Non-compliant firms to lose out

Fitri Shahminan and Rachel Thien
BANDAR SERI BEGAWAN

THE Energy Minister at the Prime Minister's Office has reiterated that the Energy Department at the Prime Minister's Office (EDPMO) is not interested to "look after" oil and gas industry players who fail to comply with either of the two Local Business Development (LBD) directives.

Yang Berhormat Pehin Datu Singamanteri Colonel (Rtd) Dato Seri Setia (Dr) Hj Mohammad Yasmin Hj Umar had, last week, warned oil and gas companies that failure to comply with the LBD Directives No 1 and No 2 would result in them losing their eligibility to contract renewals or extensions.

Of the two directives, the first is for Local Business Development, while the second is the Local Business Development Framework for the oil and gas industry.

In an interview with The Brunei Times yesterday, he lamented some instances where companies fail to provide information required by the EDPMO regarding LBD Directive No 2.

"Local companies must be transparent (in providing information)," he stressed. Pehin Dato Hj Mohd Yasmin said that all taxes due to the government must be paid and that the workforce of the companies are looked after. "How can you have a workforce without TAP (Employees Trust Fund's)," he exclaimed, before adding that it is now a criteria in awarding a tender.

"Is this the sort of things we want to happen in our country, (where) the workers are not protected. Is this the sort of things we want?"

He also said firmly that the purpose of doing business in Brunei is not solely for profit, and that companies should abide by the law and strive for business with integrity.

The minister hinted some international firms that are falling out of favour might not even get a second chance.

"We already said, comply with directives 1 and 2, then only you can have business with us. You don't comply, you don't have business with us."

The minister stressed that these companies, "who reap profit from Brunei", are also not retaining a lot of the money in Brunei.

"Why should we look after these people? Give me a good reason why should we look after these people," YB Pehin Dato Hj Mohd Yasmin said sternly.

These companies should not be protected as Brunei's Small and Medium Enterprises (SMEs) are struggling, he said, adding that there should be more focus on local SMEs and companies.

"We should be more focused on trying to give them incentives."

The energy minister also stressed that the initiatives carried out by the government, such as establishing a level playing field, stamping out corruption is integral to the country's drive for diversification.

"All we're trying to do right from the beginning, a level playing field, a system that is full of integrity... is that too much to ask?"

"We want to move on where we are, we have to be serious in terms of our commitment to diversify our economy to heed the call of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam," he said, adding that otherwise there would be no development in the sector, and that each year will see the same company bidding for all the major projects.

The minister then expressed his optimism with the presence of capable Bruneian companies.

"They are some good Bruneian companies, I have no doubt. And some of these companies had already been outside Brunei. I take this opportunity to congratulate these people, I'm happy with what they're trying to do but we need to develop more Bruneian companies," he said.

YB Pehin Dato Hj Mohd Yasmin also reminded local companies to be more transparent in giving out information required by EDPMO and to improve their communication with the department.

"Everytime we ask them on (their) commitment to taxes and their TAP system, you know some of them (would) have difficulties to reply," he said.

The minister called on SMEs to be more pro-active in this regard, highlighting that the EDPMO have established an office to cater towards local business development.

Dipetik dari - The Brunei Times