Brunei's economy is supported almost entirely by exports of crude oil and natural gas, with revenues from the petroleum sector accounting for over half of its GDP. In 2022, the country exported $14 billion worth of goods, with its top five export destinations being Australia, Japan, China, Singapore, and Malaysia. The top five exports from Brunei are refined petroleum, petroleum gas, crude petroleum, cyclic hydrocarbons, and nitrogenous fertilizers.
Characteristics | Values |
---|---|
Total exports in 2022 | $14B |
Total exports in 2023 | $11.2B |
Total exports in 2012 | N/A |
Change in exports from 2022 to 2023 | -21% |
Top 5 export products in 2022 | Petroleum oils and oils obtained from bituminou, Natural gas, liquefied, p-Xylene, Benzene, and Nitrogenous Fertilizers |
Top 5 export products in 2023 | Petroleum oils and oils from bituminous minerals, not crude; preparations, Petroleum gases and other gaseous hydrocarbons, Petroleum oils and oils obtained from bituminous minerals, crude, Cyclic hydrocarbons, and Mineral or chemical fertilisers, nitrogenous |
Top 5 export destinations in 2022 | Australia, Japan, China, Singapore, and Malaysia |
Top 5 export destinations in 2023 | Australia, Singapore, China, Japan, and Malaysia |
Export of services in 2022 | $281,547,176.70 |
Export of services in 2016 | $528M |
US exports to Brunei in 2022 | $170M |
What You'll Learn
Brunei's top export destinations
Brunei's economy is primarily supported by exports of crude oil and natural gas, with revenues from the petroleum sector accounting for over half of the country's GDP. In 2022, Brunei exported goods worth a total of $14 billion, making it the 90th largest exporter in the world. The following year, the total value of exports decreased to $11.2 billion.
The top export destinations for Brunei's exports in 2022 were:
- Australia ($2.66 billion)
- Japan ($2.32 billion)
- China ($2.19 billion)
- Singapore ($1.97 billion)
- Malaysia ($1.37 billion)
In 2023, the top export destinations by share of exports were:
- Australia (21%)
- Singapore (17%)
- China (16.6%)
- Japan (13.9%)
- Malaysia (6.83%)
These five countries were also the top import sources for Brunei in 2022 and 2023, along with the United Arab Emirates, Qatar, Kazakhstan, and the USA.
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The country's main exports
In 2022, the total value of exports from Brunei was US$14.23 billion, with the top five exported products being:
- Petroleum oils, etc. (excl. crude); preparation, worth US$5,158,794.55
- Natural gas, liquefied, worth US$3,489,574.17
- Petroleum oils and oils obtained from bituminou, worth US$2,170,259.19
- P-Xylene, worth US$1,500,005.85
- Benzene, worth US$510,560.04
In 2023, the value of merchandise exports from Brunei totalled $11.2 billion, a decrease of 21% compared to 2022. The export structure of Brunei in 2023 was as follows:
- 77% (US$8.7 billion): Mineral fuels, mineral oils, and products of their distillation
- 16.8% (US$1.89 billion): Organic chemicals
- 3.19% (US$359 million): Fertilizers
- 0.574% (US$64 million): Articles of iron or steel
- 0.414% (US$46 million): Aircraft, spacecraft, and parts thereof
While Brunei has a high per capita GDP, its economy is highly dependent on the petroleum sector, which accounts for over half of its GDP. The country has been trying to diversify its economy away from oil and gas, with limited success. Brunei's non-petroleum industries include agriculture, forestry, fishing, and banking.
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Brunei's economy
In 2022, Brunei was the world's 90th-largest economy in terms of total exports, which totalled $14 billion. The top exports were refined petroleum ($4.94 billion), petroleum gas ($3.99 billion), crude petroleum ($2.1 billion), cyclic hydrocarbons ($1.98 billion), and nitrogenous fertilizers ($241 million). The main export destinations were Australia, Japan, China, Singapore, and Malaysia.
Brunei Shell Petroleum (BSP), a joint venture between the Brunei Government and the Royal Dutch/Shell group, is the chief oil and gas production company in the country. It also operates the nation's only refinery. BSP and its sister companies are the largest employers in Brunei after the government. Almost all of the country's natural gas is liquefied at the Brunei Liquefied Natural Gas (LNG) plant, which is one of the largest in the world. Over 82% of the LNG produced is sold to Japan under a long-term agreement.
