Brunei Economic Development Board

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Brunei Economic Development Board
Lembaga Kemajuan Ekonomi Brunei
لمباڬ كماجوان ايكونومي بروني
Emblem of Brunei.svg
National emblem of Brunei
Design & Technology Building, Brunei.jpg
Headquarters in Bandar Seri Begawan
Agency overview
Formed11 April 1975;50 years ago (1975-04-11)
Jurisdiction Government of Brunei
HeadquartersDesign & Technology Building, Simpang 32-37, Kampong Anggerek Desa, Bandar Seri Begawan BB3713, Brunei
Agency executives
Parent ministry Ministry of Finance and Economy
Website www.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) to promote economic growth and diversification. Initially, BEDB focused on supporting small and medium-sized enterprises (SMEs) and encouraging local participation in the economy, while some responsibilities, such as tourism, insurance, and SME financing, were later transferred to other government entities.

Contents

Over the years, BEDB has played a central role in Brunei's industrial and economic development, driving major projects such as aluminium smelting, deep-sea port construction, and the Hengyi Oil Refinery and Petrochemical Plant at Pulau Muara Besar. It has also supported cultural and technological initiatives, including the film Yasmine and e-business programs, while overseeing industrial parks like the Sungai Liang Industrial Park and promoting alternative energy and SME development.

Restructured in 2001 and 2003 and integrated into the Ministry of Finance and Economy in 2018, BEDB has focused on industrialisation, foreign investment, and economic diversification through initiatives such as high-technology funds. Aligned with Wawasan Brunei 2035, it facilitates domestic and foreign investment through streamlined processes, trade incentives, and strategic partnerships, while collaborating with Darussalam Enterprise to foster synergies between foreign direct investment (FDI) and local businesses. Through these efforts, BEDB continues to enhance Brunei's competitiveness as an investment destination.

Functions

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. [3] The board oversees the state's insurance sector and monitors the activities of the Tourism Promotion Committee. Its core responsibilities include promoting and facilitating commercial, industrial, residential, and agricultural projects in designated areas, while supporting enterprises across sectors such as mining, housing, industry, and agriculture. Through these activities, BEDB plays a pivotal role in enhancing Brunei's competitiveness as an investment destination. [4]

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 and medium-sized enterprises (SMEs) 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. [4]

As part of Wawasan Brunei 2035, the government emphasises foreign direct investment (FDI) 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. [5]

History

BEDB was established on 11 April 1975 during the Third National Development Plan (RKN), [6] modelled in part on the Economic Development Board of Singapore. [7] It was created as a statutory body under the Brunei Economic Development Board Act (Chapter 104) to promote economic growth and development in the country. [8] [6] Under the Investment Incentives Act of 1975, BEDB actively encouraged local participation in Brunei's economy, making equitable involvement a mandatory requirement and launching programmes in 1978 to support local entrepreneurs and SMEs. [9]

Over time, some of BEDB's responsibilities were transferred to other government entities. With the establishment of the Ministry of Industry and Primary Resources (MIPR) and the Financial Institutional Division under the Ministry of Finance and Economy (MoFE), areas such as tourism and insurance were reassigned. Management of the SME financing programme was taken over by the Development Bank of Brunei in 1995. In 1998, BEDB merged with the Economic Planning Unit to form the Department of Economic Planning and Development, reflecting an evolution of its role within Brunei's broader economic governance framework. [9]

BEDB was restructured under the Brunei Economic Development Board (Amendment) Order, 2001, effective 1 June, [10] strengthening its legislative framework to promote both domestic and foreign investments. [11] As part of the government's strategy to diversify the economy and reduce dependence on oil and gas, BEDB supported industrialisation and economic diversification through initiatives such as a high-technology industrial fund under the RKN 8 (2001–2005). [12] The board's role focused on positioning Brunei as an investment destination and fostering industries that add value to hydrocarbons while developing non-oil and gas sectors, [13] with the appointment of John Anthony Perry as CEO seen as a step toward advancing these objectives. [14] The Brunei Economic Development Board Act (Amendment) Order, 2003, enacted on 24 March, revised the board's legislative mandate. [15]

