‘CIA document reveals true intention of Malaysia formation’

KOTA KINABALU: A declassified CIA document, entitled “Implications of dispute over Sarawak continental shelf”, has raised questions on the formation of Malaysia and oil and gas reserves belonging to Sabah and Sarawak.

Sarawak activist Zulfaqar Sa’adi told FMT the document had exposed the real story of what happened in 1969 when Sarawak lost its territorial waters and with it, rich natural resources to the federal government.

The five-page document was believed to have been written in the weeks leading up to the day when the Continental Shelf Act 1966 was extended to the Bornean states.

It noted that Kuala Lumpur was seen to be trying to stamp its power in order to exploit resources beyond the three-mile limit.

Zulfaqar pointed out that even though Malaya had achieved independence in 1957, the federal government only found it necessary to enact the Continental Shelf Act in 1966 after the formation of Malaysia and immediately after the secession of Singapore.

“Reading through the CIA document, it makes one wonder whether the Federation of Malaya, acting as the federal government of Malaysia, engineered the political situation from the beginning to ensure it could exploit the rich natural resources of the Bornean territories.”

He also recalled the words of Malaysia’s first prime minister Tunku Abdul Rahman who openly said he wanted Sabah and Sarawak, and at the time, Brunei, to be in the new country because the territories were resource-rich, having stated earlier “it would be good financially, they have oil”.

Based on his research, Zulfaqar said the Malayan government at the time made use of the British desperation to keep its obligations to the Bornean states and safeguard its interests in Singapore to force a merger that would include all three territories.

“I am not saying it was deliberate, but without Singapore in the picture, Malaya was free to exploit Sabah and Sarawak resources.

“Singapore would have objected vehemently to any attempt by Malaya to extend the Continental Shelf Act to the three territories.

“So after Singapore seceded, the federal government put its plan into action almost immediately.”

Nevertheless, Zulfaqar told FMT that the most poignant aspect of the document was the fact that Sarawak leaders at the time knew that Malaya’s attempt was against the agreement.

The Sarawak government, at the time under a caretaker government after Kuala Lumpur ousted Stephen Kalong Ningkan, stood firm against the attempt to extend the Act to Sabah and Sarawak.

However, Kuala Lumpur told Sarawak that it would be a democratic and wise decision to accept because Sabah had assented to it.

“The federal government also used the same excuse when they approached the Sabah government later, saying that Sabah should accept because Sarawak had already agreed to it,” he said.

The CIA document revealed that using the Malaysia Agreement, acting state attorney-general Jemuri Serjan outlined the rights of Sarawak on territorial waters, which was decreed in 1954 through an Order In Council and further established by the Oil Mining Ordinance 1958.

“He argued that Article 1 of the Malaysia Constitution, which at that time was based on the Malaysia Agreement 1963 (amended in 1976), provides the definition of the territory of Sarawak and that includes the continental shelf.

“This is new information because until today we never knew that the Sarawak government was already aware and even employed this entire legal instrument when they dealt with the federal government,” he said.

The document also noted that the Sarawak government could actually stand against Kuala Lumpur on the Continental Shelf Act 1966 and against the exploitation of the “Emergency” power to take over Sarawak’s territorial waters.

Instead, he said the Sarawak government accepted the Kuala Lumpur proposition in return for minor concessions, which a few years later was sealed through the Petroleum Development Act 1976, giving a cash payment, named “5% royalty”, to the state.

“In the end, Kuala Lumpur was able to establish its authority over the exploitation of resources beyond the three-mile limit and shamefully exploited its ‘Emergency’ powers and the weak ‘caretaker’ government of Sarawak to achieve its objective,” he said.

Zulfaqar, however, believed that with new information and declassified documents suddenly surfacing everywhere now, there was renewed enthusiasm to revisit the history of the formation of Malaysia and to make things right again.

“I am hoping that our Sarawak lawyers, who went to London recently, will uncover more information that could give us a clearer picture of the formation of Malaysia and thus help safeguard Sarawak’s rights,” he concluded.


Sumber - Free Malaysia Today

The silent claimant in the South China Sea

Brunei is often overlooked in South China Sea dispute. But Brunei has a plan.

by Oliver Ward

As the South China Sea dispute brings Southeast Asia to crisis point, one silent, often overlooked claimant is turning the situation to its advantage. The small nation of Brunei Darussalam is rarely mentioned among the biggest payers of the dispute. But, it holds a valid claim to 200 square nautical miles of the region.

Brunei prefers to whisper while other nations shout

Brunei’s claims originated in 1984, when it established an Exclusive Economic Zone (EEC) of 200 nautical miles over its continental shelf. Parts of the same region are also claimed by Malaysia, China, Taiwan and Vietnam and it includes Bombay Castle, Louisa Reef and Owen Shoal.

In 2003, Brunei protested China’s research in its waters and in 2009, Malaysia and Brunei came to an agreement over the collaboration in the exploration and exploitation for hydrocarbons in the territory. But, while other nations asserted their claims in loud international gestures, Brunei took a much quieter approach.

After this agreement, Brunei has done very little to assert its claim over the territory. They occasionally stop Vietnamese fishing boats in the sea tracts, but, there have been almost no incidents of instability or contestation in the region. Brunei does not even maintain a military presence in the disputed territory.

Why does Brunei occupy the role of a silent claimant?

Brunei does not need to shout and posture up. The reason is mutual dependence. Brunei needs China far too much to risk angering them over territorial claims. Oil resources account for 60% of Brunei’s GDP and 95% of exports. Tumbling oil prices have left Brunei searching to diversify its economy. It needs China to help it do this.

Between 2003 and 2013, exports to China increased from US$34 million to US$1.7 billion. This was due to projects like the Guangxi Beibu Gulf International Port Group Co. helped develop and manage Brunei’s major port and the establishment of the Guangxi-Brunei economic corridor. The economic corridor has led to over US$500 million in joint investment projects between Brunei and China.  The opening of the Chinese market for Brunei allows them to diversify their economy by exporting biotech and halal products to China.

On the other side, China also needs Brunei. The Chinese rely on Brunei’s oil. Chinese firm, Zhejiang Hengyi Group, has plans to construct a refinery in Brunei by 2019. The refinery will have the capacity to produce 148,000 barrels of oil a day when it is fully operational.

The region is more valuable as a method of securing trade and investment

The mutual dependency means Brunei have little need to make noise. Beijing is unlikely to bring a military presence to Brunei’s waters and the territory is far more valuable to Brunei as leverage, to promote investment and trade into the country than as a geographical territory.

China is using a tactic of chequebook diplomacy to avoid another tribunal at all costs. They intend to solve the competing claims in bilateral negotiations, which will mean big investment projects and high-value trade deals. Brunei already has oil reserves of 1.5 billion barrels and an agreement with Malaysia to exploit the 15 trillion cubic feet of natural gas beneath the sea bed. Therefore, the territory in the South China Sea is not as valuable as the deals with China it can secure in exchange for keeping quiet.

As Brunei heads towards its Wawasan Brunei 2035 economy overhaul, it needs investment in areas outside oil. The nation knows screaming its claim from the rooftops will get it nowhere with so many big players in the arena. But, whispering its claim in China’s ear will hopefully reap the rewards.


Sumber - ASEAN Today

Life after foreign labour: Why Brunei needs to get to work

Brunei’s economic growth has been one of Southeast Asia’s biggest success stories. Skilled foreign labour has driven this boom.

By John Pennington, edited by Francesca Ross

The clock is ticking for Brunei Darussalam. Gas and oil exports will not sustain their wealth forever. The economy has to be pushed to diversify or it will remain in a downward spiral.

Brunei’s GDP growth rate fell by 3.6% as of January 2017 thanks to dips in economic output in all areas. The government needs to focus on recovery but is concerned by the potential of foreign workers to disrupt this and heavily regulates their labour. As much as 40% of the workforce is recruited from overseas. Penalties for foreign workers who outstay their visas or commit crimes are severe.

Foreign workers take on low-skilled, low-paid work in the private sector, including retail and service jobs. Construction is the biggest sector employing migrants. The majority of foreign recruits come from Bangladesh, India, Indonesia, the Philippines, Malaysia, and Thailand. Meanwhile, many Bruneians take on well-paid work in the public sector.

Brunei values its foreign labour force even if it is trying to regulate it

The Brunei administration does seem to understand that foreign workers will be required to keep the country moving. It does not want to force them out entirely or scare them away. Recent developments are helping companies employ people more carefully, but also more efficiently.

The Ministry of Home Affairs announced plans to speed up the processing period for obtaining working credentials. “Under this new policy process, the application will be shortened from 41 working days to nine and it will reduce the processing procedures to seven from the previous 12.” Haji Idris bin Haji Ali, Deputy Permanent Secretary at the Ministry, said.

The security deposits that employers must pay to take on foreign workers have been reduced by the authorities. Employers recruiting workers from Cambodia, Laos, Myanmar and Vietnam now pay 25% less than they did, from US$ 900 to US$ 700. Companies have extra flexibility when paying.

The country also recognises the importance of commuting workers. Malaysian Prime Minister Najib recently confirmed that the amount of checks commuters from Sabah and Sarawak have to go through on a regular basis was being reviewed.

Diversification of the economy is essential for Brunei’s future

The problem for Brunei is not in the number of foreign workers it employs. This is a symptom. The cause is economic stagnation.

Brunei is the third-largest producer of oil in Southeast Asia and the third-biggest producer of liquefied natural gas (LNG) among ASEAN nations. The country’s economy is not exclusively reliant on gas and oil-related products, but they account for 95% of exports and are vital for growth.

Oil reserves are projected to run out by 2038 and the government has worked hard to diversify the economy. Projects have been put in place to develop opportunities in agriculture, forestry, fishing, and banking, but progress has not been easy.

