American Businesses In Brunei: Who's Operating There?

Brunei's economy is unique, combining local and foreign investment with government regulation. The country has a small population and reserves of oil and gas, which have contributed to its status as one of the richest countries in the world. In 2022, U.S. goods and services trade with Brunei totalled an estimated $276 million. Leading U.S. companies from a cross-section of sectors have engaged with the Government of Brunei on trade and investment opportunities, and the US-ASEAN Business Council has facilitated the U.S.-ASEAN Internship Program to strengthen ties between the two countries.

US-Brunei economic relationship

The US and Brunei have a strong economic relationship, with the US being one of the top investors in Brunei. The US engages with Brunei on trade and investment issues under the 2002 Trade and Investment Framework Agreement. In 2022, US goods and services trade with Brunei totalled an estimated $276 million, with exports at $170 million and imports at $106 million. US goods exports to Brunei in 2022 were $113 million, while goods imports from Brunei totalled $90 million. The US also has a services trade surplus with Brunei, estimated at $41 million in 2022.

Brunei has a unique economy that combines local and foreign investment with government regulation. It is one of the richest countries in the world due to its small population and reserves of oil and gas. The country has one of the highest per capita GDPs in Asia, benefiting from high export earnings and foreign investment. Crude oil and gas form the basis of the country's economy, accounting for over 90% of foreign exchange earnings and 50% of GDP. Brunei has proven oil reserves of around 1.1 billion barrels and 390 million cubic metres of natural gas reserves.

The US Foreign Direct Investment (FDI) in Brunei was $3 million in 2021. US companies have shown interest in supporting Brunei's diversification efforts and promoting the country as a destination for high-value trade and investment. Leading US companies from a range of sectors, including ExxonMobil, Microsoft, Visa, and DXC Technology, have engaged with the Bruneian government to identify trade and investment opportunities. The US-ASEAN Business Council has facilitated the US-ASEAN Internship Program to match US private sector needs with ASEAN students and young professionals seeking internships in the region.

The US Embassy in Brunei provides resources and guidance to US businesses investing in Brunei and Bruneian businesses investing in the US. The Department of State offers tools and broad overviews of Brunei's business and economic conditions to help businesses make informed decisions. The US Embassy's economic and commercial team can be contacted for assistance, and various reports and publications are available for reference.

US-Brunei trade surplus

The United States and Brunei have a history of engaging in trade and investment discussions, including under the 2002 Trade and Investment Framework Agreement. According to the U.S. Census, total trade between the two countries was valued at $203.3 million in 2021. This figure increased to an estimated $276 million in 2022, with U.S. exports to Brunei totalling $170 million and imports from Brunei totalling $106 million. The U.S. goods and services trade surplus with Brunei was $63 million in 2022, a significant increase from the $22.5 million trade surplus in 2021.

U.S. goods exports to Brunei in 2022 were valued at $113 million, a 12.1% increase from 2021 but a 28% decrease from 2012 levels. On the other hand, U.S. goods imports from Brunei totalled $90 million in 2022, a substantial 429.9% increase from 2021 and a 5% increase from 2012. The U.S. goods trade surplus with Brunei was $22 million in 2022, a notable decrease of 73.1% from the previous year.

In terms of services, the United States exported an estimated $57 million worth of services to Brunei in 2022, a slight increase of 5.6% from 2021 but 17% lower than 2012 levels. Meanwhile, U.S. imports of services from Brunei were estimated at $16 million in 2022, up 14.3% from 2021 but 36% lower than a decade earlier. The leading services exported from the U.S. to Brunei were in the financial, maintenance and repair, telecommunications, computer, and information services sectors. The United States enjoyed a services trade surplus of approximately $41 million with Brunei in 2022, a modest increase of 2.5% from the previous year.

The U.S. foreign direct investment (FDI) in Brunei was last recorded at $3 million in 2021. Brunei's economy is heavily reliant on oil and gas exports, which represent 80% of the country's total exports and contribute significantly to its trade surplus with the United States.

