Azlan Othman
Over 20,000 youth are engaging in entrepreneurship either as sole proprietors or in a partnership, 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 yesterday’s 19th Legislative Council (LegCo) session.
LegCo member Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman bin Haji Ibrahim queried on the number of youth entrepreneurs and the type of businesses they engage in.
In his reply, the minister said most of these youth are engaged in retail trade, wholesale and food and beverage.
“However these statistics do not account for unregistered businesses, which are informally through the social media or selling at cube stores,” he said.
SUPPORTING YOUTHENTREPRENEURSHIP
Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman also inquired on how the government is supporting youth entrepreneurs.
The minister in his reply said Darussalam Enterprise (DARe), has made several initiatives such as an accelerator boot camp to assist start ups in expanding by utilising technology and building innovative business models.
DARe also links them via a business-to-business portal to supply goods and services to local enterprises and big companies, he said.
The minister also said that DARe has helped generate investment amounting to BND4.31 million from local angel investors and regional venture capitalists through business model boot camps.
Meanwhile, the minister said Bank Usahawan has financed some BND23 million to 515 micro, small and medium enterprises (MSMEs) put of which 453 (nearly 90 per cent) are Bumiputeras. Bank Usahawan also guides on business and entrepreneurship basics.
“Bank Usahawan is also working with other agencies to offer grant scheme to MSMEs and client referrals from DARe,” he said.
REDUCE LENDING RATE
LegCo member Yang Berhormat Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Haji Awang Adanan bin Begawan Pehin Siraja Khatib Dato Seri Setia Haji Mohd Yusof proposed the Brunei Darussalam Central Bank (BDCB) to reduce the lending rate to stimulate economic activity.
Yang Berhormat Dato Seri Setia Dr Awang Haji Mohd Amin Liew in his reply said a bank’s
lending rate is determined by individual banks themselves based on various criteria and bank structural cost and operation.
The BDCB has analysed banks’ financing rate offered to the corporate sector and MSMEs.
For corporate sector financing, from 2019-2022, most of the rates given ranged from five to six per cent while in 2018, it was around six to seven per cent. For MSMEs, from 2021-2022, the interest rate was between 5.9 per cent to 6.2 per cent. The lowest ever recorded was in 2022 at 3.4 per cent down from 3.7 per cent in 2021, he added.
Meanwhile, Yang Berhormat Dato Seri Setia Dr Awang Haji Mohd Amin Liew said the Treasury Department is looking to reduce the amount owed to the government.
He said the Treasury Department has exceeded its goal of reducing dues by three per cent, noting that by December 2022, dues owed were BND712.5 million, compared to BND731.6 million at the end of 2021.
“The government will continue to find steps and initiatives to make revenue collection effective to cover government expenditures.”
