Brunei Economic Bulletin Vol.3 Issue No.2 - Brunei Resources

BRUNEI ECONOMIC BULLETIN
Volume 3, Issue 2
Date : 9/2004
THE EDITOR
BRUNEI ECONOMIC BULLETIN (BEB)
JPKE (DEPARTMENT OF ECONOMIC PLANNING AND DEVELOPMENT)
PRIME MINISTER’S OFFICE
Inside this issue:
BRUNEI DARUSSALAM SECOND QUARTER 2004
ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS
Gross Domestic Product
THE EDITOR:
BRUNEI ECONOMIC
BULLETIN (BEB)
JPKE (DEPARTMENT OF ECO-
NOMIC PLANNING AND DEVELOP-
MENT)
PRIME MINISTER'S OFFICE
Phone:
+673-2-233344
Fax: +673-2-230226
Email: info@jpke.gov.bn
BEB Panel of Advisors
♦ Permanent Secretary
Prime Minister’s Office
♦ Director General JPKE,
♦ Deputy Director Generals
JPKE
BEB Editors
♦ Directors, JPKE
♦ Assistant Directors, JPKE
BEB Contributors
♦ Hj Abd Razak Hj Angas
♦ Abd Amin Hashim
♦ Shahrom Hj Suhaimi
♦ Hj Mazlan Hj Mohd Salleh
♦ Mashor POKID Dato Paduka
Hj Musa
♦ Shamsul Bahrin Hj Mohd
Hussain
♦ Dk Hjh Siti Nirmala Pg Hj
Mohammad
♦ Zureidah Hj Abit
♦ Pg Metussin Pg Hj Tuah
♦ Hj Joharry Hj Karim
♦ Hjh Aisah Hj Sani
♦ Hjh Norfatiniwati Hj
Muhammad
BEB Publishers
♦ Noor Jusmin Hj Abd Samad
♦ Hairol Nizam Hj Abd Hamid
Brunei Darussalam’s economy for this quarter is estimated to contract
by 2.8 per cent from BND 1,172.9 in Q1 2004 to BND 1,140.2 in
Q2 2004. Compared to the same quarter last year, it is also estimated
to contract by 1.1 per cent (Chart 1.1).
The oil and gas sector has registered contraction of 5.4 per cent in
Q2 2004 year-on-year. It also contracted by 5.8 per cent in Q2 2004
compared to Q1 2004. The average weighted oil production decreased
by 3.8 per cent from 209,790 barrels per day in Q2 2003 to
201,738 barrels per day in Q2 2004 (Table 1.1). The average
weighted LNG production also dropped by 8.8 per cent from
1,042,283.9 MMBtu 1 per day in Q2 2003 to 950,639.01 MMBtu per
day in Q2 2004 (Table 1.2). The oil and gas sector in the first half of
2004 declined by 2.9 per cent compared to the same period last year.
Table 1.1: Oil Production
Unit – Barrels/Day
2001 2002 2003 2004
JAN 207,290 215,020 207,785 213,223
FEB 191,472 204,550 199,502 211,055
MAC 197,709 201,230 206,610 197,933
APR 179,623 186,880 210,221 212,929
MAY 169,771 193,561 205,183 201,172
JUN 186,537 203,188 214,122 191,130
JUL 194,308 204,150 205,119
AUG 193,504 216,474 203,128
SEP 193,351 192,335 210,727
OCT 188,568 199,427 197,564
NOV 213,154 211,479 214,029
DEC 224,901 207,524 212,788
Crude Oil Production for
the year
195,065 203,021 207,240
Average Crude Oil Production
Q1
Average Crude Oil Production
Q2
Average Crude Oil Production
Q3
Average Crude Oil Production
Q4
Average Crude Oil Production
1H
Average Crude Oil Production
2H
1 Million British Thermal Unit
199,069 207,013 204,803 207,323
178,546 194,532 209,790 201,738
193,725 204,450 206,277
208,828 206,085 208,063
188,751 200,738 207,311
201,276 205,268 207,170
Source: Petroleum Unit, Prime Minister’s Office
Brunei Darussalam Second
Quarter Economic
Review and Outlook
Crude Oil Price Index
Statistical Data (Q2, 2004)
• GDP Growth (Provisional Estimate)
: -2.8 %
• Change in CPI : 0.6%
• Total Exports (f.o.b): BND 1,274.4
million (April-May)
• Total Import (c.i.f): BND 385.3
million (April-May)
• Government Revenue :
BND 1,357.6 million
• Government Expenditure : BND
900.8 million
1
13
Economic Outlook 14
8th National Development
Plan
Short-Term Economic
Recovery
THE LONG TERM OBJEC-
TIVES OF BRUNEI DA-
RUSSALAM’S DEVELOP-
MENT PLAN OF 1986-
2005: What has been the
level of achievement in
enhancing the quality of
life?
15
18
21
JPKE List of Publications 29
Miscellaneous 29

P AGE 2
BRUNEI DARUSSALAM Q2 2004
ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS
Table 1.2: LNG Production
Unit - MMBtu/Day
2001 2002 2003 2004
JAN 1,033,542.9 1,046,388.0 1,118,431.0 1,117,753.6
FEB 962,006.0 1,095,799.0 1,112,133.0 1,073,981.0
MAC 1,141,934.0 990,443.0 1,165,771.0 1,063,286.8
APR 864,858.0 750,836.0 1,037,552.0 1,126,284.33
MAY 682,869.0 687,569.0 1,002,617.0 785,019.35
JUN 960,671.0 915,497.0 1,088,055.0 946,134.00
JUL 838,649.0 1,061,756.0 1,050,631.0
AUG 936,035.0 1,061,236.0 948,691.0
SEP 1,023,296.0 980,426.0 970,991.7
OCT 1,048,142.0 1,062,589.0 992,310.7
NOV 976,540.0 1,037,404.0 1,038,770.0
DEC 1,146,837.0 1,059,582.0 1,062,209.0
LNG Production for the
Year 968,124.0 978,804.0 1,049,143.0
Average LNG Production
Q1 1,048,621.7 1,042,490.4 1,132,777.6 1,085,249.5
Average LNG Production
Q2 834,448.5 783,567.4 1,042,283.9 950,639.01
Average LNG Production
Q3 931,674.8 1,035,060.1 990,426.5
Average LNG Production
Q4 1,058,049.4 1,053,363.3 1,031,013.2
Average LNG Production
1H 940,943.4 912,243.8 1,087,280.5 1,017,944.23
Average LNG Production
2H 994,862.1 1,044,211.7 1,011,005.5
Source: Petroleum Unit, Prime Minister's Office
Table 1.3: Oil and Gas Production Index
2000 2001 2002 2003 2004
JAN 109.7 108.0 111.2 110.9 112.8
FEB 113.1 100.0 109.0 107.7 110.6
MAC 112.6 108.0 104.4 112.0 105.6
APR 103.7 92.6 91.6 109.2 113.0
MAY 98.7 83.2 92.0 106.2 97.8
JUN 75.9 98.2 102.7 112.2 99.4
JUL 93.3 97.1 107.8 107.8
AUG 93.7 99.9 112.2 103.8
SEP 91.6 102.6 100.9 107.2
OCT 91.8 101.7 106.1 103.2
NOV 107.0 108.3 109.6 110.6
DEC 109.0 118.0 108.9 110.9
Average Index for the Year 100.0 101.5 104.7 108.5
Average Index for Q1 111.8 105.5 108.2 110.3 109.7
Average Index for Q2 92.8 91.2 95.4 109.2 103.3
Average Index for Q3 92.9 99.8 107.0 106.2
Average Index for Q4 102.6 109.3 108.2 108.2
Average Index for H1 102.3 98.3 101.7 109.7
Average Index for H2 97.7 104.6 107.6 107.2
Base year 2000=100
Source: Petroleum Unit, Prime Minister’s Office
Table 1.4: Agricultural Sector
Crop Production
Q2 03 Q1 04 Q2 04
growth
(%)
(Q-O-Q)
growth
(%)
(Y-O-Y)
Vegetables (Tons) 2,564.02 2,023.0 3,012.0 48.9 17.5
Fruits (Tons) 835.7 836.0 806.0 (3.6) (3.6)
Ornamental horticulture (trees) 55,956.0 74,536.0 56,966.0 (23.6) 1.8
Cut Flowers (unit) 29,693.0 31,258.0 34,459.0 10.2 16.1
Various Plantations (Tons) 61.1 62.0 87.0 40.0 42.4
Livestock Production
Buffaloes (Tons) 50.4 16.1 30.0 86.3 (40.5)
BRUNEI ECONOMIC BULLETIN
The oil and gas production index (OGPI) contracted by 5.4 per
cent from 109.2 in Q2 2003 to 103.3 in Q2 2004. On a quarteron-quarter
basis the OGPI also contracted by 5.8 per cent from
109.7 in Q1 2004 (Table 1.3).
The price of crude oil averaged at US$38.20 per barrel in Q2
2004 compared to US$27.33 per barrel a year ago and
US$35.59 in Q1 2004. Meanwhile, the price of LNG averaged
at US$4.71 per MMBtu compared to US$4.70 per MMBtu a
year ago and US$4.67 in Q1 2004.
The overall non-oil and gas sector is estimated to expand by
3.9 per cent in Q2 2004 compared to the same period last year.
Compared to Q1 2004, it is estimated to grow marginally by
0.4 per cent. The year-on-year growth was supported by improvement
in forestry; mining; quarrying and manufacturing;
wholesale and retail; and transport and communication sectors.
Activities in the agricultural sector are estimated to register a
1.4 per cent growth in Q2 2004 compared to the same period a
year ago. This was due to the increase in the production of
vegetables; ornamental horticulture (trees); cut flowers; various
plantations; and chicken eggs (Table 1.4). On a quarter-on
quarter basis, this sector is also estimated to grow by 5.3 per
cent in Q2 2004.
The forestry sector grew at an estimated rate of 21.0 per cent
in Q2 2004 year-on-year. Compared to Q1 2004, it registered a
17.8 percent growth. The production of round timber increased
by 32.3 per cent from 25.1 thousands cubic metres in
Q2 2003 to 33.2 thousands cubic metres in Q2 2004 (Table 1.5).
Compared to Q1 2004, it registered an increase of 5.4 per cent
from 31.5 thousands cubic metres. The production of bakau
poles also increased by 14.9 per cent from 28.2 thousand
pieces in Q2 2003 to 32.4 thousand pieces in Q2 2004. Compared
to Q1 2004, it increased by 26.6 per cent, from 25.6 thousand
pieces during that quarter.
Activities in the fishery sector are estimated to decline by 22.8
per cent compared to the same period last year. Compared to
Q1 2004, this sector also registered a decrease of 60.1 per cent.
The largest downward effect was from the production of the
capture industry. The production dropped by 24.8 per cent
from 4,242.8 metric tonnes in Q2 2003 to 3,192.0 metric tonnes
in Q2 2004 and on quarter on quarter basis the production
dropped by 57.1 per cent from 7,440.6 metric tonnes in Q1
2004 (Table 1.6).
Chart 1.1: Growth of Gross Domestic Product Year-on-year
Cattle (Tons) 0.4 3.1 0.3 (90.3) (25.0)
Goats (Tons) 0.07 1.3 - - -
Broiler Chicken (Tons) 4,166.2 4,242.0 3,967.0 (6.5) (4.8)
Chicken Eggs (Millions) 26.1 27.7 28.4 8.8
Fresh Milk (Litres) 22,939.0 24,519.0 16,900.0 (26.3)
Source: Agricultural Department
Table 1.5: Forestry Sector
Q2 03 Q1 04 Q2 04 growth (%) growth (%)
(Q-O-Q) (Y-O-Y)
Round Timber ('000 Cubic Metres) 25.1 31.5 33.2 5.4 32.3
Bakau Poles (Thousand Pieces) 28.2 25.6 32.4 26.6 14.9
Source: Forestry Department
%
16
14
12
10
8
6
4
2
0
-2
-4
-6
Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04
Total Oil Non-oil

BRUNEI ECONOMIC BULLETIN
P AGE 3
BRUNEI DARUSSALAM Q2 2004
ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS
Table 1.6: Fishery Sector
Capture Industry (Metric Tonnes)
Q2 03 Q1 04 Q2 04
growth
(%)
(Q-O-Q)
growth
(%)
(Y-O-Y)
4,242.83 7,440.61 3,192.0 (57.10) (24.77)
Commercial 1,016.96 662.99 875.15 32.0 (13.94)
Small Scale Fishermen 3,225.87 6,777.62 2,316.83 (65.82) (28.18)
Aquaculture Industry (Metric
Tonnes)
112.28 146.52 156.54 6.84 39.42
Fish 17.45 19.71 21.01 6.60 20.40
Prawn 70.90 97.53 106.59 9.29 50.34
Fresh Water Fish 23.93 29.28 28.94 (1.16) 20.94
Total Production 4,355.11 7,587.13 3,348.54 (55.87) (23.11)
Source: Fishery Department
Table 1.7: Mining/Quarrying/Manufacturing Sector
Cement Production
(Tonnes)
Sawn Timber Production
(Thousands cubic
metre)
Fish Processing Production
(Tonnes)
Charcoals Production
(thousand Kg)
Q2 03 Q1 04 Q2 04
growth
(%)
(Q-O-Q)
growth
(%)
(Y-O-Y)
57,969.0 55,471.3 59,041.5 4.5 1.5
13.3 11.0 15.0 36.4 12.8
144.7 128.1 130.13 1.6 (10.1)
6.3 4.4 6.7 52.3 6.3
Cable Production (Kg) 158,662.0 165,388.2 202,682.9 22.5 27.7
Roofing Production
(Tonnes)
Switchboard Production
(Unit)
Reverse-Osmosis Water
Production (thousand
litres)
Source: Department of Economic Planning & Development
%
41
39
37
35
33
31
29
27
705.6 652.9 543.0 (16.8) (23.0)
1,227.0 512.0 965.0 88.5 (21.4)
112.0 115.0 117.0 1.7 4.5
Chart 1.2: Hotel Occupancy Rate
Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04
Chart 1.3: Growth Rate of Communication Sector
%
20
16
12
8
4
0
Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04
Chart 1.4: Seaborne Cargo Handled
The mining, quarrying and manufacturing sector registered
an estimated growth rate of 8.6 per cent in Q2 2004 compared
to Q2 2003 due to the increase in production of cement, sawn
timber, charcoals, reverse osmosis water, cable and bricks. On
a quarter-on-quarter basis this sector grew by an estimated 4.1
per cent compared to Q1 2004 (Table 1.7).
The construction sector has shown improvement year-on-year
and registered an estimated 5.7 per cent growth in Q2 2004. It
is also estimated to expand by 7.4 per cent compared with the
previous quarter.
The wholesale and retail trade sector posted an estimated 8.5
growth in Q2 2004 compared to Q2 2003. Compared with the
previous quarter, this sector is estimated to have expanded by
6.1 per cent. Survey on selected major wholesale companies
registered a 4.6 per cent growth in the value of sales in Q2 2004
year-on-year. On a quarter-on-quarter basis the value of sales
also increased by 3.8 per cent. Meanwhile, survey on selected
major retail companies registered a 14.4 per cent increased in
the value of sales in Q2 2004 year-on-year. Likewise, on a
quarter-on-quarter basis the value of retail sales rose by 8.4 per
cent.
The restaurants and hotels sector is estimated to contract by
5.4 per cent in Q2 2004 compared to the same period last year.
Compared with the previous quarter, it is estimated to have
contracted by 1.5 per cent. The hotels occupancy rates have
dropped by 7.7 per cent from 31.0 per cent in Q2 2003 to 28.6
per cent in Q2 2004 (Chart 1.2). However, on a quarter-onquarter
basis the rates have increased by 1.3 per cent compared
to Q1 2004. Meanwhile, the value of sales from the selected
major restaurants declined by 3.1 per cent compared to
Q2 2003. On quarter-on-quarter basis the value of sales also
dropped by 4.2 per cent.
The transport and communication sector grew at an estimated
17.1 per cent in Q2 2004 compared to a year ago. Compared
with the previous quarter, this sector is estimated to have expanded
by 5.4 per cent. The improved year-on-year growth
was mainly attributed to better performance in the communication
sector (Chart 1.3). The volume of cargo handled also
increased by 33.1 per cent in Q2 2004 compared to a year ago
(Chart 1.4).
The banking and finance sector registered a contraction of 7.0
per cent in Q2 2004 compared to Q2 2003. However, compared
to Q1 2004 it grew by 3.8 per cent. Total interest income from
loans and advances stood at BND 107.0 million in Q2 2004
compared to BND 115.0 million and BND 114.8 million collected
in Q2 2003 and Q1 2004 respectively (Chart 1.5).
The insurance sector is estimated to register a contraction of
0.4 per cent in Q2 2004 compared to the same period a year
earlier. However, compared to Q1 2004, it expanded by 26.8
per cent.
Chart 1.5: Banks Loans and Advances
13 0
500,000
12 5
freight tonnes
400,000
300,000
200,000
100,000
0
Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04
BNDmillion
12 0
115
110
10 5
10 0
Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04

