We would like to express our gratitude to the writer of the letter, ‘Construction material suppliers are suffering’, published in the Opinion page on August 24, 2024. The Brunei Economic Development Board (BEDB), through Darussalam Enterprise (DARe), regrets the difficulties experienced by the construction material suppliers at the Tanjong Kajar industrial site. We fully understand and empathise with the challenges your businesses have faced.
Historically, industrial sites in Brunei have varied widely in their level of development. Some sites offered greenfield land – undeveloped, raw land – while others provided more developed infrastructure such as roads, drainage and utilities. These sites were managed by different agencies and catered to various business types and industrial activities at very low land lease rates.
Since the establishment of DARe in 2016, one of our key responsibilities has been to consolidate the planning, development, allocation, operations and maintenance of industrial land. This effort is critical to supporting business activities and advancing towards Brunei’s long-term economic diversification goals. Following market studies and price benchmarking both locally and regionally, we have set land lease rates for both greenfield and infrastructure-ready sites to ensure fairness and sustainability.
The Tanjong Kajar site, being a greenfield location, had its new lease rates aligned with other sites of similar condition. We recognise that the construction material suppliers involved in this site had previously made significant investments to develop the land. Over the years, we have engaged with the companies involved in these prior arrangements on various occasions. However, due to the complexities of coordinating discussions among various members, and external stakeholders, a resolution has yet been reached.
As part of our ongoing efforts, a proposal that is more aligned with the companies’ expectations has recently been endorsed. We will be in contact with the companies through the focal points to discuss these solutions in more detail.
Brunei Economic Development Board