Brunei’s economy took a hit when global oil prices dropped and production slowed. A shrinking economy replaced a slow-growing one. The government must now get the nation moving in the right direction again. They could do so by freezing public sector wages, cutting fuel subsidies and abandoning some major public projects, said the International Monetary Fund.

The government wants more locals to take on jobs

New reforms to employment rules intended to create local growth mean companies are expected to employ locals wherever possible. Work permits for foreign workers are only issued for short periods of time and must be continually renewed.

The problem, say entrepreneurs, is that Brunei citizens are unwilling to take on low-paid, unskilled work. This is a knock-on effect of companies opting to employ foreign workers.

“We fully support locals but it is difficult to get them to come in.” said one restaurant owner. “Out of 100 local applicants, only a few will take up jobs and in the end, we would be lucky if one or two stay.” he added.

Diversification is essential, but it will take time

Brunei’s geographic and political circumstances mean it cannot diversify its economy like some of its fellow ASEAN nations. Little can be grown in a rainforest and it will never compete with the likes of Malaysia and Thailand as a holiday destination.

Lengthy contracts to supply Asian countries with LNG are helpful and plans to drill for more reserves should be carefully and strategically managed. Diversification in the long term is essential when oil reserves will not last forever.

Wawasan Brunei 2035, the vision for a drastic overhaul of Brunei’s economy and society was supposed to tackle these issues and give young people new skills. Initial education reform targets were hit and the next stage, designed specifically to reduce Brunei’s reliance on foreign workers in the oil industry, is due to finish this year.

Does Brunei have its short-term and long-term goals mixed up?

Growth in Brunei has stagnated and higher levels of local employment would go some way to kickstarting new opportunities. Overseas workers bleed money from the economy by sending their wages back home. If this money could be kept locally then it would foster new business and the wider economy.

The question of why so many foreign workers are needed could be turned on its head: Why are Bruneians not yet ready to take on this work and boost the economy? Does the Wawasan Brunei 2035 need a reboot?

Brunei must ensure they have the right people for the job, regardless of whether they are local or not, while they have the luxury of plentiful oil reserves. Rigidly policing immigration is unlikely to be the right answer in the short term.


Sumber - ASEAN Today

Sidang MMN ditangguh

BANDAR SERI BEGAWAN, 20 Mac – Mesyuarat Pertama dari Musim Permesyuaratan ke-13 Majlis Mesyuarat Negara (MMN) menamatkan sidangnya hari ini selepas 11 hari bersidang dan seterusnya ditangguhkan ke satu tarikh yang belum ditetapkan.

Majlis turut meluluskan sebulat suara peruntukan belanjawan negara berjumlah $5.3 bilion bagi tahun kewangan 2017/2018 yang akan berkuat kuasa pada April ini. Yang Di-Pertua MMN, Yang Berhormat Pehin Orang Kaya Seri Lela Dato Seri Setia Haji Abdul Rahman bin Dato Setia Haji Mohamed Taib (gambar atas)  dalam ucapan penangguhan Persidangan MMN hari ini berkata, dalam melihat keadaan ekonomi yang mencabar sekarang, kita perlu melipatgandakan usaha dan haruslah berwaspada terutamanya terhadap harga minyak dunia yang tidak stabil umpamanya.

Dalam hubungan itu, beliau menyeru ahli-ahli MMN agar bekerjasama secara berpasukan untuk terus giat memikirkan dalam mempelbagaikan ekonomi Negara.

Sementara itu, Menteri di Jabatan Perdana Menteri dan Menteri Kewangan II, Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Haji Abdul Rahman bin Haji Ibrahim dalam ucapan penangguhannya pula berkata, dalam keadaan ekonomi negara yang terus mengalami cabaran harga minyak dan gas yang rendah, salah satu keutamaan kerajaan dalam jangka masa pendek ini ialah untuk mencapai keseimbangan fiskal.

Ke arah itu, dalam pengurusan kewangannya, kerajaan akan terus mengamalkan dasar perbelanjaan berhemah (prudent spending) dan seterusnya memastikan perbelanjaan-perbelanjaan kerajaan akan memberikan manfaat dan impak yang optimum kepada seluruh masyarakat di negara ini.

“Dalam Pembentangan Cadangan Belanjawan Tahun 2017/2018, kita telah menggariskan fokus-fokus utama perbelanjaan kerajaan yang antaranya termasuk untuk mendukung dasar mempelbagaikan ekonomi negara, meningkatkan tahap pendidikan dan kemahiran rakyat dan penduduk.

“Ini kerana, sektor swasta yang kukuh akan bertindak menjadi jentera peneraju pertumbuhan ekonomi yang diharapkan akan dapat menyumbang kepada peningkatan pelaburan modal (capital formation) dan akan menjana lebih banyak peluang-peluang pekerjaan yang berkualiti kepada anak-anak tempatan.

“Selaras dengan perancangan dan keperluan inilah jua, kerajaan telah menyediakan peruntukan yang diperlukan, walaupun diunjurkan akan terus mengalami kedudukan defisit bagi tahun kewangan 2016/2017 dan tahun kewangan yang akan datang (2017/2018),” jelas beliau.

Yang Berhormat Pehin berkata, dalam perkara ini, seperti di tahun-tahun sebelumnya, beliau masih lagi berharap dan tertunggu-tunggu untuk mendengar lebih banyak cadangan dan saranan bernilai tambah daripada ahli-ahli MMN berhubung kait dengan cara kita untuk mengawal situasi defisit pada masa ini, sama ada dari segi meningkatkan hasil, mahupun mengurangkan perbelanjaan kerajaan.

Katanya, di situ letaknya peranan semua pihak untuk bersatu padu dan bersatu hati, sebagai pendekatan “Whole of Nation,” untuk sama-sama membantu kerajaan dalam meringankan beban daripada kemelut ekonomi berkenaan.

Beliau berkata, kerajaan terus menyediakan beberapa keperluan asas seperti bekalan elektrik, bekalan air dan perumahan di mana kebanyakan kemudahan dan keperluan asas itu telah dihulurkan oleh kerajaan secara subsidi, di mana perbelanjaan sebenar kerajaan adalah lebih tinggi daripada bayaran yang dikenakan kepada penerima atau pengguna.

Namun demikian, jumlah tunggakan daripada pengguna-pengguna yang terdiri daripada pihak swasta dan orang ramai kepada agensi-agensi kerajaan masih juga tinggi di mana setakat ini, keseluruhannya adalah berjumlah kira-kira $461 juta.

Beliau percaya tunggakan itu, jika dilunaskan, akan dapat juga meringankan tanggungan perbelanjaan kerajaan dalam menampung keperluan operasi pemberian perkhidmatan tersebut, serta meningkatkan lagi tahap perkhidmatan tersebut mengikut keperluan semasa.

Dalam hubungan itu, beliau menyatakan harapan supaya ahli-ahli MMN dapat sama-sama membawa ke perhatian anak buah dan komuniti masing-masing mengenai pentingnya tuntutan-tuntutan perkhidmatan kerajaan untuk dilunaskan dalam masa yang ditetapkan, semata-mata bagi keperluan bersama.

Yang Berhormat Pehin semasa membentangkan Rang Anggaran Belanjawan Negara Tahun Kewangan 2017/2018, juga telah mengongsi mengenai perubahan kepada cukai kastam ke atas beberapa jenis barangan berkuat kuasa mulai 1 April nanti.

Beliau menerangkan bahawa penelitian dan pengemaskinian kadar-kadar cukai eksais itu bertujuan untuk mencapai beberapa matlamat dalam meningkatkan sosioekonomi rakyat dan penduduk negara.

“Antara matlamat tersebut termasuklah bagi mengurangkan beban perbelanjaan bagi golongan berpendapatan rendah, meningkatkan keselamatan bagi pengguna- pengguna jalan raya, menggalakkan permintaan domestik,mengawal penggunaan produk-produk tertentu yang boleh menjejaskan kesihatan awam,mengurangkan kos perniagaan dan lain-lain.”

Pada masa yang sama, Yang Berhormat Pehin menyeru para peniaga untuk tidak mengambil kesempatan untuk mengaut keuntungan yang lebih tinggi dengan menetapkan harga barangan yang tidak selaras dengan perubahan kadar cukai eksais yang dikenakan.

“Jika perkara sedemikian didapati berlaku, pihak kerajaan melalui agensi-agensi berkenaan tidak akan teragak-agak untuk mengambil tindakan yang sewajarnya,” tegas beliau lagi.


Sumber - Media Permata

Titah KDYMM Sempena Majlis Pembukaan Rasmi MMN ke-13 pada 6 Mac 2017

KDYMM berkenan mengurniakan titah pada Majlis Istiadat Perasmian
Mesyuarat Pertama dari Musim Permesyuaratan ke-13 MMN

Assalamu'alaikum Warahmatullahi Wabarakatuh Bismillaahir Rahmaanir Raheem Alhamdulillah Rabbil 'Alameen, Wabihiee Nasta'eenu 'Alaa Umuuriddunya Wadden, Wassalaatu' Wassalaamu 'Ala Asyarafil Mursaleen, Sayyidina Muhammaddin, Wa'alaa Aalihee Wasahbihee Ajma'een, Waba'du

BETA bersyukur ke hadrat Allah Subhanahu Wata'ala kerana dapat pula bersama-sama di Majlis Istiadat Pembukaan Rasmi bagi Mesyuarat Pertama dari Musim Permesyuaratan Ke-13 Majlis Mesyuarat Negara (MMN) pada hari ini. Beta terlebih dahulu mengucapkan tahniah kepada ahli-ahli di atas pelantikan semula dan juga Ahli-Ahli MMN yang baru dilantik.

Beta juga ingin merakamkan penghargaan dan ucapan terima kasih kepada bekas Ahli-Ahli MMN di atas sumbangan mereka di dalam persidangan - persidangan majlis yang lalu.