P AGE 4
BRUNEI ECONOMIC BULLETIN
BRUNEI DARUSSALAM Q2 2004
ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS
Table 2.1 : Consumer Price Index Q2 2003, Q1 and Q2 2004
I
Commodity Group Weight Q2 03
Source: Department of Economic Planning & Development
Jan-
June
03
Q1 04
Q2
04
Jan-
June
04
All 10,000 100.6 100.6 100.7 101.3 101.0
Food & Non-Alcoholic
Beverages
2877 99.0 99.5 100.0 100.7 100.4
II Clothing & Footwear 561 99.5 98.8 97.5 96.0 96.7
III
IV
Housing, Water,
Electricity & Maintenance
Household Goods &
Operations
884 100.1 100.0 98.0 98.4 98.2
860 100.4 100.1 95.7 95.0 95.4
V Transport 2251 105.0 104.3 106.1 106.5 106.3
VI Communication 548 95.5 96.1 94.2 93.3 93.8
VII Education 471 99.4 99.8 99.9 99.9 99.8
VIII Medical & Health 98 98.5 98.2 98.2 98.2 98.2
IX
X
Recreation & Entertainment
Miscellaneous Goods
& Services
814 100.0 100.1 103.5 108.3 105.9
636 100.6 100.4 101.4 101.3 101.4
Table 2.2: Consumer Price Index April-June 2004
Commodity Group
Weight
2004
April May June
All 10,000 101.3 101.3
I Food & Non-Alcoholic Beverages 2877 100.8 100.7 100.7
II Clothing & Footwear 561 93.4 98.6 95.9
III Housing, Water, Electricity & Maintenance 884 98.1 98.5 98.7
IV Household Goods, Services & Operations 860 95.0 96.2 93.7
V Transport 2251 106.8 106.2 106.6
VI Communication 548 94.0 93.2 92.8
VII Education 471 99.9 100.1 99.7
VIII Medical & Health 98 98.1 98.3 98.3
IX Recreation & Entertainment 814 109.5 106.9 108.4
X Miscellaneous Goods & Services 636 100.6 101.7 101.6
Chart 2.1: CPI Percentage Changes Between Q2 2004 and Q1 2004
101.2
Consumer Price Index
The average Consumer Price Index (CPI) for the second quarter
of 2004 was 101.3, an increase of 0.6 per cent from 100.7 in
Q1 2004 (Table 2.1. The CPI for April, May and June 2003
stood at 101.3, 101.3 and 101.2 respectively (Table 2.2). The
CPI for January to June 2004 increased by 0.4 per cent compared
to that of 100.6 in the same period last year. The average
CPI for the second quarter 2004 compared to the same
period last year recorded a marginal increase of 0.7 per cent
from 100.6 to 101.3.
CPI Changes for the Q2 2004 relative to Q1 of 2004
The average CPI for Q2 2004 rose by 0.6 per cent compared
to Q1 2004 due to the hike seen in Major Group indices of
Recreation & Entertainment by 4.6 per cent; Food & Non-
Alcoholic Beverages by 0.7 per cent; and Housing, Water,
Electricity & Maintenance by 0.4 per cent.
The Recreation & Entertainment index increased by 4.6 per
cent due to higher price of Holiday Package Expenses which
rose by 7.0 per cent.
The increase in the price of Fresh Chicken by 13.2 per cent
contributed to the increase in the Major Group Index of
Food & Non-Alcoholic Beverages by 0.7 per cent.
The Major Group Index of Transport rose by 0.4 per cent as a
result of an increase in the Purchase of Vehicles Index by 2.4
per cent.
The Housing, Water, Electricity & Maintenance index rose to
0.4 per cent due to the increase in Accommodation price by
1.0 per cent.
The largest downward effect on the CPI for this quarter
came from Clothing and Footwear (Chart 2.1). This was due
to the decline in the sub-group indices of Ready-Made
Clothing Accessories by 1.2 per cent; Materials for
Male/Female by 3.0 per cent; Wedding Dress, Accessories
and Rental by 2.1 per cent; Tailoring Charges by 1.5 per cent;
and Footwear by 1.2 per cent.
Food & Non Alcoholic Beverages
Clothing & Footwear
Housing, Water, Electricity &
M aint enance
Household Goods, Services &
Operat ions
Transport
Communicat ion
Educat ion
M edical & Health
Recreation & Ent ertainment
M iscellaneous Goods & Services
0.7
-1.5
0.4
-0.7
0.4
-0.9
0
0
-0.1
4.6
-5 0 5
CPI Changes for the Q2 of 2004 relative to the same
period in 2003
The average CPI for Q2 2004 increased by 0.7 per cent compared
to 100.6 in the same period last year (Table 2.1). The
Recreation & Entertainment Index advanced by 8.3 per cent
which accounted for half of the increase in the overall CPI.
The Major Group Indices of Food & Non-Alcoholic Beverages
also increased by 1.7 per cent; Transport by 1.4 per cent;
Education by 0.5 per cent; and Miscellaneous Goods and
Services by 0.7 per cent respectively.
The Recreation & Entertainment Index witnessed a sharp
increase of 8.3 per cent when compared to the same period
last year. This was mainly due to a 12.8 per cent rise in the
price of Holiday Package Expenses which was a consequence
of the increase in prices of Umrah Package which
coincide with school holidays.
The increase in prices of Beef (Cattle), Fresh and Frozen; and
Fresh Chicken by 22.7 per cent and 17.8 per cent respectively

BRUNEI ECONOMIC BULLETIN
P AGE 5
BRUNEI DARUSSALAM Q2 2004
ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS
Chart 2.2: CPI Percentage Changes Between Q2 2004 and Q2
2003
Food & Non Alcoholic Beverages
1.7
Clothing & Footwear
-3.5
Housing, Water, Electricity &
M aintenance
Household Goods, Services &
Operations
Transport
Communication
Education
Medical & Health
Recreation & Entertainment
Miscellaneous Goods & Services
-5.4
-1.7
-2.3
-0.3
1.4
0.5
0.7
8.3
-10 0 10
Chart 2.3: CPI Percentage Changes for the period of January-
June 2004 relative to the same period in 2003
Food & Non Alcoholic Beverages
0.9
Index
Clothing & Footwear
Housing, Water, Electricity &
M aintenance
Household Goods, Services &
Operations
Transport
Communication
Education
M edical & Health
Recreation & Entertainment
M iscellaneous Goods & Services
10 2 . 0
10 1. 0
10 0 . 0
-4.7
-2.1
-1.8
-2.4
0.0
0.0
1.9
1.0
5.8
-10.0 -5.0 0.0 5.0 10.0
Consumer Pric e Index 2002=100
(Jan-June 2004)
100.1
100.8
101.2
101.3
101.3
101.2
accounted for the largest upward movement of the Major
Group Index of Food & Non-Alcoholic Beverages.
The Miscellaneous Goods and Services index rose by 0.7 per
cent as a result of increases in sub-group indices of personal
care by 0.4 per cent and Personal Effects and Other Personal
Goods by 4.4 per cent.
The largest downward influence was from the Household
Goods and Operations Index (Chart 2.2). The index dropped
by 5.4 per cent as a result of decreases in the prices of Furniture
(11.9 per cent); Floor Covering (8.2 per cent); Household
Furnishings (0.2 per cent); Audio, Video Equipments, Musical
Instruments (4.5 per cent); Household Equipments and Electrical
Appliances (7.1 per cent); Kitchen Appliances and Utensils
(7.6 per cent); Crockery and Cutlery (6.8 per cent); Household
Operation (0.7 per cent); and Other Household Services
(0.4 per cent).
CPI Changes for the period January-June 2004/2003
The 0.4 per cent increase in the CPI was brought about by the
increase observed in Major Group indices of Food and Non-
Alcoholic Beverages by 0.9 per cent; Transport (1.9 per cent);
Recreation and Entertainment (5.8 per cent); and Miscellaneous
Goods and Services (1.0 per cent) (Chart 2.3).
The 0.9 per cent increase in the index for Food and Non-
Alcoholic Beverages was the result of increases in the subgroup
indices of Meat and Meat Products (9.3 per cent); Dairy
Products and Eggs (5.6 per cent); Cooking Oils and Fats (7.2 per
cent); Vegetables (1.5 per cent); Sugar, Sugar Preserves and
Confectionery (3.6 per cent); Coffee, Tea and Cocoa (0.6 per
cent; and Food/Drink Away From Home (0.2 per cent).
The Transportation index rose by 1.9 per cent reflecting an increase
in the price of Private Road Transport by 1.9 per cent
and Air Transport by 3.3 per cent.
The Major Group Index of Recreation and Entertainment increased
by 5.8 per cent due to the soaring prices of Holiday
Package Expenses which rose by 9.8 per cent.
The Miscellaneous Goods and Services index was up by 1.0 per
cent due to the increases in sub-group indices of Personal Care;
and Personal Effects and Other Personal Goods by 0.8 per cent
and 5.4 per cent respectively.
The largest downward effect was from the Major Group Index
of Household Goods & Operation (Chart 2.3). The price dipped
by 4.7 per cent as a result of decreases in the price of Furniture
(10.2 per cent); Floor Covering (4.9 per cent); Audio, Video
Equipments, Musical Instruments (4.4 per cent); Household
Equipments and Electrical Appliances (7.0 per cent); Kitchen
Appliances and Utensils (7.8 per cent); Crockery and Cutlery
(6.5 per cent); and Household Operation (0.2 per cent).
99.0
98.0
Jan Feb March Apr May June

P AGE 6
BRUNEI ECONOMIC BULLETIN
BRUNEI DARUSSALAM Q2 2004
ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS
Table 3.1:GOVERNMENT FINANCE (BND MILLION)
Q1 2004 Q2 2004 Q2 2003
Total Revenues 1,398.0 1,357.6 1,225.4
Tax 824.7 726.9 640.7
Non-tax 573.3 630.7 584.7
Total Expenditure 1,429.5 900.8 986.0
Current 1,202.5 768.5 781.0
Capital 227.0 132.3 204.9
Budget Surplus/ (Deficit) (31.5) 456.8 239.4
Source: Treasury Department, Ministry of Finance
Table 3.2: GOVERNMENT REVENUE & EXPENDITURE (BND MIL-
LION)
Q1 2004 Q2 2004 Q2 2003
Total Revenue 1,398.0 1,357.6 1,225.4
Tax revenue 824.7 726.9 640.7
Taxes on net income and
profits
797.5 698.7 612.1
Corporate taxes 796.5 698.0 611.0
Oil & Gas production
companies
758.4 643.2 560.5
Other companies 38.1 54.8 50.5
Individuals (estate duty) 0.0 0.0 0.4
Stamp 0.9 0.7 0.7
Taxes on international trade 24.3 25.6 25.9
Import duties 24.3 25.6 25.9
Motor vehicles tax 14.1 14.2 14.2
Tobacco 5.1 5.4 5.2
Others 5.1 6.0 6.5
Taxes on goods and services
3.0 2.6 2.7
Licences 3.0 2.6 2.7
Financial companies 0.1 0.1 0.0
Others 2.9 2.5 2.7
Non-tax revenue 573.3 630.7 584.7
Property income 497.8 570.4 513.3
Oil sector 482.1 561.2 485.4
Oil & Gas Royalties 160.0 121.9 106.3
Dividend paid by oil
companies
322.1 439.3 379.1
Other 15.7 9.2 27.9
Other royalties 0.3 0.4 0.4
Rent and interest 3.9 3.0 5.1
Others 11.5 5.8 22.4
Administrative fees and
charges on sales of goods
and fines 74.8 59.6 70.7
Telecom & utilities 54.9 40.6 50.5
Other 19.9 19.0 20.2
Other non-tax revenue 0.7 0.8 0.7
Total Expenditure 1,429.5 900.8 986.0
Current 1,202.5 768.5 781.0
Wages & Salaries 422.8 336.2 316.1
OCAR 465.6 284.3 286.8
Charged 314.1 148.0 178.1
Capital 227.0 132.3 204.9
OCSE 156.6 52.1 104.1
Development Expenditure 70.4 80.2* 82.9
Investment in Public Enterprise
NA NA 18.0
Budget Surplus/ Deficit (31.5) 456.8 239.3
Source: Treasury Department, Ministry of Finance (includes latest entries
for the Quarter) * Provisional
NA - Not Available
Fiscal Sector
Fiscal Position
In Q2 2004, the Government revenue of BND 1,357.6 million
exceeded its expenditure of BND 900.8 million, which resulted
in a budget surplus of BND 456.8 million compared
to BND 239.4 million during the same quarter last year
(Table 3.1). The budget surplus in Q2 2004 was primarily
due to the decrease in government expenditure, when compared
to the government finance in Q1 2004.
Government Revenue
The total revenue fell by 2.9 percent from BND 1,398.0 million
in Q1 2004 to BND 1,357.6 million in Q2 2004. However,
it was BND 132.3 million (10.8 percent) higher compared to
BND 1,225.3 million collected in Q2 2003.
As shown in Table 3.2, in Q2 2004, 53.5 percent of the total
revenue collected was in the form of tax revenue and only
46.5 percent was from non-tax sources. The former comprises
of taxes on net income and profits, taxes on international
trade, and taxes on goods and services, which decreased
from BND 824.7 million in Q1 2004 to BND 726.9
million in Q2 2004. The decrease was mainly due to the drop
in oil and gas corporate taxes, from BND 758.4 million in Q1
2004 to BND 643.2 million in Q2 2004. The increase in corporate
taxes by 43.8 percent from other companies was not
enough to compensate for the decrease in the oil and gas
corporate taxes. Nevertheless, the tax collected in Q2 2004
was BND 86.2 million higher than the amount collected in
the same quarter last year.
The non-tax revenue, which consists of property income,
administrative fees and charges on sales of goods and fines
including telecommunication and utilities, and others, recorded
an increase of BND 57.4 million from BND 573.3
million in Q1 2004 to BND 630.7 million in Q2 2004. The Q2
2004 figure was also an increase of 7.9 per cent (BND 46.0
million) compared to that in Q2 2003. The increase was
mainly due to the increase in the dividends paid by the oil
and gas companies, as shown in Table 3.2. This figure increased
by 36.4 percent from BND 322.1 million in Q1 2004
to BND 439.3 million in Q2 2004; and by 15.9 percent compared
to that of Q2 2003.
Government Expenditure
The government expenditure, which comprises current and
capital expenditures (CAPEX), decreased by 37.0 percent
from BND 1,429.5 million in Q1 2004 to BND 900.8 million
in Q2 2004 (Table 3.2). This was due to the decline in both
current and capital expenditures over the period from BND
1,202.5 million and BND 227.0 million in Q1 2004 to BND
768.5 million and BND 132.3 million in Q2 2004 respectively.
Of the total current expenditure during this quarter, 43.7
percent was for personnel emoluments (Wages & Salaries).
CAPEX, which includes Other Charges Special Expenditure
(OCSE) and Development Expenditure (DE), decreased by
41.7 percent compared to that recorded in Q1 2004. Compared
to Q2 2003, CAPEX recorded a decrease of BND 72.6
million (-35.4 percent) from BND 204.9 million. However,
the DE increased by 13.9 percent from BND 70.4 million in
Q1 2004 to BND 80.2 million in Q2 2004, but dropped
slightly by 3.3 percent from the same quarter last year. The

