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Brunei Economic Development Board

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Brunei Economic Development Board
Lembaga Kemajuan Ekonomi Brunei
لمباڬ كماجوان ايكونومي بروني
National emblem of Brunei

Headquarters in Bandar Seri Begawan
Agency overview
Formed11 April 1975; 49 years ago (1975-04-11)
JurisdictionGovernment of Brunei
HeadquartersDesign & Technology Building, Simpang 32-37, Kampong Anggerek Desa, Bandar Seri Begawan BB3713, Brunei
Agency executives
Parent ministryMinistry of Finance and Economy
Websitewww.bedb.gov.bn

The Brunei Economic Development Board (BEDB)[a] is a statutory body established in 1975 under the Brunei Economic Development Board Act (Chapter 104).[3][4] This legislation created the BEDB as a corporate entity with perpetual succession, empowering it to spearhead economic development initiatives in Brunei.[5] Operating under the jurisdiction of the Ministry of Finance and Economy (MoFE), the BEDB aims to foster private domestic and international investment in the country. Additionally, the BEDB oversees the state's insurance sector and monitors the activities of the Tourism Promotion Committee.[6]

Functions

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The BEDB's core responsibilities include promoting and facilitating commercial, industrial, residential, and agricultural projects in designated areas, supporting a wide range of enterprises in sectors such as mining, housing, industry, and agriculture. The BEDB plays a pivotal role in enhancing Brunei's competitiveness as an investment destination.[5]

To attract both domestic and foreign investments, the BEDB develops policies, incentives, and strategies with a particular focus on advanced technology industries and specialised services that hold strong export potential. The agency also supports the growth of local entrepreneurs, small businesses, and medium-sized enterprises while promoting industrial activities and export-driven initiatives. Additionally, the BEDB oversees parks, estates, and industrial sites with corporate-like authority to further its mandate of improving Brunei's economic framework.[5]

As part of Wawasan Brunei 2035, the government emphasises foreign direct investment as a critical driver of economic growth. Operating in an open economy, the BEDB offers trade incentives to attract potential investors. Its responsibilities include encouraging foreign participation in priority industries, assisting with permits, clearances, public project tenders, and cost assessments, and assigning dedicated account managers to streamline the investment process.[7]

History

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The BEDB was established on 11 April 1975 during the Third National Development Plan (RKN 3),[4] inspired by the Economic Development Board of Singapore.[8] Since its inception, the BEDB has played a critical role in fostering economic growth in Brunei. Between the 1970s and 1989, it provided approximately B$70 million in loans to small and medium-sized enterprises (SME) across the nation.[6]

Under the Investment Incentives Act of 1975, the BEDB actively encouraged local participation in Brunei's economy through equitable involvement, which became a mandatory requirement. In 1978, the agency launched a programme to support local entrepreneurs and SMEs. However, with the establishment of the Ministry of Industry and Primary Resources (MIPR) and the Financial Institutional Division under the MoFE, some of the BEDB's responsibilities, such as tourism and insurance, were transferred to these entities. The Development Bank of Brunei assumed management of the SME financing programme in 1995. Subsequently, in 1998, the BEDB merged with the Economic Planning Unit to form the Department of Economic Planning and Development.[9]

The Brunei Economic Development Board (Amendment) Order, 2001, effective from 1 June 2001,[10] restructured the agency, further solidifying its legislative framework for promoting domestic and foreign investments.[11] In 2001, the BEDB was reestablished as part of the government's strategy to diversify the economy and reduce overreliance on oil and gas revenues. The board's primary role was to position Brunei as an attractive investment destination while fostering industries that could add value to hydrocarbons and support the development of non-oil and gas-related sectors.[12] The appointment of John Anthony Perry as CEO was widely regarded as a progressive move to advance these goals.[13]

The Brunei Economic Development Board Act (Amendment) Order, 2003, enacted on 24 March 2003, further refined the board's legislative mandate.[14]

On 20 September 2018, BEDB became part of the MoFE.[15] In May 2019, the FDI Action and Support Centre (FAST) was integrated into the BEDB, aligning with Brunei's economic diversification objectives.[16] This integration aimed to streamline project facilitation for international investors by expediting the processes of acquiring permits for foreign labour and infrastructure projects in collaboration with FAST.[7] As of 2024, BEDB also oversees industrial park development and collaborates with its Enterprise Development unit, Darussalam Enterprise, to create synergies between FDIs and local businesses.[17]

Senior leadership

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As of 2024, the senior leadership officeholders are as follows:[18]

List of former CEOs

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  • John Anthony Perry (2001–2006)[13]
  • Vincent Cheong (2007–2010)[19]

