Interview with Daniel Leong, Acting CEO, Brunei Economic Development Board (BEDB)

08 Dec Interview with Daniel Leong, Acting CEO, Brunei Economic Development Board (BEDB)

Can you describe Brunei’s current goals under its Economic Blueprint?
Introduced in 2020, the Ministry of Finance and Economy’s Economic Blueprint has guided Brunei’s diversification efforts under the larger Wawasan Brunei 2035 initiative that seeks to build a dynamic and sustainable economy. This whole-of-nation blueprint provides a clear focus with five identified priority sectors, each supported by a detailed industrial masterplan that outlines specific opportunities, strategies and pathways for growth. These frameworks were developed through collaboration with the government and private sector stakeholders to ensure a coordinated approach to economic transformation.

The first priority sector is Brunei’s downstream oil and gas sector. We aim to transform Brunei into a regional chemical hub by diversifying from raw resource exports to value-added products. The plan involves utilizing existing feedstock for petrochemical production, prioritizing energy transition projects and incorporating renewable energy initiatives. The second priority sector is our food industry. We aim to ensure domestic food security while positioning Brunei as a global halal food hub. This will be achieved by developing high-tech aquaculture and agriculture segments, diversifying our species and food products and leveraging Brunei’s halal certification for export markets. Our third priority sector is the services industry; we want to establish Brunei as a logistics and services hub within the Association of Southeast Asian Nations (ASEAN) region. This will involve expanding aviation and maritime infrastructure to support trade and manufacturing clusters, promoting transshipment and logistics activities and enhancing Brunei’s competitiveness in global supply chains.

We are also prioritizing the development of our information and communication technology (ICT) industry with a focus on building an export-driven digital economy powered by innovation. We will leverage Brunei’s advanced infrastructure — including 5G networks and high-speed broadband — to attract emerging tech companies and foster a tech-driven ecosystem. Our final priority sector is tourism. We aim to position Brunei as a prime eco-tourism and wellness destination by capitalizing on our pristine rainforests, biodiversity and current tourism assets while developing eco-resorts, wellness retreats and an attractive adventure tourism segment.

Why is Brunei considered a prime destination for foreign direct investment (FDI) in 2024?
As global FDI inflows and trade rebound after the pandemic, Brunei is positioning itself as a highly viable Southeast Asian base for investors seeking a launchpad into the ASEAN region and beyond. Our targeted approach focuses on attracting investments into our five priority sectors. Investment in Brunei can also be pioneering; we aim to allow new entrants to establish innovative businesses while synergizing with existing players to integrate into our key industries’ value chains. This collaborative approach will foster efficient and mutually beneficial growth and leverage local expertise and resources to enrich Brunei’s economic landscape.

Brunei’s strategic location within the ASEAN region provides a natural gateway to regional and global markets. With air connectivity to 18 countries and access to major ASEAN cities in under three and a half hours, investors can benefit from a market of more than 3 billion consumers through Brunei’s participation in 10 free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and Regional Comprehensive Economic Partnership. These agreements enhance export opportunities through tariff reductions and streamlined trade regulations. The country offers a highly attractive business environment, with no personal income tax, no capital gains tax and a competitive corporate tax rate of 18.5%; 100% foreign ownership in many sectors for better flexibility and control; a regulatory framework based on English common law that ensures transparency and is familiar to international businesses; and an English-proficient workforce, with English being the medium of instruction in schools and widely used in social, business and legal settings. Additionally, Brunei stands out environmentally with 70% of its land covered in pristine rainforests. It has no history of major natural disasters, making it a clean, green and stable site for long-term operations. Our net-zero carbon emissions target by 2050 under our Brunei Darussalam National Climate Change Policy further reinforces the country’s commitment to sustainability. Brunei’s government actively supports foreign investments, offering co-investment opportunities to ensure stakeholder alignment and shared success.

Brunei Economic Development Board (BEDB) provides dedicated relationship management through its Investors’ Concierge service, which assists investors with feasibility studies, licensing and integration into local value chains. BEDB also manages purpose-built industrial sites to streamline operations for incoming FDI. We have implemented various outreach campaigns through different regional media platforms to increase awareness of Brunei as a compelling investment destination, highlighting success stories and opportunities across the country’s priority sectors. BEDB participates in and organizes investment promotion events. Recently, we hosted the Brunei-India Investment Seminar in Chennai, which coincided with the restoration of direct air flights between Brunei and India. This seminar generated significant interest, leading to a reciprocal visit by Indian businesses to Brunei to explore investment opportunities firsthand. Earlier in November 2024, Brunei also welcomed a UK trade mission as one of several delegations from different countries this year, reflecting growing international interest in investment opportunities within Brunei.

What initiatives has BEDB launched to help local micro-, small and medium-sized enterprises (MSMEs) successfully scale and contribute to economic diversification?
MSMEs play a pivotal role in Brunei’s diversification efforts by generating employment, fostering innovation and increasing local participation in the economy through competitive products and services. Our strategy is to enhance the competitiveness of MSMEs at various stages of their business lifecycle across different sectors and business models. This includes early-stage micro-sized enterprises, startups, companies with significant local presence or established chains and businesses already exporting or with the potential to expand into international markets. To achieve this, Darussalam Enterprise (DARe) offers a range of targeted programs and support that evolve based on a business’s development stage and growth potential. These include fundamental and specialized training courses, market access initiatives and financing options.