Beta berharap dengan pelantikan ahli-ahli baru, akan membawa kesan yang baik dan positif kepada persidangan ini. Beta percaya ahli-ahli akan dapat menanai tanggungjawab yang diamanahkan dengan penuh ikhlas dan jujur serta bersikap terbuka dan bebas dalam memberikan apa jua pandangan.

Dalam persidangan inilah ahli-ahli akan berpeluang untuk membincang atau membahas isu-isu yang dianggap mustahak.

Di antara isu mustahak itu ialah yang berkaitan dengan ekonomi. Kita semua sudah maklum, bahawa keadaan ekonomi dunia terus mengalami ketidaktentuan, walaupun pada akhir-akhir ini harga minyak dunia menunjukkan tanda-tanda positif.

Namun begitu, kita masih saja, perlu terus berwaspada, kerana harga minyak dunia dijangka berada pada paras yang rendah tanpa mungkin dianggarkan tempohnya. Maka kerana itu, kerajaan beta perlu terus giat untuk mempelbagaikan ekonomi negara.

Alhamdulillah, sejak kebelakangan ini, usaha ke arah ini sudah mula menampakkan kesannya, walaupun hasil yang diraih masih memerlukan masa.

Dari segi pelaburan, kita mula mendapati, banyak pelabur-pelabur asing telah memberikan perhatian mereka terhadap potensi negara sebagai destinasi pelaburan yang berdaya maju. Beberapa projek Pelaburan Langsung Asing akan memulakan operasi mereka, sementara ada juga yang sudah di tahap pelaksanaan, sedang beberapa cadangan pelaburan baru lagi masih dalam penelitian.

Perkembangan ini tentunya positif, ia bukan saja dari sudut pengukuhan ekonomi, malahan juga kesan limpahnya akan dapat kita perolehi. Dari peningkatan aktiviti ekonomi akan membawa lebih banyak lagi wujudnya peluang-peluang pekerjaan dan perniagaan untuk warga tempatan.

Namun, dengan perkembangan ini, janganlah pula kita cepat-cepat berpuas hati. Tetapi usaha pembaharuan adalah masih perlu diteruskan, kerana transformasi ekonomi memerlukan perancangan jangka panjang.

Matlamat kita ialah untuk menjadikan negara ini sebagai destinasi perdagangan dan pelaburan yang menarik.

Selaras dengan ini, beta telah pun memperkenankan untuk diwujudkan Zon Perdagangan Bebas (Free Trade Zone). Dengan wujudnya zon ini, akan memudahkan lagi aktiviti pelaburan, terutama dalam sektor pembuatan.

Satu lagi keutamaan kerajaan beta ialah meningkatkan nilai dan prestasi Syarikat- Syarikat Berkaitan Kerajaan (GLCs). Syarikat-syarikat ini, termasuk syarikat-syarikat yang ditubuhkan melalui usaha sama dengan pelabur-pelabur asing, akan mampu untuk menyumbang kepada pertumbuhan ekonomi negara, khasnya di sektor bukan minyak dan gas.

Di samping itu, sektor swasta juga akan terus diberi keutamaan untuk membina keupayaan dalam aktiviti-aktiviti Perusahaan Mikro, Kecil dan Sederhana (MSME). Selaras sebagai usaha menyediakan asas yang kukuh bagi perkembangan MSME ini, beta telah pun memperkenankan penubuhan SME Bank.

Penubuhan bank ini dapatlah diharapkan untuk menyediakan kemudahan pinjaman kewangan yang mudah (accessible financing), bagi mendukung aktiviti-aktiviti perniagaan di negara ini. Bank ini akan beroperasi berdasarkan konsep Syariah (Shariah compliant).

Apapun rancangan, semuanya turut bergantung kepada sumber tenaga manusia. Inilah masalah kita. Di Brunei, sumber tenaga tempatan masih saja bermasalah. Di samping masalah terlalu memilih kerja, juga jadi masalah ialah, sudah dapat kerja di sektor swasta, tetapi tidak kekal lama, hanya sebulan atau seminggu dua sahaja sudah berhenti, balik semula memilih jadi penganggur.

Berkaitan ini, beta telah memperkenankan Apprenticeship satu program untuk diwujudkan khusus bagi graduan-graduan yang masih mencari pekerjaan. Program ini akan dilancarkan pada bulan April 2017 insyaaAllah. Ia akan dikenali Program I-RDY (i-ready), khusus sebagai platform bagi para graduan memasuki alam pekerjaan, sama ada di sektor swasta atau sektor awam.

Menyentuh mengenai keperluan tenaga manusia, penyediaan asas ilmu pengetahuan adalah utama. Maka ke arah ini, pencapaian penuntut-penuntut dari peringkat sekolah rendah sehingga ke peringkat menengah adalah perlu untuk diberikan penekanan.

Maka untuk itu, agensi-agensi berkenaan perlulah merangka perancangan yang actionable dan realistik serta cost-effective, agar semua isu dapat ditangani secara berkesan dalam jangka masa pendek, sederhana dan panjang.

Juga perlu diambil perhatian, bahawa pendidikan masa kini, tidak hanya terhad di bilik-bilik darjah sahaja, tetapi banyak ilmu, maklumat dan kemahiran boleh diperolehi melalui penggunaan teknologi internet, yang boleh diakses dengan mudah dan cepat.

Namun dalam keghairahan memanfaatkan teknologi canggih ini, kita juga dikehendaki supaya jangan lalai dari anasir-anasir yang tidak bertanggungjawab, yang menggunakan teknologi untuk tujuan-tujuan keburukan, termasuk penggunaan media sosial untuk menyebarkan berita-berita palsu dan fitnah. Semua ini boleh mengundang kepada bencana.

Beta berharap, semua pihak perlu turut menyedari dan mengambil perhatian serius Mengenainya.

Akhirnya, beta berharap Persidangan MMN tahun ini akan memberikan lebih tumpuan kepada perkara-perkara strategik untuk mengukuhkan lagi kemajuan sosioekonomi Negara.

Ahli-Ahli Yang Berhormat juga diharapkan dapat mengemukakan pandangan-pandangan dan saranan-saranan bernas tanpa takut-takut atau ragu-ragu untuk kepentingan masyarakat dan negara.

Sekian, Wabillahit Taufeq Walhidayah, Wassalamu 'Alaikum Warahmatullahi Wabarakatuh.

Deepest Oil Cuts in World’s Top Market Didn’t Need OPEC Deal

by Perry Williams and Sharon Cho

• Production from China expected to fall by 200,000 b/d in 2017
• China cut more than level agreed by non-OPEC, excluding Russia

Malaysia and Brunei are doing their bit for the global pact to rebalance oil markets, but the biggest production cuts in Asia are coming from a country that didn’t sign up.

China, the world’s fifth-biggest producer last year, has reduced output by about 300,000 barrels a day this year, more than the combined cuts announced Saturday by non-OPEC countries, excluding Russia, as part of a deal coordinated with the producer group. The decline is expected to continue next year, with Chinese production shrinking as much as 200,000 barrels a day, according to consultant Energy Aspects Ltd.

“We’re seeing a natural decline in China oil production as fields are very mature and depletion rates are high,” said Virendra Chauhan, a Singapore-based oil analyst at industry consultant Energy Aspects Ltd. “The price level we had in last 12 to 18 months has incentivized imports over spending on domestic production.”

China’s output slumped as state-owned firms shut wells at mature fields that are too expensive to operate amid last year’s price crash. Production during the first 10 months of the year averaged about 4 million barrels a day, down about 7 percent from the same period last year, according to Bloomberg calculations based on National Bureau of Statistics data.

Malaysia and Brunei were the only Asian nations in the group of producers outside the Organization of Petroleum Exporting Countries that agreed to cut output by a combined 558,000 barrels a day starting Jan. 1. The region will use 32.88 million barrels a day of oil this year, accounting for more than a third of global consumption, according to data from the International Energy Agency. Daily demand is forecast to expand to 33.7 million barrels in 2017.

The deal, hammered out over the weekend in Vienna, is the first pact between the group and non-members in 15 years. While all individual country cuts are unclear, the non-OPEC reduction excluding Russia’s 300,000 barrels a day, as well as announced figures from Mexico, Oman and Azerbaijan, totals 83,000 barrels a day.

Morgan Stanley estimates Malaysia will reduce output by 20,000 barrels a day, while Brunei will lose 4,000 barrels a day. Both countries were celebrating holidays Monday and nobody responded to e-mails seeking comment sent to Brunei’s Energy and Industry Department, as well as Malaysia’s Ministry of Energy and state-run oil and gas company, Petroliam Nasional Bhd.

Oil prices surged as trading resumed Monday, rising as much as 6.6 percent in London to the highest intraday level since July 2015. Brent crude has climbed more than 20 percent since OPEC announced on Nov. 30 that it would cut production for the first time in eight years and was at $56.54 a barrel at 7:04 a.m. in New York.

“If all of these cuts are realized in the market, we could see prices potentially rise beyond $65 by May when the next OPEC meeting is convened,” said Sushant Gupta, director of Asia Pacific refining at Wood Mackenzie Ltd. in Singapore.

Output from Brunei, a country with a population of fewer than 500,000 people on the island of Borneo, peaked at 261,000 barrels a day in 1979, while Malaysia reached as high as 776,000 barrels a day in 2004, according to BP data. Wood Mackenzie estimates Brunei will pump 142,000 barrels a day this year and Malaysia at 664,000 barrels a day.

While the individual cuts are small, the combined reduction by OPEC and non-OPEC reductions could flip the oil market balance into deficit next year, according to Sanford C. Bernstein. The current surplus will slip into a 800,000 barrel a day deficit by the first half of 2017, Bernstein’s Neil Beveridge wrote in a research note Monday.


