Brunei Update: Brunei Darussalam Accounting Standards Effective January 1, 2018

Brunei Update | February 28, 2017
Authors: Kim Yaeger and Artha Sirait
 
LOOKING AHEAD
 
 

The Ministry of Primary Resources and Tourism is inviting proposals for several projects. Please click here for further information on produce projects and here for further information on vertical farming projects. Proposals should be submitted no later than April 4, 2017 and March 28, 2017 respectively.  

 
THE COUNCIL'S TAKE
 
 

Brunei Darussalam Accounting Standards Effective January 1, 2018

The Brunei Darussalam Accounting Standards Council (BDASC) recently announced the adoption of Brunei Darussalam Accounting Standards for all non-public interest entities, to ensure a higher level of uniformity and consistency in financial reporting in the country. The Accounting Standards are to take effect starting January 1, 2018. BDASC was established under the Ministry of Finance in 2011 based on Brunei’s Accounting Standards Order 2010 and is responsible to prescribe consistent accounting standards to improve the credibility of financial reporting in the sultanate. The period for public input on the Exposure Draft ended in December 2016. Meanwhile for publicly accountable entities, Brunei had previously adopted the International Financing Reporting Standards (IFRS) in January 2014, requiring banks, financial institutions, insurance companies, and takaful (sharia-compliant insurance) companies to comply with such standards.

Brunei – Malaysia Leaders’ Discussion on Bilateral Economy Relations

On January 31, Malaysia Deputy Prime Minister Datuk Seri Dr Ahmad Zahid bin Hamidi met with Sultan Hassanal Bolkiah on his first official visit to the sultanate since his appointment in July 2015. The two leaders discussed bilateral economy issues, touching on the Malaysia-Brunei border issues which will be further discussed in an officer-level meeting planned in March. Deputy Prime Minister Zahid stated that the meeting in March will finalize the standard operating procedures to increase the efficiency of immigration and security checks at the border, which will encourage more economic activities between the two countries. Deputy Prime Minister Zahid and the Sultan of Brunei also agreed to strengthen the long-standing friendship between the two neighbors through the June 2021 target completion of the Pan Borneo Highway, a significant infrastructure project which is expected to expand commercial ties between Brunei, and Sabah and Sarawak of Malaysia.

 
IN THIS UPDATE
 
 
Regional Affairs
Sabah, Brunei police to enhance cooperation
ASEAN Regional Workshop Ends on High Note
EU keen on pursuing trade deal with Asean

National Affairs
His Majesty Presents Letters of Credence
300 Local Jobs To Be Created By BSP
Forum looks to help F&B business grow
‘One Business Voice’ by Brunei’s Business Community
Non-Oil Growth A Priority For Brunei Darussalam 
MinCom Presents its Five-Year Strategic Plan 
MoE eyes greater collaboration with US institutions
Brunei Darussalam Year in Review 2016
Malaysia-Brunei officer-level immigration meeting planned next month
Nation should work as a whole to realise Vision 2035

Economics
Brunei should consider becoming distribution hub

Energy
Vietnam, Brunei plan energy work, aim for five-fold trade value jump by 2025

Food & Agriculture
F&B sector can boost Brunei Tourism
Local firm's Brunei fish farm to help boost food security
Project a win-win partnership for Brunei, S’pore
Brunei, S’pore join hands to build vertical aquaculture farm
Vertical Aquaculture Farm to Be Built By Brunei & Singapore
Strengthening Brunei’s export potential through agribusiness

Health & Life Sciences
MoH committed in providing cancer care

ICT
Brunei a potential hub for new biz ideas
New cable link a boost for Brunei economy

Infrastructure
China-Brunei joint venture starts operating Brunei's container terminal
ICTSI: End of Brunei contract won’t affect financial performance
Pan Borneo Highway talks with Brunei firming up

Manufacturing
New company set to boost Brunei’s diversification drive
 
ARTICLE CLIPS
 
 
Regional Affairs

Sabah, Brunei police to enhance cooperation Daily Express 28th Feb 2017
Sabah police will be working closely with their counterparts in Brunei to address transborder security issues on land and at sea. This includes sharing information related to security issues through an electronic system which acts as a platform for this purpose.

