Brunei's Business Climate: Companies Operating Within

Brunei is a small, energy-rich country located on the north coast of Borneo in Southeast Asia. The country has a well-educated, largely English-speaking population, excellent infrastructure, and a stable political climate. Its economy is supported by exports of crude oil and natural gas, with revenues from the petroleum sector accounting for over half of its GDP. Brunei has the second-highest Human Development Index (HDI) among Southeast Asian nations and is classified as a 'developed country' by the United Nations. The country has taken steps to attract foreign investment and has implemented policies to streamline the process of establishing businesses. Notable companies operating in Brunei include Royal Brunei Airlines, Brunei Energy Services and Trading, and the Brunei Investment Agency.

Brunei's top brands on Instagram

Brunei has a host of popular brands on Instagram, with a total of 539 top brands on the platform in the country. Here is a list of some of the top brands in Brunei with a significant Instagram presence:

• Borneo Bulletin: Ranked as the most popular brand in Brunei, with 202,025 followers and an average engagement rate of 0.35.
• Royal Brunei Airlines: Coming in at second place, this brand has an average engagement rate of 1.10 and 133,165 followers.
• Media Permata: Ranked third, with an average engagement rate of 0.30 and 121,626 followers.
• Melati Hj. Abd. Ghani: This brand ranks fourth on the list.
• The Coffee Bean & Tea Leaf Brunei: With 112,544 followers, this brand is a top performer in the Food category.
• JerudongPark: Focusing on outdoor activities and politics.
• Jollibee Brunei: A popular food and beverage brand in Brunei.
• Pizza Hut Brunei: Another well-known food and beverage brand with a presence in the country.
• KFC Brunei: KFC has a strong following in Brunei, with a focus on food and news.
• KRISTALfm: This brand caters to entertainment, music, news, and DJ producers.
• Times Cineplex: A brand associated with entertainment and food.
• Starbucks Brunei: With 112,544 followers, Starbucks is a prominent food and beverage brand in Brunei.
• Brunei Heritage by Dr Rozan Yunos: Showcasing Brunei's heritage and culture.
• Burger King Brunei: Another popular fast-food brand in the country.
• Gong Cha Brunei: A well-known brand for tea and beverages.
• Yasmieenzara Boutique: This brand combines video games and fashion styling.
• Mumtaz: A brand focused on fashion and health services, particularly tudung and hijab.
• Baiduri Bank Group: Providing financial services in Brunei.
• Dairy Queen Brunei: A popular dessert and food brand.
• The Kabin Cafe Steamboat & Grill: Combining food and music.
• Wear It!: A fashion and modelling brand in Brunei.
• THE INTERIOR LABS BY HRB (WAF GROUP): Focusing on home renovations and interior design.
• A face & body place: A beauty parlour offering skincare and cosmetic services.
• Majestic Wings: A brand dedicated to fashion and menswear.
• Bake Culture Brunei: Showcasing the art of baking and pastry.
• KOFTA DIVA: A brand with a unique name in the fashion space.
• Freme Holidays: Assisting with travel and holiday planning.
• Happy Buy: A brand catering to modern moms and babies.
• Victory Athletes: Combining sports, fashion, health, and food.
• Anazahra Restaurant: Showcasing culinary delights.
• Saadeddin Pastry Brunei: Another brand focused on pastries and desserts.
• Toys'R'Us Brunei: Providing toys and entertainment for children.
• The Avant Garde Co.: A brand in the beauty and cosmetics space.

Brunei's oil and gas industry

Brunei's economy has been dominated by the oil and gas industries for over 90 years. The country's first exploration well was drilled near the capital, Brunei Town (now Bandar Seri Begawan), in 1899. This was followed by the discovery of the Seria field in the Belait District in 1929, leading to a series of commercial discoveries. By 1932, Brunei was exporting oil.

Brunei Shell Petroleum (BSP), a joint venture between the Brunei Government and the Royal Dutch/Shell group, is the country's primary oil and gas production company and operates the nation's sole refinery. It is the largest oil producer in Brunei, contributing around 90% of the country's oil and gas revenues.

Brunei's oil production peaked in 1979 at over 240,000 barrels per day. Since then, production has been deliberately reduced to extend the life of reserves and improve recovery rates. As of 2015, Brunei's proven oil and gas reserves are expected to last until at least 2035.

Brunei is the third-largest oil producer in Southeast Asia, with an average daily production of about 180,000 barrels. It is also the ninth-largest producer of liquefied natural gas (LNG) globally. Almost all of Brunei's natural gas is liquefied at the Brunei LNG plant, which opened in 1972 and is one of the world's largest LNG plants. Over 82% of the LNG produced is sold to Japan under a long-term agreement.

The oil and gas industry is the main contributor to Brunei's growth, comprising 64.7% of the country's GDP in 2022. The country has made significant investments in expanding its downstream industries to diversify its product portfolio in the oil and gas value chain.

