable to the 
international system. Furthermore , laboratory accreditation for the constructi on sector is covere d by the Ministry 
of Development Laboratory Accreditation Scheme  under the Brunei-Singapore SAC MOU on accreditation. Brunei Darussalam WT/TPR/G/196 
 Page 11 
 
 
36. National standards are currently availa ble in the construction and halal food5 sector.  It is the 
policy of Technical Committees for the development of standards to adopt international standards 
where relevant and there is an ongoing exercise to  review the alignment of national standards with 
existing relevant international standards in line w ith ISO/IEC Guide 21:1999.  Brunei Darussalam is 
also a member of the following organisations respons ible for the international standards for various 
sectors:  International Organisation for Standards (ISO), International Electrotechnical Commission (IEC), International Telecommunication Union (IT U) and Codex Alimenta rius (food standards). 
(6) G
OVERNMENT LINKED COMPANIES  
37. In order to enhance the Government's economic  diversification policy, Semaun Holdings was 
established as a domestic investment and trading ar m of the Government.  It is a private limited 
company incorporated in 1995 under the Companies Act.   It is wholly owned by the Government and 
has been placed under the jurisdiction of the Ministry of Industry and Primary Resources.  Its mission is to spearhead industrial and commercial developm ent through direct investment in key industrial 
sectors in the interest of Brunei Darussalam.  Semaun Holdings invests in companies conducting 
business in areas of importance to Brunei's long term strategy, and particularly where the local private 
sector is constrained by lack of access to technology and resources.  
38. Semaun Holdings has a policy to divest of a company once the company is profitable and the 
Government has recovered its initial investment. Since commencing operations, Semaun Holdings has 
steadily been building up its portfolio of joint vent ures and linked companies.  However to date it has 
not divested any companies due to the failure of these companies to meet the criteria for divestment. 
Semaun Holdings is currently involved in ventur es in the fisheries (food processing, aquaculture), 
forestry (timber and joinery products) and manufac turing (therapeutic goods, crystal products) sectors. 
VI. SECTORAL POLICIES AND DEVELOPMENT 
(1) O
IL AND GAS 
39. On 24 May 2005, the Government created the post of and appointed the Minister of Energy at 
the Prime Minister's Office.  The Minister of En ergy presides over energy matters of the country, 
including those of petroleum and electricity.  Upon th e creation of the post, the Energy Division at the 
Prime Minister’s Office was also formed.  The Pe troleum Unit and the Department of Electrical 
Services was brought under the purview of the Minister of Energy in the same year.  
40. The Energy Division advises the Minister of Energy on pertinent matters concerning energy 
and its administration. The energy matters handled by the Energy Division range from petroleum and electricity to energy policy and sustainable ener gy issues.  The Petroleum Unit oversees exploitation 
of Brunei's reserves, promotes the development of downstream activities, fixes crude oil prices and 
ensures that internationally acceptable standards on technical, accounting, health and safety and 
environmental grounds are adhered to.  The main producer of oil and gas in the country is Brunei 
Shell Petroleum Company Sdn Bhd while Total E&P Borneo B.V maintains a presence in the country 
as the operator in the Block B joint venture.    
41. The Brunei National Petroleum Company or PetroleumBRUNEI, was legislated by enactment 
by the Brunei National Petroleum Company (BNPC) Order 2002.  PetroleumBRUNEI was then duly registered on 14 January 2002 under the Co mpanies Act as a 'Private Limited Company', 
wholly-owned by the Government of Brunei Darus salam through the Prime Minister Corporation.  
The Chairman of the Board of Directors is the Minister of Energy.  
                                                     
 
5 With the launch of the PBD24:2007, Brunei Darussalam's Halal Food standards in 2007. WT/TPR/G/196 Trade Policy Review 
Page 12 
 
 
(2) DOWNSTREAM INDUSTRIES  
42. A 271 hectare land has been recognised as an a ppropriate site to establish SPARK, a world 
class Industrial Park.  The projects are expected to  attract investments worth US$1.5 billion worth of 
foreign investments and create  approximately 1,000 permanen t jobs.  The Brunei Economic 
Development Board has recently completed designa ted areas and handed them over to the Brunei 
Methanol Company Sdn. Bhd. (BMC ), which will commence the construction of a Methanol Plant in 
the beginning of 2008.  Pending decisions for other projects include an ammonia/urea plant.  Some space for spin-off companies benefiting from the anchor  projects have been allocated within SPARK.  