Over the next five years, our core focus is elevating local enterprises from having export potential to becoming export-ready and entering overseas markets. Specific initiatives to help realize this include financing options, such as co-matching grants, access to growth funds and facilitation with traditional financial institutions. We also provide consultancy services, such as guidance on obtaining international certifications and standards necessary for export. BEDB provides industrial sites, land and incubation support for scalable startups. We have developed training and mentorship programs in core business areas, including export-specific programs. We help companies participate in international trade shows and export programs for global expansion through franchising, product export and startup scaling. BEDB also aids with access to research and development to drive product innovation through collaboration with local research institutions. Another of our key support areas is dedicated relationship management through programs such as Elevate and MiniCorn, which provide in-depth business reviews and growth strategy execution.

Recognizing the need for an innovation platform, the Brunei Innovation Lab (BIL) was established in 2022 through a strategic founding partnership between Brunei Shell Petroleum, Shell LiveWIRE Brunei, DST Digital and DARe. This cooperation exemplifies Brunei’s collaborative approach to fostering innovation and entrepreneurship. Since its establishment, BIL has organized nearly 80 innovation-focused activities, attracted more than 1,411 participants and generated 53 new solutions through Brunei’s largest hackathons under Innovate Challenge and Startup 673. These initiatives have supported the creation of 15 startups currently prototyping and commercializing digital solutions for key industry players. Over the next five years, we will continue to elevate local enterprises from having the potential to export to actively exporting. We aim to position these entities as contributing members of Brunei’s economic diversification and key drivers of its sustainable growth.

What steps has BEDB taken to promote Brunei as an ideal launchpad for new digital technologies?
Brunei’s digitalization has significantly improved through its Digital Economy Masterplan 2025. The program has implemented several key projects to widen digital access for the population and set the stage for further digitalization and innovation. The rollout of 5G in 2023 and high-speed broadband connectivity available in all districts has driven Brunei’s internet penetration rate to one of the highest in the world. This infrastructure provides a strong platform to develop our ICT sector, with BEDB’s focus on developing local enterprises and attracting FDI in digital and technology-driven activities. Under BIL, we are starting to see a growing pool of startups with solutions utilizing new digital technologies to solve industrial challenges, with other digital-based startups within our ecosystem also showing potential for overseas expansion. BEDB has designated industrial parks for ICT-driven industries. This includes the Anggerek Desa Tech Park, which serves as a hub for Brunei’s leading ICT and telecommunications companies. The park houses the iCentre, Brunei’s leading startup incubation space, which fosters synergies with established corporations and startups to accelerate innovation and drive growth in the digital sector.

A notable example of FDI in the ICT sector is EVYD Technology whose mobile application BruHealth played a critical role in Brunei’s COVID-19 response by enabling contact tracing and real-time updates. Since then, BruHealth has evolved into a comprehensive digital health platform in collaboration with the Ministry of Health. The app now allows residents to access personal health records, schedule online consultations and book appointments. It also promotes healthier lifestyles through activity tracking and community fitness challenges, with initiatives like the Billion Steps Together campaign fostering nationwide engagement in preventive health and wellness.

How important are sustainability and environmental consciousness under Brunei’s Vision 2035 program?
Sustainability is a core focus of the nation’s development goals under Brunei’s Vision 2035 and Brunei Darussalam National Climate Change Policy. The country has aligned with global efforts to address climate change by pledging to reduce carbon emissions by 20% by 2030 and achieve net-zero status by 2050. Industrial developments are carefully planned using cluster-based approaches to optimize land use, enhance operational efficiencies and minimize environmental impact. A notable example is Hengyi Industries, a leading FDI in Brunei’s downstream oil and gas sector that recently launched a significant solar power initiative for its refinery and petrochemical complex. Split into three phases, the project is expected to generate up to 476 MW, marking a major step towards renewable energy adoption.

This initiative underscores Brunei’s potential for solar energy and its broader commitment to the renewable energy transition. The country’s green investment landscape is rapidly strengthening as other public and private solar projects are being developed. Brunei has also contributed to other renewable energy efforts, including hosting the world’s first global hydrogen supply demonstration project at Sungai Liang Industrial Park. This project successfully produced hydrogen for export to Japan, showcasing Brunei’s capacity as a base for research and development in renewable energy and as a hub for exploring scalable solutions in the global green transition. By fostering innovative technologies and sustainable partnerships, the nation is working to build a resilient and environmentally conscious economy in line with its long-term vision.

What specific targets has BEDB set for itself under its current strategy?
Our organization’s vision for a resilient and diversified economy closely aligns with Brunei’s Economic Blueprint and Vision 2035 initiative. We have three strategic core functions: attracting and facilitating impactful investments from both foreign and domestic sources to create jobs and generate spin-off opportunities for local enterprises; developing and managing industrial sites across Brunei that house MSMEs and support FDI to provide a supportive environment for enterprises and investors alike; and providing support and resources to enterprises of all sizes to foster innovation and growth. Key initiatives in 2024 include facilitating several new investment projects within our priority sectors with a focus on sustainable and high-impact ventures; upgrading key industrial parks to meet current and future tenant requirements; enhancing local product standards, market access and export strategies to enable more enterprises to reach international markets; and expanding financing, capacity-building programs and revenue-generation opportunities for local businesses within the ecosystem. BEDB remains committed to driving economic growth and supporting Brunei’s long-term vision of building a dynamic, sustainable and globally connected economy.