Answer for Oral Question PL308

QUESTION

Yang Berhormat Awang Haji Md. Salleh bin Haji Othman

YANG BERHORMAT AWANG HAJI MOHD. SALLEH BIN HAJI OTHMAN requested MENTERI EKONOMI, PERDAGANGAN DAN INDUSTRI to state the targets and action plans that have been established to increase the participation of local PMKS in the supply chains of large companies and government projects, to ensure that more economic and employment opportunities can be enjoyed by the people of Brunei Darussalam.

ANSWER

Yang Berhormat Menteri Ekonomi, Perdagangan dan Industri

To support efforts to increase the participation of local Micro, Small and Medium Enterprises (PMKS) in the supply chains of large companies and Government projects, the Brunei Economic Development Board (BEDB) implements various initiatives to strengthen In-Country Value (ICV). Through these initiatives, BEDB helps to expand the participation of local enterprises in procurement opportunities, strengthen vendor development and facilitate business linkages between PMKS and Government agencies and large companies. These efforts aim to create more business opportunities, increase the participation of local enterprises in supply chains and support economic growth and employment opportunities for the people of Brunei Darussalam.

One of the key initiatives supporting these efforts is DARe LINKS, a Business-to-Business (B2B) platform that connects local PMKS with Government agencies, Government-linked companies (GLCs), foreign direct investment (FDI) companies, multinational companies (MNCs) and statutory bodies. This platform provides opportunities for local PMKS to supply goods and services through contracts or projects that have been identified and specifically ring-fenced for local enterprises.

To expand the participation of local enterprises, BEDB has obtained the support of Government agencies, Government-linked companies (GLCs), statutory bodies and FDI companies to:

• give priority to or set aside certain contract opportunities that are suitable for implementation by local enterprises;
• use the DARe LINKS platform to promote procurement opportunities to local enterprises; and
• share contract information, including contract values, to support the collection and analysis of data, identify gaps in vendor capabilities and assess the effectiveness of the support programmes implemented by BEDB.

Through this initiative, BEDB has successfully facilitated various business opportunities involving the supply of goods and services to large companies. For example, collaboration with Anson International through business opportunity socialisation sessions and vendor briefings has significantly increased the participation of local enterprises in the opportunities offered.

At present, 687 PMKS are registered under the DARe LINKS platform and actively participate in procurement opportunities advertised by 29 companies from various sectors. To date, these efforts have resulted in 174 contract awards to local enterprises, with the total reported contract value reaching approximately BND5.3 million.

In addition, BEDB also implements the i-Usahawan programme, a youth entrepreneurship development programme that provides opportunities for local entrepreneurs to start and expand their businesses through ring-fenced contracts offered by Government agencies, Government-linked companies (GLCs), statutory bodies and corporate organisations. The programme also provides training, mentorship and vendor development support to help participants build their capabilities and track records so that they can compete for larger procurement opportunities in the future.

In line with efforts to strengthen the participation of local enterprises in supply chains, the Ministry of Economy, Trade and Industry (METI), in collaboration with the relevant agencies, is currently preparing proposals for the Local Business Development initiative for the non-oil and gas sector, to ensure that procurement and trade opportunities can be enjoyed by local PMKS.

These efforts are further strengthened through Enterprise Growth Connect (EGC), one of BEDB’s annual events that provides a Business-to-Business (B2B) platform for bringing together local PMKS with Government agencies and large companies, including Government-linked companies, FDI companies, multinational companies (MNCs) and statutory bodies.

Through the sharing of information on procurement opportunities and industry requirements, advisory sessions, business matching and collaborative networking, EGC aims to improve the preparedness of local enterprises, expand the participation of local PMKS in domestic supply chains and strengthen In-Country Value, stimulate private-sector growth and support the country’s economic diversification efforts.

For example, following a procurement opportunity-sharing session by Royal Brunei Airlines (RB) during EGC, as well as subsequent facilitation by BEDB, several local enterprises were successfully matched with RB to fulfil product supply and service provision requirements. This success demonstrates the effectiveness of EGC as a platform that connects local enterprises with tangible business opportunities and helps increase the participation of local vendors in the supply chains of major companies.