The creation of clusters of industries over a certain  area for downstream projects is a part of the 
development of SPARK, under the management of  SLA (Sungai Liang Authority - a government 
corporate body).  The development of this site w ould require infrastructure investments for a power 
station, an export jetty and a water treatment park.  
(3) S
MALL AND MEDIUM ENTERPRISES  
43. Small and Medium Enterprises (SMEs) make up 99% of the business sector in Brunei 
Darussalam.  The creation of a business environment th at is supportive of the development of SMEs is 
therefore a priority area for the Government. 
44. The Ministry of Industry and Primary Resources has been playing a greater role as the main 
government focal agency for SME development.  Since the inception of the Resource and Standards 
Centre or currently known as Entrepreneurial Deve lopment Centre (EDC) in 1997, several capacity 
building programs for SMEs are developed and organized throughout the calendar year.  These 
include human capacity building on entrepreneur ship and technical skills upgrading, business 
management, marketing, and info-communication t echnology.  In the last five years (2001-2006), 
EDC has managed to organize a cumulative tota l of 22 seminars and 138 short courses with 
5,676 entrepreneurs as beneficiaries. 
45. The Business Incubator program is another human capacity building initiative run by EDC 
that was aimed at serving new entrepreneurs w ith a specialized, well-guided business operation and 
management practice for a period up to 2-5 years (maximum) until graduation.  Currently, there are 
about 20 participants engaging in the field of agro-based production sector and cottage industry as 
well as other business support services.  
46. The financial supports program which is one of the major contributing factors of SMEs 
development has also been undertaken and mana ged by MIPR.  This comes in the form of 
Government guaranteed loans known as Enterpri se Facilitation Scheme (EFS) and Micro-credit 
Financing Scheme (MFS) which each provides a maximum loan of B$1.5 million and B$30,000 per enterprise, respectively.  Both schemes are f unded by the Brunei government through the so-called 
'Industrial Development Fund (IDF)' with its operation managed jointl y by two local banks.  These 
two schemes provide a favourable rate at 4% that  is based on an annual reducing balance.  The EFS 
which focuses specifically on the development of primary sectors like agriculture, fisheries, 
manufacturing and tourism industry is repayable over a flexible period of up to 7 years.  Whereas 
MFS that covers most micro-enterprise activities is repayable of up to a maximum period of 4 years.  These statistics are current as of 31 July 2007 shows that the number of approved application for EFS has increased to a cumulative total of 80 ente rprises with a loan value at approximately 
B$25.82 million. MFS has recorded an amount of  B$7.37 million that was loaned to 387 micro-
enterprises. Brunei Darussalam WT/TPR/G/196 
 Page 13 
 
 
(4) AGRICULTURE , FORESTRY AND FISHERIES  
47. Agriculture in Brunei Darussalam is supported by  the Government in the form of incentives 
for infrastructure development, in an effort to boos t its currently small share of the GDP.  The role of 
the Agriculture Department is to promote sustai nable and competitive Agribusiness, focusing on high 
quality and safety while ensuring food security fo r the people of Brunei Darussalam.  Brunei 
Darussalam aims to tap into the regional and gl obal market for Halal products and services.  The 
Ministry of Industry and Primary Resources is actively promoting the development of Brunei Darussalam as a regional Halal centre for the pr oduction and export of Halal products and services 
through the launching of the "Br unei Halal Brand" in August 2007. 
48. Fisheries has been identified as one of the sector s that can contribute to the diversification of 
the Brunei economy away from its reliance on the oil and gas industry, and thus the development of 
the fisheries sector is actively pur sued.  Due to the high local demand for fisheries products coupled 
with a rising global demand the fisheries industry in  Brunei Darussalam has been developing steadily 
and has the promise of being an attractive industry for the export market.  The three main sectors of 
the industry are capture fisheries, aquaculture and processing.   
