Last updated: May 26, 2019
Topic: BusinessEnergy
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Brunei, whose full name is besides known as BRUNEI DARUSALLAM is a little state that became independent in the twelvemonth 1984.

It is a bantam state of about 406,000 people. Consisting of Malays, who makes up the two -third of the population while the Chinese make up 16 % of the population besides. Besides in the minority public are the autochthonal groups of who are the Muruts and Dunsuns,It is divided into 4 territories, viz. Brunei-Muara ( capital ) , Tutong, Balait and Temburong.

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It became a British associated state in the twelvemonth 1888 and joined the ASEAN states in 1984. Since 1962, Sultan Hassanal Bolkiah had ruled the state and is said to be the 7th wealthiest single whose worth is valued for approximately $ 42 billion dollars, all thanks to its huge modesty of oil and gas, It is a state where its citizens enjoy great subsidies from the authorities and pays no revenue enhancement. Brunei has the 2nd highest human development index among the South East Asia states, harmonizing to.http: // people of Brunei enjoys so much from its authorities.

This is a state where instruction is free and compulsory from ages 5 to 16.The literacy per centum of the people of Brunei is 60 % .COUNTRY FACTS ( courtesy BBC study on BRUNEI )Full name: Brunei DarussalamPopulation: 406,000 ( UN, 2011 )Capital: Bandar Seri BegawanArea: 5,765 sq kilometer ( 2,226 sq stat mis )Major linguistic communications: Malay, English, ChineseMajor faiths: Islam, Buddhism, ChristianityLife anticipation: 76 old ages ( work forces ) , 81 old ages ( adult females ) ( UN )Monetary unit: 1 Bruneian dollar = 100 centsChief exports: Crude oil, liquefied natural gas, crude oil merchandisesGNI per capita: High income: $ 31,800 ( World Bank, 2009 )

Investing IN BRUNEI

Brunei ‘s economic system is based on oil and gas, while its major exports are rough oil, crude oil merchandises and liquefied gas. This has made it to supply its citizens with the highest per capita incomes in ASIA.

It entirely relies on imported goods and manufactured merchandises for the whole state. Brunei is a good investing oasis because of its peaceable nature and stableness in the civil order. hypertext transfer protocol: //www. doing certain that concern moralss are maintained, the Ministry of industry and Primary resources is entirely in charge of easing and advancing trade in Brunei and is been sub- governed by the 4 grades of Chamberss of commercialism viz. :National Chambers of Commerce and industryBrunei Malay Chamber of Commerce and IndustryBrunei international Chamber of Commerce and industryChinese Chamber of Commerce


Brunei earns approximately 95 % of gross from export and this has led to their economic system holding a strong semen back in 2010 after a small down bend and GDP rose by 5 % in the first half of 2010 hypertext transfer protocol: //www.globserver.

cn/en/brunei/imf-consultation.Soon the Brunei authorities is looking at diversifying into other economic countries while puting aside immense sum of money to endorse up this sort of enterprise. This financess are been set aside in other to be assessed by echt investors, either through public private partnership or joint ventures, particularly in energy sectors, telecommunications and above all Food concern industry.

Why invest in Brunei

So many factors could entice any interested investor into Brunei. The Government of Brunei has put so many steps in topographic point to do the state suited for an mean investor, who is looking at his ROI to maturate in the shortest period. In make up one’s minding whether or non to put in Brunei certain factors needs to be looked into as to confirm its overall attraction and besides by equilibrating it with other cardinal factors as narrated by ( Charles Hill 2009 )Economic policies: This has to make with the size of the Brunei economic system, whose economic growing is based on its free market system and its capacity for growing ( Charles Hill 2009 ) . Brunei patterns the Constitutional Sultanate type of authorities, ( where all power is invested in the Sultan who doubles as the Prime Minister ) .Although the Sultan has some 29 council members whom he consults, but in this instance I do non believe the sentiment of this members truly counts.

