Find Industry and Manufacturing expertise in Brunei Darussalam

Manufacturing accounts for just over 12% of GDP in Brunei. The extent of Brunei’s industrial base remains limited when the oil and gas sector is excluded. The main industries are cement production, garment making, production of pre-cast concrete structures, mineral water, canned food, dairy products, and publishing and printing. Brunei is rated 59 out of 185 countries by the World Bank for ease of doing business, a ranking based on how conducive the regulatory environment is to the opening and operation of a local firm.

The small domestic market, a poorly developed local private sector, high wage costs, a shortage of skilled labour, complex bureaucratic procedures, a lack of transparency, and the ban on foreigners owning land have made attaining foreign capital more difficult. However, a project introduced by the government, whereby certain industries are deemed to be pioneering, certifies companies and organisations under the pioneer industries scheme, allowing them certain privileges and financial incentives to encourage industry diversity. Amongst these privileges are various tax exemptions on duties, imports, equipment and building structures, and investment incentives designed to allow these companies room to form a basis in Brunei’s oil dominated industrial sector.

The 2013 Global Competitiveness Report scores and ranks the sophistication of production processes around the world, where a low country score of 1 means “no sophistication and labour intensive” and a high score of 7 means production processes are the “world’s best and apply the most efficient  technologies”.  In this respect Brunei ranks 28 out of 144 countries with a score of 4.87.

Ministry of Industry and Primary Resources (MIPR) is Brunei’s main agency governing industry and manufacturing in the country. The MIPR was formed in 1989 with a view to encouraging industrial development in Brunei by introducing a number of measures to make investment an attractive prospect to industries other than gas and oil. These measures have seen an increase in investment within Brunei in the manufacturing and agriculture sectors in particular. The diversification of Brunei’s industrial sector has helped to bolster the already fairly consistent growth through the turn of the century. There has also been marked increase in overseas investment from ASEAN and countries farther afield.

Formed in 1989, MIPR took on the responsibility of promoting and facilitating industrial development in Brunei Darussalam by offering investors an environment that is conducive for investment in terms of security, stability, continuity, confidence and competitiveness. MIPR has achieved a considerable measure of success in transforming Brunei Darussalam’s economic landscape. A commendable development in the main areas of growth namely manufacturing, tourism, agriculture, fisheries and forestry has been achieved with a steady flow of investments from within Brunei Darussalam, ASEAN and other countries.