BRUNEI ECONOMIC BULLETIN
P AGE 7
BRUNEI DARUSSALAM Q2 2004
ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS
12000
Chart 4.1 Money Supply
OCSE recorded a decrease of 66.7 percent from BND 156.6
million in Q1 2004 to BND 52.1 million in Q2 2004. Compared
to Q2 last year, OCSE also fell by half, from BND 104.1 million.
10000
BND million
8000
6000
4000
2000
0
2003 2004
June July Aug Sep Oct Nov Dec Jan Feb M ar Apr M ay June
Month
CIC M1 Qm M2
Monetary Sector
Money Supply
As shown in Chart 4.1, the domestic narrow money (M1)
expansions increased by 1.8 percent, from BND2,481.3 million
in March 2004 to BND2,525.2 million in June 2004. This
expansion was affected by an increase in M1 components
where currency in circulation increased by 0.9 percent from
BND656.2 million to BND662.0 million and demand deposits
increased by 2.1 percent from BND1,825.1 million to
BND1,863.2 million. Within the same period, broad money
(M2) increased marginally by 2.6 percent from BND10,856.7
million to BND11,135.4 million due to the increase in quasi
money. Fixed deposit increased by 3.3 percent from
BND5,639.4 million in March 2004 to BND5,827.1 million in
June 2004 and savings and others (current deposits and call
money) increased by 1.7 percent from BND2,736 million in
March 2004 to BND2,783.1 million in June 2004. On a yearon-year
basis, broad money increased by only 9.7 percent
from BND10,150.2 million in June 2003 to BND11,135.4 million
in June 2004.
Assets and Liabilities
TABLE 4.1 – Assets and Liabilities
Assets and Liabilities in the banking system are shown in
Table 4.1. The commercial banks’ total assets and liabilities
increased by 6.6 percent from BND13,690 million in March
2004 to BND14,594 million in June 2004. This was due to an
increase in domestic and foreign deposits with banks and
other assets. Domestic and foreign deposits increased by 12.3
percent from BND6,272 million in March 2004 to BND7,045
million in June 2004. Similarly, loans and advances increased
by 0.8 percent, from BND5,392 million to BND5,437 million
and other assets also increased by 8.8 percent from BND909
million to BND989 million. Liabilities in the banking system
also increased where deposits rose by 2.7 percent from
BND10,201 million to BND10,473 million. This was due to
increases in demand deposits by 2 percent from BND1,825
million to BND1,863 million, time deposits by 3.3 percent
Assets / Liabilities 2003 2004
June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Assets 12,925 12,218 12,081 12,900 12,683 12,798 13,495 13146 13117 13,690 13,514 13,391 14,594
Cash 169 163 165 138 174 208 245 176 171 175 145 154 146
Due from bank : 5,907 5,225 4,979 5,737 5,508 5,557 6,204 5,738 5,715 6,272 6,110 5,920 7,045
in BD 1,100 784 614.3 912 862 795 1023 1,048 1082 1,151 1,105 1,048 1,488
outside BD 4,807 4,441 4364.5 4,825 4646 4,762 5181 4,690 4633 5,121 5,005 4,872 5,557
Loans and Advances 5,259 5,269 5304 5,346 5351 5,392 5387 5,398 5383 5,392 5,373 5,385 5,437
Investment 721 689 744 775 744 726 715 873 925 942 961 985 977
Other assets 869 872 889 904 906 915 944 961 923 909 925 947 989
Liabilities 12,925 12,218 12,081 12,900 12,683 12,798 13,495 13146 13117 13,690 13,515 13,390 14,593
Deposits 9,504 9,255 9,313 9,768 9,659 9,825 10,205 9914 9861 10,201 10,075 9,973 10,473
Demand 1,971 1,853 1837 1,986 1899 2,038 2149 1967 1932 1,825 1,686 1,739 1,863
Time 4,998 4,902 4980 5,280 5214 5,218 5457 5257 5207 5,640 5,629 5,445 5,827
Saving 2,535 2,500 2496 2,502 2546 2,569 2599 2690 2722 2,736 2,760 2,789 2,783
Due to bank 1,541 1,077 877 1,240 1,111 1,023 1,394 1308 1319 1,538 1,445 1,400 2,060
in BD 1,308 970 771 1,130 1016 931 1222 1182 1221 1,444 1,354 1,306 1,937
outside BD 233 107 106 110 95 92 172 126 98 94 91 94 123
Other liabilities 1,880 1887 1891 1892 1913 1950 1896 1924 1937 1,951 1,995 2,017 2,060
Source: Financial Institution Division, Ministry of Finance

P AGE 8
BRUNEI ECONOMIC BULLETIN
BRUNEI DARUSSALAM Q2 2004
ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS
TABLE 4.2 – Direction of Lending
2003
2004
Mar Jun Sep Dec Mar Jun
Total 4347 4386 4486 5386 5391 5438
Agriculture 34 35 33 33 41 33
Credit & Finance 15 17 22 23 21 27
Manufacturing 89 91 96 90 90 91
Transportation 186 197 213 201 193 203
Construction 467 457 471 460 450 484
General Commerce 497 478 497 481 465 476
Professional Services 107 115 94 100 94 43
Personal Loans 2479 2528 2591 3517 3567 3621
Mortgage 473 468 469 481 470 460
Source: Financial Institution Division, Ministry of Finance
Chart 4.2 Non-Performing Loans
800
700
600
500
2003 2004
400
300
200
100
0
Jun Jul Aug Sep Oct Nov Dec Jan Feb M ar Apr M ay Jun
Month
60-90 days 91-120 days >120 days Tot al
Source: Financial Institution Division, Ministry of Finance
BND Million
from BND5,640 million to BND5,827 million and savings by 1.7
percent from BND2,736 million to BND2,783 million during the
same period.
Other liabilities increased by 5.6 percent from BND1,951 million
to BND2,060 million. On a year on year basis, the banking assets
and liabilities rose by 12.9 percent from BND12,925 million in
June 2003 to BND14,594 million in June 2004.
Lending
Lending aggregates, as shown in Table 4.2, rose by only 0.9
percent from BND5,391 million in March 2004 to BND5,438
million in June 2004. The main contributor to the increase was
Personal Loan which comprised 66.6 percent (BND 3,621) of the
total loans recorded in June 2004. Loans to Construction, General
Commerce and Mortgage contributed 8.9 percent (BND484
million), 8.6 percent (BND476 million), and 8.46 percent
(BND460 million), respectively. Lower contributions from Agriculture
(0.6 percent), Credit and Finance (0.5 percent), Manufacturing
(1.67 percent), Professional Services (0.8 percent) and
Transportation (3.7 percent) were also recorded
As also observed in the first quarter, loan aggregates was still
dominated by Personal Loans. In comparison, the share of loans
to productive sectors such as Agriculture and Manufacturing to
total loans was still minimal, when combined, represented only
2.3 percent of total.
Compared to lending direction in the first quarter’s, loans to
several economic sectors were down by almost 25 percent on
average. Loans to Agriculture dropped by 19.5 percent from
BND41 million to BND33 million. Similarly loans to Mortgage
decreased by 2.1 percent from BND470 million to BND460 million
while loans to Professional Services decreased by 54.3 percent
from BND94 million to BND43 million. However, loans to
other sectors have recorded increases. Substantial increase was
observed for loans to Credit and Finance which increased by
28.6 percent from BND21 million to BND27 million. Loans to
Construction increased by 7.6 percent from BND450 million to
BND484 million while loans to General Commerce rose by 2.4
percent from BND465 million to BND476 million. Loans to
Manufacturing increased marginally by 1.1 percent from
BND90 million to BND91 million while Personal Loans rose by
1.5 percent from BND3,567 million to BND3,621 million. Loans
to Transportation grew by 5.2 percent from BND193 million to
BND203 million.
Non-Performing Loans
Non-performing loans (NPLs) declined further owing to the
favourable economic conditions (the growth in non-oil GDP by
3.9 per cent). Preliminary information in Chart 4.2, showed that
NPLs based on 6-month classification moderated to BND7.63
million in June 2004, down from BND14.88 million in March
2004. NPLs based on 3-month classification fell to BND25.90
million, down from BND29.09 million. Improvements in the
level of NPLs were also due to lower incidence of new NPLs
and write-offs of bad loans coupled with strong recoveries and
reclassification of NPLs to performing loans.
Non-performing loans aggregates decreased by 1.0 percent
from BND651.74 million in March 2004 to BND645.52 million in
June 2004. On a year-on-year basis, NPLs decreased by 7.5 percent
from BND698.18 million in June 2003. The ratio of the NPL

BRUNEI ECONOMIC BULLETIN
P AGE 9
BRUNEI DARUSSALAM Q2 2004
ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS
%
Chart 4.3 – Deposit Rates in
Brunei Darussalam Banking System
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
Jun Aug Oct Dec Feb Apr Jun
to loans aggregates decreased by 0.3 percentage points from 12.1 percent
in March 2004 to 11.8 percent in June 2004 and decreased on a
year-on-year basis by 4.1 percentage points from 15.9 percent in June
2003 to 11.8 percent in June 2004. Although the decrease in the NPL
was a positive sign to the banking system, the NPL was still a cause of
concern and there was a need for greater domestic economic improvement
and other financial tools to address the situation.
On a positive note, the financial strength of the domestic banking system
as a whole is still adequate to provide liquidity to finance real output
expansions.
Interest and Exchange Rates
3 6 9 12
Source: Hongkong and Shanghai Banking Corporation
CHART 5.1: BRUNEI DARUSSALAM EXPORT, IMPORT
& BALANCE OF TRADE, APRIL-MAY 2003 & APRIL-
MAY 2004
BND Million
1,000
800
600
400
200
-
April 2003 April 2004 May 2003 May 2004
Total Exports 584.0 655.4 617.5 619.0
Total Imports 217.2 188.7 198.2 196.6
Total Trade 801.2 844.1 815.6 815.5
Balance of Trade 366.8 466.7 419.3 422.4
CHART 5.2: BRUNEI DARUSSALAM EXPORT, IMPORT
& BALANCE OF TRADE, JANUARY-MAY 2004
BND Million
150 0
10 0 0
500
0
Total Exports 689.4 627.4 714.4 655.4 619.0
Total Imports 205.6 335.8 194.0 188.7 196.6
Total Trade 895.1 963.2 908.4 844.1 815.5
Balance of
Trade
Jan
2004
Feb
2004
Mar
2004
Apr
2004
May
2004
483.8 291.6 520.4 466.7 422.4
The interest rates in the Brunei Darussalam banking system had declined
continuously over the past five years through the end of 2003,
apparently squeezed by a combination of regulatory and market pressure.
Surprisingly the prime lending rates remained unchanged at 5.5
percent per annum since September 2000. Deposits rates (Chart 4.3)
were also unchanged as in last quarter of 2003 at 0.225 percent, 0.25
percent and 0.3375 percent for the 3, 6 and 12-month deposits respectively.
Savings deposit rates varied according to the amounts deposited.
There is no interest for deposits of less than BND 499.99. The interest
rates of 0.05 percent is specified for deposits of between BND500
and BND99,999.99 and 0.1 percent for deposits of BND100,000.00 and
above.
Singapore’s lending rates of 5.3 percent also remained constant since
the last quarter of 2003. The 3, 6 and 12-month deposits were still unchanged
at 0.41 percent, 0.52 percent and 0.71 percent respectively.
Similarly, the highest negotiated Singapore’s savings deposit rates of
0.23 percent remained unchanged. Generally, the rates offered by
banks in Singapore were more attractive for various investments than
those offered by the domestic banking system.
From January 2004 to June 2004, the Brunei Dollar depreciated against
the US dollar from 1.6987 to 1.7120 on average and from 1.7020 to
1.7243 at end of period. Based on past trend, the US dollar is expected
to weaken and forecasted to prevail at 1.58 against the Brunei Dollar at
the end of the year.
Conclusion
The growth momentum of the monetary sector as a whole were dependent
on the progress in the domestic economic developments and
activities and the indirect impact of the exchange rate volatility affecting
demand and supply of domestic trades.
External Sector
Total and Balance of Trade
In April 2004, the total trade was BND 844.1 million which was an increase
of 5.4 per cent from BND 801.2 million in April 2003. However
in May 2004, there was a slight reduction in total trade by 0.02 per cent
from BND 815.6 million in May 2003 to BND 815.5 million. Similarly,
total trade decreased by 3.4 per cent between April and May 2004.
A trade surplus of BND 466.7 million was recorded in April 2004
which was 27.2 per cent higher than April 2003 figure of BND 366.8
million. In May 2004, a trade surplus was also recorded which was 0.7
per cent higher from BND 419.3 million in May 2003 to BND 422.4 million.
However, there was reductions in trade surplus by 9.5 per cent
between April and May 2004 (Chart 5.1).
Both the total trade and trade surplus showed downward trend for the
period between January to May 2004 (Chart 5.2).

P AGE 10
BRUNEI ECONOMIC BULLETIN
BRUNEI DARUSSALAM Q2 2004
ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS
CHART 5.3: EXPORTS BY MAJOR COMMODITY, JAN-MAY 2004
April
2003
BND Million
April
2004
May
2003
May
2004
Apr '03 &
Apr '04
% Change
May '03
& May
'04
Apr '04 &
May '04
Oil and Gas 545.0 591.2 548.8 575.3 8.5 4.8 (2.7)
Petroleum 301.3 336.3 308.2 387.2 11.6 25.6 15.1
LNG 243.6 254.9 240.6 188.1 4.6 (21.8) (26.2)
Non-Oil &
Gas
39.0 64.2 68.7 43.7 64.4 (36.4) (32.0)
Garment 20.8 27.4 39.7 23.4 31.8 (41.2) (14.8)
Machinery
& Transport
Equipment
11.4 29.1 16.2 13.9 154.3 (14.1) (52.2)
Others 6.8 7.7 12.8 6.4 13.0 (49.9) (16.5)
Total Exports
BND Million
900
800
700
600
500
400
Jan '04 Feb '04 Mar '04 Apr '04 May '04
Total Exports 689.4 627.4 714.4 655.4 619.0
Oil and Gas 624.6 544.6 659.0 591.2 575.3
Non-Oil & Gas 64.8 82.8 55.4 64.2 43.7
TABLE 5.1: EXPORTS BY MAJOR COMMODITY, APRIL-MAY 2003
AND APRIL-MAY 2004
584.0 655.4 617.5 619.0 12.2 0.2 (5.6)
90
80
70
60
50
40
30
BND Million
Exports
The total exports in April 2004 increased by 12.2 per cent from
BND 584.0 million in April 2003 to BND 655.4 million. In May
2004, total exports were BND 619.0 million which was an increase
of 0.2 per cent from BND 617.5 million in May 2003.
However there were reduction in total exports by 5.6 per cent
between April and May 2004. Exports in April and May 2004
were still dominated by oil and gas which contributed 90.2 per
cent and 92.9 per cent of total exports respectively.
With respect to the trend of total exports for the period between
January and May 2004, it showed some correlation with
the Oil and Gas exports since Oil and Gas were the major exports
for Brunei Darussalam (Chart 5.3).
Oil and Gas exports in April 2004 were BND 591.2 million
which was an increase of 8.5 per cent from BND 545.0 million
in April 2003. Oil and Gas exports in May 2004 also increased
by 4.8 per cent from BND 548.8 million in May 2003 to BND
575.3 million. However Oil and Gas exports decreased by 5.6
per cent in May 2004 on a month-month basis.
Petroleum exports (crude and condensate) in May 2004 was
BND 387.2 million which was 25.6 per cent higher compared
to May 2003. The increase was due to higher oil price which
recorded average oil price per barrel of US$39.40 in May 2004
compared to US$27.18 in May 2003. Similarly, the petroleum
exports increased by 11.6 per cent in April 2004 from the same
month of 2003 as a result of higher oil price which recorded
average oil price per barrel of US$37.23 in April 2004 compared
to US$27.69 in April 2003. On month on month basis,
petroleum exports increased by 15.1 per cent in May 2004.
The LNG exports in April 2004 was BND 254.9 million. This
was an increase of 4.6 per cent compared to BND 243.6 million
in April 2003. In contrast to April 2004, the LNG exports decreased
by 21.8 per cent from BND 240.6 million in May 2003
to BND 188.1 million in May 2004. Similarly, the LNG exports
decreased by 26.2 per cent between April and May 2004. The
decrease was due to lower LNG production for exports which
recorded only 908,235.81 MMBtu/day in May 2004 compared
to 1,036,790.0 MMBtu/day in May 2003. The average LNG
price for April and May 2004 were US$4.68 per MMBtu and
US$4.74 per MMBtu respectively.
The Non-Oil and Gas exports in April 2004 were BND 64.2
million. This was indeed an increase of 64.4 per cent from
BND 39.0 million in April 2003. The increase was mainly due
to higher exports of Machinery & Transport Equipment in
April 2004 of BND 29.1 million which was an increase of 154.3
per cent from BND 11.4 million in April 2003.
In May 2004, Non-Oil and Gas exports decreased by 36.4 per
cent from BND 68.7 million in May 2003 to BND 43.7 million.
This was mainly due to lower exports of Garment in May 2004
of BND 23.4 million which was a decrease of 41.2 per cent
from BND 39.7 million in May 2003.
Similarly, Non-Oil and Gas exports decreased by 32.0 per cent
in May 2004 on a month-month basis. The decrease was
mainly due to lower exports of Machinery & Transport Equipment
by 52.2 per cent in May 2004 (Table 5.1).

