Response to Oral Question PL48

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YANG BERHORMAT DAYANG HAJAH ROSMAWATTY BINTI HAJI ABDUL MUMIN

QUESTION:

YANG BERHORMAT DAYANG HAJAH ROSMAWATTY BINTI HAJI ABDUL MUMIN asks the MINISTER OF FINANCE AND ECONOMY II whether the Ministry will review and tighten regulations regarding businesses in Brunei by changing their business models to GLC initiated local franchises, joint ventures, and local cooperatives. This is because many businesses in Brunei, such as grocery stores, restaurants, and construction, are dominated by foreigners, especially from South Asia, and much of them benefit from subsidies but do not contribute to the country's economy or employ local citizens.

YANG BERHORMAT MINISTER OF FINANCE AND ECONOMY II

ANSWER:

Yang Berhormat Yang Di-Pertua.

Firstly, regarding PL48 on implementing policies for businesses to change their business models to GLC initiated local franchises, joint ventures, and local cooperatives, especially in business activities influenced by foreign parties.

Kaola understands the concern of the Honourable Member, especially in activities like grocery stores. In this matter, the Government has begun efforts to address this issue so that more local entrepreneurs can engage in such business activities.

The success of these efforts will depend on cooperation with various stakeholders, both in the public and private sectors, in various aspects such as financial accessibility, supply chain, provision of facilities, basic business management knowledge, and others. Therefore, to facilitate these efforts, the Government along with BEDB and the private sector have begun studies and research towards the policy and concept of the model. The concept is to reduce barriers to entry for local entrepreneurs to venture into these businesses. Insha Allah, if these efforts are successful with full support from concerned parties, the Government will implement this in the near future.

Although the approaches mentioned above may help address concerns such as activities within the grocery store sector, they may not be suitable to be applied in other sectors as also mentioned by the Honourable Member in the question. It will depend on adequate knowledge or experience of the GLC to engage in those business activities. Additionally, the Government must always be cautious so that GLCs do not engage in activities already actively carried out by existing local entrepreneurs. If the GLCs are involved, it would undoubtedly disrupt or crowd out the private sector, especially the intended sector, which is currently largely operated by local entrepreneurs.