Answer to Written Question PT022

QUESTION

Yang Berhormat Awang Lau How Teck

YANG BERHORMAT AWANG LAU HOW TECK requested the MENTERI DI JABATAN PERDANA MENTERI DAN MENTERI KEWANGAN DAN EKONOMI II to state the number and main reasons for the closure of local businesses according to sector and period of operation. How is this information used to improve support policies so that they are not solely focused on the establishment of new businesses?

ANSWER

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

Data collected by the Ministry of Finance and Economy through ROCBN recorded that, as at 28 February 2026, a total of 1,111 business name closures had been recorded for the period from 2021 to 2025, with the retail trade sector (except motor vehicles and motorcycles) recording the highest percentage at 13.5 per cent.

Meanwhile, data collected on companies showed that a total of 720 closures were recorded during the same period, with the building construction sector recording the highest percentage at 17.3 per cent.

With regard to the main reasons for business closures, to date, no official data has been collected by ROCBN on this matter.

However, based on monitoring conducted by the Brunei Economic Development Board (BEDB) of the programmes implemented, as well as direct feedback received from micro, small and medium enterprises (MSMEs) through various consultation channels, several key challenges have been identified.

These include high raw material and logistics costs; difficulties in packaging and labelling, including the cost of machinery and technical expertise; limited financial capacity; the small domestic market size, leakage of consumer spending (Consumer Leakage) overseas; the still-low level of adoption of new technologies; difficulties in retaining customers; as well as challenges in penetrating regional markets due to stringent compliance requirements and intense competition.

To address these challenges, BEDB has implemented various initiatives focused on strengthening the capacity and resilience of existing businesses. These include entrepreneurship mentoring and training programmes, financial advisory and cash flow planning services, support for participation in trade missions and exhibitions, assistance with standards compliance and certification, as well as facilitating inter-agency dialogue to address systemic and regulatory issues. This approach aims to strengthen competitiveness and ensure the sustainable continuity of local businesses.

Overall, the Government’s focus is not only on the establishment of new businesses, but also on strengthening and sustaining existing businesses so that they become more resilient in a challenging economic environment.