The Sultan truly manages the wealth of the state really good, as this is apparent in the criterion of life of the people of Brunei. He has besides made proviso for free instruction, free checkups, subsidized lodging, and even the rice that is been sold to the multitudes enjoys a whole batch of subsidy.The Sultan has been able to set in topographic point good economic policies that would pull investors. Brunei authorities is looking in front to the hereafter where the natural oil and gas militias may non be able to bring forth adequate money for the economic system.

It is looking at ways to diversify into other sectors and with these sorts of programs, he needs foreign investors to make this for him.Costss: Many factors like economic, political and legal factors determine the cost of making concern in a Brunei. For illustration, in Nigeria a foreign company seeking to put may hold to pay off some hard currency to greedy politicians before been allowed to run. This can be attributed to the political orientation of the people. Whereas such an act is seen as a condemnable offense in Brunei, because of Sharia jurisprudence system being practiced. So besides the infrastructural position of Brunei have been considered and found to be at par with some developed Asia states within its environ which besides help cut down cost of technological import on the portion of an investor.Hazards: The hazards of making concern in Brunei could besides be determined by some factors such as political and economic factorsPolitical Hazard: has been defined by ( Charles Hill,2009 ) ” as the likeliness that political forces will do drastic alterations in a state ‘s concern environment that adversely affect the net income and other ends of a concern endeavor. In his ain sentiment ( S H Robock ) believes that “ political hazard tends to be greater in states sing societal agitation and upset.

Such unrest he claims is more marked in states where there are more than one cultural group or states where its resources has been mismanaged by different leaders and later led to hapless criterion of life and rising prices. With all these given illustrations, Brunei can be said to be free of any unrest as explained above because it has enjoyed a stable authorities for so many old ages and its swayer His Majesty Sultan Haji Hassanal Bolkiah who doubles as the Prime Minister, Minister of finance, and besides as the defense mechanism Minister.Economy Hazard: Harmonizing to ( Charles hill, 2009 ) “ defined it as the likeliness that economic misdirection will do drastic alterations in a state ‘s concern environment that hurt the net income and other ends of a peculiar concern endeavor ” .

Brunei economic system has been the cynosure of all eyes as respects its rambunctious economic system. Recently the Sultan of Brunei has taken a major measure in reshaping the hereafter of the state ‘s economic system, indicating out the demand for the state to diversify into other sectors, such as touristry, agribusiness and piscary. Nevertheless, Brunei ‘s economic system is scoffing up for the hereafter particularly as it welcomes investors from the outside universe, who will assist develop the IT sector and its proposed ISLAMIC banking.

Measures put in topographic point by Brunei Government to pull and stinulate foreign investors

The Sultan has passed Flexible concern Torahs steering the modus operandi of concern investors in Brunei where ownership of concern for foreign investors could be every bit high as 100 % ownership.

Brunei authorities has put in topographic point a Zero company Tax policy for foreign investors of up to 8yrs. This implies that there is no revenue enhancement on personal income, paysheet or even on the export.Brunei has one of the best life conditions and criterions in the part, this is seeable in the life style and good wellness the citizens so baskBing a little state, the local market is little besides, there is comparatively no competition within the foreign investors / marketBrunei authorities has been able to put so much into the economic system of the state and this has helped it to accomplish a Low and inexpensive Utility costThe Torahs regulating foreign investors are rather flexible and investor friendly in Brunei.There is possibility of 100 % foreign ownership in investingThere is proviso of investing inducement by the Government for new investors, which helps to foster your concern from get downing up the concern, go throughing through growing till it reaches enlargement phaseCreation of new economic scheme to cut down unemployment and increase other concern chancesAn substructure development programme to guarantee Government supports puting by partnering with external stakeholdersA security scheme to guarantee Brunei ‘s political stableness, where all citizens and aliens feel secure while they go about their day-to-day concernWith all these apparent steps, it is easy to state that it more of advantage to put in Brunei where the civil order is stable and enjoys good policies from the Sultan who has managed to give back returns from the petroleum oil back to its citizens.


