The Wealth Of Brunei: Economic Insights And Opportunities

what income brunei have

Brunei is a small but wealthy country in Southeast Asia, with a high standard of living. Its economy is almost entirely dependent on the export of its vast reserves of oil and natural gas, which account for 60% of its GDP and over 90% of exports. The country also has substantial revenue from the government's overseas investments, which supplements income from domestic production. This has allowed Brunei to provide its citizens with one of the highest per capita incomes in Asia, as well as free education, free medical care, and subsidised housing. However, the country's reliance on a single commodity that is subject to market fluctuations has led to efforts to diversify the economy, with the government encouraging foreign investment and promoting sectors such as agriculture, fisheries, tourism, and financial services.

Characteristics Values
Average Income 31,410 USD in 2019
Average Income Ranking 19th out of 189 countries
Median Income 2,870 BND per month in 2020
Average Income by Gender Men: 65,941 BND per year; Women: 41,479 BND per year in 2020
Average Income by Education Below High School: 71,259 BND per year; High School: 38,435 BND per year; Bachelors Degree: 54,948 BND per year; Masters Degree: 78,133 BND per year; Doctorate Degree: 82,692 BND per year in 2020
Average Income by Occupation Automobile: 137,732 BND per year; Sales: 122,178 BND per year; Engineers & Technicians V: 115,000 BND per year; Management & Business: 97,519 BND per year in 2020
GDP 31,104,606,429 (2022)
GDP Per Capita 69,275 (2022)
GDP Composition Crude oil and natural gas: 60%; Petroleum refining: 53.5%; Liquefied natural gas: 53.5%; Construction: 53.5%
Exports 14,411,067,914 (2022)
Exports by Sector Mineral fuels, chemicals, and machinery and transport equipment
Imports 10,106,440,761 (2022)
Imports by Sector Machinery and transport equipment, manufactured goods, and food

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Income from oil and gas

Brunei's economy is almost entirely dependent on the oil and gas industry, which generates more than half of the country's GDP. The country is the third-largest oil producer in Southeast Asia, averaging about 180,000 barrels per day, and the ninth-largest producer of liquefied natural gas in the world. The oil and gas sector is dominated by Brunei Shell Petroleum (BSP), a joint venture between the Brunei government and the Royal Dutch/Shell group, which is the largest oil producer in the country and contributes around 90% of oil and gas revenues.

The history of the oil industry in Brunei began in 1899 when the first exploration well was drilled near the capital, Brunei Town. This was followed by the discovery of the Seria field in the Belait District in 1929, and the country's first oil export in 1932. Oil production peaked in 1979 at over 240,000 barrels per day, but has since been cut back to extend the life of reserves and improve recovery rates. Today, petroleum production averages around 200,000 barrels per day, with Japan, South Korea, Taiwan, and ASEAN countries among the main customers.

Brunei's natural gas industry also plays a significant role, with almost all of the country's natural gas being 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, making Brunei the fourth-largest exporter of LNG in the Asia-Pacific region. The country's proven oil and gas reserves are expected to last until at least 2035.

The oil and gas industry is crucial for the country's economy, providing substantial revenue for the government and contributing significantly to the country's growth and development. The energy sector, including oil and gas, accounted for 64.7% of the country's GDP in 2022. However, the government has recognised the need to diversify the economy away from oil and gas to reduce dependence on a single commodity and ensure long-term economic stability.

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Income from overseas investment

Brunei's economy is largely dependent on the income from its oil and gas industry, which contributes about 50% of the country's GDP. However, substantial revenue from overseas investment supplements income from domestic hydrocarbon production. The Brunei Investment Agency (BIA), an arm of the Ministry of Finance and Economy, manages the country's substantial foreign reserves. BIA's guiding principle is to increase the real value of Brunei's foreign reserves while pursuing a diverse investment strategy, with holdings in the United States, Japan, Western Europe, and the Association of Southeast Asian Nations (ASEAN) countries.

The BIA's activities are not publicly disclosed, and the total investment amount is not available due to a strict policy of secrecy. However, it is believed that the majority of sovereign wealth funds are invested in foreign portfolio investments and real estate. Despite the lack of transparency, the funds are generally viewed positively and are managed well by the BIA.

The income from overseas investment, along with revenue from the petroleum sector, has allowed Brunei to provide its citizens with a high per capita income, generous welfare benefits, and subsidies. Citizens are not required to pay taxes and have access to free education, medical services, and subsidized housing and car fuel.

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Income tax

Brunei has one of the smallest number of taxes in Asia. Notably, there is no personal income tax, export tax, payroll tax, or manufacturing tax. This is made possible by the country's hydrocarbon assets, which form the backbone of its economy, contributing to 60% of its GDP.

