Brunei Investment Agency

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Brunei Investment Agency
BIA
Company type Sovereign wealth fund
Industry Investment
Founded1 July 1983;41 years ago (1983-07-01)
Founder Sultan of Brunei
Headquarters Ministry of Finance Building,
Bandar Seri Begawan
,
Brunei
Area served
Worldwide
Key people
  • Khairuddin Abdul Hamid – Chief Investment Officer
  • Dato Abdul Rahman Karim – Managing Director
Products investment
AUM Decrease2.svg US$73 billion (2023)
Total equity Steady2.svg US$30 billion (2009)
Owner Government of Brunei
Parent Ministry of Finance and Economy (Brunei)
Subsidiaries
Website BIA Homepage

The Brunei Investment Agency (BIA) is a government-owned corporation [1] that reports to the Ministry of Finance and Economy of the government of Brunei. Established in 1983, its offices are located in Bandar Seri Begawan at the Ministry of Finance Building. [2] Data on the agency's assets are not reported to the public [3] and the sultan and his assets, to a certain degree, are also incorporated in the agency; however, the extent is unknown. As of December 2024, the fund has a total of US$73 billion in assets under management. [4]

Contents

History

The Crown Agents previously managed the funds on behalf of the government of Brunei until 18 July 1983, when BIA assumed responsibility. With stable leadership and a strong, consistent board, BIA experienced significant growth in its first decade. By early 1993, the agency expanded from seven employees in 1983 to 183, all with extensive experience across various sectors. Their commitment to the organisation continued to grow, and by 1993, BIA had moved from a small office near the Chief Minister's Office to multiple locations, including representative offices in Tokyo, Kuala Lumpur, and London. [5]

Despite challenges such as the 1987 stock market crashes and subsequent weak market performances, BIA significantly increased the funds under management by 1993. Its risk-averse investment strategy helped mitigate the worst market fluctuations. Over time, BIA evolved from managing cash deposits to directly overseeing substantial investments in bonds, stocks, and real estate in major international markets. The agency's annual financial statements are audited by an international firm, ensuring accountability in the management of the funds. [5]

Functions

The objective defined under the Act is to hold and manage the General Reserve Fund of the government and all its external assets. The agency manages 40% of Brunei's foreign reserves, with the remainder being managed by eight foreign organizations. [6]

Investments

Some major foreign assets of BIA include the Dorchester Collection, a portfolio of luxury hotels established in 1996; a 10% holding in the Paterson Securities of Australia, and Bahagia Investment Corporation (Malaysia), dealing with real estate. [7]

BIA's investment portfolio, apart from investments within Brunei, covers diverse investments in bonds, equity, currency, gold and real estate. It has substantial investments in the United States.

Brunei investors bought The Dorchester on Park Lane in London in 1985 for US$50 million and in 1996 BIA formed the Dorchester Collection, a conglomerate of luxury hotels in UK, United States, France and Italy. [8] BIA also owns The Beverly Hills Hotel in Los Angeles which was bought for US$185 million in 1987 as well as the Grand Hyatt Singapore Hotel. [9] BIA also has a 10% holding in the Paterson Securities of Australia, and Bahagia Investment Corporation of Malaysia, dealing with real estate. [7]

In June 2018 BIA acquired a stake in Molten Ventures for £20 million. [10]

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References

  1. ↑ Ariff, Mohamed (1998). APEC and Development Co-operation. Institute of Southeast Asian Studies. pp. 39–. ISBN   978-981-230-020-1.
  2. ↑ "Brunei Investment Agency". Sovereign Wealth Funds News. Archived from the original on 15 October 2013. Retrieved 15 October 2013.
  3. ↑ Singh, Daljit; Freeman, Nick J. (2000). Regional Outlook: Southeast Asia 2000–2001. Institute of Southeast Asian. pp. 50–. ISBN   978-981-230-087-4.
  4. ↑ "Brunei Investment Agency (BIA) – Sovereign Wealth Fund, Brunei – SWFI". swfinstitute.org. Retrieved 27 June 2023.
  5. 1 2 "Brunei Investment Agency 1983 to 1993: a review" (PDF). Brunei Darussalam Newsletter. No. 121. Department of Information. 15 July 1993. p. 10. Retrieved 5 February 2025.
  6. ↑ Gunn, Geoffrey C. (2000). New World Hegemony in the Malay World. The Red Sea Press. pp. 170–. ISBN   978-1-56902-135-4.
  7. 1 2 "Brunei Investment Agency". Sovereign Wealth Fund Institute. Retrieved 15 October 2013.
  8. ↑ Alex Brummer (26 April 2012). Britain for Sale: British Companies in Foreign Hands – The Hidden Threat to Our Economy. Random House. pp. 123–. ISBN   978-1-4481-3681-0.
  9. ↑ Current Biography Yearbook. H. W. Wilson Co. 1990. p. 57. ISBN   9780824201289.
  10. ↑ "The Sultan of Brunei has made the country's first investment in a UK listed company, ploughing £20m into Graze backer Draper Esprit". City A.M. 5 June 2018. Archived from the original on 12 June 2018. Retrieved 8 June 2018.
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