49. The Forestry Department under the Ministry of Industry and Primary Resources, aims to 
support the national economic diversification policy through the development of the forestry sector 
and the creation and facilitation of viable busin ess opportunities while preserving biological forest 
resources for the well-being of the nation in accord ance with international and sustainable forest 
management obligations.  Unde r the National Forestry Policy
6, not less than 55% of the total land area 
of Brunei Darussalam will be demarcated and set aside to constitute the National Forest Estate. 
50. In February 2007 together with the Gove rnments of Indonesia and Malaysia, Brunei 
Darussalam signed up to the Heart of Borneo Initiative, which is a voluntary trans-boundary 
cooperation initiative to ensure the effective manage ment of forest resources and conservation of a 
network of protected areas, productive forests and other sustainable land uses for the benefit of 
present and future generations.  It is hoped th at opportunities based on non-timber forest product 
industries such as bio product industries (e.g. pharm aceutical, herbal and cosmetic industries) could 
be opened up.  Eco and na ture tourism is another potential sector  to be further developed based on 
Brunei Darussalam's wealth of forest bio-diversity.  
(5) MANUFACTURING  
51. Ready made garments constitute the third biggest  export after crude oil and liquefied natural 
gas.  Since the full integration of the textiles a nd clothing sector into GA TT 1994, this industry has 
seen a brief decline and although the number of co mpanies in operation in this industry has fallen 
from 25 companies to merely 11, the value of  garment exports has risen steadily from 
US$239,809,275.00 in 2004 to US$285,171,047.00 in 2006, despite the sharp fall from its 2003 peak export value of B$398.38 million.  Related industries in the form of  value-added services such as 
embroidery and printing have also been establishe d.  Other than ready made export orientated 
garments, the local industries also manufacture food and beverages as well as construction materials.  
                                                     
 
6 Amendments made in August 2007 to the Forestry Act (Chapter 46, Laws of Brunei), will see the 
classification of reserved forests under the purview of the Forestry Department into the following categories 
"protection forest", "production forest", "recreation fo rest", "conservation forest" and "national parks".  
Activities which maybe undertaken within the limits of these areas will governed by the category to which a 
particular area has been assigned. WT/TPR/G/196 Trade Policy Review 
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(6) BRUNEI INTERNATIONAL FINANCIAL CENTRE  
52. The Brunei International Financial Centre (BIFC)  was established in July 2000, with one of 
its aim to diversify the country's economy away from oil and gas, into financial services.  To-date, 
BIFC is already fully equipped with a wide range of  legislation that meets international market and 
standard requirements.  The legislation caters fo r both conventional and Isla mic financial activities: 
Order Issue Notification number Issue date 
Money-Laundering Order, 2000 27 S 44 17/06/2000 
International Limited Partners hips Order, 2000 28 S 45 20/06/2000 
Criminal Conduct (Recovery of Pr oceeds) Order 2000 32 S 52 27/06/2000 
International Banking Order, 2000 33 S 53 29/06/2000 
Registered Agents and Trustees Licensing Order, 2000 34 S 54 03/07/2000 
International Trusts Order, 2000 34 S 55 17/07/2000 
International Business Compan ies Order, 2000 36 S 56 20/07/2000 
Mutual Funds Order, 2001 8 S 18 10/03/2001 
Securities Order, 2001 16 S 31 14/05/2001 
International Insurance and Ta kaful Order, 2002 27 S 43 14/08/2002 
53. BIFC reviews its legislation from time to time to ensure that it meets current market practices 
and international standards. Amendments have been made to two of its Orders as follows: 
54. With the introduction of the Syariah Financial Supervisory Board Order in January 2006, the 
Syariah Financial Supervisory Board was established to provide for the control of administration and 
business dealings of financial institu tions concerning Islamic products. 
55. New regulations which have been introduced unde r the primary legislations above are:  the 
Mutual Funds (Fees, Forms and Miscellaneous  Provisions) Regulations Order 2001 (S20), the 
Securities (Fees, Forms and Miscellaneous Provisions ) Regulations 2001 (S32) and the International 
Insurance and Takaful (Fees, Forms and Misce llaneous Provisions) Re gulations 2001 (S44). 