US foreign direct investment in Brunei

The US Foreign Direct Investment (FDI) in Brunei was $3 million in 2021, the latest data available. The US engages regularly with Brunei on trade and investment issues, including under the 2002 Trade and Investment Framework Agreement. Brunei has an open economy that is favourable to foreign trade and FDI, and the country has taken steps to streamline the process for entrepreneurs and investors to establish businesses.

The US goods and services trade with Brunei totalled an estimated $276 million in 2022. Exports were $170 million, and imports were $106 million. The US goods and services trade surplus with Brunei was $63 million in 2022. US exports of services to Brunei were an estimated $57 million in 2022, and imports of services were $16 million. Leading services exports from the US to Brunei were in the financial services, maintenance and repair services, and telecommunications, computer, and information services sectors. The US had a services trade surplus of an estimated $41 million with Brunei in 2022.

The US Embassy in Brunei provides resources and guidance for US businesses looking to invest in the country, including information on the country's business and economic conditions. The US Department of State also offers tools and resources for US businesses investing in Brunei, such as broad overviews of the country's key business and economic conditions.

Brunei is a small, energy-rich sultanate on the northern coast of Borneo in Southeast Asia. The country has a well-educated, largely English-speaking population, excellent infrastructure, and a stable political climate. It is also generally sheltered from natural disasters. Brunei's central location in Southeast Asia, with good telecommunications and airline connections, business tax credits in specified sectors, and no income, sales, or export taxes make it a welcoming climate for potential investors.

Sectors offering US business opportunities in Brunei include aerospace and defence, agribusiness, construction, petrochemicals, energy and mining, environmental technologies, food processing and packaging, franchising, health technologies, information and communication, digital finance, and services.

US-Brunei trade and investment issues

The US and Brunei have a history of engaging in trade and investment discussions, including under the 2002 Trade and Investment Framework Agreement. In 2022, US goods and services trade with Brunei totalled an estimated $276 million, with exports at $170 million and imports at $106 million. US goods exports to Brunei were $113 million, while goods imports from Brunei totalled $90 million. The US trade surplus with Brunei was $63 million.

The US-ASEAN Business Council has facilitated stronger commercial ties between the two countries, with leading US companies engaging with the Government of Brunei on trade and investment opportunities. This includes companies such as ExxonMobil, Microsoft, Visa and DXC Technology. The US foreign direct investment (FDI) in Brunei was $3 million in 2021.

Brunei has a unique economy, combining local and foreign investment with government regulation. It is one of the richest countries in the world per capita due to its small population and significant reserves of oil and gas. The country's GDP growth is 0.6% per annum, with crude oil and gas accounting for over 90% of foreign exchange earnings and 50% of GDP. The volatile nature of oil prices, however, leaves Brunei's economy vulnerable to global economic trends.

To promote economic diversification, Brunei is encouraging investment in manufacturing, banking and tourism. The country has well-developed infrastructure, with an international airport and a deep-water port. English is widely used as a business and working language, and the country ranks highly for ease of doing business. These factors make Brunei an attractive destination for high-value trade and investment.

US businesses in Brunei's digital economy

The US and Brunei have a history of engaging in trade and investment issues under the 2002 Trade and Investment Framework Agreement. In 2022, US goods and services trade with Brunei totalled an estimated $276 million. The US goods and services trade surplus with Brunei was $63 million in the same year.

The US Department of State offers tools and resources for US businesses to help them understand Brunei's key business and economic conditions. The US Embassy's economic and commercial team can be contacted for assistance.

Brunei has the highest internet penetration in Southeast Asia (95% in 2021), and the 15th highest globally. The country's e-commerce industry is still in its infancy, but the government has established a Digital Economy Council to explore the potential of the digital economy. The Ministry of Transport and Info-communications published the Digital Economy Masterplan 2025, which outlines strategic plans and key projects towards developing a Smart Nation.

The Electronic Transactions Act (ETA) in Brunei is based on the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce and the Singapore Electronic Transactions Act, which draws from the US Uniform Electronic Transactions Act. The ETA aims to encourage business and consumer confidence in e-commerce and provide legal protection for both buyers and sellers.

According to an e-commerce survey, 76% of Bruneians use e-commerce to shop, bank, and pay bills. Instagram and Facebook are the most popular platforms for e-commerce.

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