Answer for Oral Question PL168

QUESTION

Yang Berhormat Dr. Awang Haji Mahali bin Haji Momin

YANG BERHORMAT DR. AWANG HAJI MAHALI BIN HAJI MOMIN asked the MINISTER OF RELIGIOUS AFFAIRS to state how the Ministry develops products with export potential and accelerates their commercialisation through financing and access to international markets in order to create sustainable and globally competitive Brunei halal enterprises. This is based on observations of halal products and innovations at UNISSA.

ANSWER

Yang Berhormat Menteri Hal Ehwal Ugama

The Ministry of Religious Affairs will answer only the aspects that fall under the jurisdiction of this Ministry. The aspects of financing, commercialisation and access to international markets will be complemented by Yang Berhormat Menteri Penyelaras bagi Dasar-Dasar Ekonomi dan Menteri Ekonomi, Perdagangan dan Industri, in accordance with the jurisdiction of the relevant Ministry.

The Ministry of Religious Affairs records its appreciation to Yang Berhormat Dr. Awang Haji Mahali bin Haji Momin for the question, which touches on an important national agenda, namely the creation of sustainable and globally competitive Brunei halal enterprises.

The Ministry’s core role in the national halal ecosystem is to safeguard the integrity of halal certification in accordance with Hukum Syara' and the laws in force. The Halal Food Control Division carries out the assessment and inspection processes, while the final decision is made by the Brunei Islamic Religious Council. This process provides assurance that the use of Brunei Halal Certificates, Permits or Labels is supported by established standards.

Although this regulatory function is carried out domestically, the credibility of halal certification is one of the factors that supports market confidence in and the export competitiveness of Brunei products.

In international markets, in addition to quality, price and supply reliability, consumers and importers also assess the credibility of halal certification. Therefore, the integrity of Halal Brunei is an important market asset that must be consistently safeguarded. In relation to halal products and innovations at UNISSA, the role of the Ministry of Religious Affairs is to provide initial guidance on Syara' requirements, materials, processes and documentation so that products are better prepared for certification applications. Commercialisation, financing and market access, meanwhile, require joint efforts between UNISSA and the relevant agencies and stakeholders.

For aspects outside the jurisdiction of the Ministry of Religious Affairs, Yang Berhormat Menteri Penyelaras bagi Dasar-Dasar Ekonomi dan Menteri Ekonomi, Perdagangan dan Industri will provide further clarification on financing, enterprise development and access to international markets.

Yang Berhormat Menteri Penyelaras bagi Dasar-Dasar Ekonomi dan Menteri Ekonomi, Perdagangan dan Industri

From the perspective of commercialisation, the development of products and innovations with commercial and export potential must be supported comprehensively by developing a conducive ecosystem to support enterprise growth. This begins with identifying ideas with commercial potential, developing products and enterprise capabilities, meeting standards and market requirements, obtaining financing, and gaining access to domestic and international markets, including facilitating business matching with importers and strategic partners. This approach enables local enterprises to leverage existing distribution networks to penetrate new markets more quickly and effectively.

To create more enterprises and encourage the participation of new entrepreneurs, BEDB has provided several programmes that also assist graduates from higher education institutions such as UNISSA. These include business bootcamps, such as the Micro Bootcamp (including the hybrid Micro Bootcamp) and Accelerate Bootcamp.

These Business Bootcamps aim to assist young graduates from higher education institutions and local entrepreneurs in starting and expanding their enterprises/businesses.

In addition, BEDB provides the Brunei Mentor for Entrepreneurs Network (BMEN), enabling successful entrepreneurs and industry experts to share their experience and knowledge and subsequently serve as mentors to local entrepreneurs.

In this regard, BEDB also involves higher education institutions in the entrepreneurship and innovation ecosystem to identify existing capabilities and initiatives, while providing students and graduates with exposure to pathways for developing ideas into businesses.

For example, specifically in collaboration with UNISSA, BEDB, through the Brunei Innovation Lab (BIL), has participated as a judge for the Entrepreneurship Project under the Faculty of Islamic Economics and Finance at UNISSA over the past three years, as well as serving as a judge for UNISSA Innovation Day last year. BIL is also a supporting partner for the DST Catalyst programme with the Faculty of Islamic Technology at UNISSA, as well as a collaborator with the UNISSA Halal Thayyiban Research Centre in a research commercialisation project currently being conducted with Shizuoka University, Japan. Participants from such engagements are usually also channelled to participate in other programmes within the ecosystem.

As a result of this continuity, several startups originating from UNISSA have emerged and grown through this ecosystem, such as:

• Panda Geek Studio (through the Game Development pillar);
• NusrahTech (through DST Catalyst);
• Bizkita (through the UNISSA Entrepreneurship Project and REACH);
• Intelligent Maqra'ah (through AITI Reka Lab);
• TerraTani (through Makerphase); and
• Aria Care (through REACH and S673 NatHack).