List of former chairpersons

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Business ventures

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Construction of the Sultan Haji Omar Ali Saifuddien Bridge in 2019

In early 2003, the BEDB introduced a two-pronged strategy: an aluminium smelter project to strengthen industrial and petrochemical downstream industries, with Alcoa as the foreign investor, and the development of a deep-sea port for next-generation container ships, mega tankers, and transshipment services.[24] In 2004, the BEDB partnered with Halcrow Group on a US$1.7 billion deep-water port at Pulau Muara Besar (PMB), projected to save Brunei $43 million over two years while generating jobs.[25] Connectivity was enhanced with the B$204 million Pulau Muara Besar Bridge, completed by China Harbour Engineering in 2019, streamlining transport between PMB and the mainland.[26]

The BEDB supported cultural and economic development with a B$120,000 grant to Origin Films for the 2014 movie Yasmine, showcasing Brunei's heritage and natural beauty. This project highlighted the film industry's potential to create jobs and involve sectors like transportation, food, and hospitality.[27] The BEDB also advanced industrial initiatives, including the Sungai Liang Industrial Park under the Sungai Liang Authority, featuring the Brunei Methanol Company, and a biodiesel project aimed at addressing alternative energy needs and boosting SME opportunities.[3]

Aligned with Wawasan Brunei 2035, the BEDB partnered with the Ministry of Development and MIPR to promote e-business and ICT initiatives, fostering a knowledge-driven, paperless economy.[28] The Sultan Haji Omar Ali Saifuddien Bridge, completed in 2019 for $1.6 billion, became Brunei's largest modernisation project, connecting the Brunei–Muara and Temburong districts, enhancing tourism, and unlocking new economic opportunities.[26]

On 29 June 2022,[29] Brunei's first commercial integrated maritime repair and decommissioning yard was established at PMB through an open bidding process overseen by the BEDB.[30] Additionally, the BEDB partnered with Gulf News to release an eight-page report on 29 July 2024, highlighting FDI opportunities in Brunei's five priority sectors: downstream oil and gas, food, ICT, services, and tourism.[17]

Issues

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The BEDB faces several challenges in creating an environment conducive to new businesses and industries. Despite royal encouragement to address these issues, concerns about a lack of initiative and poor plan execution remain. Sultan Hassanal Bolkiah's criticisms in 2009 and 2010 highlighted the failure to complete plans on time. Vincent Cheong, CEO of BEDB, suggests that Brunei's small population limits the ability of large enterprises to achieve economies of scale. Additionally, the country's political structure, which relies heavily on the sultan's decisions, has fostered a conservative approach that hinders innovation. Although there has been some progress, Brunei ranked 112th out of 183 countries in the "2011 Doing Business" report. While the government has made efforts, such as reducing corporate tax rates, significant progress in key areas like IT, tourism, and renewable energy has yet to be seen.[31]

Notes

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  1. ^ Malay: Lembaga Kemajuan Ekonomi Brunei (LKEB);[1] Jawi: لمباڬ كماجوان ايكونومي بروني[2]
  2. ^ Acting chairperson

References

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Citations

  1. ^ MoFE 2020, p. 5.
  2. ^ BEDB 2022, p. 1.
  3. ^ a b Thambipillai 2008, p. 96.
  4. ^ a b AGC 2012, p. 3.
  5. ^ a b c OBG 2007, p. 152.
  6. ^ a b Sidhu 2009, p. 44.
  7. ^ a b Ong 2023, p. 324.
  8. ^ Cleary & Wong 1994, p. 69.
  9. ^ EP 2002, p. 213.
  10. ^ AGC 2001, p. 1279.
  11. ^ WTO 2008, p. 30.
  12. ^ OBG 2007, p. 13.
  13. ^ a b Hamzah 2003, p. 74.
  14. ^ AGC 2003, p. 86.
  15. ^ a b MoHA 2018.
  16. ^ Ong 2023, p. 323.
  17. ^ a b Wong 2024.
  18. ^ BEDB 2024, p. 2.
  19. ^ PB 2007.
  20. ^ Sidhu 2009, p. 248.
  21. ^ Azman 2005, p. 103.
  22. ^ Hoon 2012, p. 847.
  23. ^ Azlan 2010.
  24. ^ Opai 2007, p. 202.
  25. ^ Heng 2005.
  26. ^ a b Asiyah az-Zahra 2017, p. 119.
  27. ^ The Nation 2014.
  28. ^ Madjid 2017, p. 181.
  29. ^ BEDB 2022, p. 4.
  30. ^ Wong 2022.
  31. ^ Roberts 2011, p. 37.

Sources

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