BRUNEI ECONOMIC BULLETIN
BRUNEI DARUSSALAM Q2 2004
ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS
P AGE 11
AUSTRALIA
12 .7%
CHINA
KOREA
9.7%
OTHERS
26.9%
8.3%
AUSTRALIA
6.0%
CHART 5.4: EXPORT MARKET IN APRIL 2004
CHINA
0.0%
OTHERS
10 .8 %
JAPAN
44.4%
CHART 5.5: EXPORT MARKET IN MAY 2004
KOREA
13.9%
ASEAN
9.9%
ASEAN
22.4%
JAPAN
35.0%
TABLE 5.2: EXPORT MARKET FOR APRIL-MAY 2003 AND APRIL-MAY 2004
April
2003
BND Million
April
2004
May
2003
May
2004
Apr '03
& Apr
'04
% Change
May '03
& May
'04
Apr '04 &
May '04
ASEAN 151.5 147.0 157.5 61.6 (3.0) (60.9) (58.1)
JAPAN 238.9 290.9 267.2 216.4 21.8 (19.0) (25.6)
KOREA 48.4 63.3 45.9 86.1 30.6 87.4 36.0
AUSTRA-
LIA
52.1 83.2 50.8 36.9 59.7 (27.4) (55.6)
CHINA 29.4 0.2 30.2 51.5 (99.4) 70.6 27,356.7
OTHERS 63.8 70.9 65.8 166.6 11.2 153.1 135.0
TOTAL
EXPORTS
584.0 655.4 617.5 619.0 12.2 0.2 (5.6)
TABLE 5.3: IMPORTS BY COMMODITY, APRIL-MAY 2003 AND APRIL-MAY
2004
BND Million
% Change
April
'03
April
'04
May
'03
May
'04
Apr
'03 &
Apr
'04
May
'03 &
May
'04
Apr
'04 &
May
'04
Food & live animals 30.1 23.4 23.6 31.7 (22.4) 34.3 35.5
Beverages & tobacco 4.0 6.0 3.6 4.3 49.9 19.1 (28.3)
Crude material inedible
5.5 2.0 1.8 1.4 (63.5) (20.4) (29.2)
Mineral fuels 1.7 1.3 1.6 1.6 (23.5) (0.5) 17.8
Animal & vegetable
oils and fats
1.3 1.3 1.4 1.3 (3.4) (8.6) 1.0
Chemicals 14.9 16.5 16.8 16.7 10.2 (0.8) 1.2
Manufactured goods 64.7 55.7 61.1 49.9 (14.0) (18.4) (10.4)
Machinery & transport
equipments
70.5 61.2 68.2 68.5 (13.2) 0.4 12.0
Miscellaneous manufactured
articles
23.7 20.5 19.0 20.7 (13.5) 8.7 1.1
Miscellaneous transactions
and commodities,
n.e.cmanufactured
articles
0.7 0.8 1.0 0.5 24.6 (48.5) (41.8)
Total imports (c.i.f) 217.2 188.7 198.2 196.6 (13.1) (0.8) 4.2
With respect to the destination of exports, in April 2004, 44.4
per cent of the total exports were to Japan, followed by
ASEAN countries (22.4 per cent), Australia (12.7 per cent) and
Korea (9.7 per cent) (Chart 5.4). Compared to April 2003,
Brunei’s exports to Australia, Korea and Japan in April 2004
increased by 59.7 per cent, 30.6 per cent and 21.8 per cent respectively.
Exports to China and ASEAN countries declined by
99.4 per cent and 3.0 per cent respectively. The huge decrease
of Brunei Darussalam’s exports to China was due to no Petroleum
exports in April 2004.
In May 2004, Japan remained the dominant exports market
which accounted for 35.0 per cent of total exports, followed by
Korea (13.9 per cent), ASEAN countries (9.9 per cent), China
(8.3 per cent) and Australia (6.0 per cent) (Chart 5.5). Compared
to May 2003, Brunei’s exports to Korea and China in
May 2004 increased by 87.4 per cent and 70.6 per cent respectively.
Exports to ASEAN countries, Australia and Japan declined
by 60.9 per cent, 27.4 per cent and 19.0 per cent respectively.
In comparison to April 2004, Brunei Darussalam’s exports in
May 2004 to Korea increased by 36.0 per cent from BND 63.3
million to BND 86.1 million. There was also a significant increase
in exports to China from BND 187,492 in April 2004 to
BND 51,479,048 in May 2004 due to exports of mineral fuels
recorded at BND 51,476,041 in May 2004. However, there were
reductions in exports to ASEAN Countries, Australia and Japan
by 58.1 per cent, 55.6 per cent and 25.6 per cent respectively
(Table 5.2).
Imports
In April 2004, total imports were BND 188.7 million, which
was a decrease of 13.1 per cent compared to April 2003 imports
of BND 217.2 million. The decrease in imports was due
to the decline in the imports of Crude Material Inedible by 63.5
per cent, Mineral Fuels (23.5 per cent), Food & Live Animals
(22.4 per cent), Manufactured Goods (14.0 per cent), Miscellaneous
Manufactures Articles (13.5 per cent), Machinery &
Transport Equipment (13.2 per cent) and Animal & Vegetable
Oils and Fats (3.4 per cent). Such decreases were moderated by
the increases in Beverages & Tobacco by 49.9 per cent, Miscellaneous
Transactions and Commodities (24.6 per cent) and
Chemicals (10.2 per cent).
In May 2004, total imports decreased slightly by 0.8 per cent
from BND 198.2 million in May 2003 to BND 196.6 million due
to the reduction in the imports of Miscellaneous Transactions
and Commodities by 48.5 per cent, Crude Material Inedible
(20.4 per cent), Manufactured Goods (18.4 per cent), Animal &
Vegetables Oils & Fats (8.6 per cent), Chemicals (0.8 per cent)
and Mineral Fuels (0.5 per cent). The increases in Food & Live
Animals by 34.3 per cent, Beverages & Tobacco (19.1 per cent),
Miscellaneous Manufactured Articles (8.7 per cent) and Machinery
& Transport Equipment (0.4 per cent) were insufficient
to offset the total reduction in imports.
On the contrary, total imports increased by 4.2 per cent in May
2004 on a month-on-month basis due mainly to high imports
of Food & Live Animals by 35.5 per cent and also imports of
Machinery & Transport Equipment by 12.0 per cent in May
2004 (Table 5.3).

P AGE 12
BRUNEI DARUSSALAM Q2 2004
ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS
BRUNEI ECONOMIC BULLETIN
CHART 5.6: TOTAL IMPORTS, JANUARY-MAY 2004
350
BND Million
CHART 5.7: MAJOR COMMODITY IMPORTS IN
APRIL 2004
M iscellaneous
manufactured
articles
10.9%
Machinery &
transport
equipments
32.4%
Others
6.1%
Food & live
animals
12.4%
Chemicals
8.7%
M anufactured
goods
29.5%
CHART 5.8: MAJOR COMMODITY IMPORTS IN MAY
2004
M iscellaneous
manufactured
articles
10.5%
Machinery &
transport
equipments
34.9%
10 0 %
80%
60%
40%
20%
0%
300
250
200
150
11.3
6.1
14.1
10.5
29.2
23.6
17.7
104.6
Others
4.6%
15.1
3.9
11.2
10.3
20.4
17.9
17.5
92.3
12.2
6.1
9.8
8.6
17.8
19.7
24.4
99.5
Trend Line
Jan 2004 Feb 2004 M ac 2004 Apr 2004 M ay 2004
Total Imports 205.6 335.8 194.0 188.7 196.6
Food & live
animals
16.1%
Chemicals
8.5%
M anufactured
goods
25.4%
CHART 5.9: ORIGIN OF IMPORTS, APRIL-MAY 2003 AND
APRIL-MAY 2004
BND
M illion
11.7
6.7
10.3
12.2
23.7
21.6
17.1
93.2
April '03 April '04 May '03 May '04
ASEAN EU JAPAN USA CHINA HONG KONG AUSTRALIA OTHERS
Total imports showed a downward trend for the period between
January and May 2004 (Chart 5.6). The high total imports
in February 2004 was due to high imports of Machinery
& Transport Equipment from the European Union.
In April 2004, Machinery and Transport Equipment constituted
32.4 per cent of total imports, followed by Manufactured
Goods (29.5 per cent), Food & live animals (12.4 per cent), Miscellaneous
Manufactured Articles (10.9 per cent) and Chemicals
(8.7 per cent) (Chart 5.7).
In May 2004, Machinery and Transport Equipment remained
the major imports commodity which accounted for 34.9 per
cent of total imports, followed by Manufactured Goods (25.4
per cent), Food & live animals (16.1 per cent), Miscellaneous
Manufactured Articles (10.5 per cent) and Chemicals (8.5 per
cent) (Chart 5.8).
With regards to the origin of imports, in April 2004, 48.9 per
cent of total imports were from ASEAN countries, followed by
the USA (10.8 per cent), Japan (9.5 per cent), the European
Union (9.3 per cent), Hong Kong (5.9 per cent), China (5.4 per
cent) and Australia (2.1 per cent) (Chart 5.9).
Compared to April 2003, Brunei Darussalam’s imports in April
2004 from Australia, the USA, Japan, Hong Kong, ASEAN
countries, China and the European Union decreased by 37.0
per cent, 30.1 per cent, 24.1 per cent, 20.2 per cent, 11.7 per
cent, 2.6 per cent and 1.0 per cent respectively.
In May 2004, ASEAN countries remained the main source of
imports which accounted for 47.4 per cent of total imports,
followed by the USA (12.1 per cent), Japan (11.0 per cent), the
European Union (8.7 per cent), China (6.2 per cent), Hong
Kong (5.2 per cent) and Australia (3.4 per cent).
In comparison to May 2003, Brunei Darussalam’s imports in
May 2004 from China increased by 42.5 per cent, followed by
the USA (33.2 per cent), Australia (9.9 per cent), Japan (9.6 per
cent) and Hong Kong (5.2 per cent). However, imports from
the European Union and ASEAN countries declined by 29.9
per cent and 6.3 per cent respectively.
Compared to April 2004, Brunei Darussalam’s May 2004 imports
from Australia increased by 72.7 per cent, followed by
Japan (20.6 per cent), China (19.0 per cent), the USA (16.0 per
cent) and ASEAN countries (1.0 per cent). However, imports
from Hong Kong and the European Union declined by 8.2 per
cent and 2.6 per cent respectively (Table 5.4).
TABLE 5.4: ORIGIN OF IMPORTS, APRIL-MAY 2003 AND APRIL-MAY 2004
BND Million
April '03 April '04 May '03 May '04
April '03
& April
'04
% Change
May '03
& May
'04
April '04
& May
'04
ASEAN 104.6 92.3 99.5 93.2 (11.7) (6.3) 1.0
EU 17.7 17.5 24.4 17.1 (1.0) (29.9) (2.6)
JAPAN 23.6 17.9 19.7 21.6 (24.1) 9.6 20.6
USA 29.2 20.4 17.8 23.7 (30.1) 33.2 16.0
CHINA 10.5 10.3 8.6 12.2 (2.6) 42.5 19.0
HONG
KONG
14.1 11.2 9.8 10.3 (20.2) 5.2 (8.2)
AUSTRALIA 6.1 3.9 6.1 6.7 (37.0) 9.9 72.7
OTHERS 11.3 15.1 12.2 11.7 32.9 (4.7) (22.5)
TOTAL
IMPORTS
217.2 188.7 198.2 196.6 (13.1) (0.8) 4.2

BRUNEI ECONOMIC BULLETIN
P AGE 13
BRUNEI DARUSSALAM Q2 2004
ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS
Chart 6.1: Brunei Darussalam Average Weighted Crude Oil
Prices
US$/Barrel
45
40
35
30
25
33.41
32.39
32.27 32.73
31.02
30.98
30.03
31.35
28.64 30.02
30.35 29.35
27.85
27.69
25.73
27.07
26.31 26.51 27.18
24.60
26.60
24.76
39.4
38.47
37.23
36.22 37.83
Average Weighted Crude Oil Price Index
The average weighted Crude Oil Price Index (COPI) for Q2 2004 increased
by 39.8 per cent year-on-year from 92 to 128.6. On a quarteron-quarter
basis, the COPI increased by 7.3 per cent from 119.8 (Table
6.1).
Brunei Darussalam’s average weighted crude oil price decreased by
3.2 per cent from US$38.47 per barrel in March 2004 to US$37.23 per
barrel in April 2004 (Table 6.1 and Chart 6.1). Then it rose by 5.8 per
cent to US$39.4 in May 2004. However, it decreased again by 4 per cent
to US$37.83 per barrel in June 2004. The average weighted crude oil
price stood at US$38.2 per barrel in Q2 2004 compared to US$27.33 per
barrel in Q2 2003 and US$35.59 per barrel in Q1 2003.
20
APR 2002 JUL OCT JAN 2003 APR JULY OCT JAN 2004 APR
Source: Petroleum Unit, Prime Minister's Office
Table 6.1 : Average Weighted Price of Crude Oil
Unit - US$/Barrel
2001 2002 2003 2004
JAN 26.24 19.67 30.02 32.73
FEB 27.27 20.17 30.98 36.22
MAC 26.79 22.99 33.41 38.47
APR 27.75 24.76 27.69 37.23
MAY 28.99 25.73 27.18 39.40
JUN 28.05 24.60 27.07 37.83
JUL 25.99 26.31 30.03
AUG 24.91 27.85 30.35
SEP 24.96 28.64 29.35
OCT 20.19 26.60 32.39
NOV 18.79 26.51 32.27
DEC 18.60 31.02 31.35
Average W.Crude Oil Price for the
Year
24.67 25.33 30.17
Average W.Crude Oil Price Q1 26.73 20.87 33.41 35.59
Average W.Crude Oil Price Q2 28.23 25.03 27.30 38.20
Average W.Crude Oil Price Q3 25.29 27.59 29.33
Average W.Crude Oil Price Q4 19.19 28.02 32.00
Average W.Crude Oil Price 1H 27.45 22.95 30.33 36.89
Average W.Crude Oil Price 2H 23.19 27.51 30.71
Average Weighted Crude Oil Price Index
2001 2002 2003 2004
JAN 88.3 66.2 101.0 110.2
FEB 91.8 67.9 104.3 121.9
MAC 90.2 77.4 112.5 129.5
APR 93.4 83.3 93.2 125.3
MAY 97.6 86.6 91.5 132.6
JUN 94.4 82.8 91.1 127.3
JUL 87.5 88.6 101.1
AUG 83.8 93.7 102.2
SEP 84.0 96.4 98.8
OCT 68.0 89.5 109.0
NOV 63.2 89.2 108.6
DEC 62.6 104.4 105.5
Average Index for the Year 83.0 85.3 101.5
Average Index for Q1 90.0 70.2 106.1 119.8
Average Index for Q2 95.0 84.2 91.9 128.6
Average Index for Q3 85.1 92.9 98.7
Average Index for Q4 64.6 94.3 107.7
Average Index for 1H 92.4 77.2 102.1
Average Index for 2H 78.1 92.6 103.4
Base year 2000=100
Source: Petroleum Unit, Prime Minister's Office
World oil prices closed at around US$35.45 per barrel at the end of Q1
2004. Prices remained stable above US$33.45 per barrel throughout
April 2004. May 5 then saw oil prices hit a fresh 13-year high reaching
US$39.40 per barrel due to tight supplies in the US and the fear that
violence in the Middle East would intensify. A day later, prices rose
further to US$39.40 per barrel amid renewed violence in the Middle
East.
On May 13, oil prices hit an all-time high reaching US$40.60 per barrel
following worries about global demand and gasoline supplies. Prices
rose further on May 17 to a new record high (around US$41.40 per
barrel) on concern that rapid fuel demand growth would outpace
global supplies at a time when traders feared an attack on the Middle
East oil infrastructure. Prices eventually fell a day later to around
US$40.10 per barrel on signs that the oil producers' cartel, the Organization
of Petroleum Exporting Countries (OPEC), would vote to increase
production when it was due to meet in June 2004.
May 24 however saw oil prices rose again to around US$41.30 per barrel
due to soaring oil demand caused by global economic expansion.
There has been higher than expected oil demand in industrialized
countries. China’s rapidly expanding economy also has created a huge
demand boost. Prices then remained stable around US$40.90 per barrel
throughout the end of May 2004.
On June 1, oil prices struck a new record high (around US$41.70 per
barrel) on concerns that a violence campaigns by Islamic militants in
Saudi Arabia could destabilize the world’s biggest crude exporter. The
next two weeks subsequently saw oil prices on a falling trend to
around US$38.39 per barrel amid expectations that higher OPEC production
and rising imports of the United States of America (USA)
would increase inventories in the USA, the world's largest energy consumer.
Prices however increased again on June 18 to around US$38.50 per
barrel after attacks on pipelines in Iraq. The next two weeks then saw
oil prices declined gradually and eventually closed at around US$37.50
per barrel at the end of June 2004.