Sumber - Bloomberg

Saudi King Cuts Once Untouchable Wage Bill to Save Money

by Glen Carey, Vivian Nereim

Saudi Arabia canceled bonus payments for state employees and cut ministers’ salaries by 20 percent, steps that further spread the burden of shoring up public finances to a population accustomed to years of government largesse.

Stocks tumbled the most in eight months after the government decided to suspend wage increases for the lunar year starting next month and curbed allowances for public-sector employees, according to royal decrees and a cabinet statement. The salaries of members of a legislative body that advises the monarchy were cut by 15 percent.

By curbing what many Saudis had for years taken for granted, the government is signaling a determination to reduce the highest budget deficit among the world’s 20 biggest economies amid low oil prices and a lingering war in neighboring Yemen. The measures, however, risk deepening the kingdom’s economic slowdown by damaging consumer confidence.

Psychological Impact

While the government needed to save money, canceling bonuses may affect Saudis “psychologically,” according to Saleh Al Qarni, a government school teacher who also works as a driver to earn extra cash.

“For me as a teacher, it might affect me in school, honestly,” he said as he drove through the crowded streets of the capital, Riyadh on Monday evening.

Under Deputy Crown Prince Mohammed bin Salman, the world’s biggest oil exporter has already delayed payments owed to contractors and started cutting fuel subsidies as it tries to manage lower oil prices. The budget deficit may narrow to 13 percent of gross domestic product this year and below 10 percent in 2017, according to International Monetary Fund estimates.

Past governments have spent billions of dollars on state wage increases, making private-sector jobs less attractive for Saudis. The money, though, fueled a surge in non-oil economic growth, which averaged 6.5 percent between 2000 and 2012, according to IMF data.

“Spending on wages soared as oil prices boomed,” said Simon Williams, HSBC Holdings Plc’s London-based chief economist for Central and Eastern Europe, the Middle East and North Africa. With the deficit set to run above 10 percent of GDP for a second year in succession, “that era is over; wage spending has to be cut.”

Wage Bill

The decisions are part of a plan spearheaded by Prince Mohammed, the king’s son and second-in-line to the throne of the biggest Arab economy. Under his so-called Vision 2030 plan, the government seeks to reduce the public-sector wage bill to 40 percent of spending by 2020, from 45 percent today. Public debt is seen climbing to 30 percent of economic output from 7.7 percent currently.

Perks for senior officials were also scaled back. The government stopped providing cars to senior state officials for their next financial year and announced that ministers will pay fees for their fixed and mobile phones at the start of the next Islamic year.

The benchmark Tadawul All Share Index dropped 3.8 percent at the close in Riyadh, the most since Jan. 20.

Bond Sale

The announcements made no mention of how much the cuts would save. Saudi Arabia was weighing plans to cancel more than $20 billion of projects and slash ministry budgets by a quarter to repair its finances, people familiar with the matter said earlier this month. The kingdom also plans to tap international bond markets in a sale that could raise more than $10 billion, according to people aware of the plans.

“The ministers’ wage cut is symbolic in nature, but overall it demonstrates to the world -- because this is prior to the bond issuance program -- that Saudi Arabia is quite serious to tackle things that were once quite taboo issues,” said John Sfakianakis, director of economic research at the Gulf Research Center.

The measures are signaling “that the public sector will not be the first and last employer so people cannot resort to the public sector as before,” he said. “They’re telling people that the incentive to go there is going to be reduced, so that’s important as well.”

IMF Recommendations

The IMF recommended in 2015 that Saudi Arabia control its growing wage bill and make changes to government to subsidies for fuel and electricity. In an interview with Bloomberg this year, Prince Mohammed said the government planned to accelerate subsidy cuts and impose more levies to spread the burden of lower oil prices. The measure aimed to raise an extra $100 billion a year by 2020 in non-oil revenue.

Lower oil prices and government austerity measures have started to impact the economy. Growth is forecast to slow to 1.1 percent this year, the lowest level since 2009, according to a Bloomberg survey. Consumer spending has been hit by government’s efforts to lower the deficit.

Paul Sullivan, an adjunct professor of security studies at Georgetown University in Washington, said that while the decisions may prompt some Saudis to move to the private sector, he doesn’t “expect an exodus out of higher paying solid government jobs to riskier, lower paying private-sector jobs.”


Sumber - Bloomberg

Belait’s property market unravels under oil & gas downturn

Workers laying cement into the foundation of new private housing near Sentral Shopping Centre in Kuala Belait

Aaron Wong
BELAIT

BELAIT’S real estate market is reeling from the downturn in oil prices as the departure of hundreds of expatriate families has left property owners struggling to fill blocks of apartments developed during the last oil price boom.

The district’s property market has long been distinct from the rest of the country, with rental rates in 2013 almost double those seen in the capital for similarly sized and furnished properties.

Today rentals, on average, stand just 10 to 20 per cent more than Brunei-Muara properties, and even selling prices, which have shown a greater resistance to the downturn, are no longer twice the cost.

The premium rentals and a proportionately higher number of apartments that have come to define the district’s property market can be narrowed down to three compounding factors, according to real estate agents.

Privately owned land is scarce along the district’s coastal mukims of Liang, Seria and Kuala Belait owing to large chunks of land allocated specifically for the oil and gas industry. Land scarcity means that coastal Belait’s potential for the supply of property is inherently lower, leading to the development of high rises and apartments.

Demand for rented properties has traditionally been strong, driven singularly by expatriates arriving in the country to service the oil and gas industry.

But ultimately, what has driven developers to rapidly build and sent buyers in droves to invest are company budgets for housing allowance that set aside $3,000 per month and above for each executive level staff.

“Three years ago, when oil prices were (hovering above $100 a barrel), people were rushing to Belait to build and buy land,” said Amanda Yang, who set up the sole Belait-based real estate agency HomeCity Property and Management in 2013.

“Clients would be lining up at the hotels, finding a place to stay; there wasn’t that much rented property available in KB at the time.

“So wherever property began to be developed, it would begin selling like hot cakes. Investors and members of the public bought. They knew the rental (they could charge) was very good. It was a situation of overdemand and lesser supply.”

The experience of developer Henry Ling Teem Hock, who completed a three-storey apartment in early 2015 along Jalan Maulana in KB, sums up the demand of yesteryear.

“We sold out all 16 units we targeted in two days,” he said. “And construction had barely begun.”

Jalan Maulana, a coastal stretch of road overlooking the South China Sea that directly leads to Brunei Shell Petroleum’s headquarters in Panaga, is home to several blocks of premium apartments aimed at wealthy expatriates.

A fully-furnished three-bedroom unit over 1,100 square feet would fetch a rent of $3,000 to $4,500 per month a few years ago but has now dropped to a range of $2,000 to $3,000.

The model that enticed property companies and the purchasing public was fairly straightforward and the potential for return on investment lucrative. A two- or three-bedroom apartment in the region of $350,000 could fetch a monthly rent of close to $3,000 if its outfitting and furnishing were upscale.

This meant investors could repay the cost in just 10 to 20 years and still have 70 to 80 years left on their lease — a promising proposition, but one that rested delicately on rental rates remaining high and tenancy a guarantee.

As oil prices took a nosedive towards the end of 2015, the situation began to unravel. Based on the number of vacated units since the downturn, real estate agents estimate that at least 400 expatriate families have left the district.

“Ninety-eight per cent of rented property in Brunei is by expatriates,” said a real agent estate who asked to remain anonymous. “And within Belait, those expatriates arrive (to work for the oil gas industry).”

At this juncture, it’s easy to point out that any upward trend in oil prices will bring stability to the property market. But since real estate agents point out that locals generally don’t rent, it’s the number of arriving expatriates in the future that will determine the fate of the rental market.

“Now the focus is to localise the workforce (especially in the oil and gas industry). If oil prices rise again but there are less expatriates arriving, the (downward) situation in rentals will remain the same,” said another real estate agent.

Still, debating the future demand for Belait’s rented properties only tells half the story. The other half is coming to grips with what will happen should the number of expatriates surge, only this time to arrive to a glut of housing options.

One way of understanding just how saturated Belait’s housing market has become is to seek out anecdotes of property owners who claim that rentals and tenancy were still better off during the oil crisis of 1999 to 2000, where prices dropped to US$10 a barrel.

Another way is to quickly survey options for purchasing housing still under construction, where one will be spoilt for choice. The sellout of high rises before completion is no longer a foregone conclusion.

But there are exceptions. Construction of residential property has spurred in a radius near Sentral Shopping Centre, the district’s first one-stop shopping mall, since it opened at the beginning of 2015.

The mall’s 18 serviced apartments under the Garden Sentral Hotel, which opened in April last year, were also fully occupied by long-term guests until recently.

The strong performance prompted KBSentral’s General Manager, Abby Lim, to extend the serviced apartment concept to two rows of terrace housing next to the mall.

Still, the wider situation in the district remains critical, especially for members of the public who were banking on tenants to rent out apartments and houses they had taken mortgages to buy.

“We (my family) bought an apartment in KB as an investment, hoping to make the money back within 20 years,” said an owner who asked not to be named.

“But we’ve been struggling to find tenants, so we repay the loan every month without rent coming in.

“It’s a difficult situation. If I can’t find a tenant in the coming months, I’ll have to cut my losses and try to sell the place.”


Sumber - The Brunei Times

2 faktor jejas usaha pelbagai ekonomi

Oleh Sim Y. H.

BANDAR SERI BEGAWAN, 16 Ogos – Kerajaan Negara Brunei Darussalam menerusi dasar yang kuat, berusaha gigih untuk mempelbagaikan ekonominya bagi mencapai kadar pertumbuhan ekonomi yang tinggi dan mapan serta untuk menerajui ekonomi ke arah Wawasan 2035, kata Menteri Pendidikan Yang Berhormat Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Haji Suyoi bin Haji Osman.