While oil and gas remain the dominant sectors, the government has made efforts to diversify the economy. Brunei's non-petroleum industries include agriculture, forestry, fishing, and banking. The government has also encouraged foreign investment, offering tax exemptions of up to five years for new enterprises that meet certain criteria.
In terms of imports, in 2022, Brunei imported $9.18 billion worth of goods. The main imports were crude petroleum ($5.05 billion), refined petroleum ($544 million), cars ($249 million), coal briquettes ($165 million), and gas turbines ($128 million). The top import partners were Malaysia, United Arab Emirates, China, Singapore, and Qatar.
Brunei's substantial foreign reserves are managed by the Brunei Investment Agency (BIA), an arm of the Ministry of Finance and Economy. The BIA aims to increase the real value of the country's foreign reserves while pursuing a diverse investment strategy, with holdings in the United States, Japan, Western Europe, and ASEAN countries.
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The impact of oil and gas exports
Oil and natural gas exports have a significant impact on Brunei's economy and society. Petroleum exports, including refined petroleum, petroleum gas, and crude petroleum, are the country's top exports, contributing to the majority of its export revenue. In 2022, Brunei exported a total of $14 billion worth of goods, with petroleum products accounting for a significant proportion. This makes Brunei the 90th largest exporter in the world.
Brunei is the third-largest oil producer in Southeast Asia and the ninth-largest producer of liquefied natural gas globally. The country's oil production peaked in 1979 at over 240,000 barrels per day and has since been deliberately cut back to extend reserves and improve recovery rates. Brunei's oil exports go to several countries, including Japan, South Korea, Taiwan, ASEAN countries, and the United States.
Natural gas is another significant export for Brunei, with almost all of it being liquefied at the Brunei Liquefied Natural Gas (LNG) plant, one of the largest in the world. Over 82% of the LNG produced is sold to Japan under a long-term agreement, making Brunei the fourth-largest exporter of LNG in the Asia-Pacific region.
While the oil and gas industry has brought significant benefits to Brunei, there are also challenges. The country's economy is highly dependent on this sector, and fluctuations in petroleum prices can create uncertainty and instability. Additionally, the government has been running a budget deficit since 1988 due to decreasing petroleum revenues and increasing spending. There are concerns about the long-term viability of oil and gas reserves, and the government has made some efforts to diversify the economy away from this sector.
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Brunei's non-petroleum exports
Brunei's economy is primarily supported by exports of crude oil and natural gas, with revenues from the petroleum sector accounting for over half of the country's GDP. However, the country has been making efforts to diversify its economy and develop non-petroleum industries. Here is an overview of Brunei's non-petroleum exports:
Agriculture and Fisheries:
The Bruneian government has placed a high priority on developing the agriculture and fisheries sectors as part of its economic diversification efforts. Eggs and chickens are produced locally, but most other food items need to be imported. In 2023, fish and other aquatic invertebrates accounted for 0.126% of Brunei's exports, while edible fruits and nuts accounted for 0.964% of imports, indicating some level of domestic production and export in these areas.
Nitrogenous Fertilizers:
Nitrogenous fertilizers are among Brunei's top exports, generating $241 million in 2022. This contributes to the country's economic complexity, with fertilizers being one of the most complex exports in terms of knowledge intensity.
Transportation Services:
In 2016, transportation services accounted for $346 million of Brunei's service exports. This sector is an important component of the country's non-petroleum exports, contributing to the overall diversification of the economy.
Halal Food and Products:
Brunei has introduced a national halal branding scheme, "Brunei Halal," which allows manufacturers in the country and abroad to use a premium trademark to access lucrative markets in countries with significant Muslim populations. This initiative is part of the government's strategy to build confidence in the brand and ensure halal integrity, thereby promoting exports that comply with Islamic teachings.
Other Non-Petroleum Exports:
Brunei also exports a variety of other non-petroleum products, including organic chemicals, acyclic alcohols, aircraft and spacecraft parts, nuclear reactors, boilers, machinery, medical instruments, electrical equipment, and works of art. These exports contribute to the country's overall economic complexity and diversification.
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Frequently asked questions
In 2023, the top export destinations for Brunei's commodities were Australia (21%), Singapore (17%), China (16.6%), Japan (13.9%), and Malaysia (6.83%).
In 2023, the main commodity groups exported from Brunei were mineral fuels, mineral oils, and products of their distillation (77%). Other groups include organic chemicals (16.8%) and mineral or chemical fertilizers (3.19%).
The value of merchandise exports from Brunei totalled $11.2 billion in 2023, a decrease of 21% compared to 2022.