P AGE 14
BRUNEI ECONOMIC BULLETIN
BRUNEI DARUSSALAM Q2 2004
ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS
Economic Outlook for Q2 2004
The economy of Brunei Darussalam is expected to grow further in Q3
2004 and again the non-oil private sector is likely to provide the momentum.
On the production side, the oil and gas sector may not show
significant increase due to “capacity constraint”. However, the higher
oil price may contribute to higher export revenue and the resulting
general spill-over effects. Furthermore, economic expansion of regional
economies may help boost business confidence in this country.
The non-oil private sector will be enhanced by expansions in mining,
quarrying and manufacturing, construction, wholesale and retail
trades, transportation and communication and other services sectors.
These are the sectors which have revealed significant growth during
the first half of 2004. The restaurant and hotel sector in particular, will
be boosted by the upcoming royal birthday and wedding functions.
Furthermore, an examination of job vacancies 1 in the private sector has
revealed a significant increment over the past two quarters, especially
in the services sector. With better economic outlook and more investment,
job opportunities are also anticipated to increase further along
with non-oil sector growth.
As expected, the government financial position (budget surplus) has
improved in Q2 2004 compared to Q1 2004 but this was largely due to
the decline in government current expenses. During the same period,
the government development expenditure is expected to increase
again in Q3 2004.
Since October 2003, the broader measure of money supply, M2, has
increased during the last three quarters. Non-performing loans have
also decreased, especially after February 2004. Similarly, loans advances
have also increased generally in Q2 2004 compared to the previous
quarter, even though the bulk goes to personal requirements. All
of these developments show some level of confidence in both the business
community and the consumers and the same is expected to persist
in the next quarter.
On the external sector, although the trade statistics showed a decline in
exports between April and May 2004, imports are increasing during
the same period. This is especially true for both tradeable and investment
goods such as those under machinery and transport equipment
and foods and live animals categories. These trade indicators, together
with the aforementioned, are positive signs of a growing economy, at
least in the short and the medium term.
1 These job vacancies are monitored based on those advertised in the Borneo Bulletin from January to June 2004. Between Q1 and Q2 of 2004,
there was an increase in job opportunities of nearly 50 percent, from 293 to 432 job vacancies. The bulk of these opportunities (76 percent of
total in Q2 2004) are in the professionals, technicians and clerical occupational categories.

BRUNEI ECONOMIC BULLETIN
8th NATIONAL DEVELOPMENT PLAN
P AGE 15
Q2 2004 Project Implementation Review
For the fiscal year of 2004-2005, a total of BND 900 million has
been allocated to implement some 480 projects of the 8 th National
Development Plan. Out of this amount, BND 526 million has been
allocated to fund 210 on-going projects, including projects which
have been completed, but are awaiting penultimate and final payments.
The balance of this fund (BND 374 million) will finance the implementation
of the remaining 270 projects.
The BND 900 million allocation has been distributed to major development
sectors as shown in Table 1 below.
TABLE 1: Budget Allocation by Major Sectors and Category of Projects
Sectors
On-Going Projects
(BND) & % of Total
Sectoral Allocation
New Projects
(BND) & % of Total Sectoral
Allocation
TOTAL SECTORAL
ALLOCATION
(BND)
Industry & Commerce
74,458,000
(81.78%)
16,590,000
(18.22%)
91,048,000
Transport & Communication
Social Services
Public Utilities
Public Buildings
Security
Miscellaneous
ICT
GRAND TOTAL
100,429,000 67,213,000
59.91% 40.09%
167,642,000
94,638,000 112,478,000
45.69% 54.31%
207,116,000
90,910,000 75,580,000
54.60% 45.40%
166,490,000
62,675,000 22,850,000
73.28% 26.72%
85,525,000
64,250,000 28,900,000
68.97% 31.03%
93,150,000
16,689,000 8,340,000
66.68% 33.32%
25,029,000
22,000,000 42,000,000
34.38% 65.63%
64,000,000
526,049,000 373,951,000 900,000,000
58.45% (41.55%)
100%
TABLE 2: BREAKDOWN OF STATUS OF ON-GOING PROJECTS
Q2 2004
COMPLETED PRO-
JECTS
Number BND
of Projects
million
ON-GOING PRO-
JECTS
Number BND
of Projects
million
PROJECTS IN
OTHER STAGES 1
Number BND
of million
Projects
TOTAL 70 79.7 129 426.5 11 19.8
TABLE 3: STATUS OF NEW PROJECTS FOR Q2 2004
Status
Number of
New Projects
2004 Allocation
BND million
Completed 9 2.8
Under Implementation 31 84.0
Tender Awarded 2 2.8
Awaiting Tender 33 74.1
Tendering Process 28 53.9
Other stages 2 167 156.3
Total 270 373.9
From Table 1, the Social Services Sector receives the highest allocation
of BND 207 million. Out of this, 46 per cent will be utilised to
fund on-going projects while the remaining 54 per cent has been
allocated to finance projects that are yet to be implemented.
Meanwhile, the Miscellaneous Sector receives the least allocation
of just over BND 25 million, for which 67 per cent will be used to
finance on-going projects.
Q2 2004 IMPLEMENTATION ACHIEVEMENT: PHYSICAL
STATUS
A. On-Going Projects
Out of 210 on-going projects, a total of 70 projects (with allocations
of about BND 80 million) were completed. Table 2 summarizes the
status of on-going projects.
B. Newly Implemented Projects
Out of a total of 270 projects, 9 were completed (with allocation of
BND 2.8 million). The status of other new projects is as shown in
Table 3.
1 & 2
Other Stages here include projects which are in the process of preparing tender documents, pre-design, design, concept formulation and
awaiting appointment of consultants. It also includes projects which are being KIVed and other stages prior to implementation

P AGE 16
BRUNEI ECONOMIC BULLETIN
8th NATIONAL DEVELOPMENT PLAN
TABLE 4: PROJECTS WITH APPROVED CONSULTANTS
FOR Q2 2004
No VOTE NO PROJECT DESCRIPTION
1 816-007 Telemetry for BSB Sewerage System
2 815-016 Renovation to Block 3 and Outpatient
Clinic at Raja Isteri Pengiran Anak
Saleha Hospital, BSB
3 815-015 Renovation and Repair to Accident
and Emergency Unit at Raja Isteri
Pengiran Anak Saleha Hospital, BSB
4 803-016 Development of Marine Park: National
Turtle Conservation and Management
Centre
5 817-001- BSB/Muara/Tutong Water Supply
007
Scheme Stage 6: Improvements to
Planned Maintenance
6 801-003 Development Schemes for Fruit
Industry – Phase 2 – Plantation
Infrastructure Development for
Merangking, Bukit Sawat, Belait
District
DATE OF
APPOINT-
MENT
10-May-04
18-May-04
18-May-04
27-May-04
27-May-04
27-May-04
7 806-035 Medical Institute Building, UBD 27-May-04
8 820-015- H3 Houses at Kg Meragang Housing 27-May-04
002-003 Scheme
9 820-015- H4 Houses at Kg Meragang Housing 27-May-04
002-004 Scheme
10 818-001-
001
Dumping Area, Kuala Belait, Phase 1 27-May-04
Chart 1: SPENDING BY SECTORS, Q2 2004
BND Millions
40
35
30
25
20
15
10
5
0
4.77
Industry &
Commerce
35.06
Transport &
Communication
18 .8 9
Social
Services
6.85
Public
Utilities
Sectors
Q2 (2004)
4.25
Public
Buildings
4.36
Security
0.24
Miscellaneous
4.05
ICT
B. Appointment of Consultants
During Q2 2004, 10 consultants were appointed to undertake projects
as shown in Table 4.
Q2 2004 IMPLEMENTATION ACHIEVEMENT: FINANCIAL
STATUS
Warrants Issued
The breakdown of the financial warrants issued in Q2 2004, by
major sectors is as shown in Table 5. A total of about BND 189
million worth of warrants for all major sectors were approved. The
Transport and Communication Sector received the highest
amount of about BND 74 million, accounting for 41 per cent of the
total value of warrants issued.
Expenditure
Chart 1 shows expenditure in Q2 2004 for each major sector.
The Transport and Communication Sector recorded the highest
expenditure, especially during Q2 2004 as compared with the rest
of the major sectors. During this period, this sector spent BND 35
million or 47 per cent against approved warrants of BND 74 million.
The Miscellaneous Sector registered the least spending in Q2
2004, amounting to BND 0.23 million or 19.7 per cent against approved
warrants.
Overall, expenditure in Q2 2004 amounted to BND 78.4 million or
8.7 per cent against 2004-2005 allocations and about 42 per cent
against approved warrants worth BND 189 million. This is shown
in Table 5 and Chart 2.
CHART 2: NDP Major Sectors - Allocation, Warrants, Expenditure,
Q2 2004
BND Millions
220
200
180
160
140
120
100
80
60
40
20
0
91
12
5
Industry &
Commerce
168 166
74
35
Transport &
Communication
207
47
19
Social
Services
23
7
Sectors
86
93
64
25
13
7 11
4 4 10.2 4
2004 Allocation Warrants April 2004 - Jun 2004
Expenditure April 2004 - Jun 2004
Public
Utilities
Public
Buildings
Security
Miscellaneous
ICT
Table 5: ALLOCATION, WARRANT AND EXPENDITURE, Q2 2004
SECTORS
2004 Allocation
(BND)
Warrants
Issued
(BND)
Percentage
Of Warrants
Issued Against
Total Warrants
Q2 2004
Expenditure
(BND)
Percentage of Expenditure
Against Allocation
Percentage of Expenditure
Against Warrants
Industry and Commerce 91,048,000 12,143,796 6.44% 4,768,582 5.2 39.3
Transport and Communication 167,642,000 74,236,279 39.35% 35,055,782 20.9 47.2
Social Services 207,116,000 47,255,236 25.05% 18,884,608 9.1 40.0
Public Utilities 166,490,000 23,107,563 12.25% 6,849,292 4.1 29.6
Public Building 85,525,000 13,219,957 7.01% 4,251,226 5 32.2
Security 93,150,000 7,000,213 3.71% 4,362,909 4.7 62.3
Miscellaneous 25,029,000 1,196,688 0.63% 235,609 0.9 19.7
ICT 64,000,000 10,493,368 5.56% 4,046,751 6.3 38.6
Grand total 900,000,000 188,653,100 100.00% 78,454,759 8.7 41.6

BRUNEI ECONOMIC BULLETIN
8th NATIONAL DEVELOPMENT PLAN
P AGE 17
ANALYSIS OF ACHIEVEMENTS FOR Q2 2004
Approved warrants for the period of April to June 2004 totaled
BND188,653,100, which was 95 per cent of the target.
Expenditure for the same period of time totaled BND 78,454,759 which
was 44 per cent of the target.
Up to Q2 2004, the total expenditure recorded was about 42 per cent of
total warrants issued for the same period, but only about 9 per cent of
total allocations for the said quarter. This is shown in Table 5.
On a year-on-year comparison, spending in Q2 2004 (BND 78.5 million)
was a 2 per cent increased as compared to Q2 2003 (BND 77.2 million).
With the increase in spending, physical status of projects had improved
on a year – on – year comparison. The number of projects completed was
30 per cent (79 projects) higher in Q2 2004 as compared to Q2 2003 (61
projects).
The record shows, from 210 on-going projects, 70 projects were completed,
with total allocation of BND 80 million. Only 11 projects are in
‘other stages’ category, while 129 other projects are still in
‘implementation stage’, with an estimated allocation of BND 427 million.
The remaining 270 new projects, with an estimated allocation of BND
374 million, 9 projects were completed (with allocation of BND 2.8 million).
Thirty-one (31) projects have just commenced their implementation.
Sixty-three (63) projects (with allocation BND 130.8 million) that
have just been awarded and projects that are in the stage of tendering,
are expected to commence implementation in the third and fourth quarters
of 2004.
While the amount of warrants approved may be high, implementing and
client agencies alike have not spent enough to meet the target of an average
monthly expenditure of BND 66 million. The reasons for this may be
attributed to a number of factors. However the trend appears to strongly
suggest delays in many processing stages:
♦ in the process of tendering of projects, specifically in the assessment
of tenders by clients and implementing agencies;
♦ in the processing of claims for payments;
♦ in the finalization of accounts for the purpose of paying penultimate
payments and release of retention funds;
Delays are also caused by the re-tendering of projects due to contractors’
failure to undertake or complete the work. As a result, there is an obvious
need for additional efforts to address such delays in order to further
improve project implementation performance.
JPKE in consultation with the Ministry of Development and the Ministry
of Finance are currently working towards resolving the issue.
IMPLEMENTATION PROJECTION
Spending in the first quarter of the financial year has been observed to be
low, as with previous years. However, this will soon pick its momentum
in the subsequent quarters.
Four sectors will remain active in the next quarters: (1) Transport and
Communications; (2) Social Services; (3) Public Utilities and (4) Public
Buildings.
The Security sector and Industry and Commerce sector will probably
edge their way towards the four active sectors. This is shown by the drastic
rise in spending for both sectors.

P AGE 18
BRUNEI ECONOMIC BULLETIN
SHORT TERM ECONOMIC RECOVERY
Sub Total 12 276 C/D/E
TOTAL 13 300 C/D/E
Source: Department of Implementation and Monitoring, JPKE
Table 2: Implementation Status of Housing Development Scheme
Phase 1 (HDD)
Site
Table 1: Implementation Status of Housing Development Scheme
Phase 1 (PWD)
Package
No. Of Types of
Site
Status
Number
Houses Houses
PROJECTS RETENDERED
Kg. Katok A 1 24 E ON GOING
Sub Total 1 24 E
PROJECTS COMPLETED
2 26 E COMPLETED
3 22 E COMPLETED
4 25 E COMPLETED
5 24 E COMPLETED
6 21 D COMPLETED
7 23 D COMPLETED
8 23 C COMPLETED
9 24 C COMPLETED
10 19 C COMPLETED
Kg Katok B 11 29 D COMPLETED
12 20 C COMPLETED
13 20 C COMPLETED
Contract
Number
No. of
Houses
Types of
Houses
Status
Completion
Date/
(Revised)
PROJECTS RETENDERED
Kg. Pandan H10B 22 TERRACE ON GOING 31/10/2004
Kg. Rimba H23B 13 D ON GOING 31/07/200
4
H29A 20 D ON GOING 31/12/200
4
Sub Total :
To Be
Retendered
3 55 TERRACE
/D
PROJECTS COMPLETED
Lambak
H35A 19 D COMPLETED
Kanan
Kg Pandan H10A 5 D COMPLETED
H10C 22 TERRACE COMPLETED
H10D 22 TERRACE COMPLETED
Kg Rimba H23A 12 D COMPLETED
H29B 32 D COMPLETED
H29C 17 D COMPLETED
H29D 27 D COMPLETED
Sub Total :
8 156 D,TERRACE
Completed
TOTAL 11 211 D,TERRACE
Source: Department of Implementation and Monitoring, JPKE
PUBLIC HOUSING DEVELOPMENT SCHEME
First Phase
A sum of BND 34,975,776 was spent under Phase 1, of which BND
22,968,721 was for projects implemented by the Public Works Department
(PWD) and BND 12,007,055 by the Housing Development
Department (HDD).
Construction of 300 houses by the Public Works Department
As shown in Table 1, the contract for Package 1 involving 24
houses in Kg Katok A was being mobilised on site. Altogether, 12
packages were completed involving 276 houses in Kg Katok A and
Kg Katok B.
Out of 276 houses completed, 204 houses in Kg Katok A and Kg
Katok B were handed over to beneficiaries. The remaining 72
houses are expected to be handed over in Q4 2004.
Construction of 211 houses by Housing Development Department
Table 2 shows there are 3 remaining on-going contracts. Contract
H10B, a retendered contract involving 22 terrace houses in Kg Pandan
is expected to be completed by the end of October 2004. Contracts
H23B could not be completed as scheduled and need an extension
of time. While Contract H29A involving 20 houses in Kg
Rimba are expected to be completed by the end of December this
year.
Infrastructure Works
The status of the two infrastructure works involving road works at
Kg. Katok A and Water Reticulation System in Kg. Katok B, remained
unchanged since Q4 2003 (Table 3).
Second Phase
A total of BND 10,095,190 has been spent in the second phase.
Construction of 250 houses by the Public Works Department.
As shown in table 4,one of the contracts at Kg Katok B namely
package 14 involving the construction of 15 houses retendered in
the last quarter 2003 was finally awarded in March 2004.The progress
of this contract is very slow. It is estimated to be five months
behind schedule.
Table 3: Implementation Status of Infrastructure Phase 1 – (PWD)
Site Project Status
Kg Katok A 1. Improvement of Jalan Tungku DELAYED
Kg Katok B 2. Supply & Laying Water Pipe DELAYED
Source : Department of Implementation and Monitoring, JPKE
Table 4: Implementation Status of Housing Development Scheme—
Phase 2 – (PWD)
Site
Package
Number
No. of
Houses
Types of
Houses
Status
Kg Katok B 14 15 D & E ON GOING
15 15 E COMPLETED
Kg Katok A 16 14 D COMPLETED
Kg Sungai
17 22 D ON GOING
Buloh
18 22 D ON GOING
19 28 D ON GOING
20 24 D ON GOING
21 24 D ON GOING
22 24 D ON GOING
23 23 E ON GOING
24 24 E ON GOING
25 15 E ON GOING
Total 12 250
Source : Department of Implementation and Monitoring, JPKE
The construction of 206 houses at Kg Sungai Buloh under packages
17-25 are still on going of which eight packages (17,19,20,21,22,23,24
and 25) involving 184 houses are expected to be completed very
soon. While package 18 involving 22 houses is scheduled to be completed
by February 2005(Table 4).
Infrastructure Works
By the end of Q1 2004, in Kg. Katok A, one electrical and one water
supply works have been completed while telecommunication
works was delayed. In Kg. Katok B only the water works project
was completed and both the electrical and communication works
are delayed due to the delay in the award of contract for package 14
at Kg Katok B.
None of the 5 infrastructure works in Kg Sungai Buloh were completed.
The 3 road works contract are still on going and are behind
schedule. The electrical and telecommunication works are also delayed
and have exceeded their contract period. This is mainly due
to the delay in the construction of sewerline and water works.
These contracts, therefore, require extension of time.