Strategi pembangunan visi jangka panjang itu berusaha untuk mencapai beberapa matlamat termasuk mempunyai tenaga kerja yang berkemahiran dan berpendidikan, mempunyai kualiti kehidupan yang tinggi, ekonomi yang mapan dan dinamik dengan pendapatan per kapita yang tinggi dalam kalangan 10 buah negara teratas dalam dunia, kata beliau yang juga Timbalan Pengerusi Autoriti Monetari Brunei Darussalam (AMBD).

Namun begitu, Brunei sedang menghadapi cabaran yang besar dalam mencapai matlamat berkenaan disebabkan oleh dua perkara iaitu secara dalaman, pada 2015, Brunei mengalami defisit perdagangan sebanyak $2 bilion, kadar pengangguran yang tinggi iaitu sebanyak 6.9 peratus dan kadar pertumbuhan ekonomi yang rendah daripada negara-negara ASEAN yang lain.

“Kesemua faktor dalaman ini telah membawa kepada kepelbagaian ekonomi Brunei yang perlahan,” katanya semasa berucap merasmikan Persidangan International Finance and Banking Society (IFABS) Asia Brunei 2016 yang berlangsung di Pusat Persidangan Antarabangsa, Berakas, hari ini.

Yang Berhormat Pehin berkata, secara luaran, lebihan minyak dalam pasaran minyak antarabangsa telah menurunkan lagi harga minyak dan Brexit juga telah memberikan kejutan kewangan kecil kepada sektor kewangan Brunei serta menurunkan harapan bagi negara ini untuk menggunakan United Kingdom bagi menembusi pasaran Kesatuan Eropah (EU).

Yang Berhormat Pehin menyampaikan ucapan pada majlis berkenaan

Bagaimanapun, integrasi serantau ASEAN telah meningkatkan peluang bagi Brunei untuk mempelbagaikan ekonominya dari segi pasaran yang lebih besar untuk eksport dan pelaburan-pelaburan negara.

Di samping itu, tambahnya, Brunei juga telah meningkatkan kerjasamanya dengan Bank Pembangunan Islam untuk mengukuhkan lagi sektor perbankan dan kewangan Islamnya.

Semua itu, kata Yang Berhormat Pehin, menunjukkan bahawa kepelbagaian ekonomi negara terletak pada sektor perbankan dan kewangannya supaya ia menjadi sebuah instrumen dan institusi yang kukuh bagi pembangunan masa depan.

Menurutnya lagi, sistem dwi kewangan Brunei merangkumi institusi kewangan konvensional dan Islam yang mempunyai asas aset sebanyak $20.7 bilion pada hujung 2015.

Sistem kewangan negara didominasi oleh institusi perbankan dengan asas aset sebanyak $17 bilion pada 2015, yang merangkumi 82 peratus daripada aset keseluruhan sistem kewangan.

“Sektor perbankan terus berdaya tahan dengan asas aset sebanyak $18.6 bilion pada 2014 dan dengan agregat kadar kecukupan kapital 21.1 peratus pada 2015.”

Yang Berhormat Pehin berkata, secara keseluruhannya petunjuk keteguhan kewangan utama dalam sektor perbankan dapat dikekalkan pada tahap yang sihat di mana kapital yang kukuh dan kadar kecairan yang tinggi bersama-sama pendapatan mapan serta pengurusan risiko kredit yang lebih baik telah memberi kesan kepada mengekalkan kestabilan sistem kewangan.

Pada masa yang sama, pendedahan bank-bank kepada risiko pasaran juga adalah kecil disebabkan portfolio perdagangan yang rendah dan pendedahan minimum kepada risiko pertukaran asing disebabkan oleh aset mata wang asing yang besar.

Menyentuh mengenai persidangan itu, keadaan semasa terutama krisis kewangan global, kata Yang Berhormat Pehin, serta isu kekuatan kewangan telah menjadi tumpuan masyarakat terutama di kalangan institusi pendidikan di mana penyelidikan dan pendidikan berkualiti tinggi terhadap sistem kewangan adalah amat penting dalam matlamat-matlamat dasar.


Sumber - Media Permata

Challenges ahead as Brunei strives for economic diversification

Koo Jin Shen
BANDAR SERI BEGAWAN

DESPITE a recovery in GDP (gross domestic product) at the end of the first quarter this year, Brunei’s road to economic diversification remains a challenging one as some critical areas face a downturn along the way.

At the end of the first quarter of 2016, the country’s GDP at constant prices recorded a growth of 3.2 per cent in comparison to the year before where the economy shrunk by 5.2 per cent.

According to the Department of Economic Planning and Development (JPKE), the growth in GDP was due to increased oil and gas production. In its first quarter report, the oil and gas sector increased by 7.6 per cent at constant prices, following increase in oil production to 135.2 thousand barrels per day, up from 124.5 thousand barrels per day from the first quarter of 2015.

LNG manufacturing had also recorded a growth of some 12 per cent, to 1,037.7 thousand MMBtu over this period.

However at the same time, other areas in the industrial sector had posted negative growth, possibly due to cuts in government spending.

Construction fell by 17.3 per cent and the manufacturing sector outside of oil and gas (including methanol) fell across the board to varying degrees. The services sector had also dropped by 0.7 per cent, notably with concern business services by 9.5 per cent.

This indicates that economic growth is still highly dependent on the energy sector, and while increased production had off-set low prices to a certain degree, analysis from economic bodies such as the World Bank and the IMF believe global oversupply will be a persistent issue, keeping prices low for the foreseeable future.

Therefore, Brunei will need to ensure other economic sectors are developed swiftly so the country’s main economy does not continue to rely on volatile commodity prices. Some of these economic sectors have been long identified, but lacked progress in development over decades.

Now is the time to renew focus and ensure that they receive sustainable and well-thought out development, either in the form of renewed government spending, public-private partnership or direct investment, either from local firms that had accrued wealth over decades of government contracts and largess or from attracting foreign direct investment (FDI) that seek opportunity in the region.

Tourism

The country’s natural resources can help generate income from ecotourism while Islamic tourism and heritage can attract a niche market.

It is also a strong employer, with potential to generate low-skill but important job opportunities for locals in the service industry.

On a positive note, the hotel sector in the first quarter GDP report saw a small growth of 1.8 per cent, though this was after undergoing a contraction of 12.9 per cent in the year before.

At the very least, it indicates a potential for growth.

In a recent report, The World Travel and Tourism Council (WTTC) had forecasted Brunei's tourism sector to grow by 2.5 per cent in 2016, increasing the industry's GDP contribution to $322 million.

In its annual report, the WTTC predicted that the tourism sector will grow on average 7.5 per cent per annum through to 2026 to reach around $710 million or 2.3 per cent of GDP.

The WTTC estimated that tourism in Brunei supported 4,500 jobs directly, making up 8.2 per cent of the country's employment. By 2026, the industry could generate up to 7,000 jobs, equivalent to an increase of four per cent per year.

In another recent report by the Oxford Business Group, eco-tourism and tourism in Islamic heritage are two niche areas which Brunei can capitalise on, noting that Muslim travel market is expected to reach some $200 billion worldwide by 2020.

Logistics

Brunei's location and political stability offers a unique and strategic position to serve as a logistics hub to connect what is known as the East ASEAN Growth Area to the rest of the region.

With the ASEAN Economic Community slowly coming into fruition, the Trans Pacific Partnership (TPP) on its way to ratification and the Regional Comprehensive Economic Partnership (RCEP) still undergoing negotiations, the region as a whole looks poised to see a lot of cross-border trading as tariff measures are eliminated and non-tariff barriers get whittled away.

While the country has strong potential to act as a gathering point for raw materials and distribution hub for goods through this region, the logistic sector is somewhat underdeveloped. In 2015, the transportation sector contributed less than two per cent to the GDP.

In the first quarter of 2016, the transportation sector as a whole contracted across the board, land by 10.6 per cent, water transport by 27.4 per cent, air by 0.3 per cent and other transportation services by 22.6 per cent.

Changes however are upcoming, with an implementation of a free trade zone that is due to be launched sometime this year and the overall management of the main container port in Muara to be privatised instead of being run by the government.

Industry

In terms of industry, FDIs will play a key role, providing knowledge transfers, job opportunities and investment capital to Brunei.

According to data from the FDI Action and Support (FAST) Center, there are currently 13 ongoing and operating FDI projects in Brunei with a total value of $6.4 billion and providing about 2,194 employment opportunities.

The largest of these is the Hengyi Refinery, a US$4 billion investment from China that is scheduled to be operational in 2019.

Investment in the downstream industry should ensure Brunei continue its oil and gas legacy and expertise, even long after depletion of its own natural resources by importing raw materials (feedstock) from around the world to refine into exportable end-products.

Meanwhile, other FDIs are making use of Brunei's Halal Certificate to try and penetrate the Islamic market in food, medicines and cosmetics.

Simpor Pharma Sdn Bhd is one such entity, a joint investment between Canadian firm Viva Pharmaceutical Inc, private equity fund Aureos (Brunei) Capital Sdn Bhd and a group of local investors. It runs the country's first Pharmaceutical plant, with an emphasis on Halal pharmaceutical products and health supplements.


Sumber - The Brunei Times

Ekonomi berkembang 3.6 peratus

BANDAR SERI BEGAWAN, 29 Julai – Walaupun secara keseluruhan ekonomi global mengalami ketidaktentuan dalam beberapa bulan pertama tahun 2016, pada suku pertama tahun ini, ekonomi negara meningkat sebanyak 3.6 peratus tahun-ke-tahun disebabkan peningkatan dalam sektor minyak dan gas sebanyak 7.6 peratus tahun-ke-tahun, manakala bagi sektor bukan minyak dan gas menurun 1.9 peratus tahun-ke-tahun.

