Answer to Written Question PT017

QUESTION

Yang Berhormat Awang Zainol bin Haji Mohamed

YANG BERHORMAT AWANG ZAINOL BIN HAJI MOHAMED requested the MENTERI DI JABATAN PERDANA MENTERI DAN MENTERI KEWANGAN DAN EKONOMI II to state the main challenges over the next five to ten years to fiscal revenue, employment and productivity should the current investment pattern remain unchanged. What mitigation measures, monitoring indicators and alternative sectors have been identified as priorities based on the country's current capacity?

ANSWER

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

The increasingly complex global economic environment and rapid technological changes present significant opportunities for the country in its efforts to develop a more dynamic economy capable of achieving its diversification aspirations. However, at the same time, they also bring risks that could undermine fiscal sustainability, given the country's dependence on the oil and gas sector. The country's exposure to fluctuations in global crude oil prices and geopolitical conflicts not only places pressure on national revenue, but may also have a direct impact on the resilience of the economy of Negara Brunei Darussalam, including employment opportunities and economic productivity.

In addition, the country is also facing the reality of global climate change, which cannot be ignored. The global energy transition trend towards Net Zero emissions by 2050 is expected to affect global demand for oil and gas, while strengthening the importance of new transformation in the structure and processes of domestic industries. All of this may not only impact the supply chain of goods and increase the cost of trade transactions, but may also have a direct impact on the socio-economic stability of the people and the Country, particularly in terms of unemployment and a sustainable quality of life.

Therefore, the industrial landscape and labour market in the country need to be adapted to rapid technological and AI developments, requiring the Country to place greater emphasis on strengthening the employability of the local workforce in order to meet the demand for new skills and industries.

With global developments accelerating, the Country needs to further intensify its efforts to become more agile and adapt in line with changing trends, while ensuring that such efforts are aligned with the needs of the country and its people. In this regard, the country's economic diversification strategy, particularly as supported by Foreign Direct Investment (FDI), the empowerment of Micro, Small and Medium Enterprises (MSMEs), and the strengthening of Government-Linked Companies (GLCs), will continue to serve as the main pillars driving national development.

In particular, in terms of investment, Alhamdulillah, as of January 2026, 25 FDI companies had commenced operations in Negara Brunei Darussalam, with a total investment value of approximately USD5.9 billion, and had generated approximately 4,000 employment opportunities. In addition, a further 18 FDI projects are currently in the implementation phase, with an estimated investment value of USD5.6 billion, and are projected to generate approximately 3,000 new jobs.

Insya-Allah, through the continuous efforts of the Government and private sectors, as well as initiatives implemented by the Brunei Economic Development Board (BEDB) and the Investment Division under the Ministry of Finance and Economy to further explore new opportunities, it is hoped that the momentum of attracting quality investment to the country will be further increased, in line with the country's economic diversification agenda, while generating employment for local youths.

These efforts will continue with a focus on increasing activities that can generate higher added value through the development of the five identified priority sectors, while also ensuring the availability of effective supporting strategies. These include, among others, strategies supporting the development of a skilled and future-ready workforce, particularly through upskilling and reskilling programmes, as well as strengthening the education structure in line with industry needs; empowering the local private sector by focusing on increasing operational scale and productivity, adopting new technologies and fostering a culture of innovation; and providing efficient, adequate and quality socio-economic and digital infrastructure for the country.

To ensure that policy implementation remains responsive and aligned with Wawasan 2035 and the Economic Action Plan, monitoring is carried out regularly across various monitoring indicators focusing on strengthening economic growth, expanding the non-oil and gas sector, increasing exports, developing productive enterprises and creating quality employment for the people. Among other things, this includes monitoring the performance of the contribution of non-oil and gas revenue to GDP and the country's fiscal position, the youth unemployment rate, the local labour force participation rate and the percentage of highly skilled employment in the private sector, as well as the contributions of priority sectors and FDI to GDP and employment generation.

Overall, this integrated approach aims to ensure that economic progress is driven by stronger domestic capabilities, higher productivity, efficient governance and diverse cooperation. These efforts will be implemented with an emphasis on timely, coordinated and highly accountable implementation, thereby enabling the country to remain resilient, competitive and fiscally sustainable in an increasingly uncertain global environment.

However, with proactive policy leadership, data-based monitoring and implementation of strategies aligned with Wawasan Brunei 2035, InsyaAllah Negara Brunei Darussalam will be able to further strengthen the foundations of a more diversified, inclusive and competitive economy at the regional and global levels.