BRUNEI ECONOMIC BULLETIN
P AGE 19
SHORT TERM ECONOMIC RECOVERY
MAINTENANCE OF GOVERNMENT BUILDINGS, COMPOUNDS
AND ASSETS
The maintenance of government buildings, compounds and assets
under the Short-Term Economic Recovery Plan continues to be implemented
by the Department of Planning and Estate Management,
Ministry of Education and Department of Building Services, Public
Works Department.
TABLE 5: DISTRIBUTION OF CONTRACTS, NUMBER OF CONTRACTS &
NUMBER OF SUCCESSFUL COMPANIES
PHASE
TOTAL NO. OF
CONTRACTS
NUMBER OF
CONTRACTS
AWARDED
NUMBER OF
SUCCESSFUL
COMPANIES
1 51 50 31
2 134 128 82
3 139 132 68
4 66 55 33
5
(re-tendered)
22 22 17
TOTAL 412 387 231
* As of 30 th June 2004
The projects were implemented in 5 stages beginning March 2002 in
which the first 2 phases were awarded in 2002. The third and the
fourth phase of the project were awarded in the Q1 and Q2 2003
respectively. The fifth phase (re-tendered) was awarded in December
2003.
The overall number of works tendered in the five phases was 412, in
which 387 contracts were awarded to 231 successful companies
(Table 5).
Under Phase 1, the total number of contracts was 51 and only 50
were awarded to 31 companies. For Phase 2, out of the total number
of 134 contracts, only 128 contracts were awarded to 82 companies.
Under Phase 3, the total number of contracts was 139 and only
132 were awarded to 68 companies. A total of 66 contracts were
tendered under Phase 4, whereby only 55 contracts were awarded
to 33 companies. Under Phase 5, a total of 22 contracts were
awarded to 17 companies (Table 5).
Overall physical progress
With regards to the physical progress, out of 363 contracts that were
carried out, 325 contracts were completed and paid. A total of 10
contracts were completed and still under final measurement stage,
whilst 14 contracts were still under implementation. A total of 3
contracts were to be terminated due to several reasons such as failure
of the awarded contractors to complete the contracts on time.
As of Q2 2004, 11 contracts were reported delayed (Table 6).
Progress for each phase
Phase 1
TABLE 6: PHYSICAL IMPLEMENTATION PROGRESS
As of 30 th June 2004, out of the 50 contracts under Phase 1, 48 were
implemented of which 46 contracts were completed, 2 contracts
were terminated due to the failure of the awarded contractors to
complete the contracts on time while the remaining 2 contracts were
delayed (Table 6). Payments made for this phase totalled BND
958,137.38.
PHASE
NO. OF
WORKS
AWARDED
NO. OF
WORKS TER-
MINATED
NO. OF IMPLE-
MENTED
WORKS
NO. OF
WORKS COM-
PLETED AND
PAID
NO. OF WORKS
COMPLETED AND
FINAL MEAS-
UREMENT
NO. OF WORKS
UNDER IMPLEMEN-
TATION
NO.
WORKS
DELAYED
NO. OF
WORKS TO BE
TERMINATED
1 50 2 48 46 0 0 2 0
2 128 17 111 107 1 0 1 2
3 132 5 127 117 3 1 5 1
4 55 0 55 40 6 9 0 0
5 22 0 22 15 0 4 3 0
TOTAL 387 24 363 325 10 14 11 3
* As of 30 th June 2004
Phase 2
Under Phase 2, 82 contractors were given a total of 128 contracts
amounting to BND 4,318,088.79. As of 30 th June 2004, 107 contracts
out of 111 implemented were completed, 1 contract was still under
final measurement stage, and 1 contract was delayed. A total of 17
contracts were terminated due to failure of the awarded contractors
to complete the contracts. A total of 2 contracts were to be terminated
(Table 6). Payment made for this phase totaled BND
3,899,752.16.

P AGE 20
SHORT TERM ECONOMIC RECOVERY
Phase 3
BRUNEI ECONOMIC BULLETIN
For Phase 3, 68 contractors were awarded a total of 132 contracts
amounting to BND 10,240,663.91. At the end of Q2 2004, 117 contracts
out of 127 implemented were completed, 3 contracts under
final measurement stage, 1 contract under implementation, and 5
were terminated. The remaining 5 contracts were delayed and 1
contract will be terminated (Table 6). Payments made for this
phase totalled BND 7,592,109.61.
Phase 4
Under phase 4, 33 contractors were awarded a total of 55 contracts
with a total value of BND 4,311,024.86. As of Q2 2004, 40 contracts
out of 55 implemented were completed, 6 contracts were still under
final measurement stage, whilst the remaining 9 contracts were still
under implementation (Table 6). Payments made for this phase
totalled BND 2,337,462.70.
Phase 5
Out of 22 re-tendered contracts which were implemented under
Phase 5, 15 contracts were completed, 4 under implementation, and
3 were delayed (Table 6). As of 30 th June 2004, payments made for
this phase totalled BND 204,997.37.
WORKING CAPITAL CREDIT FUND SCHEME
Table 7: Loans Approved by Banks According To Economic
Sectors, Q2 2004.
In Q2 of 2004, 21 loan applications with a total value of BND
4,189,113.00 were approved (Table 7). These loans were for financing
projects in the sectors construction (51.6 per cent), ICT (16.8 per
cent), business (16.7 per cent), services (12.4 per cent), primary resources
(1.3 per cent), and manufacturing (1.2 per cent).
SECTORS
NUMBER OF
LOANS AP-
PROVED
SERVICES 8
BUSINESS 6
CONSTRUCTION 4
ICT 1
MANUFACTURING 1
PRIMARY RESOURCES 1
BAIDURI
(BND)
30,000
(1)
220,000
(2)
1,492,531
(1)
704,182
(1)
LOAN AMOUNTS APPROVED THROUGH BANKS
(No. of Loans in bracket)
HSBC
(BND)
430,000
(3)
450,000
(2)
50,000
(1)
IBB
(BND)
257,400
(5)
50,000
(1)
220,000
(1)
55,000
(1)
IDBB
(BND)
230,000
(2)
TOTAL
(BND)
517,400
700,000
2,162,531
704,182
50,000
55,000
TOTAL 21 2,446,713 930,000 582,400 230,000 4,189,113
Table 8: Loans Approved in the Working Capital Credit Fund,
January 2001 – June 2004
SECTORS
LOANS APPROVED
VALUE
NO
BND
Services 77 11,204,400.00
Primary Resources 16 4,243,400.00
Business 43 4,935,072.00
ICT 22 10,628,604.00
Manufacturing 4 354,000.00
Tourism 2 555,000
Construction 34 13,534,809.00
Total 198 45,455,285.00
By comparison, in Q2 2003, 10 loans were approved amounting to
BND 1,116,200.00. The loans approved for Q2 2004 reflect the continuing
high interest of entrepreneurs on the scheme as observed
in Q1 2004, where 20 loans were approved with the amount of
BND 5,187,300.00. Since the introduction of the scheme in January
2001 until June this year, the total number of loans approved
reached 198 and the overall value BND 45,455,285.00 (Table 8).
Loans were distributed to all categories of firm ownership, with
79.0 per cent going to firms owned by Rakyat Jati and majority
Rakyat Jati (Table 9).
Table 9: Loan Approved To Firms
Firms
Number
♦ Proportion
Loan Amounts
Value
♦ Proportion
‘Rakyat Jati’
135
68.2%
BND 29,111,179
64.1%
Category of Company Ownership
‘Rakyat Jati’
Majority
30
15.2%
BND 6,643,897
14.6%
Majority Citizens and
Permanent Residence
26
13.1%
BND 6,737,678
14.8%
Citizens and others
7
3.5%
BND 2,962,531
6.5%
Total
198
100%
BND 45,455,285.00
100%

BRUNEI ECONOMIC BULLETIN
P AGE 21
THE LONG TERM OBJECTIVES OF BRUNEI DARUSSALAM’S DEVELOPMENT PLAN OF 1986-
2005: What has been the level of achievement in enhancing the quality of life?
Introduction
Since regaining its full independence, Brunei Darussalam has
gone through nearly two decades of National Development Plan
(NDP) programs which started in 1986. Since then this country
has experienced various economic and socio-political transformations
which have influenced the quality of life of its people. For
the first time in 1986, Brunei Darussalam engaged itself in its plan
for long term development encompassing a period of two decades
(1986-2005) and embracing four National Development Plans,
starting with the 5 th NDP. Obviously, the outlined long term development
objectives have their roots in and basis on developmental
experiences prior to 1986 as well as on the aspirations during
that time for the future.
This article reviews the socio-economic achievements that have
been observed in Brunei Darussalam with respect to some relevant
long term objectives. The achievements are analyzed based
on policies and programs as incorporated in the corresponding
National Development Plans. A number of variables could be utilized
to examine the quality of life of the people. In this article,
quality of life is appraised based on indicators of the basic necessities
of life, namely, education, health and housing and to some
extent the environment. Wherever relevant, cross-country benchmarking
is done to examine Brunei Darussalam’s position vis-àvis
those countries during certain period of time. If the indicators
show some level of under-achievements then they signal to some
presence of pertinent issues that need to be considered seriously.
These are the challenges and problems that need to be addressed
in future planning.
MACROECONOMIC OBJECTIVES AND THE LONG
TERM NDP OBJECTIVES
For any nations, irrespective of whether they are developed, developing or
less developed countries, their economic progress are based on the
achievement of basic macroeconomic objectives which ultimately leads to
maintenance if not improvement in the people’s quality of life. The macroeconomic
objectives ensure:
ο Sustainable economic growth;
ο Full employment of resources;
ο Price Stability;
ο Equitable distribution of income; and
ο External balance.
For some countries, even though some of the above objectives are
not outlined explicitly, they are expressed in a different way and
yet are inclined towards the ultimate goals of the macroeconomic
objectives. For Brunei Darussalam, it has outlined its nine longterm
development objectives which carry with them some elements
of the macroeconomic objectives, as shown in BOX 1. Apart
from addressing the macroeconomic objectives, some of the long
term objectives also emphasized on social welfare and the environment
as well as the interests of the indigenous Brunei citizens.
Even though the objective of equitable distribution of income is
not expressed explicitly, this objective has been practiced in
Brunei Darussalam in its very own way in the form of in-kind
transfers. These include the provision of services in education,
health and other social services with minimum charges or even
virtually-free. Indeed, the government has a very important role
in this respect through the opening of its employment opportunities
and the arrays of generous fringe benefits.

P AGE 22
BRUNEI ECONOMIC BULLETIN
THE LONG TERM OBJECTIVES OF BRUNEI DARUSSALAM’S DEVELOPMENT PLAN OF 1986-
2005: What has been the level of achievement in enhancing the quality of life?
BOX 1
THE LONG TERM DEVELOPMENT OBJECTIVES 1986-2005
ο Improve the quality of life;
ο Maximize (optimize) the economic utilization of national resources;
ο Develop new export-oriented and import substitution industries;
ο Accelerate human resources development to meet the demand of an increasingly sophisticated
economy;
ο Maintain full employment and increase productivity level;
ο Maintain a moderate rate of inflation;
ο Foster a dynamic, disciplined and caring society with its citizens as agents for progress
and development;
ο Encourage and nurture the development of “Rakyat Melayu” as leaders of industry and
commerce; and
ο Have a clean and healthy environment.
The National Development Plans, commencing with the 5th NDP,
were developed based on the nine long term objectives. Almost all
of the development programs are centered on physical infrastructure
developments. These physical infrastructure developments of
course are inevitable and are precursor to and complement of human
development. However, it was argued that once a country
has gone through or “completed” the development of these prerequisites,
attention should be emphasized on soft infrastructure
development. In this respect the 8 th NDP is pivotal as it has placed
a premium on non-physical infrastructural programs. The 8 th NDP
budget has been specifically apportioned to areas in human resources,
science and technology and ICT developments. Furthermore,
these efforts will be instrumental in taking Brunei Darussalam
forward into the new economy of the 21 st century. None the
less, the relationship between physical infrastructure and human
development will become obscure if their development is not
based on a systematic and strategic planning. In this respect, the
formulation of an acceptable national vision supported by outlines
of long term perspectives plan is necessary.
ACHIEVEMENTS OF THE LONG TERM DEVELOPMENT
OBJECTIVES
The long term objectives outlined above represent both aspects of
development, economic and socio-political ones. Both aspects are
obviously intimately-related and two-way in nature. On the one
hand, the sustainability and strength of economic growth are the
foundations of socio-political integrity. On the other hand, sociopolitical
integrity and stability are necessary and pre-conditions
for the economy to grow. The ultimatum borne out of sociopolitical
cohesion and economic expansion is of course improvement
in the quality of life 1 . The quality of life of the people could
be evaluated, among others, through indicators of life expectancy,
literacy rate and per capita income, all of which requires aspects of
economic growth, employment generation, low inflation rate and
stable socio-political and natural environment.
Whatever the intentions and efforts on the part of the government
with regard to economic development, the improvement in the
quality of life is still the ultimate goal. This aspect of development
fits into the universal and current trend of development which
1 The long term development objectives outlined in BOX 1 are interdependent, especially for the first objective to improve the quality of life of the people. This objective
is realized by the other eight objectives; it is the end product and therefore merits being the ultimate goals of development.

