Economic diversification yet to be achieved: MIPR chief

Fitri Shahminan
BANDAR SERI BEGAWAN

Sultanate still reliant on oil and gas.

BRUNEI's efforts at diversifying its economy has yet to see success with statistics showing that the non-oil and gas industry contributed little to the Sultanate's gross domestic product (GDP) in 2011, said the minister of Industry and Primary Resources yesterday.

Efforts to diversify the economy had been included in the Second National Development Plan (RKN) of 1962-1966 and continue until today, said Yang Berhormat Pehin Orang Kaya Seri Utama Dato Seri Setia Hj Yahya Begawan Mudim Dato Paduka Hj Bakar.

Speaking during the afternoon session of the Ninth Legislative Council (LegCo), the minister played down claims from stakeholders that these efforts had been successful.

"All parties have maintained that the nation has been successful in this respect. However, I would like to clarify that if we refer to 2011 statistics, our total gross output based on current price was $20.6 billion; and $14 billion or 68 per cent of the total was contributed by the oil and gas industry," the minister said

Meanwhile, the contribution of the non-oil and gas industry was $6.6 billion, or 32 per cent of the total gross output, he added.

"Therefore, based on that statistics, and also from the fact that our efforts to diversify the economy are still included in the present RKNs, it shows that Brunei's economy is still heavily dependent on oil and gas and efforts to diversify the economy has not been successful as of yet," YB Pehin Dato Hj Yahya remarked.

He was replying to questions raised by Yang Berhormat Datin Paduka Hjh Salbiah Hj Sulaiman a LegCo representative of persons who have achieved distinction who sought clarification on what approaches were being taken by the Ministry of Industry and Primary Resources (MIPR) to encourage the growth of small and medium enterprises (SMEs) in the country.

The minister said that there were various approaches carried out by MIPR to adress problems faced by SMEs.

"If we look at the non-oil and gas industry, there are vast sectors within it including agriculture, fisheries, forestry, construction, tourism, manufacturing and so on. And each sector has its own problems and issues. In general, the one common problem faced by SMEs in the non-oil and gas industry is sustainability.

Challenges such as high production cost and competitiveness, and pressure from cheaper imported products, small and limited domestic market, comparative disadvantage (are also among these).

"Therefore, MIPR is taking a different approach by prioritising their basic needs by conducting forums, visits and dialogue session," said YB Pehin Dato Hj Yahya.

Feedback from SMEs is highly appreciated and will allow MIPR to improvise in terms of programmes and services, he added.

Other approaches include coordinating with the relevant stakeholders to address issues raised by SMEs, the minister said.

"MIPR will continue to review other improvement works with relevant parties should there be a need to do so. It is the government's hope to ensure SMEs in the country are sustainable, competitive and thriving."

The minister said that in this light, the MIPR is currently reviewing several capacity building programmes for SMEs, business incubation programmes and several financial assistance schemes.

Realising the importance of SMEs in contributing to a diverse and resilient economy, MIPR has declared the period from 2010 to 2020 as a decade to spur SME development in Brunei, YB Pehin Dato Hj Yahya said.

"The ministry's aspiration, through this declaration, is to develop and produce more SMEs that are of high quality until they are able to penetrate and be competitive in the regional, international and global markets," he said.

"This will be followed by devising strategies and programmes that will support this aspiration. A decade to spur SMEs' development for Brunei by focusing on six SME growth framework which include creating an environment conducive for businesses, entrepreneurial development, access to financial facilities, business development services and application of innovation and technology in marketing."

YB Pehin Dato Hj Yahya shared that MIPR had allocated resources on establishing cooperation with other countries for the sharing of information on SME development principles, programmes and initiatives.

MIPR also encourages private financial institutions to help carry out capacity building programmes for the SMEs, the minister said.

He pointed out that the most pressing issue at the moment is that the there "hasn't been any desperate need for the citizens and residents of Brunei to put in effort and thought to find a way to offset the oil and gas businesses which will inevitably dry up at some point.

"If this sense of urgency is not there, then all forms of advice or recommendations or ideas will not generate the expected responses."

Dipetik dari - The Brunei Times