On 20 September 2018, BEDB was incorporated into the MoFE. [16] In May 2019, the FDI Action and Support Centre (FAST) was integrated into BEDB to support Brunei's economic diversification goals. [17] This integration aimed to streamline project facilitation for international investors by expediting processes for acquiring permits related to foreign labour and infrastructure projects, enhancing BEDB's role in promoting foreign investment. [5]

From 2019 onwards, BEDB's mandate was supported through a series of government reforms, including the Brunei Economic Development Act, the Investment Incentive Order, and amendments to the Income Tax Order. These reforms strengthened Brunei's legal and regulatory framework for investment, making the country more attractive to foreign investors while also promoting the growth of micro, small, and medium enterprises. [18] As of 2024, BEDB continues to oversee industrial park development and works in collaboration with Darussalam Enterprise to foster synergies between FDI and local businesses. [19]

Senior leadership

As of 2024, the senior leadership officeholders are as follows: [20]

List of former CEOs

List of former chairpersons

Business ventures

Construction of the Sultan Haji Omar Ali Saifuddien Bridge in 2019 Temburong Bridge construction project Feb 2019 (15).png
Construction of the Sultan Haji Omar Ali Saifuddien Bridge in 2019

Between the 1970s and 1989, it provided around B$70 million in loans to SMEs nationwide. [3] The BEDB has also streamlined investment procedures and supported business development, working alongside the Brunei Investment Agency to reduce bureaucratic barriers and simplify the regulatory framework for both FDI and domestic enterprises. [26]

In the early 2000s, BEDB implemented a two-pronged strategy to strengthen Brunei's industrial infrastructure. This included an aluminium smelter project in partnership with Alcoa to develop the industrial and petrochemical downstream sectors, as well as the construction of a deep-sea port for transshipment services. [27] During the 2010s, BEDB was associated with major projects such as the Western Foods and Packaging Manufacturing Plant and the Hengyi Oil Refinery and Petrochemical Plant at Pulau Muara Besar (PMB), further contributing to Brunei's industrial expansion. [18]

BEDB has supported cultural and technological initiatives to diversify the economy. It provided a B$120,000 grant to Origin Films for the 2014 movie Yasmine, highlighting Brunei's heritage and generating opportunities for related sectors like transportation, food, and hospitality. [28] BEDB partnered with the Ministry of Development and MIPR to promote e-business and information and communications technology initiatives, fostering a knowledge-driven, paperless economy. [29] Its involvement in infrastructure projects, such as the Sultan Haji Omar Ali Saifuddien Bridge completed in 2019, has also enhanced connectivity, tourism, and economic opportunities across Brunei. [30]

Pulau Muara Besar

Pulau Muara Besar in 2025 Aerial view of Muara Besar Island.jpg
Pulau Muara Besar in 2025

BEDB was a partner in the PMB refinery and petrochemical project alongside China's Zhejiang Hengyi Group. Holding a 30% stake in the US$17.1 billion joint venture, BEDB has facilitated the project's development, ensuring employment and business opportunities for Bruneian citizens, supporting local economic participation, and contributing to the country's industrial diversification. [31] The refinery and petrochemical complex has had a measurable economic impact, accounting for approximately 7.5% of Brunei's GDP in 2021. [32] Connectivity to the island was improved through the completion of the B$204 million Pulau Muara Besar Bridge by China Harbour Engineering in 2019. [30]

In June 2022, it oversaw the establishment of Brunei's first commercial integrated maritime repair and decommissioning yard at PMB through an open bidding process. [33] [34] In July 2024, BEDB partnered with Gulf News to release a report highlighting FDI opportunities in five priority sectors: downstream oil and gas, food, ICT, services, and tourism. [19] Additionally, BEDB signed an agreement with Tipolis to assess a potential joint project in Brunei, initiating a feasibility study and contract negotiations aligned with the goals of Wawasan Brunei 2035. [35]

Sungai Liang Industrial Park

The Sungai Liang Industrial Park (SPARK) under the Sungai Liang Authority, which features the Brunei Methanol Company and Brunei Fertilizer Industries. [36] [37] Following recommendations from a Monitor Group study, BEDB established SPARK and secured its first tenant, which began producing methanol for export in 2010. The infrastructure for the park was funded through the government's B$9.5 billion RKN 2007–2012 allocation. In addition, BEDB has supported a biodiesel project aimed at promoting alternative energy and creating opportunities for SMEs, with plans to apply a similar development model in Pulau Muara Besar. [38]