Kadar inflasi negara juga dijangka kekal rendah memandangkan harga makanan dan komoditi global yang rendah serta kadar pertukaran dolar Brunei yang stabil.

Autoriti Monetari Brunei Darussalam (AMBD), dalam kenyataan Dasar AMBD bagi separuh tahun pertama 2016 yang dikeluarkan hari ini menekankan perkara itu dan turut menyatakan beberapa perkembangan kewangan di negara ini termasuk pengenalan satu direktif kepada semua bank mengenai penggunaan Minimum Cash Balances (MCB) untuk pengurusan kecairan kewangan harian (intraday liquidity maintenance) di dalam sistem Real-Time Gross Settlement (RTGS); pemberian lesen perbankan kepada Bank of China (Hong Kong) Limited untuk menubuhkan cawangan di Negara Brunei Darussalam; dan proses penutupan operasi Hongkong and Shanghai Banking Corporation Limited, cawangan Negara Brunei Darussalam (HSBC Brunei) secara berfasa.

Manakala kredit menunjukkan perkembangan yang positif, di mana ia meningkat sebanyak 8.5 peratus tahun-ke-tahun. Sektor perbankan di negara ini kekal kukuh dengan Regulatory Capital Adequacy Ratio yang tinggi melebihi keperluan minimum. AMBD juga melaksanakan beberapa langkah-langkah di bawah inisiatif Ease of Doing Business, termasuk memeterai satu memorandum persefahaman berbilang hala (MMOU) mengenai perundingan dan kerjasama, dan pertukaran maklumat, yang telah diperkenalkan oleh International Organization of Securities Commissions. AMBD juga sedang melaksanakan audit syariah ke atas institusi-institusi kewangan Islam tempatan.

Antara lain perancangan perkembangan di masa hadapan, AMBD akan mempertingkatkan lagi usaha untuk menyokong reformasi struktur yang bertujuan untuk meningkatkan financial intermediation dan pinjaman kepada sektor korporat. AMBD juga akan melaksanakan satu rangka kerja.

Kenyataan Dasar AMBD 1/2016 yang lengkap boleh didapati di laman web AMBD www.ambd.gov.bn.


Sumber - Media Permata

Saudi plans new scheme to reduce unemployment

RIYADH 

SAUDI Arabia’s government plans a new set of labour quotas and incentives to reduce unemployment as it tries to wean its economy off oil exports, Labour Minister Mufrej al-Haqbani said yesterday.

The changes are part of a wider reform plan announced last week by Deputy Crown Prince Mohammed bin Salman, and reflect the difficulties the kingdom has faced for years in creating jobs for Saudi nationals.

“There is no doubt that unemployment is a looming spectre and we will take all measures, whether job creation, job substitution or even, if required, increasing the Saudisation target,” Haqbani told Reuters in an interview.

He was referring to the possibility of restricting certain jobs to Saudis and pressing companies to employ higher ratios of Saudis to foreign workers.

Cutting the jobless rate to seven per cent by 2030, and raising women’s participation in the labour force to 30 per cent from 22 per cent, are among a raft of targets in Prince Mohammed’s reform plan.

Under a government programme called Nitaquat (Categories), launched in 2011, companies are already encouraged to hire Saudis rather than cheaper foreign workers. Firms employing high ratios of Saudis receive preferential treatment from the labour ministry in processing work permits.

The scheme has had only limited success, however. The official unemployment rate among Saudis is 11.6 per cent and net employment of Saudis rose by only 49,000 in 2015, its slowest increase since records began in 1999, as the government cut spending because of low oil prices.

Haqbani said the government was ready to intervene on both the supply and the demand sides of the labour market. “We expect we will need from 1.1 million to 1.3 million jobs to reduce the unemployment rate to seven per cent.”

He said the government planned a new form of Nitaquat that would not focus merely on the numbers of Saudis hired but also on factors such as women’s employment, the average pay of Saudis, the ratio of the wages of Saudis to non-Saudis, and the sustainability of jobs occupied by local citizens.

“The new Nitaquat is not quantitative, based on the number of Saudis, but it will include other variables... We will announce it in two to three weeks, and it will be into effect within five months,” Haqbani said.

About 10 million foreigners are working in Saudi Arabia, doing many of the strenuous, dangerous and lower-paid jobs shunned by the 20 million local citizens. About two-thirds of Saudi workers are employed by the public sector.

But in recent months, the officials behind the economic reform drive have made it clear that they want the focus of job creation for Saudis to be in the private sector, as the government restrains its spending in an era of cheap oil.

“There are no exceptions from the Nitaquat for any sector, but the quotas are lower for some sectors according to their conditions,” Haqbani said.

“Retailing, for example, will be required to hire a bigger number of Saudis, while the construction sector doesn’t have this capability.”

The new form of Nitaquat could mean fresh pressure on the finances of private sector companies, which have complained of the cost of meeting the quotas. Some say they have found it impossible to find enough qualified Saudis, so they have simply recorded “ghost workers”on their books while continuing to employ large numbers of foreigners.


Sumber - The Brunei Times

Brunei silenced on South China Sea claims

China offers joint deep-sea drilling as oil revenues sink

Brunei is an absolute monarchist, Islamic state of 420,000 people on the north coast of Borneo, wedged into the Malaysian state of Sarawak. Indonesia and Malaysia own 99 percent of Borneo, which is the third largest island in the world, located at the maritime center of Southeast Asia. It has become a key pawn in China’s offense to control the South China Sea.

The United Nations Permanent Arbitration Court in The Hague is due to rule on the Philippines’ claim to the Scarborough Shoal – expected end-May or June. China is scrambling to find global and regional support for “direct bilateral negotiations” rather than international arbitration. It refuses to recognize the jurisdiction of the Court and says it will not abide by its rulings.

China is particularly keen to disable ASEAN from uniting against its ‘nine-dash line’ claim to 90 percent of the South China Sea. It has declared that Laos and Cambodia agree disputes should be settled through direct bilateral negotiations. It has now added Brunei to that list, removing three of the 10 members of ASEAN, which works only through group consensus.

‘Resource Curse’ grips Brunei

Over three decades since its independence from Britain in 1984, the kingdom flew on the magic carpet of oil and gas exports. Earnings from this natural resource enabled its society to be tax-free and well-provided with employment, public health, subsidized housing and free education. Its 29th Sultan, Hassanal Bolkiah, is one of the world’s richest men, with personal net worth estimated at US$20-27 billion.

The oil price is now off 70 percent from its 2008 peak. Like all countries overly dependent on commodity exports, Brunei suddenly finds itself hostage to a global pricing slump. As 90 percent of government finances come from oil and gas, that has unhinged the entire economy. Plans to diversify from oil dependency are drafted in an ambitious grand plan called Vision Brunei 2035. Almost 80 percent of citizens are employed directly by the government or its statutory corporations.

Brunei’s ground oil reserves are estimated to run out in two decades as well. Deep-sea drilling and exploration for oil and gas, is prohibitively expensive. China has reached out to jointly explore deep-sea opportunities for production sharing. Brunei has accepted the deal and made its peace on overlapping sea claims.

Aside from The Philippines, the other littoral ASEAN states with Exclusive Economic Zones (EEZs) cutting across China’s nine-dash line are Brunei, Malaysia, Indonesia and Vietnam. The United Nations Convention on the Law of the Sea (UNCLOS) grants an exclusive economic zone of 200 nautical miles off the coasts of maritime countries.

Establishing facts & dishing cash

China’s nine-dash line claim is recognized by no international body. It converts its claim into practical reality through forward deployment and occupation of islands in dispute. It is doing so at speed.

ASEAN states’ EEZs will remain unexploited, without the cash to invest in deep-sea drilling tests, and technology to extract reserves. China has the financial capacity to fund deep-sea exploration and the strategic need for hydrocarbon energy. It is using the cash bait to co-opt littoral ASEAN states into its South China Sea co-prosperity scheme. It also has infrastructure goodies on offer in its ‘Belt and Road’ master plan.

Block passage, checkmate Taiwan

Brunei is an important pawn neutralized on the chessboard, to stymie any ASEAN pushback. The parallel strategic benefit for China in the South China Sea, would be military control over these waters, to choke timely arrival of US Forces to defend Taiwan or Japan – both of whom have defence pacts with the USA.

China calculates that the US would rather avoid confrontation with an assertive power with military assets in place. Its South China Sea militarization is rapidly reaching critical mass. The US has shown no firm resolve to challenge that. The ASEAN nations have no capacity to stop China’s navy, or its rampaging fishing fleets.

The reunification of Taiwan is a highly charged national dream which President Xi Jinping has stoked. He already enjoys huge popularity with the masses – although not in Taiwan – for his sustained anti-graft campaign, which has snagged ‘tigers and flies’ at all levels of the government and party – sweeping away factions and personalities opposed to his unprecedented consolidation of personal power.

He has seven more years left of his two-term limit. If Taiwan is reunited with the mainland under his watch, Xi would be elevated to the level of Mao and Deng, on the altar of historic CCP heroes. Neither of these CCP strongmen could lock-up Taiwan. The last ruler who unified China was Emperor Qin Shi Huang in 221 BC.

Control over the South China Sea would bring that glorious day closer. US aircraft carriers just need to be delayed long enough for the PRC to reintegrate Taiwan. Political formulae for a high degree of autonomy and a separate local legislature, are well discussed exchanges in the long-running cross-straits talks.

After all, the US has accepted One-China sovereignty. It would be checkmate and game for China, without a shot being fired. Isn’t that what war strategy is all about – winning without a fight?