Brunei Energy Services and Trading Sdn Bhd (BEST), established in 2012, is another key player in the oil and gas sector. It was previously a subsidiary of the Brunei National Petroleum Company, PetroleumBRUNEI, which was created to build domestic upstream, midstream, and downstream capacity.

PetroleumBRUNEI has also ventured into international projects, such as a joint venture with the Chinese National Offshore Oil Corporation and a collaboration with the Malaysian oil company, Petronas, to build a natural gas liquefaction plant in Canada.

Foreign companies in Brunei

Foreign companies can operate in Brunei in several ways, including as a local company, a branch of a foreign company, or in one of the country's free trade zones. Here is an overview of the different options for foreign companies in Brunei:

Local Companies

Foreign companies can incorporate as local companies in Brunei. The Companies Act (Cap 39) governs the incorporation of companies in Brunei, and there are four types of companies that can be incorporated:

• Companies limited by shares
• Companies limited by guarantee
• Companies limited by both shares and guarantee
• Unlimited companies

These companies may be either private or public. A private company must restrict the transfer of shares, limit its membership to fifty, and prohibit invitations to the public to subscribe to shares or debentures. A public company may issue freely transferable shares to the public and is not bound by the restrictions of a private company.

At least half of the directors in both private and public companies must be Brunei citizens or permanent residents. Public companies must have at least seven shareholders, while private companies must have at least two. Shareholders do not need to be citizens or residents of Brunei, and a subsidiary company may hold shares in its parent company.

All companies must appoint auditors and submit annual returns and tax returns to the relevant authorities.

Branch of a Foreign Company

Foreign companies that wish to establish a business in Brunei but do not want to incorporate as a local company can register as a branch. The branch must have a registered office in Brunei and appoint a local agent. Registered branches have the same powers and authority as local companies.

Branches of foreign companies must file a copy of their head office's annual financial accounts with the Registrar of Companies and prepare branch accounts for tax computation. They are subject to a corporate tax of 30% on gross yearly profits.

Free Trade Zones

Foreigners can register limited liability companies in Brunei's free trade zone, the Pulau Muara Besar Free Trade Zone. Companies in this zone can benefit from up to 15 years of tax holidays. These companies typically engage in repackaging or light manufacturing activities for products that are then re-exported to neighbouring countries like Malaysia, Indonesia, the Philippines, and Singapore.

Brunei's banks

The top Islamic bank in Brunei is Bank Islam Brunei Darussalam (BIBD), the nation's largest bank and premiere Islamic financial institution. BIBD was formed in 2005 through the merger of the Islamic Development Bank of Brunei and the Islamic Bank of Brunei. It provides a range of services, including personal and savings accounts, education and corporate financing, investment products, and insurance services.

The top conventional bank in Brunei is Baiduri Bank Berhad, which was founded in 1994 and is the most prominent bank in the country. It offers a wide range of services, including banking, automated insurance renewal, vehicle financing, treasury services, and online trading.

Other notable banks in Brunei include the Brunei Darussalam Central Bank (BDCB), Standard Chartered Bank (a foreign bank), United Overseas Bank, Bank of China, Perbadanan Tabung Amanah Islam Brunei (TAIB), and BIBD At-Tamwil.

Brunei's tourism

Tourism in Brunei is governed by the Ministry of Primary Resources and Tourism, which is planning to diversify the country's tourism to include adventure tourism, ecotourism, and Islamic tourism. The country boasts lush rainforests, majestic mosques, azure waters, vibrant streets, and a rich cultural tapestry.

Brunei Darussalam, the official name of the country, offers a wide variety of accommodations, ranging from luxurious 5-star lodgings to budget hotels. The Brunei dollar is one of the strongest currencies in the Association of Southeast Asian Nations (ASEAN) region, which can discourage tourists from visiting. Tour packages are relatively expensive compared to other countries in the region. However, tourists from outside ASEAN prefer Brunei, and the country is seeking foreign direct investment in tourism.

The capital, Bandar Seri Begawan, is home to the famous Omar Ali Saifuddien Mosque, built in the 1950s and named after the 28th sultan of Brunei. The mosque features materials sourced from around the world, including granite from China, marble from Italy, carpets from Saudi Arabia, timber from the Philippines, and chandeliers from the U.K. The mosque's domes are blanketed in gold leaf.

Brunei also offers a range of cultural, heritage, and Islamic tourism attractions, such as the Istana Nurul Iman (the palace and official residence of the Sultan), Jerudong Park, the Malay Technology Museum, the Jame'Asr Hassanil Bolkiah Mosque, and Kampong Ayer in Bandar Seri Begawan. The Oil and Gas Discovery Centre in Seria, Belait District, showcases the country's rich natural resources.

For ecotourism enthusiasts, Ulu Temburong National Park in the Temburong District offers a chance to explore pristine rainforests and discover unique flora and fauna. The country's strong currency and recent adoption of hardline Sharia law are factors that may influence a visitor's experience and perception of the country.

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