The Brunei Innovation Lab also opens participation to higher education institutions and universities through innovation programmes that link developed solutions with industry needs. Therefore, innovations with commercial potential, including those developed at institutions such as UNISSA, can be further developed through suitable support ecosystems according to their respective levels of readiness.

This effort is also supported through the REACH Programme, introduced by BEDB to help students develop their final-year projects and ideas into viable business models. The programme provides exposure to the fundamentals of entrepreneurship, ecosystem players and opportunities to continue developing ideas after graduation. This approach is aligned with BEDB’s efforts to strengthen the pathway from education and innovation to startup development and commercialisation. BEDB also collaborates with higher education institutions as part of efforts to map capabilities, coordinate programmes and connect students’ ideas with the startup ecosystem and industry needs.

For products identified as having market potential, BEDB provides support to improve quality, production capacity and compliance. This includes the Standards Consultancy Programme, including support relating to international standards such as GMP, HACCP and ISO. To date, 555 local companies have participated in standards-related training and 65 companies have obtained international standards certification. BEDB also works with relevant agencies to improve local MSMEs’ understanding of the Halal Certification and Halal Permit processes.

In terms of product development and market entry, BEDB provides the Product Development Program to help improve products so that they are more competitive and meet local and international market standards. Through the Market Entry initiative, enterprises with potential may be provided with advisory services and action plans to improve export readiness and conduct market trials in target markets. BEDB also works with product development experts from overseas, including Japan, to assess the quality and potential of local products before they are tested in the relevant markets.

To accelerate enterprise growth and commercialisation, several forms of financing are also provided according to the stage and needs of the company. These include:

• The Co-Matching Scheme of up to BND20,000;
• The Growth Facilitation Fund of up to BND100,000 for eligible companies under the Elevate programme; and
• The Startup Catalyst Fund, which provides co-matching investment with regional venture capital firms of up to BND500,000 for startups or MSMEs with the potential to expand into overseas markets.
• BEDB also facilitates access to angel investors and banking institutions.

In preparation for entering international markets, BEDB also provides Export Readiness Training and export advisory services to help enterprises assess their readiness, understand target markets and make improvements in terms of products, packaging and adaptation to market requirements. In terms of market access, BEDB facilitates enterprises’ participation in trade expos, Hosted Buyer programmes, business matching and market trial sessions, as well as connecting enterprises with overseas buyers, importers and distributors.

Overall, the focus is to ensure that innovations with potential, including those developed at institutions such as UNISSA, do not stop at the research or product development stage. Through collaboration with higher education institutions, capacity development, standards and halal compliance, financing and market access, products with potential can be guided towards commercialisation and subsequently grow into sustainable and internationally competitive Brunei enterprises.

In addition, the Ministry does give particular attention to the development of local entrepreneurs’ products with the potential to expand on a large scale, not only to meet domestic market needs but also to penetrate regional markets.

In this regard, the Ministry has also implemented several initiatives through a comprehensive approach covering the entire value chain, beginning with product development, increasing production capacity, compliance with international certifications and standards, packaging and branding development, and extending to the facilitation of access to regional and international markets.

Agrifood product development efforts through this approach are also supported by the Taskforce Agrifood established by the Ministry of Economy, Trade and Industry. Through this platform, BEDB works with relevant agencies to identify strategies, facilitate the participation of local MSMEs in agrifood processing and production activities, and increase export opportunities.

Through the Taskforce Agrifood, enterprises are categorised according to their level of maturity to ensure that each company receives facilitation appropriate to its needs and capabilities. Several programmes have been designed and implemented, such as:

• The Product Enhancement Programme;
• Program Penambahbaikan Bahan Input;
• Program Sistem Penyimpanan;
• Program Pensijilan; and
• Program Pemudahcara Pasaran tempatan dan eksport.

This is part of efforts to further increase entrepreneurs’ production capacity and operational scale, including strengthening the cold chain and logistics processes for export purposes.

The Ministry’s focus is not only on increasing primary output, but also on processing, branding, packaging, certification and standards compliance. This is because, in order to penetrate regional markets, local products must not only be of high quality, but must also be capable of meeting market and logistics requirements and gaining the confidence of international consumers. In addition, the Ministry has implemented the strengthening of biosecurity at farms or aquaculture ponds, as well as monitoring food quality and safety through certifications such as Brunei Good Agricultural Practices (BGAP), Brunei Good Aquaculture Practices (BGAqP), Good Manufacturing Practices and HACCP, to ensure that products meet domestic and international food safety standards.

In conclusion, the Ministry’s approach is not merely to help entrepreneurs survive, but to help them progress to the next level and subsequently contribute to economic diversification and the sustained growth of the country’s GDP.