Answer to Written Question PT093
QUESTION
Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin
YANG BERHORMAT AWANG HAJI SALLEH BOSTAMAN BIN HAJI ZAINAL ABIDIN asks YANG BERHORMAT Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II to state what examples of Brunei SME success stories have benefited from free trade agreements (FTAs) for wider market access? How does MOFE plan to intensify export facilitation as well as international trade networks to drive economic growth in line with Wawasan Brunei 2035?
ANSWER
Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II
In general, the participation of Negara Brunei Darussalam (NBD) in Free Trade Agreements (FTAs) has played an important role in opening up wider market access opportunities for local exporters. This participation not only benefits local exporters in terms of tariff elimination or reduction, but also provides investment protection, broad sectoral coverage as well as opportunities to increase Foreign Direct Investment (FDI), thereby creating a more conducive environment for trade and foreign investment.
Generally, the benefits of FTAs tend to be enjoyed more by large-scale enterprises, which already have their own target markets and demand. For example, Brunei Fertilizer Industries Sdn Bhd (Granular Urea in Bulk and Urea in Bulk), HLDS (B) Steel Sdn Bhd (Steel) and Polygel Organometallic (Brunei) (Titanium Phosphate Complex) have successfully exported to Latin American countries using the Comprehensive and Progressive Partnership Agreement (CPTPP).
However, there are also several small and medium enterprises (SMEs) that have utilised the facilities available under the signed FTAs for the purpose of participating in trade expos abroad, with support and facilitation from the Brunei Economic Development Board (BEDB).
Among the support provided by BEDB is the provision of specific advisory services to exporters targeting countries covered under the FTAs that have been signed, while also helping local MSMEs to better understand the benefits of FTAs and export processes in those countries, such as tariffs, market access, application for Certificates of Origin (COO), FTA documentation, compliance requirements for export conditions and so on, through guidance and training services.
Among the SMEs that have utilised FTA agreements to access wider markets are as follows:
| Year | FTA | Company |
|---|---|---|
| 2024 | ATIGA (Sabah International Expo 2023) | PDS Abattoir Sdn Bhd |
| 2024 | ATIGA (Sabah International Expo 2023) | Goh Hok Lee Sdn Bhd |
| 2024 | ATIGA (Sabah International Expo 2023) | Riza Fudhlana Farming |
| 2024 | ATIGA (Sabah International Expo 2023) | Sabli Food Industries Sdn Bhd |
| 2024 | ATIGA (Sabah International Expo 2023) | Sahamada Corporation Sdn Bhd |
| 2024 | ATIGA (Sabah International Expo 2023) | Superfish Growers Sdn Bhd |
| 2023 | ATIGA (Sabah International Convention Centre) | Asri Services (Eat's Hot) |
| 2023 | ATIGA (Sabah International Convention Centre) | Bruhouse Sdn Bhd |
| 2022 | AFTA (ASEAN- Korea Centre) | Mori Enterprise |
| 2022 | AFTA (ASEAN- Korea Centre) | Sabli Food Industries (B) Sdn Bhd |
| 2022 | AFTA (ASEAN- Korea Centre) | Taurean Bakeshop & Cafe |
| 2022 | AFTA (ASEAN- Korea Centre) | Volco Venture |
This participation reflects the existence of early awareness among SMEs of the potential and benefits of FTAs. Although these efforts have not yet been fully utilised as a long-term strategy to penetrate international markets, they represent a positive first step towards building confidence and experience in external trade.
The Ministry of Finance and Economy also remains committed to further expanding the level of awareness among local enterprises in this country regarding export facilitation processes as well as in developing international trade networks. In line with this, the Ministry of Finance and Economy through the Trade Division has already implemented various outreach programmes aimed at providing basic understanding of FTAs and the benefits that can be obtained, to the business community, especially local entrepreneurs with the potential to engage in export/import activities; chambers of commerce; as well as Government agencies and Statutory Bodies responsible for the development of local enterprises.
For 2025, several planned socialisation programmes have been identified and implemented as follows:
| No. | Agency/Event | Date/Target |
|---|---|---|
| 1 | Brunei MSME Festival 2024 | 29 February – 3 March 2024 |
| 2 | CPTPP Socialisation | 24 July 2024 |
| 3 | Young Entrepreneurs Association Brunei (YEAB) | 16 November 2024 |
| 4 | Brunei Economic Development Board (BEDB) | 4 February 2025 |
| 5 | Cooperative Development Unit, Business Industry and Ecosystem Division | 19 February 2025 |
| 6 | Darussalam Assets (DA) | 25 February 2025 |
| 7 | BIMP-EAGA Business Council | 21 April 2025 |
| 8 | Department of Agriculture and Agrifood, MPRT | 28 May 2025 |
| 9 | Brunei Darussalam Food Authority (BDFA) | *Q3 – Q4 2025 |
| 10 | Ghanim / Brunei Halal | *Q3 – Q4 2025 |
| 11 | Business Industry and Ecosystem Division | *Q3 – Q4 2025 |
| 12 | LiveWire | *Q3 – Q4 2025 |
| 13 | Maritime and Port Authority of Brunei Darussalam | *Q3 – Q4 2025 |
| 14 | National Chamber of Commerce and Industry | *Q3 – Q4 2025 |
Subject to change
In addition, this Ministry is also actively continuing efforts to assist potential local enterprises to participate in expos and trade exhibitions abroad, including by collaborating with relevant agencies to assess and improve the effectiveness of local enterprise participation in such expos and exhibitions.
For 2025, several trade promotion activities have already been identified and are in the planning stage for the involvement of suitable local enterprises, as follows:
| No | Activity | Date | Venue | Status |
|---|---|---|---|---|
| 1 | World Expo 2025 | 13 April 2025 – 13 October 2025 | Osaka, Kansai, Japan | Ongoing |
| 2 | 22nd CAEXPO | 17 – 21 September 2025 | Nanning, People's Republic of China | Tentative |
| 3 | 8th China International Import Expo (CIIE) | 5-10 November 2025 | Shanghai, Republic | Tentative |
In addition, as an incentive to support export activities from this country, the Ministry through the Royal Customs and Excise Department also implements a tax drawback initiative for raw materials used in the manufacture of excise products, if the manufactured goods are exported abroad.
Overall, the efforts implemented by this Ministry are to support the aspiration of making NBD a country with a dynamic and resilient economy, as stated in Wawasan Brunei 2035.
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