Business And Market Overview On Brunei
Brunei’s financial system is dependent on oil and gasoline and is the third largest producer of crude oil in Southeast Asia after Indonesia and Malaysia. Brunei is also the world’s fourth largest producer of natural gas. Brunei’s present oil and gas reserves are adequate at the very least till 2015. Thus, Brunei’s authorities has used its oil wealth for investments outdoors the nation for future generations. Moreover, the government seeks to develop the country’s economic system past on oil and fuel however with little success.
Brunei’s GDP was US$5.2 billion with a GDP per capita of US$13,879 in 2004. The economic system grew at a median GDP development of 3.Zero% annually from 2000 to 2004 driven mainly by Brunei’s export of oil and gasoline and due to this fact dependent by world oil and gas prices. Inflation was lower than 1.5% in 2000-2001, expertise deflation in 2002-2003 but inflation finally crept at zero.9% in 2004. The government is Brunei’s largest employer and many of its citizens choose to work with the federal government. The nation experienced increasing unemployment from 2002 to 2004 but remained under 5.Zero%.
The industrial sector (mainly oil and gasoline associated actions) contributed in direction of fifty six.1% of Brunei’s GDP in 2004. The service sector contributed in the direction of forty.3% while the agriculture sector contributed solely three.6% during the period. Foremost industries are petroleum, petroleum refining, liquefied pure fuel and development. Major agriculture merchandise include rice, vegetables, fruits, rooster and eggs.
DEMOGRAPHY. Brunei has a small inhabitants of slightly more than 370 thousand. Brunei Malays are the biggest ethnic group and account for practically 70% of inhabitants followed by Chinese language accounting for 15%. Others embrace indigenous individuals and immigrants who have settled within the country. Islam is the official religion of the country and 70% of the inhabitants practice the Muslim religion. Other religions embody Buddhism, Christianity and indigenous practices. The official language is Malay whereas Brunei’s Chinese group usually used the Chinese language within the neighborhood. The inhabitants is generally proficient in English since schools teach the language and utilized in larger education, enterprise and the sciences.
Three quarters or 75% of the inhabitants reside in the urban areas and largely work in government services, oil and gasoline business, wholesale and retail trade and construction. Main city areas embrace the nation’s capital Bandar Seri Begawan, Muara, Tutong, Seria and Kuala Belait.
Poverty is virtually non-existent in the oil wealthy nation of Brunei. Brunei’s GDP per capita is half of Singapore but based on buying power parity (PPP) it’s barely less than Singapore. Practically 70% of the households belong to the middle or excessive-earnings classes whereas the remaining 30% within the lower-income class.
INFRASTRUCTURE. Telecommunication companies inside the nation effectively developed while reliability of services exterior from Brunei is nice. Internet entry is out there all through many components of the country however broadband companies are limited. Towns effectively related by roads and crosses the border into East Malaysia. Nation served by single worldwide airport at Bandar Seri Begawan.
International Commerce. Main trading partners embody Japan, South Korea, Australia, US, Thailand, Indonesia, China, Singapore and Malaysia. A lot of the imports from Singapore are Singapore’s re-exports from different international locations. Main exports embrace crude oil, pure gasoline, refined petroleum products. Main imports include machineries and equipments, vehicles and vehicle elements, consumer items, foods, construction supplies and chemicals.
Shopper Utilization OF Expertise. Almost all houses in Brunei have fastened-line telephones and the penetration of cell phones by inhabitants was 40% in 2004. Brunei’s common inhabitants have the monetary means to put in computer systems in their homes but the penetration in properties is low at 20%. Penetration oil and gas technology development of internet customers is also low at 9% of the inhabitants or 34,000 customers. Nevertheless, practically all houses in Brunei have televisions and refrigerators.
RETAIL MARKET. Marketers into Southeast Asia often neglect Brunei as a possible market due to its small consumer inhabitants. Nevertheless, the nation has the second highest GDP per capita in the area after Singapore and depends upon imports for almost all of its shopper goods and foods. The estimated value of Brunei’s retail market in 2004 was US$390 million in 2004 of which foods accounted for practically US$280 million. The “mother and pop” shops and mini markets dominate the retail business alongside a number of department shops and supermarkets. Customers in Brunei typically shop cross the border into Malaysia for wider decisions oil and gas technology development of client items.
Meals Tradition. Foods eaten by the Malays are typically rice with spicy meat and vegetable dishes. However, the individuals of Brunei are accustomed to Indian foods as a result of quite a few small Indian eateries throughout the country. Thus, homes usually serve fish, hen or beef curry dishes. Common food service institutions include Chinese language, Indonesian, Indian, Thai and Japanese restaurants but curiously few Malay restaurants. Among the many younger era, many are accustomed to western type foods served by the quick food retailers and bakeries.