However, businesses in Brunei are subject to corporate income tax and, in some cases, withholding tax. The corporate income tax rate is 18.5%, and all limited companies registered in Brunei or overseas, or registered as a foreign branch in Brunei, are subject to local taxes on income derived from Brunei.

The withholding tax applies to non-resident companies, which must pay rates between 2.5% and 10%. This tax does not apply to resident companies, which are defined as those managed and controlled in Brunei.

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Income and standard of living

Brunei is a small but wealthy country in Southeast Asia, with a high standard of living. Its economy is almost entirely dependent on the export of crude oil and natural gas, which make up 80% of its exports and 53.5% of its GDP. The country also has substantial revenue from overseas investment, which supplements income from domestic production. This has allowed the state to provide its citizens with one of the highest per capita incomes in Asia.

The average income in Brunei was 31,410 USD in 2019, according to the World Bank, which is equivalent to 2,620 BND per month. This makes Brunei one of the richest countries in the world, ranking 19th out of 189 countries in terms of average income. However, the median income in 2020 was 2,870 BND per month, suggesting some income inequality.

The income in Brunei varies depending on gender, education, and occupation. In 2020, the average income for men was 65,941 BND per year, while for women, it was 41,479 BND per year. This means that men earned 59% more than women, a higher gender pay gap than the global average of 16%. Income also increases with education level, with the exception of those with below a high school education, who may be working in specialised fields. Occupations with the highest average incomes are related to the automobile and sales sectors, while the lowest-paying jobs are in education and IT.

Brunei's citizens pay no taxes and receive free education, free medical care, and subsidised housing. The government has a policy of encouraging foreign investment and is working to diversify the economy away from oil and gas, although this has had limited success so far.

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Income and gender

Brunei is a small but wealthy country in Southeast Asia, with a high standard of living. Its economy is almost entirely dependent on the export of its vast reserves of petroleum and natural gas. The revenue from these exports has allowed Brunei to give its citizens one of the highest per capita incomes in Asia. However, this reliance on a single commodity, which is subject to market fluctuations, has also created economic uncertainty and instability.

The average income in Brunei was 31,410 USD in 2019, according to the World Bank, which is equivalent to 2,620 BND per month. This makes Brunei one of the richest countries in the world, ranking 19th out of 189 countries in terms of average income. However, the average income does not tell the whole story, as it can be skewed by outliers. The median income in Brunei, which is more representative of the typical income, was 2,870 BND per month in 2020. This suggests that there is some income inequality in Brunei, with a significant portion of the population earning much less than the average.

One factor that influences the income gap in Brunei is gender. According to the Salary Explorer website, the average income for men in Brunei was 65,941 BND per year in 2020, while the average income for women was 41,479 BND per year. This means that men earned 59% more than women, a much higher gender pay gap than the global average of 16% in 2020. This gap may be due to various factors, such as discrimination, social norms, occupational segregation, and work-life balance. For example, women in Brunei may face barriers in accessing education and career opportunities, or they may be expected to take on more unpaid domestic and care work, limiting their time and availability for paid work. Additionally, women may be concentrated in lower-paying sectors such as education, health, and service, while men dominate higher-paying sectors like engineering, management, and finance.

The gender pay gap in Brunei is a significant issue that needs to be addressed. The country's high per capita income is not evenly distributed, and women are earning significantly less than men. This inequality may have negative consequences for the country's social cohesion and economic development.

To promote gender equality and reduce the pay gap, Brunei could focus on addressing the underlying causes of the disparity. This may include implementing policies and programs that promote equal access to education and career opportunities for women, as well as measures to support work-life balance and reduce occupational segregation. By empowering women and ensuring their equal participation in the workforce, Brunei can take steps towards a more equitable and prosperous future for all its citizens.

Frequently asked questions

According to the World Bank, the average income in Brunei was $31,410 USD in 2019, which is equivalent to $2,620 BND per month. This makes Brunei one of the richest countries in the world, ranking 19th out of 189 countries in terms of average income.

According to the Salary Explorer website, the average income for men in Brunei was $65,941 BND per year in 2020, while the average income for women was $41,479 BND per year. This means that men earned 59% more than women on average, which is a significant difference.

The average income in Brunei is much higher than most of its neighbouring countries in Southeast Asia, such as Malaysia, Thailand, Indonesia, Vietnam, and Cambodia. However, the average income in Brunei is also much lower than some developed countries, such as Luxembourg, Switzerland, Norway, the United States, and Singapore.

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