BRUNEI ECONOMIC BULLETIN
P AGE 23
THE LONG TERM OBJECTIVES OF BRUNEI DARUSSALAM’S DEVELOPMENT PLAN OF 1986-
2005: What has been the level of achievement in enhancing the quality of life?
BOX 2
QUALITY OF LIFE INDICATORS
♦
♦
♦
♦
♦
♦
♦
♦
♦
♦
♦
people;
♦ population growth and density
♦ population structure
♦ families and households
knowledge and skills;
♦ educational enrolment
♦ qualification levels
economic standard of living;
♦ income level
♦ household expenditure
♦ social deprivation
♦ costs
economic development;
♦ economic growth
♦ employment
♦ growth in entrepreneur
♦ retail sales
♦ tourism
housing;
♦ housing costs and affordability
♦ size of households
♦ government housing provision
health;
♦ life expectancy
♦ infant mortality
♦ diseases
♦ access to medical and health facilities
natural environment;
♦ waste management
♦ air and water quality
♦ biodiversity
♦ drinking water quality
built environment;
♦ city environment
♦ green space
♦ noise pollution
♦ traffic and transport
♦ public transport
safety and comfort;
♦ perception of safety
♦ road casualties
♦ crime levels
social connectedness; and
♦ electronic communications
♦ community strength and spirit
♦ diversity
civil and political rights.
♦ Involvement in decision making
Source: Quality of Life in New Zealand’s 8 Largest City 2003
CHART 1
BRUNEI DARUSSALAM’S GDP PER CAPITA, 1985-2003
GDP per CAPITA (BND)
40000
35000
30000
25000
20000
150 0 0
10 0 0 0
5000
0
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
35
30
25
20
15
10
5
0
OIL PRICE (USD)
emphasizes “development with a human face” 2 . The trends in the
quality of life indicators enable us to fathom whether a nation has
accomplished its socio-economic objectives and targets. For Brunei
Darussalam, all the long term objectives outlined above are supportive
of the ultimate goal to improve the quality of life of the
people.
From a universal perspective, the objective to improve the quality
of life covers some characteristics and indicators as listed in BOX
2. For most of the characteristics listed, government has a vital
role to help accomplish them, more so for Brunei Darussalam
which has been well known for its welfarism. In this respect, according
to the United Nations Development Programme, Brunei
Darussalam is ranked 33 rd among 177 nations on its Human Development
Index of 2004 3 . Brunei Darussalam is ranked top
among Islamic nations, second only after Singapore among
ASEAN member countries; and 5 th among Asians (Japan, Hong
Kong, Singapore, South Korea and Brunei Darussalam in that order).
From one perspective, such an achievement is a pride to the nation.
However, what is more important is the degrees to which we
as a nation are able to sustain if not improve on it. In terms of life
expectancy, registration in educational institutions and the literacy
rate, Brunei Darussalam’s achievement is relatively high and
even surpassing those attained by some developed countries.
However, the generally declining trend since the early 1980’s in
the per capita income variable signals toward the need for a more
concerted effort in improving it. This is especially true where
there is a wide gap between the per capita income arising out of
the oil and gas industry and that of the non-oil and gas private
economy. Improvement in the per capita income is one of the important
pre-conditions for further growth and structural change.
CHART 1 shows the GDP per Capita for Brunei Darussalam between
1985 and 2003. The trend in GDP per Capita shows a close
relationship with oil price, at least between 1985 and 1999. The
high GDP per Capita for 1985 reflects the relatively high price of
oil during that year (US$26.50 per barrel). In 1998, the world’s oil
price dropped drastically to US$11.91 per barrel and the GDP per
Capita moved in the same direction.
Since the 1970’s, Brunei Darussalam has been one of the world’s
richest countries. In 2002 (based on UNDP Human Development
Index of 2004), in terms of the GDP per Capita it is fourth among
East Asian nations after Japan, Hong Kong, and Singapore. However,
due to Brunei Darussalam’s dependence on oil and gas resources,
the GDP per Capita does not truly indicate a strong relationship
between economic growth and development. On the one
hand, there is the issue of sustainability of this economic structure.
While the benefits to the country as a whole are obvious, this economic
structure suffers the problems characteristic of rentierism 4 .
On the other hand, however, especially in consideration of the
strong role of the Brunei Darussalam’s government in the distribution
of wealth, the relatively high GDP per capita is a positive
indication of the overall development of the economy. But this
should not preclude us from examining the real and long-term
effects on the well-being of the people.
Theoretically, the trickle down effect of growth arising out of a
vital sector 5 to the economy occurs through forward and back-
2 United Nations Development Programme
3 Human Development Index (HDI) is a composite index of human development which takes into consideration indexes of Per Capita Income, Literacy Rate and Enrolment
in Educational Institutions and Life Expectancy.
4 Rentierism refers to (is measured as) the proportion of rents in government revenue, with 40 % as the benchmark. Rentierism and natural resource dependency are
not the same thing, though in practice they are highly correlated. Natural resource dependency is generally measured as the share of natural resource exports as a
percentage of GDP. (Herb, 2003).
5 For Brunei Darussalam this refers to the oil and gas sector, which has been the staple of the economy for more than three decades.

P AGE 24
BRUNEI ECONOMIC BULLETIN
THE LONG TERM OBJECTIVES OF BRUNEI DARUSSALAM’S DEVELOPMENT PLAN OF 1986-
2005: What has been the level of achievement in enhancing the quality of life?
CHART 2
THE RATES OF INFLATION IN BRUNEI DARUSSA-
LAM, 1986-2003
7
%
6
5
4
3
2
1
0
-1 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003
-2
-3
CHART 3
COMPARISON OF THE RATES OF INFLATION IN
ASEAN5, 1992-2002
12
10
8
6
4
2
0
-2
-4
4.3 2.4 6 2
1.3 1.7 -0.4 -0.1
-2.3
1992 1994 1996 1998 2000 2002
Brunei M alaysia Philippines
Singapore
Thailand
1.2
0.6
ward linkages, consumption linkage and fiscal linkage. In this linkage
context, Tse and Fernandez (1987), based on available information during
the time of write-up, contends that the experience of Brunei Darussalam
economic development in the 1970’s and early 80’s was one where there
was “growth without development”. In other words, economic growth
(growth in output) during the period under consideration did not contribute
significantly to socio-economic development. That was then.
However, what needs to be put in the right perspective is the fact that
socio-economic development in Brunei Darussalam is unique. Forward
and backward linkages and consumption linkage may be minimal but
fiscal linkage is strong. Today, the government, for example, has been an
important source of employment opportunities for its people, afforded to
Bruneians a wide range of social services and in many cases virtually
free. Sustainability, of course is the most pertinent issue in this respect.
The quality of life or standard of living is also related to the costs of living.
If the costs to support decent lifestyles are high, it will translate into
a decline in the purchasing power of nominal dollar. Generally, the costs
of living are associated with the rates of inflation. The higher the rates of
inflation in an economy, the more expensive it is to purchase goods of
the same worth as before. The trend for the rates of inflation for Brunei
Darussalam between 1986 and 2003 is shown in CHART 2. On average,
the rate of inflation during the period is approximately 1.5 percent,
which is quite low and satisfies the national long-term objective to maintain
a moderate rate of inflation. However, there are a few exceptions
during the period where the rates are very much higher in 1993 (4.3 percent)
and 1995 (6.0 percent). Apart from that, Brunei Darussalam has also
experienced a deflation of -2.3 percent in 2002. A deflation is a situation
where an economy experiences a decrease in the general price level.
Typically, the benefits of deflation go to consumers and purchasers of
intermediate inputs.
The control or stabilization of price levels in Brunei Darussalam is
mainly sought through administrative procedures rather than through
monetary devices (policies) as usually practiced in other economies. The
trend in the rates of inflation in Brunei Darussalam reflects the country’s
trade policies. The increase in the rate of inflation in 1995, for example,
was in line with the government’s decision to increase import duties on
automobiles in early 1995; from 20 percent to as high as 200 percent according
to engine capacity. When the government made a u-turn in November
2001 by decreasing the the import duties to their original acrossthe-board
rate of 20 percent (15 percent for heavy vehicles), the policy is
reflected in the negative inflation rate for 2002. Apart from policies as
such, the government had also enacted the Price Control Act in 1977.
Continuous monitoring has been practiced to prevent deliberate price
increases.
However, because Brunei Darussalam imports almost all of its economic
requirements, it has not been able to contain inflationary pressures arising
out of its import trading partners. In this regard, Brunei Darussalam
faces the policy dilemma that befits common interests, between nations
as well as between consumers and producers within Brunei Darussalam.
The adoption of import substitution policy, for example, will become
more meaningful if the costs of production in this country are low and
competitive. To some extent, such a policy will enable Brunei Darussalam
to reduce imported inflation. Never the less, the participation and
membership of Brunei Darussalam in ASEAN Free Trade Arrangement
(AFTA), for example, is beneficial to consumers even though this may
have some negative effects on potential producers of homogenous or
related goods.
CHART 3 indicates the rate of inflation for Brunei Darussalam relative to
those rates experienced by ASEAN4. In comparing the inflation rates for
Brunei Darussalam with respect to the ASEAN4 rates, there is a general

BRUNEI ECONOMIC BULLETIN
P AGE 25
THE LONG TERM OBJECTIVES OF BRUNEI DARUSSALAM’S DEVELOPMENT PLAN OF 1986-
2005: What has been the level of achievement in enhancing the quality of life?
%
CHART 4
LITERACY RATES FOR BRUNEI DARUSSALAM AND
SELECTED
100
98
96
94
92
90
88
86
84
82
94.7
87.9
92.5
Brunei Darussalam Malaysia Singapore Japan South Korea Hong Kong
99.0
97.9
93.5
trend that the rates for Brunei Darussalam is lower especially when
compared to that of the Philippines, Thailand and Malaysia. After 1995,
the inflation rates of Brunei Darussalam were a mirror image of the rates
of inflation of Singapore. While Malaysia, Thailand and the Philippines
were adversely affected, Brunei Darussalam (and Singapore) seemed to
have been insulated from the negative effects of the Asian Financial Crisis
in 1998. The effects of the financial crisis had been prominent on the
exchange rates of countries in the region but the effects were relatively
in favour of the Bruneian currency. Both Malaysia and Singapore are
major trading partners of Brunei Darussalam, especially as a source of
imports. The deflation in 2002 for Brunei Darussalam reflects not only
on the trade policy it has adopted, but also on the movement of inflation
rates in its trading partners. Specifically, as observed in Chart 3, this is
shown by the identical trend in the direction of Singapore’s inflation
rate. The stabilization effects of the rates of inflation in the other ASEAN
countries seemed to be at work during the period under consideration.
In this case, observe that the inflation rates for Singapore, Philippines
and Thailand move in the downward direction. In other words, since we
import substantially from these countries, any downward trend in their
inflation rates will translate into lower rate of inflation for Brunei Darussalam.
Human resources development is an important basis for the improvement
of the quality of life. When the level and quality of education improved
over time, in general it is associated with the same improvement
in the quality of life of individuals employed with higher wages. In its
unrelenting efforts to ensure a high quality of life of the people, the government
has undertaken numerous programs that give direct effects to
the quality of life especially in education, medical and health and housing.
In the areas of education, programs related to the provision of basic
infrastructure and human resources development has been undertaken
and progressing. The country’s achievement in education has been relatively
high. Indicators such as the literacy rate and the rate of enrolment
in educational institutions are at par with, if not better than, the more
developed nations.
The rates of literacy depicted in CHART 4 shows the rate for Brunei
Darussalam in relation to the rates for regional economies in 2001. The
literacy rate (94.7 percent) for Brunei Darussalam is relatively high. It is
higher than the rates for Singapore, Malaysia and Hong Kong although
far below that of Japan and South Korea. What is more important for
Brunei Darussalam apart from improving the rates of literacy and registration
in educational institutions is to ensure a high level of quality of
its human resources that could help bring the country forward. This
issue becomes more relevant in an era where the competitive advantage
of a nation is the educational quality of its people especially in the areas
of science and technology and research and development.
A number of other indicators could be utilized to gauge both the quality
and quantity of educational standards apart from the literacy rates. Indicators
such as registration in educational institutions, the
teacher:student ratio, the percentage of students in tertiary education as
well as the proportion of expenditure on education out of total expenditure,
all have shown encouraging developments and helps positively
towards improving the quality of life of Bruneians.
Reflections about the quality of life could also be seen through health
indicators. In this context, the indicator of life expectancy is the general
measurement for the quality of life of the people. Life expectancy indicator
is vital as it reflects socio-economic progress in connection to life
styles, access to medical and health services as well as the implied development
in other aspects of medical and health. In this respect, the
government has also played important roles in ensuring high health
standards through the implementation of various programs and strategies
within and outside of the National Development Plans. Improvement
in the quality of life has also directly helped the development in

P AGE 26
BRUNEI ECONOMIC BULLETIN
THE LONG TERM OBJECTIVES OF BRUNEI DARUSSALAM’S DEVELOPMENT PLAN OF 1986-
2005: What has been the level of achievement in enhancing the quality of life?
Years
%
CHART 5
LIFE EXPECTANCY RATES FOR BRUNEI DARUSSA-
LAM AND SELECTED ASIAN COUNTRIES, 2001
82
80
78
76
74
72
70
68
76.1
72.8
78.1
81.3
75.2
79.7
Brunei Darussalam Malaysia Singapore Japan South Korea Hong Kong
CHART 6
INFANT MORTALITY RATES FOR BRUNEI DARUSSA-
LAM AND SELECTED ASIAN NATIONS, 2001
9
8
7
6
5
4
3
2
1
0
6.8
8.0
3.0 3.0
Brunei Darussalam Malaysia Singapore Japan South Korea
TABLE 1
THE AVERAGE SIZE OF HOUSEHOLD IN BRUNEI DA-
RUSSALAM
5.0
1981 1991 2001
Average size of household 5.8 5.8 6.0
medical and health especially medical and health services supplied by
the private sector. In a way this has lightened the burden of the government
in terms of its medical and health expenditures.
CHART 5 gives another picture about the quality of life in Brunei Darussalam
where the life expectancy in 2001 is 76.1 years which is lower
compared to 78.1 years for Singapore and 81.3 years for Japan. Never
the less, the life expectancy for Brunei Darussalam is higher compared
to Malaysia and South Korea. On a gender basis, in 2001 the life expectancy
for male is 74.0 years while it is 77.1 years for the female. This is
an improvement compared to 1991 where the rates are 72.1 years for the
male and 76.5 for the female. In reflecting the relationship between GDP
Per Capita and Life Expectancy, especially for Japan, Hong Kong and
Singapore, there seemed to be some correlation between the two variables.
This implies that one of the important policies is to improve on
income generation. But the trend in the kind of diseases and health
problems inflicting the Bruneian population, i.e. those related to affluence
such as heart diseases, cancer, hypertension, obesity and diabetes,
signals to the needs of non-income policies.
Apart from life expectancy rates, health quality could also be associated
with the indicator of infant mortality per 1,000 births. This indicator is a
reflection of the success, or otherwise, of health-care programs as well as
the level of health-care awareness. For Brunei Darussalam, the mortality
rate of 6.8 per 1,000 births shows some positive development even
though this rate is higher compared to those experienced by the more
developed nations such as Singapore and Japan. (CHART 6) Indeed,
this rate is far lower compared to 21.7 per 1,000 births in 1979 and 12.1
per thousand births in 1985. Efforts, though, needs to be multipled to
narrow the gap between that experienced by Brunei Darussalam and
other countries which have lower infant mortality rates.
The ability to acquire a decent dwelling is also one of the basic necessities
for a respectable standard of living. A number of factors could be
taken into consideration when analyzing issues related to housing. This
includes the ability to purchase and the cost of housing, household overcrowding,
house ownership and the role of the government in providing
and subsidizing the purchase of housing. Overcrowding in a household
could be analyzed through the indicator of the size of household.
This indicator is vital in determining accessibility and ability to purchase
a home, especially for the head of a household. For the low income
earner and those with limited ability to ownership usually share a
home with other family members. This indicator also tells the extent of
housing needs of the masses. Apart from those issues, an overcrowded
dwelling may lead to undesirable health and educational problems.
For Brunei Darussalam, the provision of housing and facilitation of
house ownership has been one of the many priorities of the government.
This includes the provision of zero interest loan schemes for government
employees, housing schemes of various kinds, resettlement and
land ownership for its citizens. The achievement in the provision of
housing through housing schemes has been far below the ideal level.
The waiting list for housing scheme continued to be long, perhaps,
partly due to the rapid population growth in the 1980’s.
In general, TABLE 1 shows the average size of household in Brunei Darussalam.
The stagnating size of household in Brunei Darussalam since
the early 1980’s signals the need to step-up effort and efficiency in housing
provision especially in the process of housing development 6 . Even
though the population growth for Brunei Darussalam has declined to
2.5 percent in 2001 compared to 3.1 percent in 1991, the demand for
housing has increased overwhelmingly. This was partly due to the
population structure of Brunei Darussalam where a very large percentage
consists of the young population. In the future, the demand for
housing is bound to be high as well, as the population structure
changed very little since the 1980’s.
6 The slightly higher average size of household in 2001 (6.0 persons) may be due to the employment of domestic helpers, personal drivers and gardeners.

