Interview with Ti Eng Hui, CEO, Baiduri Bank, Chairman, Brunei Association of Banks (BAB)

13 Dec Interview with Ti Eng Hui, CEO, Baiduri Bank, Chairman, Brunei Association of Banks (BAB)

What is driving growth in Brunei’s financial services sector and what challenges are local players facing?

Brunei is a small country, but its banking system is highly liquid and well-capitalized. This provides resilience to withstand economic pressures and supports domestic and international investments. With strong backing from regulators and the central bank, Brunei navigated the challenges of COVID-19 effectively. The banking sector emerged stronger and more profitable, showcasing the system’s robustness and the collaborative efforts of regulators, the government and other stakeholders. This united approach ensured support for people, businesses and the broader economy during the pandemic, and drove recovery and growth in the following years.

What makes Brunei an attractive destination for foreign direct investment (FDI)?

Brunei has made progress with its diversification. It has reduced reliance on oil and gas, and its strategic location with no capital controls makes it attractive to investors. The Brunei dollar’s 1:1 exchange with the Singapore dollar and stable political environment ensure investor confidence. The country also provides significant opportunities based on its abundant airspace, land and sea resources. Brunei offers tariff-free access to the Association of Southeast Asian Nations and global markets as a signatory to trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, making it an ideal regional expansion gateway. The nation also boasts a well-educated workforce, a welcoming stance on foreign expertise and excellent infrastructure for families, including quality education and a peaceful environment. Brunei’s open-door policy and government support also enhance its appeal to investors and expats. We welcome foreign investors to come and explore Brunei — a wonderful country with so much to offer. Brunei is truly worth discovering.

Could you give an overview of Baiduri Bank’s size and scope in 2024?

The bank began as a corporate bank in 1994 and expanded its activities in 1996 when I joined to establish the retail banking division. We celebrate our 30th anniversary this year. We have grown significantly over the years, adding Baiduri Finance, which specializes in vehicle financing, and Baiduri Capitals, which offers securities trading. Today, we are Brunei’s largest conventional bank and the second largest overall, with a strong presence in corporate, retail and consumer finance segments. We are proud of our achievements and are supported by our customers, shareholders and board. We actively finance FDI and contribute to all major business sectors in Brunei.

How would you assess the talent level in Brunei’s financial services sector?

Brunei emphasizes upskilling bankers through initiatives like BILIF, the center of excellence for the finance industry in the country under the purview of Brunei Darussalam Central Bank. Proximity to financial hubs such as Singapore and Hong Kong enables access to conferences, courses and learning opportunities. The presence of international banks in Brunei also fosters regular knowledge exchange. While Brunei boasts strong local talent, segments like information technology (IT) and compliance require expatriate expertise. These professionals contribute to the local ecosystem and train local teams to build sustainable knowledge. Brunei is an excellent place to work and raise a family; it appeals to expatriates and locals alike due to its peaceful environment and easy access to major cities.

How have local banks responded to the need to digitize operations and products?

Brunei has significantly advanced its IT infrastructure over the past decade and is now well-positioned for digital transformation. With the rollout of 5G and widespread cloud access, banks like Baiduri Bank have adopted cloud-based core banking systems to enable faster implementation and reduce reliance on in-house IT teams. Baiduri Bank has also embraced artificial intelligence. We use chatbots, credit modeling and intelligent automation to streamline back-office operations. These advancements enhance efficiency, speed to market and adaptability. The bank now leverages cutting-edge banking solutions and continues scaling with emerging technologies.

What next steps are necessary to achieve the bank’s current 2025 targets?

Traditionally, Brunei’s banks focused on financing imports due to the country’s reliance on them, with exports largely limited to the oil and gas sector. However, with the growth of downstream industries, banks like Baiduri Bank are increasingly financing exports. We are also investing in people and technology to support project financing for government infrastructure initiatives and new FDI. With a highly liquid and well-capitalized banking system, we remain committed to supporting Brunei’s market while exploring opportunities beyond its borders.

Banks in Brunei naturally view Singapore as the first country to expand into because of the currency interchangeability. Baiduri Bank is set to open its first representative office in Singapore by early 2025, marking a significant milestone as we expand beyond Brunei. The decision, approved by our board and the Monetary Authority of Singapore, leverages the currency interchangeability between the two nations. Over the past year, we have participated in syndicated deals with Singapore-based banks, gained valuable experience and built partnerships. Our strategy emphasizes collaboration with local and established foreign banks to ensure a safe and informed entry into new markets. We aim to expand beyond Singapore through a measured and collaborative approach.