Sumber - Asia Sentinel

The South China Sea Dispute Isn't About Oil, At Least Not How You Think

Jeremy Maxie

The geopolitical context in the South China Sea (SCS) has evolved considerably since I first wrote a client briefing on the implications of the territorial disputes on upstream oil and gas development in 2008; however, the fundamental nature of disputes over oil and gas development remains much the same. On April 8, 2016, Hanoi demanded that China National Offshore Oil Company (CNOOC) remove its Haiyang Shiyou 981 (HD-981) exploratory drilling rig from Vietnam’s territorial waters. This same Chinese-built rig sparked a similar incidents in 2014 and 2015. Despite high-profile incidents such as the ones involving the HD-981 drilling rig, the SCS territorial dispute is not about oil and gas—at least not how you think.

All too frequently the SCS dispute is framed as a militarized contest for access and control over an untold abundance of oil and gas thought to lie beneath the seabed. This “resource conflict”  narrative overlooks the complex and dynamic geopolitical and strategic drivers at play, and misplaces the role of hydrocarbons. In terms of resource competition, disputes over fishing are far more frequent than those involving offshore drilling and are arguably more important. Indeed, on April 3, 2016 Vietnam seized a Chinese ship that intruded into its territorial waters carrying fuel to resupply a Chinese fishing fleet operating in the area.

Applied to the SCS territorial dispute, the resource conflict narrative inverts the causal relationship between hydrocarbon development and the territorial disputes. Competition over offshore oil and gas resources is a component rather than the proximate cause of the territorial disputes between China and other claimants. The SCS dispute is about oil and gas resources to the extent that offshore developments are leveraged to assert or challenge territorial claims. China is not asserting expansive territorial claims and risking military confrontation with its neighbors (and potentially the United States) just to gain access and control of unproven oil and gas resources; instead, the development of offshore oil and gas resources is contested because it evokes sovereignty.

Estimates of oil and gas reserves vary since the SCS remains mostly under-explored with the majority of unproven reserves located in offshore deep-water areas. According to the U.S. Energy Information Agency (EIA) the South China Sea is thought to hold 11 billion barrels of oil and 190 trillion cubic feet of natural gas (Tcf) including both proven (P90) and possible (P50) reserves. These high-end estimates are the most widely quoted, frequently without the caveat that it includes probable reserves which only have a 50% certainty of being recovered under existing economic and technological conditions. This misrepresentation adds to the misconceptions that drives the resource conflict narrative.

The EIA South China Sea report estimates Vietnam’s reserves at 3.0 billion barrels of liquids and 20 Tcf of natural gas, while China’s are at 1.3 billion barrels of liquids and 15 Tcf of natural gas. The Philippines’ share of reserves is only 0.2 billion barrels of liquids and 4.0 Tcf of natural gas. Malaysia has the biggest share, with 5.0 billion barrels of liquids and 80 Tcf natural gas, while Indonesia hold 55 Tcf of natural gas but only 0.3 billion barrels of liquids.

In contrast, CNOOC claims that the SCS holds an estimated undiscovered 125 billion barrels of oil and 500 Tcf of natural gas. These numbers are likely inflated for political purposes, as the consultancy Wood Mackenzie estimates that the SCS only holds about 2.5 billion barrels of oil equivalent. The focusing on estimated reserves of oil or natural gas is also misleading, as global average recovery rates for “oil in place” is only about 35% with technical limits estimated at 60-70% with enhanced oil recovery techniques.

To put things into perspective, all of the recoverable oil in the entire SCS would cover less than two years of Chinese oil demand and slightly more than two years of Chinese oil imports. In 2015, China’s oil demand averaged 10.32 million barrels per day (mb/d) while oil imports were 6.74 mb/d. This puts China’s annual oil demand at approximately 3.77 billion barrels, while annual oil imports were about 2.46 billion barrels. Assuming that all of the 11 billion barrels of proven and possible reserves in the entire South China Sea (including both contested and non-contested areas) were extracted at a 50% recovery rate, this would result in about 5-6 billion barrels of commercially recoverable crude oil. Vietnam’s 3.0 billion barrels of oil reserves located in the SCS would likely only yield enough recoverable crude oil to cover about six months of Chinese imports. The energy security dividend in terms of equity oil secured through Beijing’s attempt to commandeer the SCS is therefore tenuous.

The SCS is mostly gas prone. With an estimated 190 Tcf of proven and probable natural gas, the potential gas prize is much greater relative to oil. In 2015, Chinese gas demand was approximately 192 billion cubic meters (bcm) or 6.78 Tcf, including imports of 32 bcm (1.13 Tcf) of piped gas and 27 bcm (0.95 Tcf) of LNG. Therefore, the entire proven and possible gas reserves in the SCS (in contested and non-contested waters) is enough to theoretically cover 28 years of Chinese gas demand and 91 year of imports. Vietnam’s portion of the SCS is thought to only hold 20 Tcf, which is about 3 years of Chinese gas demand and ten years of imports. The estimated gas reserves in the Philippines are a marginal 4.0 Tcf.

Most of the gas in the SCS is located in offshore deep-water fields (defined as 400-1,200 meters) that is more technologically challenging and costly to develop than shallow-water or onshore fields. In order to monetize any potential deep-water gas discoveries, subsea pipelines would need to be built to onshore processing facilities. This means that gas developed in contested areas claimed by China but located near Vietnam or the Philippines could be delivered via pipeline to Vietnam or the Philippines to be sold on the local market or converted to LNG for export.

Such arrangements are politically inconceivable in the currently geopolitical environment unless the countries eventually agree to joint development—which may be one possible end-state that Beijing is working toward. An alternative option would be for China to use floating LNG (FLNG) vessels, but CNOOC reportedly abandoned such expensive and unproven plans in 2015.

Wherever SCS gas would be marketed and how it would be delivered (pipeline or LNG) would likely be based on commercial rather than political decisions and which may not materially contribute to Chinese energy security. These commercial, technological and logistical considerations strengthen the argument that the SCS territorial dispute is not driven by resource competition as an end to itself. Rather, resource competition is a means to an end—as an instrument for Beijing to assert territorial sovereignty for geopolitical and strategic purposes.

Even more indicative is that China’s most assertive and belligerent claims are directed towards Vietnam and the Philippines, rather than towards Malaysia and Indonesia which hold the largest shares of offshore oil and gas resources in the SCS. Beijing’s assertive behavior in the SCS has had a chilling effect on oil and gas exploration in disputed areas over the past decade that further suggest that developing offshore resources is not Beijing’s strategic priority.

To argue otherwise is to implies that Beijing is willing to risk military conflict in order to advance the commercial interests of a handful of Chinese oil companies in gaining control over unproven oil and gas resources that would make uncertain contributions to Chinese energy security—an improbable scenario considering the catastrophic consequences of such a conflict.

While offshore oil and gas resources are important sources of much needed supplies to Vietnam and  Philippines, the SCS is more consequential for Chinese energy security as a vital shipping lane than as an energy resource base. Currently, around 50% of the world’s oil tanker traffic is estimated to flow through the SCS. By 2035, it is expected that 90% of the Middle East fossil fuel exports will be shipped to East Asia with much of it transiting the SCS en route to China, Japan and South Korea.  In this context, the SCS is very much about oil and gas.


Sumber - Forbes

Brunei Darussalam sets its sights on a rebound

Infrastructure was a major beneficiary in Brunei Darussalam’s budget for FY 2016/17, alongside other key segments of the economy expected to steer the country toward more robust growth.

Weaker performances in the hydrocarbons and services sectors dampened the Sultanate’s economic performance in the final quarter of 2015, leaving growth in negative territory at the end of what proved to be a challenging year.

However, prospects for 2016 look brighter, with consumer confidence already on the rise, supported by a healthy pipeline of projects.

Better than expected

Brunei Darussalam’s GDP shrank by about 0.6% in constant prices in 2015, according to data issued by the Department of Economic Development and Planning, driven down primarily by lower returns from the oil and gas sector.

Upstream energy’s contribution to GDP fell by 1.2% to BN$8.44bn ($6.3bn) in 2015, though the drop was more significant when measured in current prices, declining by more than 27% over the period. Earnings from downstream production also slipped, albeit more modestly.

Nonetheless, the contraction in economic output was more measured than many international financial institutions (IFIs) had predicted. In March of last year the Asian Development Bank (ADB) said it expected the economy to shrink by 1.5%, while the IMF forecast a 1.2% contraction as recently as October.

The full-year results also demonstrate a solid improvement over the previous two years, when Brunei Darussalam’s economy shrank by 2.3% (2014) and 1.8% (2013).

Non-oil growth

Losses were offset by gains in other sectors, including the agriculture, fisheries and forestry industry, which ended the year up 6.4%. The fisheries segment led growth, expanding by 19.1%, while the vegetables, fruits and remaining agricultural component rose by 9.7%.

Brunei Darussalam’s economy also received a boost from household expenditure, which rose by 4.2% year-on-year in the fourth quarter, following a 2.8% increase the previous quarter.

If consumer confidence and spending power improves further in 2016, this could spur higher levels of growth in key sectors, notably retail and real estate.

Budget boost

Looking ahead, Brunei Darussalam aims to leverage its FY 2016/17 budget of BN$5.6bn ($4.2bn), which came into force on April 1, to stimulate the economy.

Infrastructure development was one of the budget’s winners, with BN$523.6m ($390.1m) allocated for a broad range of projects. Other engines of growth, such as forestry, fisheries, agriculture and agri-foods, also fared well, receiving a combined BN$46.6m ($34.7m) in funding.

Despite a 1.78% reduction in overall fiscal spending, however, the raft of new infrastructure projects could add to the budget deficit. Government projections put public revenue at BN$1.76bn ($1.3bn) for FY 2016/17, which could drive the deficit up from an estimated BN$2.28bn ($1.7bn) in FY 2015/16 to BN$3.84bn ($2.9bn), according to local media.