After make up one’s minding on pick of state to travel into, another acclivitous undertaking is to make up one’s mind how to come in the market. There are different types of market entry but it is necessary to see other factors that helps do the right pick of entry. Each market entry has its virtues and demerits. However, there is besides need to state that there is no perfect entry every bit far as this scheme is concerned.

Many factors could be considered while taking the type of market entry options to take from. There are different sorts of theoretical accounts, but for intent of this study I have decided to urge the SWOT ANALYSIS STRATEGYThis implies that organisations should follow a scheme that is most suited for it, which helps it to accomplish its internal capablenesss ( strength and failing ) while besides sing the external capablenesss such as chances and menaces. ( Kenneth Andrews, 1970 ) .Besides other entry manners could be analysed as against the options mentioned earlier. These include sing the options of Exporting merchandises straight in to Brunei which will in bend addition the cost of transitFranchising is another method through which a company might desire to utilize to derive entry into a state but it besides comes with its ain jobs such as non holding control over quality of one ‘s merchandise.Other methods that could be looked into are Joint ventures and full ownership of subordinates.


It is of import to sketch what type of nutrient merchandise and points that will be offered to the populace. Research should be carried out on the type of nutrient that is acceptable to the people of Brunei seting into consideration that it is an Muslim state.

There is need to make an operating programSourcing for good location to set up the concern is really of import. Other installations such as warehouse, storage, and equipment should be considered at this phase. It is of import to besides maintain in head if the belongings for the concern would be bought, rented or even be built to accommodate the sort of concern being proposedIt is necessary to register the concern name with the local authorization at the Chamberss of commercialism and industry office for proper certification and licensing.Employ a revenue enhancement expert to clear up all revenue enhancement issues as the instance may be and all other necessary licenses that may be needed


The undermentioned factors were considered before geting at this recommendationSupportive Environment: the Government of Brunei believes in prolonging the human environment through right pattern as respects industrial pollution and emanation.

Any company that is found guilty is banned and evicted from its location. There is heavy investing in substructures and installations.Infrastructure: Brunei can comfortably tout of well-developed substructures compared to its environing neighbours. Its telecom industry is good developed that an mean Brunei citizen could tout of holding a phone. The sea port that serves the state has besides been improved upon to function all sorts of maritime concern. While its route are of good criterions.

Tax: Brunei does non run income revenue enhancement or export revenue enhancement, which proves as a good starting point for a new investor.Import responsibility: Imported goods, groceries and stuffs for industrial usage do non pay import responsibilities.It is apparent that investing in Brunei has more of chances than hazard, because of all the aforesaid grounds above.I would urge an investing in Brunei. Sing all the right policies the authorities has been able to set in topographic point.


I am pleased to inform you that after seting in a batch of work and information assemblage into this study, I am strongly of the sentiment that puting in Brunei would non be regretted as evident in this study.Though it is a little state but, its ROI will be achieved over a short period of clip, if all the variables are to be considered such as the Risks, economic policies, and cost deduction of making concern in Brunei which is really low. I would propose an overall overview of this study, where all the virtues are profoundly looked into and used as a parametric quantity for puting in Brunei.With the authorities planning to diversify into other sectors of the economic system, It is my belief that Brunei will get down to bask more inflow of foreign workers, foreign investors, and even immense figure of tourer.Another country that needs to be looked into as respects puting in Brunei is the futuristic program of the part.

This is a program that the Sultan has proposed to take them through a journey of 20years. Within this period, it has made programs to put in constructing more high rise construction, roads, airdromes, universities, infirmary, and do the part attractive to the outside universe. It besides plans to be autonomy in the twelvemonth 2015.In all of these, the Sultan has a major function to play. The Sultan has been able to keep a stable authorities and economic system.It is my sentiment that the political stableness will non see any alterations in a long piece as the governing household intends to keep its clasp on power by non leting any political procedure that would desire to show in a new authorities.

Although there have been a small complain about the excessive life style of the royal household, no existent resistance has come out to publically reprobate this authorities. If things remains as it is with no alteration in power, so Brunei ‘s economic system stableness is guaranteed which is most suited for any investor.