SECRETARIAT OF THE BRUNEI DARUSSALAM ECONOMIC COUNCIL The

SECRETARIAT OF THE BRUNEI DARUSSALAM ECONOMIC COUNCIL The Council’s Recommendations & Implementation BDEC Secretariat 1

Economic Council’s Recommendations n Action Plan for Recovery n 3 point action plan n Short Term BDEC Secretariat 2

1. Stimulus Package n n Introduce Payment Scheme & Credit Fund Boost Spending in Select Strategic Areas n n More Public Housing Projects More Small Scale Tourism Infrastructure More IT infrastructure Invest in People through n n Hospitality Industry Training Program National IT Training Program BDEC Secretariat 3

Stimulus Package § Banks will provide credit to SMEs at low interest rates with government guarantees § A Special budget has been allocated § 512 new housing projects have started § Infrastructure work will be undertaken § 25 tourism projects will be implemented § Bru. Net expansion & IT projects for schools have begun § Canberra Institute of Technology is providing hospitality & tourism training to 1300 people BDEC Secretariat 4

2. Implementation Strategy n n Coordination at Senior Ministerial Level 3 bodies to be set up n n n International Business Advisory Panel Public Policy Think Tank Permanent Business Council BDEC Secretariat 5

Implementation Strategy n n HRH The Minister of Foreign Affairs is undertaking the role of the Coordinating Minister as Chairman of the Economic Council The Terms of Reference for the 3 advisory panels have been prepared and are being reviewed BDEC Secretariat 6

3. Communications Initiative n n Program to communicate the Action Plan to government agencies and private sector Maximum transparency be accorded to government’s economic initiatives BDEC Secretariat 7

Communications Initiative n n The Council’s report is available to the public both through the internet or hardcopy All relevant ministries have been briefed Press releases are issued every time there is a new project The Council is now monitoring the progress undertaken by the various ministries in implementing the Council’s recommendations BDEC Secretariat 8

Economic Council’s Recommendations n Strategy for Sustainable Growth n 3 strategies n Medium & Long Term BDEC Secretariat 9

1. Strengthening Government Finances n n n Control government expenditure through clear prioritization and eliminate wastage Reduce the size of the public sector through privatisation Broaden and strengthen the government’s revenue base through broadening the tax base, gradual removal of subsidies as well as corporatisation and privatisation BDEC Secretariat 10

(continued) n Develop mechanisms to meet temporary liquidity shortfalls such as the issue of government bonds and other financial instruments BDEC Secretariat 11

Strengthening Government Finances n n n Government expenditures & budgeting system are currently being reviewed Tax laws are currently being reviewed Corporatisation of Brunei Telecoms have begun (Provident Fund and Electricity are currently undertaken) Subsidies are currently being reviewed Govt bonds at primary trading can be introduced by MOF when required BDEC Secretariat 12

2. Strengthening the Private Sector n n n Expand the size of the private sector through privatisation and foreign investment Encourage local and foreign investment through reducing and simplifying government policies and procedures which have a bearing on private enterprise Develop local SMEs through easier access to financing BDEC Secretariat 13

(continued) n n Encourage investment in Brunei by reviewing and revising restrictions on the ownership and development of land its use as collateral to raise financing Facilitate private sector liquidity through ensuring prompt government payments Expand enhance the competitiveness of the oil and gas industry Promote economic diversification through the provision of incentives and first class 14 infrastructure BDEC Secretariat

Strengthening the Private Sector n Acts related to Investment Promotion & Incentives have been reviewed and amended: n n n Economic Development Board Act Industrial Coordination Act Investment Incentives Act Other laws and regulations related to businesses are currently being reviewed Land ownership policies are currently being reviewed BDEC Secretariat 15

(cont. ) – Enhancing SME’s Capability n n n An IDF is currently available with the IDBB as well as a new Credit Fund with other banks Preliminary study by PSB of Singapore has been issued & will be discussed MIPR currently undertaking study on local participation in business (with MIER) BDEC Secretariat 16

(cont. ) - Enhancing HRD n n n MOE is currently reviewing education policy MOH (Labour Dept) are currently undertaking some of the recommendations (eg. apprentice scheme for unemployed graduates) PMO has issued new circular outlining rules on the placement of civil servants with private/public companies BDEC Secretariat 17

(cont. ) – Expanding Oil Industry n n n BSP is pumping oil at maximum capacity 207, 000 barrels per day BSP is currently rehabilitating many of its existing fields BOGA is undertaking a study on the formation of a national oil company Another company has been awarded the right to explore – Fletcher Downstream industry possibilities are being undertaken BDEC Secretariat 18

(cont. ) – Other Actions n n Avoidance of Double Taxation Agreements and Bilateral Investment Treaties are currently being negotiated with ASEAN, Asian, African and European Countries Privatisation - Sale of corporatised agencies’ shares are expected to be done within 5 years of its corporatisation BDEC Secretariat 19

3. Establishing the Foundations for Sustainable Growth n n Modernise Brunei Darussalam’s legal and regulatory framework Enhance human resource development and deployment Launch a concerted drive to enhance productivity within the public and private sectors Establish a first class ICT through public and private sector investment BDEC Secretariat 20

Establishing the Foundations for Sustainable Growth n n A National Law Review Committee is undertaking a review of all existing laws The HR Committee is currently undertaking a National HR Policy The Formation of a National Productivity body is currently being studied An IT Council has been formed BDEC Secretariat 21

n Preparation of Brunei Darussalam Economic Blue Print BDEC Secretariat 22

BDEC Secretariat 23

THANK YOU BDEC Secretariat 24