BRUNEI ECONOMIC BULLETIN
P AGE 27
THE LONG TERM OBJECTIVES OF BRUNEI DARUSSALAM’S DEVELOPMENT PLAN OF 1986-
2005: What has been the level of achievement in enhancing the quality of life?
TABLE 2: THE APPLICATIONS FOR AND PROVISION
OF HOUSING UNDER THE NATIONAL HOUSING
SCHEME
2001 2002 2003
APPLICATIONS 15,735 15,297 15,128
PROVISION OF
HOUSING
438 169 264
SHORTFALL (15,297) (15,128) (14,864)
300,000
250,000
200,000
Ha 150,000
100,000
50,000
0
Brunei-Muara Belait Tutong Temburong
District Area
Source: Department of Forestry Website
♦
♦
♦
♦
♦
♦
♦
Estimated areas covered by forest
BOX 3
STRATEGIES TO ENSURE CLEAN AND
HEALTHY ENVIRONMENT
Ensure optimal utilization of natural resources
Prevent and reduce the negative effects on
the environment as a result of population
growth and human activities
Ensue a balance between socio-economic
objectives and a quality and sustainable
environmental concerns
Increase the utilization of latest and environment
friendly technology
Enhance control and enforcement mechanism
Enhance awareness of and support from the
public
Improve on existing public amenities and
services
In TABLE 2, the issue of housing in Brunei Darussalam could be observed
where the provision of houses to the masses through a number
of government housing schemes are unable to meet the increasing demand.
From the demand side, the population structure as mentioned
above is an important variable. This is also true of the levels of income
which play differing roles. From one perspective, for a family with a low
income per capita this may force them to share dwelling with their close
relative, or if affordable, may choose a low-cost housing scheme. From
the other point of view, for a family with above average to high per capita
income they may opt for a corresponding housing scheme such as
the government employee housing scheme. Whatever the circumstances,
the national housing scheme undoubtedly is faced with excessive
demand due to a number of factors such as the availability of financial
loans, provision of land for housing development and infrastructural
facilities.
As we have observed, the main issue faced by the authority is a situation
where the demand for housing scheme is far in excess of the ability
to supply or provide it. Generally, between 2001 and 2003, the national
housing scheme has been able to provide to less than 2.0 percent of the
demand. This implies and necessitates a reassessment of both the housing
and related policy itself as well as the mechanism in the provision of
the houses. As iterated above, a shortfall in housing leads to negative
implications to the people.
The natural as well as the built environment have important roles in
helping to maintain if not improve the quality of life of the people. The
quality of life can also be measured based on a few indicators such as
forest coverage, air and water quality, the quality of piped water and the
quality of natural environment such as beaches and river as well as the
built environment. Population growth and economic growth usually
exert pressure on the sustainability and richness of the natural environment.
Strains due to urbanization and its enlargement and industrial
development lead to issues related to the system and management of
drainage, waste disposal and sewerage.
In Brunei Darussalam, population growth has indeed put a strain on the
balance between the enlargement of urban areas and the natural environment.
Even though the total area covered by virgin forest is still
abundant compared to developed areas (CHART 7), there are areas
such as the Brunei and Muara district with high population density and
rapid economic growth, that have shown symptoms of strain and imbalance.
In terms of air and water quality, Brunei Darussalam is relatively
free from pollution due to the limited number of industries. Never the
less, proactive approach is necessary in monitoring pollutants such as
those from light industries in the form of used oil and household effluents.
With regard to the supply of clean piped water, Brunei Darussalam
has scored highly, where clean water is distributed to nearly 100 percent
of the population.
The government, on its part, has persistently embarked on efforts to
ensure environmental awareness among the public. The establishment
of the Department of Environment, Parks and Recreation in May 2002 is
a commitment towards environmental concern. This department has
developed strategies to maintain and to ensure appropriate and positive
environment to enhance the quality of life. (BOX 3)

P AGE 28
BRUNEI ECONOMIC BULLETIN
THE LONG TERM OBJECTIVES OF BRUNEI DARUSSALAM’S DEVELOPMENT PLAN OF 1986-
2005: What has been the level of achievement in enhancing the quality of life?
CONCLUSION
In general, it could be concluded that from the perspective of the quality
of life, Brunei Darussalam’s achievements in enhancing it is at par if not
better than those attained by some developed countries. All those indicators
that have been discussed above are only a few of the available
indicators to describe the quality of life of Bruneians. Also, those are
only general indicators and there are many others that are more specific
and able to deepen our knowledge about the quality of life.
In the past, the government played instrumental roles in enhancing the
quality of life of the people. This role will undoubtedly be necessary in
the future. However, efforts must be stepped-up to ensure a larger and
active participation of individuals and the private sector in this direction.
Policies that can differentiate between those who really deserve
government’s help, in education and health, for example, need to be
formulated. Policies that help minimize the burden of the government
are important, but so are those that support the growth and development
of the private sector.
While some indicators of the quality of life of Bruneians show some degree
of accomplishment, others are less persuasive. We noted that
Brunei Darussalam has been successful in improving some social aspects
of development but the economic element remained to be desired.
Specifically, the GDP per Capita has been declining since the middle of
the eighties. Furthermore, the bulk of it arises out of the oil and gas sector.
In other words, income from the non-oil private sector has been less
significant compared with that derived from the oil and gas sector. Inadvertently,
this feature has implicated some segment of the population in
a negative way. The number of unemployed locals has been growing
which give rise to some negative social issues.
Therefore, it is in the best interest of the nation that future development
planning should focus on enhancing economic growth which brings
along with it job opportunities and eventually improvement in the quality
of life of the masses. While the role of the private sector is vital to
economic growth, the role of the government in the overall socioeconomic
development is equally important. Development planning for
the next 20-30 years should include to augment government’s efficiency
in its role to speedily enhance the quality of education at all levels via
human resources development, research and development, IT and science
and technology development; to efficiently facilitate ownership of
housing; to provide proficiently health and medical facilities; to ensure
sound environmental safety and to provide resourcefully state-of-the-art
physical infrastructure. Efficiency and timely provision of all these will
certainly contribute immensely to development and nation-building as a
whole.

V OLUME 3, ISSUE 2 P AGE 29
Miscellaneous
LIST OF JPKE PUBLICATIONS AVAILABLE FOR PURCHASE
No. List BND
1. Brunei Darussalam Statistical Yearbook 82 / 83, 83/84 7.00
2. Brunei Darussalam Statistical Yearbook 2000 / 2001, 2002 8.00
3. Brunei Statistics of External Trade 1991, 1992, 1993, 1994, 2001, 2002 20.00
4. Vital Statistics 1991, 1992, 1993, 1994, 1998, 2000, 2001, 2002, 7.00
5. 6th and 7th National Development Plan 1991-1995 30.00
6. Seventh National Development Plan 1996-2000 15.00
7. Rancangan Kemajuan Negara ke 7 1996-2000 15.00
8. Rancangan Kemajuan Negara ke 4 1980-1984 7.00
9. Summary Tables of the Brunei Population Census 1991 20.00
10. Report on the 1991 Population Census 20.00
11. Report on the 1991 Housing Census 20.00
12. Report on the Labour Force Survey 1995 10.00
13. Demographic Situation & Population Projection 1991 – 2011 10.00
14. PERJALANAN NBD memasuki ALAF BARU (Kulit Nipis) 25.00
15. PERJALANAN NBD memasuki ALAF BARU (Kulit Tebal) 40.00
16. The JOURNEY Brunei Darussalam into the next Millennium (Hard Cover) 40.00
17. Preliminary Report of the Population and Housing Census 2001 2.50
18. Consumer Price Index for Negara Brunei Darussalam Base 1990 = 100 7.00
19. Preliminary Report of the 2002 Economic Census 2.50
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THE EDITOR
BRUNEI ECONOMIC BULLETIN (BEB)
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PRIME MINISTER’S OFFICE
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BRUNEI ECONOMIC BULLETIN
Supplementary Copy
Volume 3, Issue 2
Date : 09/2004
THE EDITOR
BRUNEI ECONOMIC BULLETIN (BEB)
JPKE (DEPARTMENT OF ECONOMIC PLANNING AND DEVELOPMENT)
PRIME MINISTER’S OFFICE
Approved Price Certificate Issued During the Second Quarter 2004
COMPANIES
TYPES /
CERTIFICATE SR PRICES
ACCESSORIES
CAR MODELS
REFERENCE (BND)
GHK
MITSUBISHI AIRTREK TURBO 4WD 07/04/2004 47,750.00
MOTORS 2.0 A/T JPKE/PC/50/4
MITSUBISHI GRANDIS 2.4 A/T 06/05/2004 45,350.00
JPKE/PC/50/4
MITSUBISHI MAGNA VR A/T 08/05/2004 44,750.00
F38ATYGERJ
JPKE/PC/50/4
MITSUBISHI L200 2.8 DOUBLE CAB TURBO 08/05/2004 43,600.00
4WD 4A/T (K77TGJERXFRU)
JPKE/PC/50/4
CHEVROLET OPTRA 1.6 M/T 27/05/2004 19,950.00
JPKE/PC/50/4
MITSUBISHI OUTLANDER 2.4 A/T 27/05/2004 39,400.00
JPKE/PC/50/4
MITSUBISHI AIRTREK 2WD A/T 02/06/2004 35,050.00
JPKE/PC/50/4
SETIA
HYUNDAI ACCENT 5 DRS 1.5 GL A/T 26/05/2004 17,750.00
MOTORS
JPKE/PC/50/03PT II
QAF AUTO BMW 318 I TOURING 5DRS SALOON 15/05/2004 79,850.00
(MOEL 2003-PETROL)
JPKE/PC/50/14
BMW 325 CI CABRIOLET 2DRS SALOON 15/05/2004 88,550.00
JATI
TRANSPORT
(MODEL 2003- PETROL)
JPKE/PC/50/14
BMW 520 I A/T 27/05/2004 92,550.00
JPKE/PC/50/14
BMW 525 I AUTO 4DRS (MODEL 2003) 03/06/2004 106,850.00
JPKE/PC/50/14
BMW 530 I AUTO 4DRS ( MODEL 3003) 03/06/2004 126,950.00
JPKE/PC/50/14
MERCEDES-BENZ S 280 27/05/2004 156,750.00
JPKE/PC/50/13
MERCEDES-BENZ E320 27/05/2004 141,550.00
JPKE/PC/50/13
MERCEDES-BENZ E 200 K 27/05/2004 100,900.00
JPKE/PC/50/13
MERCEDES-BENZ S350L 27/05/2004 170,400.00
JPKE/PC/50/13
MERCEDES-BENZ E 240 17/06/2004 115,500.00
JPKE/PC/50/13
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LISTED. PLEASE CARE TO CHECK PRICE CERTIFICATES
SR.:- Show Room
Inside this issue:
GHK Motors 1
Setia Motors 1
QAF Auto 1
Jati Transport 1
Boustead 2
Grand Motors 2
Happy Motoring 2
Premier Automobiles 2
TCY Motors 2
United Motors 2
Lau Motor Sdn Bhd 3
Maju Motors 3
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P AGE 2
BRUNEI ECONOMIC BULLETIN
Approved Price Certificate Issued During the Second Quarter 2004
COMPANIES
BOUSTEAD
TYPES /
CERTIFICATE
ACCESSORIES
CAR MODELS
REFERENCE
NISSAN PATROL GRX S/WAGON A/T 07/04/2004
SPECIAL VERSION (TWSSRHAY61URAC-C
JPKE/PC/29/13PT VII
SUZUKI LIANA 1.6 H/BACK 24/04/2004
5M/T
JPKE/PC/29/13PT VII
SUZUKI LIANA 1.6 H/BACK 24/04/2004
4A/T
JPKE/PC/29/13PT VII
KIA PICANTO 1.1L EX 24/04/2004
M./T
JPKE/PC/29/13PT VII
NISSAN X-TRAIL COMFORT 4A/T 22/05/2004
JPKE/PC/29/13PT VII
NISSAN TERRANO SE 7 SEATER DIESEL A/T 25/05/2004
JPKE/PC/29/13PT VII
NISSAN TERRANO SLX 7 SEATER DIESEL M/T 25/05/2004
JPKE/PC/29/13PT VII
SUZUKI GRAND VITARA 1.6 3DRS A/T 25/05/2004
JPKE/PC/29/13PT VII
SUZUKI GRAND VITARA 1.6 3DRS MA/T 25/05/2004
JPKE/PC/29/13PT VII
SUZUKI GRAND VITARA 1.6 5DRS A/T 25/05/2004
JPKE/PC/29/13PT VII
SUZUKI IGNIS SPORT 1.5 3DRS H/B M/T 25/05/2004
JPKE/PC/29/13PT VII
SR PRICES
(BND)
61,950.00
23,250.00
24,350.00
15,800.00
35,200.00
57,250.00
48,300.00
30,200.00
27,950.00
29,900.00
20,300.00
GRAND MOTORS
KIA PICANTO 1.1L EX M/T 24/04/2004
JPKE/PC/50/15
15,800.00
KIA PICANTO 1.1L EX A/T 10/05/2004
JPKE/PC/50/15
17,350.00
MAZDA F/L MX-5 1.8L 2DRS CONVERTIBLE 05/05/2004
DOHC 6-SPEED M/T ND61 AAC
JPKE/PC/50/15
42,650.00
HAPPY MOTORING HONDA ODYSSEY 2.4 EXV 07/06/2004 47,500.00
WAGON A/T
JPKE/PC/50/8
PREMIER
AUTOMOES
FORD FOCUS 4DRS 1.6 COMFORT ST3 08/05/2004 21,300.00
M/T GASOLINE
JPKE/PC/50/18
FORD ESCAPE 2.3 LITRE XLS A/T 4WD 28/06/2004 42,250.00
JPKE/PC/50/18
TCY MOTORS SSANGYONG REXTON RX 270 A/T 24/04/2004 47,900.00
DIESEL
JPKE/PC/50/2
SSANGYONG REXTON RX 290 M/T 04/05/2004 35,900.00
DIESEL
JPKE/PC/50/2
AUDI TT3.2 QUATTRO DSG A/T 12/06/2004 95,750.00
8N30BL
JPKE/PC/50/2
AUDI S4 TIP A/T 12/06/2004 147,250.00
8E2S4L
JPKE/PC/50/2
UNITED MOTORS VOLVO XC 90 T6 SUV 4WD A/T 2.9 cc 14/04/2004 102,850.00
JPKE/PC/50/7
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BRUNEI ECONOMIC BULLETIN
P AGE 3
Approved Price Certificate Issued During the Second Quarter 2004
COMPANIES
TYPES /
CAR MODELS
ACCESSORIES
CERTIFICATE
REFERENCE
SR PRICES
(BND)
LAU MOTOR
SDN BHD
SUBARU IMPREZA 4D 2.0 GX AWD 05/05/2004 33,300.00
5M/T
JPKE/PC/50/10
SUBARU IMPREZA 4D 2.0 STI AWD 05/05/2004 66,650.00
6M/T
JPKE/PC/50/10
SUBARU IFORESTER SW 2.5 AWD 05/05/2004 46,100.00
XS 4A/T
JPKE/PC/50/10
SUBARU LEGACY 4D AWD 2.0 I 05/05/2004 42,600.00
4A/T
JPKE/PC/50/10
SUBARU LEGACY 4D AWD 2.0 GT 05/05/2004 60,850.00
5A/T
JPKE/PC/50/10
SUBARU LEGACY SW AWD 2.0 I 05/05/2004 45,650.00
4A/T
JPKE/PC/50/10
SUBARU LEGACY SW AWD 2.0 GT 05/05/2004 67,800.00
SPEC B 5A/T
JPKE/PC/50/10
SUBARU OUTBACK AWD 2.5 I 05/05/2004 54,100.00
A/T
JPKE/PC/50/10
SUBARU OUTBACK AWD 2.5 I 05/05/2004 49,550.00
LUXURY A/T
JPKE/PC/50/10
MAJU MOTORS VOLKSWAGEN POLO 1.4 A/T 2DRS 05/04/2004 28,900.00
HATCH BACK
JPKE/PC/50/16
VOLKSWAGEN POLO 1.4 A/T 4DRS 05/04/2004
32,850.00
HATCH BACK
JPKE/PC/50/16
VOLKSWAGEN POLO 1.4 M/T 2DRS 05/04/2004 31,900.00
HATCH BACK
JPKE/PC/50/16
VOLKSWAGEN POLO 1.4 M/T 4DRS 05/04/2004
29,800.00
HATCH BACK
RENAULT KANGOO 1.9 M/T 5DRS
HATCHBACK
DIESEL
RENAULT VELSATIS 3.5 A/T 5DRS
HATCHBACK
PETROL
RENAULT MEGANE 1.6 A/T 4DRS SEDAN
PETROL
RENAULT MEGANE 1.4 M/T 4DRS SEDAN
PETROL
RENAULT MEGANE II SPORT HATCH 1.6 A/T
3DRS PETROL
JPKE/PC/50/16
13/04/2004
JPKE/PC/50/16
13/04/2004
JPKE/PC/50/16
13/04/2004
JPKE/PC/50/16
13/04/2004
JPKE/PC/50/16
11/05/2004
26,500.00
69,000.00
31,600.00
27,600.00
32,850.00
SOME ON THE ROAD (OTR) PRICES DO NOT INCLUDE OPTIONAL ACCESSORIES AS LISTED. PLEASE CARE TO
CHECK PRICE CERTIFICATES
SR.:- Show Room

P AGE 4
BRUNEI ECONOMIC BULLETIN
Notes