ASEAN Regional Workshop Ends on High Note BruDirect 13th Feb 2017
Competition law enforcement instils 'good governance', fair and honest business dealings and compete on merits, which are key towards greater productivity and healthy economic growth. This Observation was made by Dr Hajah May Faezah binti Haji Ahmad Ariffin, Deputy Permanent Secretary (Economy and Finance) at the Prime Minister's Office, during the closing of a three-day Asean regional workshop on Competition Economics in Practice.

EU keen on pursuing trade deal with Asean Borneo Bulletin Online 8th Feb 2017
With the future of the Trans-Pacific Partnership (TPP) becoming uncertain, a top European Union (EU) diplomat has hinted the possibility of reviving the Free Trade Agreement (FTA) talks between the EU and Asean that were suspended almost a decade ago. “The EU remains committed in its engagement with Brunei Darussalam and the region as a whole and looks forward to pursue trade liberalisation initiatives with its partners in Asean as we continuously seek ways to strike trade deals that will benefit all,” Vincent Guérend, Ambassador of the EU to Indonesia and Brunei Darussalam said yesterday.

National Affairs

His Majesty Presents Letters of Credence BruDirect 19th Feb 2017
His Majesty Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar 'Ali Saifuddien Sa'adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam, yesterday afternoon awarded Letters of Credence to Brunei Darussalam's newly-appointed ambassadors and received Letters of Credence from the newly-appointed envoys to Brunei Darussalam.

300 Local Jobs To Be Created By BSP BruDirect 14th Feb 2017
In support of Brunei Shell Petroleum Company Sdn Bhd (BSP)’s vision to be a competitive oil and gas company by 2020, it is carrying out a restructured programme to improvise its asset’s reliability and availability. BSP is working closely with Amec Foster Wheeler to work on the concept select, Front End Engineering Design (FEED), detailed design, construction, completions and commissioning, marine management, fabrication management, procurement and project management for this programme.

Forum looks to help F&B business grow Borneo Bulletin Online 13th Feb 2017
INSPIRE Magazine will be organising a half-day Food and Beverage (F&B) Forum at Radisson Hotel on February 15.The forum is designed to establish dialogues between F&B business operators in Brunei to discuss challenges, network and identify new opportunities to tackle this bustling, competitive business environment.

‘One Business Voice’ by Brunei’s Business Community BruDirect 13th Feb 2017
‘One Business Voice’, a joint consultation of chambers and business association in Brunei Darussalam was held yesterday the Design and Technology Building in Anggerek Desa. Soon Loo, Chief Executive Officer of DARe (Darussalam Enterprise) and Dr Haji Kamaruddin bin Dato Seri Paduka Haji Talib, President of the National Chamber of Commerce and Industry of Brunei Darussalam (NCCIBD) were present during the event.

Non-Oil Growth A Priority For Brunei Darussalam BruDirect 10th Feb 2017
A new report just produced by the global publishing, research and consultancy firm Oxford Business Group (OBG) provides in-depth analysis of the key industries that are leading Brunei Darussalam’s bid to boost non-oil growth. There is also detailed coverage of the developments under way in the country’s tourism sector, as the government moves to tap niche areas, including the eco and Islamic segments, and boost arrivals from promising markets, such as China.

MinCom Presents its Five-Year Strategic Plan BruDirect 10th Feb 2017
The Ministry of Communications (MinCom) in its effort to provide a better transport and communication system has structured five key areas in its Strategic Plan (2017-2022) that are still being considered and refined. This was stated by Dato Seri Setia Awang Haji Mustappa bin Haji Sirat, Minister of Communications, in a Muzakarah (lecture) session with the representatives of the MinCom and members of the Legislative Council (LegCo) yesterday, which took place at the Al-Mahabbah Meeting Room at the ministry.

MoE eyes greater collaboration with US institutions Borneo Bulletin Online 9th Feb 2017
In a volatile, uncertain, complex and ambiguous world, students need to be equipped with relevant work skills, emerging technology skills, knowledge and other competencies to succeed. Higher education institutions have a crucial responsibility in bridging the skills gap and developing talents to lead organisations in the future, and the Minister of Education foresees more collaboration between higher education institutions and technologies – between Brunei and US, in particular – to explore research and development opportunities of global future economic value so as to contribute towards realising the Brunei Vision 2035.

