Answer for Oral Question PL047 & PL107

QUESTIONS

Yang Berhormat Awang Zainol bin Haji Mohamed

YANG BERHORMAT AWANG ZAINOL BIN HAJI MOHAMED asked the MENTERI DI JABATAN PERDANA MENTERI DAN MENTERI KEWANGAN DAN EKONOMI II to state the preparedness plan for addressing challenges in the oil and gas sector and which sectors are expected to balance the need to diversify the economy based on the country’s current capacity?

Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abd. Rahman bin Haji Ibrahim

YANG BERHORMAT PEHIN ORANG KAYA LAILA SETIA DATO SERI SETIA AWANG HAJI ABD. RAHMAN BIN HAJI IBRAHIM asked the MENTERI DI JABATAN PERDANA MENTERI DAN MENTERI KEWANGAN DAN EKONOMI II to state the achievement status of the four (4) main economic clusters and the plans to review/restrategise their implementation, taking into account the latest developments such as geopolitical changes, technological developments, particularly AI, climate change and renewable energy, which have the potential to alter patterns of demand, consumption and supply chains?

ANSWERS

Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II

The increasingly complex global challenges may indeed affect the development of our national economy. Therefore, efforts to diversify the national economy must be further accelerated, particularly to reduce dependence on the oil and gas sector.

In support of this, the Government of Kebawah Duli Yang Maha Mulia Paduka Seri Baginda Sultan dan Yang Di-Pertuan Negara Brunei Darussalam is adopting a planned and phased approach, guided by the economic development direction outlined in the Brunei Darussalam Economic Blueprint. The main focus is on developing competitive and export-oriented non-oil and gas sectors.

This focuses particularly on the five Priority Sectors that have been identified, namely the Downstream Oil and Gas Sector, Food Sector, Services Sector (including maritime and logistics), Tourism Sector and ICT Sector, which will continue to drive growth and lead the country’s economic development and diversification.

Alhamdulillah, these priority sectors have recorded encouraging GDP growth, registering an average growth of 5.5 per cent annually over the past 10 years, increasing from BND2.4 billion in 2015 to BND4.0 billion in 2025.

This achievement was driven by the results of strategic initiatives actively implemented across the five Priority Sectors, particularly by attracting high-impact investments that have expanded the value chain and increased domestic production capacity. Examples include:

• In the Downstream Oil and Gas Sector, through the implementation of the Hengyi Industries Refining and Petrochemical Complex project at Pulau Muara Besar (PMB), the country’s largest foreign direct investment (FDI) project, which plays an important role in strengthening energy security in Negara Brunei Darussalam and driving economic growth. This effort will be further extended through the Phase 2 Expansion Project, scheduled for completion by the end of 2028, which will increase refining capacity to 20 million metric tonnes per year (400,000 barrels per day), compared with the current capacity of 8 million tonnes per year. In addition, it will enable the production of high-value derivative petrochemical products such as ethylene, poly-ethylene and butadiene, as well as create new further downstream activities, including consumer products such as textiles and carpets. Besides its economic impact, the Phase 2 Project is also expected to create more than 2,000 new employment opportunities.

• In the Services Sector, particularly in the maritime and logistics fields, the development of service activities at Muara Port reflects the growing confidence of regional and international users, further strengthening the country’s aspiration to become an efficient logistics hub. Muara Port currently offers 9 shipping routes to 12 destinations through 6 shipping lines. Looking ahead, the target is to increase this achievement through more shipping routes, thereby expanding the number of destinations and shipping companies. Among other things, this development has been supported by the establishment of a new joint-venture company, NEXT Bahtera Maritime Sdn Bhd, in February 2026, connecting Muara Port with strategic ports such as Lianyungang in the People’s Republic of China, Jakarta in the Republic of Indonesia and Subic in the Republic of the Philippines. The company was established to complement existing logistics cooperation and reduce dependence on external shipping networks, as well as strengthen the country’s position within the regional supply chain. In addition, the establishment of direct shipping routes by Shandong International Transportation Corporation (SITC) and Warisan Shipping Lines connecting Muara Port to Qinzhou Port has shortened the sailing period from 12 days to 7 days.

• Subsequently, efforts in the Food Sector have focused on increasing productivity through the adoption of the latest innovations and technologies, such as vertical farming, aquaponics, precision farming technology, the use of IoT to improve crops, as well as the use of solar systems and AI monitoring for aquaculture activities. Proposed developments of strategic projects such as the Agri-Tech Food Zone and Aquaculture Innovation Centre in Negara Brunei Darussalam in cooperation with the Government of Singapore, as well as the upgrading of the Brunei Food Industry Development (BFID) facility, which is expected to commence operations in the first quarter of Financial Year 2026/2027, are among the initiatives being undertaken to further increase local production capacity and strengthen the resilience of the country’s food supply.

• The ICT Sector plays an important role as a key enabler in efforts to increase productivity across industries. In this regard, the country is making concerted efforts to further strengthen its digital infrastructure, including through the development of AI-based data centres, as well as data centre facilities with internationally recognised Tier III-certified designs. These will strengthen co-location hosting services for enterprises, Government agencies and domestic service providers, supporting more efficient workload processing. Efforts to adopt AI in line with the latest technological developments are also receiving increasing attention in our national economy. This can be seen through the implementation of high-performance AI GPUs via the launch of the country’s first AI application platform to support the Ministry of Health and BruHealth application users, as well as initiatives to integrate AI technology and SMART Customs into the automated goods clearance process for cross-border trade through the planned transformation of the Brunei Darussalam National Single Window (BDNSW).

• Meanwhile, in the Tourism Sector, efforts focusing on eco-tourism are also being actively implemented, in line with efforts to strengthen and diversify tourism products in preparation for Visit Brunei Year 2027.

Insya-Allah, the Government will remain committed to ensuring the development of the national economy, particularly through these five priority clusters, which will not only be resilient to external shocks but will also focus on higher value-added, technology-intensive and more sustainable activities. The focus on more inclusive development will also continue, particularly to ensure the generation of quality and sufficient employment opportunities for our local people in the long term.

Efforts to empower and increase the capacity and capabilities of micro, small and medium enterprises (MSMEs) will also continue to be intensified through business mentoring and matching programmes, focused training and assistance in accessing financing, so that they can continue to contribute to more sustainable economic diversification efforts.

With careful planning, strong governance and the integrated commitment of all parties, Insya-Allah, the economy of Negara Brunei Darussalam will be able to remain resilient and competitive in facing any global challenges that may arise.