56. BIFC issues licenses to both conventional and Isla mic financial institutions.  Both financial 
institutions are subject to conform to the requireme nts prescribed in the appropriate orders.  Several 
steps are being taken to strengthen the supervisory role of BIFC such as: 
- the formation of a national money-la undering committee comprising relevant 
enforcement departments within the Brunei G overnment to help in the prevention of 
money laundering and financial crimes ac tivities.  The Financial Intelligence Unit 
(FIU) has been established in 2007 to ser ve as a national collection centre for 
purposes of suspicious transactions reports; 
- joining relevant International Associati ons of Supervisors such as International 
Organisation Securities Commission (IOSCO), and International Association of Insurance Supervisors (IAIS) and also the international standard setter for Islamic 
Financial services, the Islamic Financial Services Board (IFSB); 
- hold meetings with overseas regulatory bodies.  More are planned with FSA (UK) and 
MAS (Singapore) and other relevant regulators; 
- an emphasis on admitting only licensees who are of high standards;  and Brunei Darussalam WT/TPR/G/196 
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- all new IBCs must be the subject of Certif icates of Due Diligence completed by the 
Licensed Agent responsible. 
(7) TELECOMMUNICATIONS  
57. On 1 January 2003, under the AITI Order 2001, the Authority for Info-Communication 
Technology Industry (AITI) was established as an i ndependent statutory body, which functions to 
regulate, and license the provision of telecommuni cation services manage the national radio frequency 
spectrum and promote the development of the local ICT industry.  
58. On 1 April 2006, the Telecommunications Successor Company Order, 2001 and 
Telecommunications Order, 2001 were brought into force. This had the effect of corporatising Jabatan 
Telekom Brunei (JTB) to become Telekom Brunei  Berhad (TelBru), transferring the role of 
Telecommunications Authority to AITI and bringi ng AiTi's licensing and enforcement powers into 
effect. 
59. Prior to 2005, the only mobile service provide r available in Brunei Darussalam was DST 
Communications Sdn Bhd (DSTCom).  DSTCom w as established in April 1995 as part of a 
Government drive to privatize key segments of the telecommunication services sector.  In 2005 a 
second mobile service provider was awarded a license,  with the aim of increasing competition in the 
mobile segment and thus, stimulating the market fo r mobile services. B-Mobile Communications Sdn. 
Bhd. (B-Mobile) is a joint venture company betw een TelBru and QAF Comserve.  DSTCom delivers 
its services on a GSM platform, while B-Mobile delivers its services over a 3G (W-CDMA) platform. 
60. The effects of competition in the mobile segment  as a result of B-Mobile's entry into the 
segment may be illustrated as follows: 
Mobile Services 2005 2006 
Population 370,100 383,000 
Subscription    
Total Mobile Subscriber (post-paid & pre-paid) 232,900 278,900 
Penetration Rate % 62.93 72.82 
Cellular tariff    
Pre-paid connection charge B$40.00 B$30.00 
Pre-paid per minute local call (peak) B$0.40 B$0.30 
Pre-paid per minute local call (off peak) B$0.20 B$0.20 
Pre-paid per minute local call (different operator) .. B$0.40 
Pre-paid short message service (sms) B$0.10 B$0.05 
Pre-paid sms (different operator) .. B$0.15 
 
(8) INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) 
61. The development of ICT in Brunei Darussalam falls under the purview of the Ministry of 
Communications.  Specific to ICT Sector, the key obj ective of the Ministry of Communications is to 
uphold the vision of Brunei Darussalam on Information Society, which is to create a people-centered, 
intelligent, socially-responsible, inclusive and development-oriented Information Society where 
everyone can create, access, utilize and share information and knowledge 
62. Another important body which is concerne d with the ICT development is The Brunei 
Information Technology Council (BIT COUNCIL) with  the role of providing ICT leadership and WT/TPR/G/196 Trade Policy Review 
Page 16 
 
 
direction at the national level.  While on the regulatory aspect, the planning, monitoring and 
implementation of the ICT Industry form the respons ibility of The Authority for Info-communications 
Technology and Industry of Brunei Darussalam (AiTi). 