Brunei Darussalam Year in Review 2016 BorneoPost Online 4th Feb 2017
A combination of tighter fiscal planning, a gradual increase in hydrocarbons prices and an improved performance by some non-oil sectors saw Brunei Darussalam shake off two years of contraction and lay the foundations for stronger growth in 2017. The budget for FY16/FY17, which came into force on April 1, laid out total spending of B$5.6 billion (US$3.9 billion), US$100 million less than the previous financial year.

Malaysia-Brunei officer-level immigration meeting planned next month BorneoPost Online 31st Jan 2017
Numerous technical aspects on immigration issues between Brunei and Malaysia are expected to be scrutinised and finalised at an officer-level meeting planned for March. Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said it was hoped that the discussion could ease the business of border crossing between Brunei and Sabah and Sarawak, especially with the impending completion of the Pan Borneo Highway.

Nation should work as a whole to realise Vision 2035 Borneo Bulletin Online 31st Jan 2017
Partnership between the public sector and private sector is crucial towards successfully managing challenges brought about by recent geo-political and economic trends, and requires working effectively together as a ‘whole of nation’ to ensure Brunei Vision 2035 is realised. These points were highlighted by His Royal Highness Prince Haji Al-Muhtadee Billah ibni His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah, the Crown Prince and Senior Minister at the Prime Minister’s Office, Chairman and Sponsor of the PENGGERAK Steering Committee while delivering a sabda at the opening session of the Second Brunei Top 100 Leaders (B100) Programme yesterday.

Economics

Brunei should consider becoming distribution hub Borneo Bulletin Online 15th Feb 2017
The President of the Brunei Freight Forwarders Association (BRUFA), Thomas Koh, said the Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA) plays a vital role where Brunei could tap into and become a distribution hub in this sub-region.

Energy

Vietnam, Brunei plan energy work, aim for five-fold trade value jump by 2025 VnExpress International 28th Feb 2017
Vietnam and Brunei plan to work on oil and gas production, food processing and export-import promotion activities as they seek to boost trade by five-fold to $500 million by 2025, the Vietnamese government said. State-run Brunei National Petroleum Company Sendirian Berhad, or PetroleumBRUNEI, and state oil and gas group PetroVietnam will work together in oil and gas tapping and processing, Vietnam's Industry and Trade Ministry said in a statement, citing a deputy minister.

Food & Agriculture

F&B sector can boost Brunei Tourism Borneo Bulletin Online 16th Feb 2017
Gastronomy can play a significant role as a driver of tourism, and the government believes that the food and beverage (F&B) sector will continue to assist in efforts to create a strong diverse and sustainable economy in Brunei.

Local firm's Brunei fish farm to help boost food security The Straits Times 14th Feb 2017
In a boost for Singapore's food security, local company Apollo Aquaculture Group will be setting up a high-tech farm in Brunei in a joint venture. Mr Eric Ng, 44, group chief executive officer of Apollo Aquaculture Group, said the vertical fish-farming system will be remotely controlled and monitored from Apollo Aqua- culture's farm in Singapore.

Project a win-win partnership for Brunei, S’pore Borneo Bulletin Online 14th Feb 2017
The Minister of Primary Resources and Tourism Dato Seri Setia Awang Haji Ali bin Apong in his speech during yesterday’s signing and ground-breaking ceremony, said that it was a historic day for both Brunei and Singapore as the ceremony marked the beginning of the construction phase for the vertical land-based, bio-secured and high-density aquaculture farming in the country by KR Apollo Sdn Berhad.

Brunei, S’pore join hands to build vertical aquaculture farm Borneo Bulletin Online 14th Feb 2017
THE Minister of Primary Resources and Tourism Dato Seri Setia Awang Haji Ali bin Haji Apong and visiting Singapore Minister of State, Ministry of Trade & Industry, Ministry of Development Dr Koh Poh Koon witnessed the signing of the contract agreement for the First Vertical Land-Based Aquaculture Farm in Kampong Tungku yesterday.

