Brunei Darussalam 

Brunei Darussalam country policy

Policy established 01 May 2012

• Early warning signal 200 mln euro
• - of which was used as at 2012-04-30 0 mln euro
• Open zonder beperkingen

Country class: 2

Brunei Darussalam country facts

Atradius Dutch State Business Economic Research

Country Report last updated 17 June 2010

Country :  BRUNEI

Political Situation

Stable

Head of state
Sultan and Prime Minister Sir Hassanal Bolkiah, since 1967.

Form of government
The sultan is both the chief of state and the head of government. Council of Cabinet Ministers is appointed and presided over by the monarch. There are two political parties allowed, the Brunei Solidarity National Party (PPKB) and the National Development Party (PP).

Internal Economic Situation
Cautious Recovery

General situation
The economy is completely dominated by the exploration of oil and gas. Brunei has a very high standard of living due to the oil windfall and a generous welfare system. The lack of diversification remains a problem, since the oil reserves are not infinite and the oil sector does not provide much employment. Attempts to diversify the economy towards other sectors like Islamic banking, transport, tourism and industry has not yet proven to be successful. This lack of success may be contributed to the overregulation of the state and intense competition from larger neighbouring countries. Brunei’s economy is struggling for several years, the lower oil price of 2008/2009 even resulted in economic contraction. This year the economy may show a very little growth figure.

External Economic Situation
Strong Bop, Dominated By Oil & Gas

Main sources of foreign exchange
Exports of crude oil, natural gas and refined products.

Main foreign markets :  Japan (37%), Indonesia (19%), South Korea (13%), US (7%), China (7%).

Main expenses of foreign exchange
Capital goods (32%), manufactured goods (24%), food (17%), chemicals (9%).

Balance of payments  
Substantial income from overseas investments. Brunei $ pegged at par to Singapore $ under a currency board arrangement.