The finance sector in Brunei Darussalam witnessed robust growth, expanding by 37.4 per cent by the fourth quarter (Q4) of 2023, with Islamic finance playing a significant role, contributing 57.2 per cent to the nation’s financial market share, totaling BND13.3 billion.
Brunei’s financial services sector experienced remarkable growth in Q4 2023, with the overall Gross Value Added (GVA) surging by 42 per cent to BND753.5 million compared to Q4 2022.
Speaking at the Brunei Islamic Capital Market (BICAM) Conference 2024 themed “Mobilising Islamic Capital Market for Sustainable Development” on Wednesday at Mulia Hotel in Berakas, the Managing Director of Brunei Darussalam Central Bank (BDCB) and Chairperson of Brunei Institute of Leadership & Islamic Finance (BILIF) Dayang Hajah Rokiah binti Haji Badar, highlighted this.
She emphasised that this expansion was driven by notable performances in specific sectors, particularly the banking sector, which saw a surge of 33.9 per cent, propelled by high interest and profit rates.
Furthermore, the Takaful and insurance industry experienced positive growth of 144.6 per cent to BND104.1 million, primarily due to improved investment income resulting from global interest rate spikes.
Despite global growth trends, Brunei Darussalam’s capital market industry faced a temporary decline of 11.7 per cent, attributed to reduced revenue from fund management fees. This decline may reflect the industry’s response to market volatility and evolving client investment strategies.
Dayang Hajah Rokiah emphasised the importance of leveraging unique strengths and embracing innovative strategies shared during the conference to transform this period of decline into an opportunity for growth and resilience. – AZLAN OTHMAN
