The Brunei Darussalam Central Bank (BDCB) has released the Business Sentiment Index (BSI) for November 2024, revealing a stable outlook for the nation’s business environment. The index, based on surveys of approximately 500 businesses from 11 economic sectors, provides insights into current and future business conditions, investment, employment, and operational costs.
Headline index indicates stability
The main headline index, the Current Business Conditions sub-index, stood at 50.0 in November, reflecting business expectations of no significant change compared to October. Businesses cited mixed sentiments, with some reporting optimism due to increased sales from expos and events, while others noted lower demand, fewer projects, and seasonal factors such as poor weather and consumer travel.
Similarly, the index for business conditions one month ahead also remained at 50.0, indicating steady expectations for December.
Investment prospects show optimism
The Investment sub-index recorded 50.0 for both November and the following month, with a slight increase to 50.5 for three months ahead. Businesses expressed optimism about capital expenditure in February 2025, anticipating activities such as premise renovations, equipment upgrades, and inventory restocking to prepare for the festive season and new projects.
Employment trends remain positive
The Employment sub-index reached 50.2 for both November and December, continuing a steady trend of recruitment across full-time, part-time, and i-Ready apprentice roles. This hiring activity aims to support ongoing and planned projects.
Operational costs show mixed trends
Operational costs increased in November, with the Costs sub-index at 50.2, attributed to renovations, event participation, and global oil price fluctuations. However, businesses anticipate lower costs in December, reflecting expectations of easing commodity prices, reduced activity during the holiday season, and project completions.
Sectoral and business size sentiments
Among the 11 economic sectors, only Hotels & Restaurants (50.3) and Finance & Insurance (50.1) reported optimism, driven by holiday bookings and increased demand for travel insurance. Conversely, the Construction sector showed the most pessimism (49.7), citing project delays and reduced activity due to weather conditions.
Micro-sized businesses were the most optimistic (50.1), buoyed by higher demand, while small businesses expressed more cautious views (49.9). Medium and large businesses maintained steady sentiments at 50.0.
The BSI, with its forward-looking approach, serves as a critical macroeconomic tool for understanding business trends in Brunei Darussalam. As businesses prepare for the festive season and the upcoming financial year, the data offers valuable insights for policy formulation and economic planning.
For more information on the BSI, public members can refer to the technical notes on the methodology and statistics on the BDCB website.