63. About $950 million has been allocated by th e government for the e-Government initiative 
under the 8th National Development Plan for minist ries and government departments.  The central 
agency to lead e-Government is the Prime Minist ers' Office.  Through the enactment of ICT related 
laws such the Electronic Transaction Order, Comp uter Misuse Act, Copyright Order, Broadcasting 
(Class License) Notification, and Internet Code  of Practice Notification, Brunei could provide 
encouraging environment for public and private sect ors towards more involvement and participation 
in on-line businesses. 
64. One of BEDB's current efforts aimed at buildin g an ICT related industry is the establishment 
of the iCentre™, which began operations in August 2007.  The iCentre™ is an incubation centre with 
a capacity to host 16 incubatees at a time.  The management company overseeing the development of the centre also provides an incubation programme  which includes mentorship, training and legal 
consultation.  With the successful completion of iCentre™, BEDB plans to establish a Business Park 
using part of the Anggerek Desa area surrounding the centre, include the setting up of a one stop 
business centre providing legal, administration, ba nking, customs and other services under one roof 
while also incorporating business su ites facilities for SME entrepreneurs. 
(9) A
IR TRANSPORT SERVICES  
65. Brunei Darussalam maintains a liberal air service s policy. In order to attract more foreign 
airlines to operate into Brunei, a reciprocal open skie s air services policy has been adopted.  As part of 
this effort, Brunei Darussalam has bilateral open sk ies agreements with New Zealand, Singapore, the 
United States and United Arab Emirates.  The agr eements allow designated airlines to provide air 
services between the two countries with the rights to pick up passengers at intermediate stops or at 
points beyond the two countries with no limita tion on frequency, capacity and aircraft type. 
66. Brunei Darussalam has also signed an open skies agreement with some APEC countries on 
1 May 2001, called the Multilate ral Agreement on the Liberali zation of International Air 
Transportation.  To date Chile, New Zealand, Si ngapore, the United States of America, Samoa, Cook 
Islands, and the Kingdom of Tonga are members to this agreement.  
67. The Brunei International Air Cargo Centre (BIACC) was established in 2001 to handle 
ingoing and outgoing cargo activities in Brunei Daru ssalam.  Brunei Darussalam also endeavours to 
be a niche player in the regional market for av iation support services, specifically on aircraft 
maintenance. 
(10) PORTS  
68. Brunei Darussalam aims to utilize Muara Port 's strategic location advantageously, and 
envisages establishing it as a Direct and Transhipment Shipping Hub as well as a hub for the BIMP-
EAGA region.  Notwithstanding its geographical adva ntage, the authorities comprehend the need to 
build highly productive and inexpensive facilities to  ensure fast and efficient transportation.  
Preparing to establish a consumer orientated servic es industry, the private sector is also actively 
involved and is further encouraged to participat e in supplying port services such as warehousing and 
vessels facilities. 
69. In 2004, the Government reserved a 955-hectar e site in Pulau Muara Besar (PMB) to be 
developed into a deep sea container port.  A feasibili ty study concluded that it is feasible to develop Brunei Darussalam WT/TPR/G/196 
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the proposed container port in PMB based on its:  strategic location along the East-West maritime 
trade route;  the proximity of the island to naturall y very deep water, which is required by mega-sized 
container ships; and the growing trend in transhipment activities. 
70. The port will be developed in phases by BEDB  who are currently looking for strategic 
partners, in particular port operator and shipping lines  to jointly invest and develop the PMB port.  To 
date, BEDB have five regional port operators, w ho are interested to jointly invest in, build, and 
operate the PMB port. BEDB's plan is to invite th ese port operators to participate in the tender which 
is currently being drawn up by Drewry Shipping Consultants Ltd. 