Issues

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. [39]

Notes

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

References

  1. ↑ "Kementerian Kewangan Dan Ekonomi Pembentangan Kertas Cadangan Rang Undang-Undang (2020) Perbekalan 2020/2021 Majlis Mesyuarat Negara Pertama Dari Musim Permesyuaratan Keenam Belas" (PDF). Ministry of Finance and Economy (in Malay). 2020. p. 5. Archived from the original (PDF) on 24 January 2025. Retrieved 1 September 2025.
  2. ↑ BEDB 2022, p. 1.
  3. 1 2 Sidhu 2009, p. 44.
  4. 1 2 OBG 2007, p. 152.
  5. 1 2 Ong 2023, p. 324.
  6. 1 2 "Laws of Brunei: Chapter 104 – Brunei Economic Development Board" (PDF). Attorney General's Chambers. 2012. p. 3. Archived from the original (PDF) on 18 July 2025. Retrieved 1 September 2025.
  7. ↑ Cleary, Mark; Wong, Shuang Yann (1994). Oil, Economic Development and Diversification in Brunei Darussalam. Houndmills: Palgrave Macmillan. p. 69. doi:10.1007/978-1-349-23485-1. ISBN   978-1-349-23485-1.
  8. ↑ Thambipillai, Pushpa (2008). Singh, Daljit; Than, Tin Maung Maung (eds.). "Brunei Darussalam: Making a Concerted Effort". Southeast Asian Affairs 2011. Institute of Southeast Asian Studies: 96. ISBN   978-981-230-790-3. ISSN   0377-5437.
  9. 1 2 The Far East and Australasia 2003 (34th ed.). Abingdon-on-Thames: Europa Publications. 2002. p. 213. ISBN   978-1-85743-133-9.
  10. ↑ "Brunei Economic Development Board Act (Amendment) Order, 2001" (PDF). Attorney General's Chambers. 22 May 2001. p. 1279. Archived from the original (PDF) on 19 July 2025. Retrieved 1 September 2025.
  11. ↑ Trade Policy Review: Brunei Darussalam 2008. World Trade Organization. 2008. p. 30. ISBN   978-1-59888-270-4.
  12. ↑ Shamim Ahmad Siddiqui; Alaa Aldin Abdul Rahim Al Athmay (2012). "Development and Growth through Economic Diversification: Are there Solutions for Continued Challenges Faced by Brunei Darussalam?". Journal of Economics and Behavioral Studies. 4 (7). doi:10.22610/jebs.v4i7.341. ISSN   2220-6140 – via ResearchGate.
  13. ↑ OBG 2007, p. 13.
  14. 1 2 Hamzah Sulaiman (2003). Singh, Daljit; Wah, Chin Kin (eds.). "Negara Brunei Darussalam: Socio-Economic Concerns Amid Stability and Plenty" (PDF). Southeast Asian Affairs 2003. Institute of Southeast Asian Studies: 74. ISBN   978-981-230-216-8. ISSN   0377-5437. JSTOR   27913227.
  15. ↑ "Brunei Economic Development Board Act (Amendment) Order, 2003" (PDF). Attorney General's Chambers. 24 March 2003. p. 86. Archived from the original (PDF) on 19 July 2025. Retrieved 1 September 2025.
  16. 1 2 "The assimilation and alignment of several Departments and Agencies into the Ministry of Finance and Economy and appointment of the Chairman of Brunei Economic Deveopment Board (BEDB)". Ministry of Home Affairs . 24 October 2018. Archived from the original on 24 January 2025. Retrieved 1 September 2025.
  17. ↑ Ong 2023, p. 323.
  18. 1 2 Mahani & Hoon 2019, p. 91.
  19. 1 2 Wong, Aaron (29 July 2024). "FDI opportunities in Brunei published in Gulf News". Biz Brunei. Archived from the original on 24 January 2025. Retrieved 1 September 2025.
  20. ↑ "DARE Annual Report 2023/2024" (PDF). Brunei Economic Development Board. 2024. p. 2. Archived from the original (PDF) on 16 July 2025. Retrieved 1 September 2025.
  21. ↑ "Mr. Vincent Cheong dilantik CEO BEDB" (PDF). Pelita Brunei (in Malay). 15 August 2007. p. 15. Archived from the original (PDF) on 1 September 2025. Retrieved 1 September 2025.