Vertical Aquaculture Farm to Be Built By Brunei & Singapore BruDirect 13th Feb 2017
Dato Seri Setia Awang Haji Ali bin Haji Apong, the Minister of Primary Resources and Tourism and visiting Singapore Minister of State, Ministry of Trade & Industry, Ministry of Development Dr Koh Poh Koon signed a contract agreement for the First Vertical Land-Based Aquaculture Farm in Kampong Tungku yesterday.

Strengthening Brunei’s export potential through agribusiness Borneo Bulletin Online 3rd Feb 2017
Fifty agribusiness participants from both the government and private sectors received certificates of achievement yesterday at the closing ceremony of the Second Workshop on Facilitating Agribusiness Development in Brunei Darussalam. Held at the Horticulture Business Centre, Rimba, the event saw the Permanent Secretary at the Ministry of Primary Resources and Tourism, Dr Haji Abdul Manaf bin Haji Metussin, on hand to present the certificates, accompanied by the Australian High Commissioner to Brunei Darussalam, Nicola Rosenblum.

Health & Life Sciences

MoH committed in providing cancer care Borneo Bulletin Online 5th Feb 2017
Around 600 people in Brunei were diagnosed with cancer last year. This was stated by Dato Seri Setia Dr Awang Haji Zulkarnain bin Haji Hanafi, the Minister of Health, while delivering a speech at the World Cancer Day event held yesterday at The Brunei Cancer Centre (TBCC). “Last year, 600 people in Brunei were told that they have cancer. One in four of us will develop it at some point in our lifetime. This disease is Brunei’s biggest killer. 

Brunei a potential hub for new biz ideas Borneo Bulletin Online 7th Feb 2017
Brunei has high potential to be a hub for innovative business ideas, given its huge Internet and social media penetration, combined with a mainly English-speaking population and its central location in South-east Asia, said Soon Loo, the Managing Director and Chief Executive Officer of DARe (Darussalam Enterprise), yesterday at the conclusion of DARe’s pilot Startup Bootcamp Programme.

New cable link a boost for Brunei economy Borneo Bulletin Online 6th Feb 2017
A new international cable link recently reached Brunei’s shores, with the aim of boosting its development in the field of information and communications technology (ICT), and augmenting the country’s efforts to become a regional communication hub. Linking Labuan island to Brunei Darussalam, the 51.795 kilometre submarine fibre optic cable is the fourth international cable into Brunei. The cable’s landing points are Kiamsam, Labuan (Federal Territory) and Tungku (Brunei).

Infrastructure

China-Brunei joint venture starts operating Brunei's container terminal China Daily 24th Feb 2017
A joint venture company formed by China's Guangxi Beibu Gulf Port Group and Brunei's Darussalam Asset took over the operation of Brunei's largest container terminal on Tuesday.

ICTSI: End of Brunei contract won’t affect financial performance Business World 14th Feb 2017
ICTSI Senior Vice-President for Asia Pacific Christian R. Gonzalez said the listed port operator owned by tycoon Enrique K. Razon has very little exposure to the New Muara Container Terminal since it only has a “management contract” with the sultanate’s leading trading gateway. “Our Muara [operation], it expired already... We’re on a rolling renewal now, but I mean its a management contract so I’m not so concerned about it. If they don’t want to renew us anymore, okay lang (it’s just okay),” Mr. Gonzalez said in a recent interview.

Pan Borneo Highway talks with Brunei firming up The Star Online 8th Feb 2017
Malaysia and Brunei Darussalam are firming up their discussions on the implementation of the Pan Borneo Highway phase II project, said Works Minister Datuk Seri Fadillah Yusof. He said the Malaysian Government was currently looking into the details of the technical and financial aspects of the phase II project that would involve the construction of roads in Limbang and Lawas in northern Sarawak that border Brunei.

Manufacturing

New company set to boost Brunei’s diversification drive Borneo Bulletin Online 4th Feb 2017
Brunei Darussalam’s efforts to diversify its economy by creating new business opportunities and attracting foreign direct investments continue to show positive results. Supporting the Sultanate’s ambitious growth goals, Turkish food manufacturing company Marsa Yag Sanayi Ve Ticaret Anonim Sirketi based in Istanbul is set to open up a margarine manufacturing facility in Brunei Darussalam as part of its regional expansion plans.