(11) TOURISM  
71. Since Brunei held a "Visit Brunei Year" in 2001,  there has been a noted steady increase in 
arrivals of bona fide tourists, though corroborating this through statistical evidence has been difficult 
due to a lack of consistency in data series thr oughout the years.  However, an increase in hotel 
occupancy, tourism business activities and more cons istent data from 2006 onwards, point towards an 
upward trend resulting from an increase in promotiona l activities by the tourism authorities, airlines 
and tourism service providers.  
72. The tourism industry in Brunei is still in its development stage, with around 200,000 foreign 
tourists in 2006.  The tourism industry is seen by  the Government as one of the avenues to achieve 
economic diversification apart from oil and gas, a nd as a provider of employment, especially for the 
younger generation, but in order to increase visitor numbers, additional facilities, including 
accommodation, transport and communication and banki ng services need to be further developed. 
73. Tourism promotion is carried out by the Touris m Development Department in the Ministry of 
Industry and Primary Resources, acting under the advice of the Brunei Tourism Board, which is 
composed of members from both the public and privat e sector.  The Ministry and the Board intend to 
develop Brunei as the region's most exclusive tourism destination, while placing utmost importance in the preservation of the traditional and cultural values of Brunei and the sustainability of its environment.  This will be achieved by focusing on  tourism activities such as eco-tourism, cultural 
and heritage tourism, wholesome family activiti es, wellness, cruises and special interest tours, 
targeting at mature, well-travelled, tranquillit y-seeking visitors from the region and beyond. 
74. In an effort to further develop its tourism i ndustry, Brunei Darussalam joined the U.N. World 
Tourism Organisation in November 2007.  
VII. STRATEGY FOR FUTURE GROWTH 
75. Brunei Darussalam continues in its drive to wards economic diversification to ensure 
sustainable development, both financially as well as so cially.  Brunei thus aims to establish a stable 
political, macroeconomic and legal environment by  maintaining improvements in the availability, 
quality and efficiency of infrastructure such as roads, education, health and communications.  
76. The Government continues to place a great empha sis on the need for greater participation by 
the Economic sector to contribute towards the dive rsification of the economy.  The Government has 
identified strategic industry clusters in the non-o il and gas sectors with growth potential for Brunei 
Darussalam, such as financial services which will focus on high end, niche investment management 
services, and asset and fund management, focusing on Islamic principles;  hospitality and tourism, 
focusing on eco-tourism and hospitality services;  agro -food and the halal industries, concentrating on 
core and value-added pr oducts of meat and fisheries, with  potential activities on cosmetics and WT/TPR/G/196 Trade Policy Review 
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pharmaceutical products;  business services, concentr ating on service-outsourcing and, system and 
software development. 
77. The Government is also still interested in a ttracting investment to develop the oil and gas 
sectors, albeit in the downstream industries, and in  the manufacturing industry in sites such as the 
Sungai Liang and Pulau Muara Besar.  Both of these undertakings are considered to require foreign 
investors and expertise, and thus attract FDIs into the country. 
VIII.  CONCLUDING REMARKS 
78. Brunei Darussalam, as a small developing ec onomy, faces many challenges in its economic 
diversification programme in line with the rules-based, multilateral trading system  
79. During the period of the review, Brunei Daru ssalam remains a politically and economically 
stable country, suitable for foreign investme nt.  The UN Human Development Index (HDI) 2006 
ranks Brunei as 30th out of 175 United Nations member countries, the second in the ASEAN region, 
indicating its high level of human development.  Brunei Darussalam has also participated for the 
first time in the World Bank's Doing Business Project and was ranked 78 in the Doing Business Index out of 178 countries surveyed in 2007.  Brunei Da russalam's involvement in the study was meant to 
enhance greater confidence amongst local and forei gn investors in the business environment through 
objective and internationally comparable benchm arking as well as for assessing business regulations 
in order to identify areas for improvement.  
80. Brunei Darussalam continues to advocate fre e and open trade and acknowledges the vital 
importance of attracting Foreign Direct Investme nt, in order to diversify the economy.  Brunei 
Darussalam further recognizes the importance of adapting to an increasingly global community, and 
as such welcomes any economic or technical coopera tion.  Herewith, the Government continues to 
introduce and modify policies in an effort to b ecome an even more open and competitive economy.  
__________