  22. ↑ Sidhu 2009, p. 248.
  23. ↑ Azman Ahmad (2005). Singh, Daljit; Kiat, Liak Teng (eds.). "Brunei Darussalam: Towards Reform and Sustainable Progress". Southeast Asian Affairs 2005. Institute of Southeast Asian Studies: 103. ISBN   981-230-307-3. ISSN   0377-5437. JSTOR   27913278.
  24. ↑ Hoon, Chang Yau (2012). Suryadinata, Leo (ed.). Southeast Asian Personalities of Chinese Descent. A Biographical Dictionary. Singapore: ISEAS Publishing. p. 847. ISBN   978-981-4345-21-7.
  25. ↑ Azlan Othman (18 November 2010). "BEDB, JPKE placed under PM's Office". Borneo Bulletin. Archived from the original on 25 January 2025. Retrieved 1 September 2025– via www.sultanate.com.
  26. ↑ Mahani & Hoon 2019, p. 92.
  27. ↑ Opai, Rosnah (2007). Chowdhury, Anis; Islam, lyanatul (eds.). "Brunei Darussalam". Handbook on the Northeast and Southeast Asian Economies. Cheltenham: Edward Elgar Publishing: 202. ISBN   978-1-84720-690-9.
  28. ↑ "Brunei is ready for action". The Nation. 28 April 2014. Archived from the original on 24 January 2025. Retrieved 28 December 2024.
  29. ↑ Madjid, Tavana, ed. (2017). Enterprise Information Systems and the Digitalization of Business Functions. Hershey: IGI Global. p. 181. eISSN   2327-3283. ISBN   978-1-5225-2383-3. ISSN   2327-3275.
  30. 1 2 Asiyah az-Zahra Ahmad Kumpoh (2017). "Brunei Darussalam in 2016: Adjusting to Economic Challenges". Southeast Asian Affairs. ISEAS Publishing: 119. ISSN   0377-5437. JSTOR   26492597.
  31. ↑ Druce, Stephen C.; Abdul Hai Julay (2019). "The Road to Brunei's Economic Diversification: Contemporary Brunei-China Relations". In Lim, Alvin Cheng-Hin; Cibulka, Frank (eds.). China and Southeast Asia in the Xi Jinping Era (PDF). doi:10.5040/9781666987812.ch-9. Archived from the original (PDF) on 27 March 2021. Retrieved 1 September 2025.
  32. ↑ Ahmed M. Khalid (2025). "Development: Evidence from Brunei" (PDF). Brunei Darussalam's Economic Transition in a Shifting Global Asia. 23: 32. ISBN   978-981-97-6925-4.
  33. ↑ Wong, Aaron (30 June 2022). "Anson International to set up Brunei's first commercial marine and decommissioning yard". Biz Brunei. Archived from the original on 25 June 2025. Retrieved 1 September 2025.
  34. ↑ BEDB 2022, p. 4.
  35. ↑ "BEDB and Tipolis sign agreement to explore innovative investment initiative in Brunei". tipolis.com. Tipolis. 27 February 2025. Retrieved 12 March 2025.
  36. ↑ Thambipillai, Pushpa (2008). Singh, Daljit; Than, Tin Maung Maung (eds.). "Brunei Darussalam: Making a Concerted Effort". Southeast Asian Affairs 2011. Institute of Southeast Asian Studies: 96. ISBN   978-981-230-790-3. ISSN   0377-5437.
  37. ↑ Alwines, Aaron (26 February 2023). "Brunei Fertilizer Industries exports reach US$322 million". Biz Brunei. Archived from the original on 14 July 2025. Retrieved 1 September 2025.
  38. ↑ "Economic Diversification" (PDF). CSPS Strategy and Policy Journal. 1. Centre for Strategic and Policy Studies: 42. 2010. Archived from the original (PDF) on 19 November 2023.
  39. ↑ Roberts, Christopher (2011). Singh, Daljit (ed.). "Brunei Darussalam: Consolidating the Foundations of its Future?". Southeast Asian Affairs 2011. Institute of Southeast Asian Studies: 37. doi:10.1355/aa11-1d. hdl: 1885/17803 . ISBN   978-981-4345-03-3. ISSN   0377-5437. JSTOR   41418636.

Bibliography

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