Brunei steps up effort to diversify oil-based economy
AFP, Bandar Seri Begawan
Oil and gas-rich Brunei has embarked on ambitious campaign to diversify its fossil fuel-based economy in a bid to emerge as a key regional player by 2008.The move, which will primarily focus on developing two major industrial sites and importing foreign expertise to identify key growth area, is an attempt to bring the country up to speed with neighbours. Brunei, an absolute monarchy located near the northern tip of Borneo island, is the third largest oil producer in Southeast Asia after Indonesia and Malaysia. It is the world's fourth largest producer of liquefied natural gas. But despite its oil-derived wealth, the nation of 350,000 people has lagged behind in broadening economic foundations, as well as in the race to attract investments and promote trade. In resolving the problem, Brunei's first thrust is to develop downstream and manufacturing industries in addition to power supply and infrastructure at two key industrial sites -- Sungai Liang and Pulau Muara Besar. The second leg involves hiring international consultants to study the country's competitiveness to identify and priorities potential industry growth clusters that can complement the industrial zones. Strategy developer the Brunei Economic Development Board (BEDB) plans to use proven gas reserves to establish and nurture industries in Sungai Liang, with the support of a modern power plant and new export facilities. About three billion US dollars is needed to develop the site. For Pulau Muara Besar, the BEDB has engaged global consultancy firm Halcrow to explore the feasibility of building a 1.5 billion-dollar container handling port. BEDB chief executive John Perry said the study has been completed and recommendations were expected shortly. Brunei, will also explore the possibility of building other value-added services and potential industries to complement the port operation, including a free-trade zone. To bolster the second prong of its strategy, the BEDB has engaged another global consultancy, the Monitor Group, to pinpoint potential economic growth areas which Brunei can develop to supplement the industrial zone and port hub. The group's findings should focus business planning on the tourism, financial services, logistics and computer software sectors.
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