Iron and Steel, Motor Vehicles, Machinery and Transport equipment, Manufactured Goods, Foods, and Chemicals
Main destination of export
Japan 45.7%, South Korea 15.1%, Australia 9.1%, NZ 6.6%, India 5.8%, Vietnam 4.7% [2012]
Main origin of imports
Singapore 26.3%, China 21.3%, UK 21.3%, Malaysia 11.8% [2012]
*Estimated
2. India-Brunei Trade
Our trade figures with Brunei Darussalam are given below (Source DGCIS):
(Value: Million Brunei $) (B$1 = ₹ 48.54)
2007
2008
2009
2010
2011
2012
2013
Indian Exports
21.90 (+54.77%)
29.39 (+34.20%)
39.21 (+33.41%)
31.13 (-20.60%)
36.53 (+17.34%)
42.59 (+16.58%)
47.20 (+10.82%)
Indian Imports
273.66 (-54.16%)
478.15 (+74.72%)
892.55 (86.66%)
674.80 (-24.39%)
1265.91 (+87.59%)
1444.55 (+14.11%)
919.78 (-36.33%)
Total trade
295.56(-54.16%)
507.54(+71.72%)
931.76(+83.58%)
705.93(-24.23%)
1302.44(+84.49%)
1487.14(+14.18%)
966.98(-34.98%)
Note: The figures in parenthesis in all tables represent the percentage change compared to the previous year.
According to DGCIS Kolkata data, the bilateral trade between India and Brunei during the calendar year 2013 was B$966.98 million. The exports from India amounted to B$42.59 million and imports from Brunei were B$919.78 million. Figures from the last few years indicate that the overall trade between India and Brunei has been increasing steadily over the last few years. Our imports are showing phenomenal increase primarily because of our dependence on Brunei for LNG and petroleum products. This trend is likely to continue as our energy requirement keeps increasing every year. Our exports to Brunei are also showing an increasing trend though at a steady pace.
The reasons for lower level of bilateral trade have been relatively high shipping costs, and Brunei’s small population base of approximately 415,000. The main import of India from Brunei is crude oil and petroleum products, followed by organic chemicals, metal ores and scrap. Due to low demand, most of the consumer goods from India are received in Brunei through re-exports via Malaysia and Singapore. Our main exports to Brunei consist of transport equipment, followed by meat and meat products and gems & jewellery.
3. Economic And Investment Related News
(i) Signing ceremony for ISO 9001:2008
The National Standards Centre under Ministry of Industry and Primary Resources (MIPR) signed a contract with Millenniya Management Consultancy for the ISO 9001:2008 consultancy project. The agreement will see the establishment of a consistent working environment based on policies, regulations and laws to encourage and cultivate the interest of quality record keeping.
(ii) Baiduri Bank launches Renminbi (RMB) Trade Payment Services
Baiduri Bank, in collaboration with the Industrial Commercial Bank of China (ICBC), has started the Renminbi (RMB) Trade Payment Services. The new service can dispense with currency exchange, lower the foreign exchange risk and provide convenience to cross-border RMB settlements.
The Renminbi Trade Payment Service is for remitting funds to China for the purpose of trade settlement. Payments for goods and services to companies in China have traditionally been carried out by using US dollars, and are subject to fluctuations. With this Renminbi Trade Payment Service, fluctuation risk is minimised, and being in the same time zone, businesses in China can receive payments faster than before.
(iii) Co-operation agreement with ILO signed
A cooperation agreement was signed between Brunei’s Department of Economic Planning and Development (JPKE) and Internal Labour Organisation (ILO). The agreement would put in place an information system giving comprehensive understanding of the Brunei Labour Market.
(iv) S&P’s Credit Rating
International credit agency Standard & Poor’s (S&P) gave a BB plus starting credit rating for commercial banks operating in Brunei.
In a recently published analysis of the country’s banking industry called the ‘Banking Industry Country Risk Assessment’ (BICRA), Brunei was classified as six out of a possible 10, with 10 being the highest-risk. The Sultanate is grouped with Bahrain, Guatemala, Spain, Thailand and Turkey.
The BICRA methodology has two main analytical components: “economic risk” and “industry risk”. It said that Brunei’s status as a major oil exporter underscores the country’s wealth, which has enabled it to build strong external and fiscal balance sheet positions.
(v) Brunei Halal products can be sold in Malaysia
According to Deputy Chief Executive Officer of Ghanim International Food Corporation, the marketing arm of the Brunei Halal brand, with the signing of an agreement between the Religious Ministries of Brunei, Indonesia, Malaysia and Singapore Association (MABIMS), halal accredited products from each of these countries can be sold among each other. In view of this, Brunei Halal brand products need not undergo the Malaysian halal accreditation. Ghanim International introduced the Brunei Halal in Malaysia by setting up a booth in this week’s 11th Malaysia International Halal Showcase (MIHAS). According to CEO of Ghanim International, Brunei halal products offer more varieties and are quite competitive to similar products being currently imported from India.
(vi) Oman keen to explore opportunities with Brunei
According to Director-General of Marketing and media for Oman’s Public Authority for Investment Promotion and Export Development, Oman is keen to explore business opportunities with Brunei in a number of fields, including oil and gas, technical infrastructure, logistics, food industries and food security. The main sectors of trade and investment opportunities between the two countries are downstream and supportive industries of oil and gas. Brunei and Oman have also established the Oman-Brunei Investment Company, a joint venture which is aimed at exploring and expanding the best opportunities that both countries have to offer.
