The government will carefully evaluate and consider all constructive suggestions put forth by Legislative Council (LegCo) members, said Minister at the Prime Minister’s Office and Minister of Finance and Economy II Yang Berhormat Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah during the 21st LegCo session on Saturday.
LegCo members raised various issues, many of which have already been addressed by the other ministers. However, three key areas remain focal points of discussion: tackling the fiscal deficit, driving economic growth and enhancing the business ecosystem.
ADDRESSING THE FISCAL DEFICIT
Efforts to manage the national fiscal deficit remain a priority. The government aims to balance the deficit by optimising allocations under the National Development Plan, ensuring the nation’s long-term financial sustainability. One of the key strategies is the Fiscal Consolidation Programme (FCP), which focuses on optimising expenditure rather than cutting costs.
The FCP involves reviewing ministry and department expenditures to eliminate wasteful spending while encouraging modern, innovative processes to improve efficiency in public service delivery. Additionally, ministries and departments are exploring new revenue streams, including adjustments to fees, charges and rental rates, to strengthen the national revenue base.
The Ministry of Finance and Economy (MoFE) is committed to supporting government agencies in boosting revenue through fair and equitable policies that do not place undue burdens on low-income groups. Ministries are also urged to refine revenue collection methods and recover outstanding payments efficiently.
STRENGTHENING ECONOMIC GROWTH AND BUSINESS ECOSYSTEM
The government continues to implement the Brunei Darussalam Economic Blueprint, focusing on sustainable economic growth. One of the strategies involves fostering a more conducive business environment through public-private partnerships (PPPs), privatisation and corporatisation of select government agencies. These initiatives aim to enhance service efficiency while generating employment and economic opportunities for the local workforce.
The FCP also promotes a shift to ‘Programme and Performance Budgeting’ (PPB), where financial allocations are based on essential government functions. Ministries must practice fiscal discipline and accountability to ensure funds are utilised prudently.
INCLUSIVE NATIONAL BUDGET AND SOCIAL WELFARE
The government remains committed to inclusivity in the national budget, ensuring adequate provisions for marginalised groups, including persons with disabilities (OKU).
Since 2021, eligibility criteria for OKU assistance have been expanded to cover additional allowances, such as the Blind Allowance, Mental Disorder Allowance and Rehabilitation Allowance. The introduction of the BND250 Care Provider Allowance also supports caregivers, alleviating financial burdens and ensuring the well-being of individuals with disabilities.
On poverty alleviation, the Minimum Cost of Basic Needs (KMKA) methodology is used to measure poverty levels. The most recent data from the 2015 Family Expenditure Survey set the KMKA at BND283 per person per month, with 3.2 per cent of the population falling below this threshold. The 2024 Family Expenditure Survey, recently concluded, will provide updated figures.
FISCAL SUSTAINABILITY AND GOVERNMENT SUBSIDIES
Despite the fiscal deficit, the government remains steadfast in providing essential services such as healthcare, education and welfare assistance. Over the past five years, annual subsidy costs have exceeded BND500 million for electricity, fuel and rice. Meanwhile, investments in water infrastructure and operations amounted to BND70 million annually.
However, revenue from water services averaged only BND20 million per year, highlighting the need for more sustainable subsidy measures.
The MoFE is also reviewing government procurement policies to ensure value-added services, shared facility usage, and cost-effective project implementation. The ministry aims to conduct a thorough review of annual expenditure to allocate funds efficiently toward high-priority sectors that yield long-term benefits.
ECONOMIC GROWTH AND INVESTMENT CHALLENGES
Brunei’s gross domestic product recorded a 4.2-per-cent year-on-year growth in 2024, driven by a 5.5 per cent increase in the oil and gas (O&G) sector and a 3.1-per-cent rise in the non-O&G sector. Growth in manufacturing (12 per cent), communications (six per cent), and wholesale and retail trade (4.3 per cent) further contributed to this expansion.
However, economic growth for 2025 is projected at 2.4 to 3.4 per cent, considering the high base established in 2024 and uncertainties in global demand. The government acknowledges increasing competition in attracting foreign direct investment (FDI), as other nations intensify their inward investment strategies.
To address this challenge, the government aims to strengthen policy coordination, enhance engagement with local businesses and government-linked companies (GLCs), and optimise trade agreements, such as the ASEAN FTA and the Regional Comprehensive Economic Partnership (RCEP). – Lyna Mohamad