Improved outlook

Nonetheless, Brunei Darussalam’s fiscal prospects are looking increasingly positive. From a low of $28 per barrel in January, Brent crude has risen to close to $45 as of mid-April, with analysts at Credit Suisse suggesting prices could rebound to $50 by May on resurgent demand in the US, India, South Korea and China. If this trend continues, Brunei Darussalam could see increased revenue flows for by the second half of 2016.

Some IFIs have been similarly upbeat about the Sultanate’s economic prospects.

In late March the ADB said it expected Brunei Darussalam’s economy to post positive growth in 2016 on the back of higher energy prices and increased production from existing fields thanks to the deployment of new extraction technology.

Provided global oil demand and prices continue their recovery, Brunei Darussalam’s GDP should increase by 1% this year, rising to 2.5% in 2017.

The OECD, meanwhile, said in late 2015 that it expects Brunei Darussalam to average GDP growth of 1.8% per annum through to 2020 – lower than the forecasts for its ASEAN counterparts but sufficient to signal something of a turnaround after three challenging years.

The ADB added that growth would be supported by higher levels of activity in the construction sector, particularly large-scale infrastructure projects like the BN$138.9m ($103.5m) Sungai Brunei Bridge.

The bank also urged Brunei Darussalam to use the period of lower energy prices to reduce subsidies on both fuel and electricity without burdening consumers with steep increases in tariffs. Importantly, this would free up more resources for both physical and social infrastructure development, spurring further non-oil growth.


Sumber - Oxford Business Group

Brunei Minister Says Sultanate Is Rationalizing Its Oil Economy

BY DAVID A. ANDELMAN

Brunei, the tiny sultanate perched on the South China Sea off the northwestern corner of Borneo, derives more of its gross national production each year from oil and natural gas than any other Asian nation. In this respect it outranks Qatar, Iran and Russia and approaches Saudi Arabia. But with oil prices plummeting over the last two years, the tsunami of cash that has fueled a remarkable expansion is shrinking instead. So the 420,000 citizens and guest laborers are pulling in their belts and output is being revamped.

The Sultan of Brunei–ruler for 49 years, whose crown’s worth was estimated by FORBES in 2009 at $20 billion–has placed at the heart of this effort Haji Mohammad Yasmin bin Haji Umar, adding industry to the energy portfolio the minister has handled since 2010. Prior to that he was deputy defense minister (the Sultan is minister of defense).

Minister Umar’s immediate goal is to wean the ASEAN nation from the huge subsidies that have been sapping innovation and discouraging outside investors. But he is equally focused on security. This Sunni-dominated nation has been flirting with a version of sharia law that’s being implemented gently–in Brunei style–and has fended off all threats to order. Our March interview, as edited below, took place in his government office.

FORBES ASIA: What are your priorities, particularly for foreign investment, especially in the petroleum sector?

I just took over this portfolio last October. The way I look at it, in some ways we’ve been too bureaucratic for too many years. If you look at our way of doing business, last year we were number 84, this year or next year we are confident we will be in the top 50 countries, maybe the top tenth in ease of doing business [a World Bank measure]. When you privatize some things it becomes easier. Government tends to be bureaucratic. That has to go.

Say I have a company that would like to open a manufacturing operation in Brunei. Do I need a Brunei partner?

Not necessarily. It is good if you have a Brunei partner, but it is not essential. You come in and bring business, you give opportunities to our own small and medium-size enterprises, you may do so on your own terms. At the same time it is essential that we are in a position to supply you with the best Bruneians to work in your company.

Where will these businesses come from? ASEAN, the U.S., Europe?

From across the world. China is building our new petrochemical plant, and we are also investing in a new ammonia and urea plant, which we expect to be operational by 2019. It is not just going to produce ammonia and urea, but also methanol. So the by-products of this will give us another sector. That is the sort of industry we want in our future plans.

Meanwhile, the cost of raw material is plummeting–particularly oil and gas, which accounts for 90% of your national output. So how are you going to bridge to 2019 until enterprises like this can come online?

The way we look at it, we have gone through the highs and the lows on oil prices. We have been a producer more than 50 years. The good times, we save. The bad times we really have to do something different. Our joint ventures have to be much more efficient than during the good times. I want them to be efficient in all times. A lot of our FDI is coming in the next two years, and we will have sufficient reserves to carry us through.

Are you prepared to hold down production in an effort to raise oil prices?

I think we are the only country that produces according to the principle of sustainability. If we take a barrel out of the ground, we will already have discovered another to replace it. It has to be sustainable.

Aren’t some of these new fields, especially those far offshore, more expensive to produce and unlikely to be profitable with oil at $30 a barrel?

Some of the economics will be very challenging, I admit this. But we have also discovered fields that are economically advantageous. There are some discoveries in new commercial blocks offshore. When you combine a number together, they become more economically viable.

Are you worried about China encroaching on any of your oil ?reserves, your proper territory?

My foreign affairs colleague will have to speak to that. I did spend years as defense minister, you know. But we have a very good bilateral relationship with China, and we are committed to all the initiatives by ASEAN to preserve our rights.

His Highness the Sultan said in his address [the same day of this interview] that the national budget would have to be restrained to $6.7 billion this year–still substantial for a country of 420,000 but below previous years. How do you convince the people this kind of austerity is necessary when they are used to so many years of anything goes?

When I first came in, I looked at our electricity tariffs. I was shocked to find the way it was structured. This was 2010. If you spent less, you would be penalized. If you spent more, you would be rewarded. A year after that we decided to embark on a complete reform. In the beginning so many people were unhappy, because I was punishing people who were accustomed to waste. Those people who actually saved, I basically say, this is good for you and for us. And rewarded them. A lot of people were building a house with five or six air conditioners operating 24 hours whether there was anybody in the house or not. They kept all the lights on if there was anyone there or not. So we stuck to the reform. And until now I can tell you that over 90% of the Brunei population have shifted their patterns of using electricity from wasteful to conservationist. It took us a good two to three years to educate the people. Plus our climate is changing. We are committed that by 2035 a substantial percentage of our energy will come from renewable energy.

How important is the Trans-Pacific Partnership for your future development?

It is very important in that it will give us opportunities to access other markets. But the standard is high. We know that. The mere fact that we came to this level, our standard seems to be acceptable internationally as well.

There is a chance the U.S. Congress will reject the Trans-Pacific Partnership. How bad would that be for Brunei? And as far as you are concerned, can the treaty go ahead without the U.S.?

We are one of the four founders of the TPP–Singapore, Brunei, Chile, New Zealand. We also have the ASEAN economic community. That will give us access to 650 million people … ever broader opportunities. But TPP is also for [the U.S.]. Do you know the number of American companies operating in Brunei? There are quite a lot. Oil and gas, U.S. companies like Baker Hughes, Halliburton. All these are services companies. They, too, need TPP.

There is some thought here that you need to develop a domestic oil services competency that you can sell to others.

That is another thing–oil outsourcing. We should be ?leveraging our oil and gas expertise as well as our resources, because we have been in this industry for the past 50 years. Another thing we should be leveraging is Islamic finance. We have a lot of expertise here.

You are not a huge market, and an investor can probably find a much larger base of employees at lower cost in the Philippines or Bangladesh or India. So what commends Brunei to an investor?

You look at our educational system. It is a good system. We are producing more graduates than the country needs. And they all speak English. I will make sure that supporting business in this country will be customized. We have proved this by producing the right people to staff the energy sector. I call this an industry-ready workforce. There is no reason why we cannot do it across all industries. You will see–in six months to a year we will have call centers here. We are having early discussions with people like Microsoft.

Do you have a minimum wage?

We don’t call it a minimum wage, we call it a reasonable wage. For people working offshore, it will be at least $1,000 Brunei a month [U.S. $640]. In oil and gas, for instance, there are no taxes. As for housing, the government helps out, but they still have to pay rent or a loan over 30 years to buy. What we have to get away from is the mentality of subsidies. Subsidies for the low-income worker are okay, but only for the low income.

But subsidies were okay when oil was higher priced.

I enforced my reform on the electricity sector when oil was $100 a barrel. Fuel subsidies in Brunei are for the well-being of all the people because there is no good public transport system. We have to improve our public transport system. On my last trip to the U.S., I visited Uber. They are talking about launching here in Brunei. The thing I like about Uber is not only do you liberalize the market but you give the opportunity for people to work. When we were in San Francisco, we were driven by a mother who’d just taken her children to school.

Put on your previous hat as chief of security and defense minister. How concerned are you about the security of Brunei–its industries, resources and people. You are a Sunni nation in a world that is concerned about Sunni nations.

Everywhere people are concerned about security. That is the first thing. And we are also very concerned because we are a very small nation. We cannot afford to have any terrorists sitting in Brunei. This is why we have to be proactive–in educating our people. In Brunei it is all regulated properly–religious education. So we will not allow a person to come and give a sermon without permission. It is enshrined in our constitution.

So who decides who is radical and not allowed to speak?

The ministry of religious affairs. … Every preacher will have to apply. The Friday sermon is approved in advance by the ministry. How can we run a country without that? Our population is young. If there are foreigners who violate those rules, we will deport them. For a Bruneian it is the same, or he will have to go to rehab. Singapore is doing the same thing–one year or two years’ rehab, but not sent to Guantanamo.

Are you worried about the security of your oil reserves, attacks on that?

We have been in this business a long time. And this is part and parcel of our calculation–our own plan.

We’ve seen little overt security here. A few soldiers in camouflage uniforms, but they have no weapons, no guns. His Majesty drives himself in a Jeep in a two-car caravan. How is that possible in this day and age?

His Majesty goes and sees people at every Friday prayer. How is that possible? We are a special place. There are some occasions where our people would carry weapons.


Sumber - Forbes Asia