(vii) Quality assurance for Brunei farm products
Brunei, through the Department of Agriculture and Agrifood, will implement Good Agricultural Practice (GAP) under the Horticulture Farm Accreditation Scheme on fruit and vegetables. GAP is a cohesive plantation management system that uses the combination of various planting techniques to upgrade farm productivity by focusing on safe and quality production that are environmental friendly. The launching of GAP logo, designed by the Department of Agriculture and Agrifood that symbolises farm productivity assurance, will help consumers identify products that are produced by accredited farms. The logo will be registered as a trade mark with copyrights. With the accreditation of GAP, consumers will be more confident of the safety level of products that are produced that will indirectly be an added value to farm production as well as a quality assurance to consumers.
(viii) GDP declines 1.8% in 2013
Brunei Darussalam’s Gross Domestic Product (GDP) growth for the whole year of 2013 has registered a decline of 1.8 per cent year-on-year (y-o-y), which is mainly attributed to decline in the Oil and Gas sector by 7.2 per cent (y-o-y).
In the fourth quarter of 2013 (Q4 2013), GDP at current prices was estimated at B$5,287.9 million compared to B$4,657.3 million in Q3 2013. For the whole year of 2013, total GDP was estimated at B$20,157.7 million at current prices compared to B$21,185.1 million in 2012, the Department of Economic Planning and Development (JPKE) said yesterday.
(ix) Decline in Consumer Price Index (CPI) for March 2014
The Consumer Price Index (CPI) for March 2014 decreased by 0.1 per cent over February 2014. CPI for March 2014 decreased by 0.1 per cent compared to March 2013, largely due to the lower index for furnishings, household equipment and routine household maintenance, recreation and culture, and housing, water, electric, gas and other fuels.
(x) Monetary cooperation agreement with Singapore
The Autoriti Monetari Brunei Darussalam (AMBD) and the Monetary Authority of Singapore (MAS) have signed an agreement to enhance cooperation in key areas of monetary cooperation, a press release from the Ministry of Foreign Affairs and Trade said yesterday. Under the MoU, AMBD and MAS will cooperate on capital market development and capacity building, as well as the exchange of best practices,
(xi) Brunei moves up in Network Readiness Index
Brunei went up an overall of 12 ranks to 45th place in the global Info-communications technology indicators, according to a report by the World Economic Forum.
The World Economic Forum’s Networked Readiness Index (NRI) 2014 was published with its Global Information Technology Report. The index measures the inclination of countries to exploit opportunities offered by information and communications technology.
Brunei went up from 57th out of 144 countries in NRI 2013, to 45th out of 148 countries in the NRI 2014.
In comparison to its neighbours, Singapore remained ranked at 2nd place and Malaysia at 30th. Indonesia rose to 64th place from 66th in 2013, Thailand rose to 67th place from 74th place.
(xii) Brunei-EU partnership pact planned
Preparatory work for a Partnership and Cooperation Agreement (PCA) between Brunei and the EU is under way, said the Dutch ambassador to Brunei. The lion’s share of Brunei’s foreign direct investment comes from the EU - specifically the UK and Netherlands - totalling $1.2 billion in 2011.
(xiii) Brunei to set up steel manufacturing plant
Brunei will soon have a steel pipe manufacturing facility as part of its economic diversification drive following a land lease agreement between Chinese manufacturing company Huludao City Steel Pipe Industrial Co Ltd and the Brunei Economic Development Board (BEDB).
The steel manufacturing plant will start its operations in 2017. It will have the capacity to manufacture 100,000 tonnes of welded rounding carbon steel pipes that will be used by the oil and gas sector as well as the construction industry and is estimated to bring in US$100 million worth of export revenues per annum.
Apart from an inward investment of US$50 million, the facility is expected to provide more than 300 jobs and create other potential spin-off opportunities particularly for local logistics and transportation companies. The facility will be built at the Salambigar Industrial Park.
(xiv) Brunei’s export revenues decline 10.6% in January
Brunei’s exports in January declined 10.6 percent on year to $1.3 billion, weighed down by a sharp fall in oil and gas revenues, the International Mechandise Trade Statistics (IMTS) reported yesterday.
Oil and gas account for over 90 percent of the country’s exports. The IMTS said export revenues from crude oil declined by 17.7 per cent on year to $580.3 million. Likewise, export earnings from LNG (liquefied natural gas) went down by 3.5 per cent on year to $691.6 million.
More than 30 percent of Brunei’s exports, valued at $413.5 million, went to Japan. South Korea accounted for 17.8 per cent share of exports, amounting to $232 million. Indonesia accounted for 12.9 per cent share, valued at $168.8 million. Other key export markets include Malaysia, India, Australia and Taiwan.
(xv) Brunei among world’s richest countries: ICP Data Brunei is among the world’s richest countries, with its per capita GDP (gross domestic product) hitting over US$70,000.
The International Comparison Program (ICP) reported yesterday that Brunei, Qatar, Macao, Luxembourg and Kuwait are the world’s richest economies as measured by their per capita GDP.
Source: Commercial Section, Embassy of India, Bandar Seri Begawan
