With a portfolio that includes two of the five priority sectors targeted for growth, YB Dato Seri Setia Dr Hj Abdul Manaf Hj Metussin, Minister of Primary Resources and Tourism, plays a significant role in the delivery of Brunei’s Vision 2035 plan. “Food and tourism have been identified as pivotal sectors capable of substantially contributing to the nation’s economic enhancement,” the Minister says, highlighting the efforts that are being made to accelerate growth and boost productivity in both areas.
Output in the agriculture and fisheries sector reached BND$721 million in 2023, with exports of BND$24.3 million. Shrimp supplies to countries including Japan, Taiwan and Malaysia accounted for much of that figure, with chicken feed another important commodity. “Our strategic direction in the food sector has been centred on bridging the gaps within the value chain, thus enhancing the entire ecosystem,” the MPRT Minister explains, noting efforts that have seen exports of table eggs to Singapore grow from a standing start in 2023 to more than seven million units in 2024.
A raft of initiatives has been put in place to foster economic expansion, including the adoption of modern agricultural methods and technologies, promotion of circular economy practices and close collaboration between government, private agencies and farmers and fishermen to facilitate access to new markets. “Brunei’s food products have increased their visibility and competitiveness in the international market, showing a rise in exports and an increase in revenue,” the Minister continues.
In tourism, efforts to strengthen and diversify the sector are concentrated in three core areas: improving infrastructure, emphasising culture, nature and adventure, and enhancing the quality of tourist providers. Here, too, collaborations between the government and the private sector have been at the forefront, exemplified by the ecotourism resort in Ulu-Ulu Temburong.
Building on a 274% increase in arrivals in 2023, outreach efforts to UAE social media influencers and travel professionals are underway, designed to highlight Brunei’s natural beauty, stunning landscapes and tranquil settings. The Minister comments: “The tourism industry has great potential for revenue generation, such as creating employment, value chain opportunities, investments and other spillovers.”
Q&A: Minister Of Primary Resources and Tourism
The Minister of Primary Resources and Tourism discusses the strategies implemented to bolster Brunei’s tourist arrivals, incentives and opportunities available to UAE investors and the Ministry’s efforts to increase productivity in key economic sectors.
Q: Your excellency assumed office in 2022. Could your excellency elaborate on the key strategic decisions made during tenure that have had the most significant impact on the development of the five clusters?
The Ministry of Primary Resources and Tourism (MPRT) is steadfast in its commitment to support efforts towards the realization of Brunei Vision 2035, particularly focusing on Goal 3, a “dynamic and sustainable economy”. This commitment is exemplified through the Food Industry Roadmap and Tourism Industry Roadmap, both integral components of Brunei Darussalam’s economic blueprint. The food sector and the tourism sector have been identified as pivotal sectors capable of substantially contributing to the nation’s economic enhancement, alongside the downstream oil & gas industry, services, and ICT sectors.
In order to accelerate the growth and increase in productivity within the food sector the Ministry through its relevant departments, pledges to ensure that all planning and implementation of strategies, programs, and initiatives are meticulously aligned and to reinforce the objectives outlined in the Food Industry Roadmap.
In 2023, the total gross output for the agriculture and agrifood sector, as well as fisheries sector amounted to about $721 million. Of this total, $554.5 million was contributed from the Agriculture and Agrifood sector while $166.6 million was generated by the Fisheries sector. Regarding exports in 2023, Brunei saw a total export value of $3.3 million (2,032.56MT) for the agriculture and agrifood sector with the main export commodity, chicken feed, valued at $1.35 million exported to Sarawak. Meanwhile the fisheries sector recorded total export amounting to $21 million (3,582.40MT) with shrimp as the main export commodity ($16 million) exported to several countries such as Japan, Taiwan, Malaysia and others.
Through continuous efforts and cooperation between the Government of Brunei, as well as the commitment of our local entrepreneurs, Golden Chicks Livestock Sdn Bhd, began exporting fresh table eggs to Singapore for the first time on February 1, 2023. The export of table eggs has significantly increased to more than seven million chicken eggs in 2024. This trend is expected to continue improving in the near future.
In the crop industry, Brunei has also achieved success by exporting Cavendish bananas to Sarawak, Malaysia in 2024. Aside from the exports to Sarawak and Singapore, Brunei also has successfully tapped into China market, through market access agreements. Gropoint Sdn Bhd has exported Japanese muskmelons to China since 2020.
Additionally, we also promote and encourage manufacturing value-added food products. Brunei entrepreneurs have produced meat-based processing products and other processed food that have successfully entered the markets of East Malaysia and Singapore. Currently 10 companies (Superfish Growers Sdn Bhd, Iam Food Entreprise, PDS abattoir Sdn Bhd, BMC Food Industries Sdn Bhd, RBC Sdn Bhd, Goldcoin Sdn Bhd, Syarikat Norfaidzal bin Hj Zainuddin dan Anak-Anak, Golden Chicks Livestock Sdn Bhd, Green Technology Farm and Gropoint Sdn Bhd) are actively exporting their products, and we expect to see more companies exporting a wider range of commodities in the future. Whilst in the Seafood Processing industry, as of March 2024, Brunei has exported a total of 135.64MT ($0.54mil) of tuna and prawns to China.
Several key strategic decisions have been implemented by the ministry that have significantly impacted the development of the Food Industry and Tourism Industry in Brunei Darussalam. Our strategic directions in the food sector have been centered on bridging the gaps within the value chain, thus enhancing the entire ecosystem.
MPRT looks into a comprehensive approach to integrate all stages of the value chain, from production to processing and distribution, and highly promote high-value added activities in the country especially through FDI and GLC involvement.
The Ministry prioritized agricultural modernization through the adoption of technology and modern techniques to ensure high productivity and sustainability of the industry. As a result, new methods and technologies have been introduced in the agricultural industry including aquaponics, smart farming, drone for monitoring, utilization of solar for energy, drip irrigation and farming in greenhouse; and in the fisheries sector such as the use of Recirculating Aquaculture System (RAS) and utilization of Internet of Things (IOT) for water monitoring.
In addition, the Ministry also puts emphasis on promoting environmental stewardship by incorporating sustainability principles into all aspects of the food industry development by employing green practices and circular economy concept, for instance through regenerative agriculture and recycling of agriculture waste. This is to guarantee both the long-term development of the industry and the preservation of our environment in Brunei is aligned to global focus on the Sustainable Development Goals.
To propel the agrifood industries further, the initiatives that has been developed are driven by market expansion and export promotion. Brunei’s food products have increased their visibility and competitiveness in the international market, which have shown rise in export and brought in more revenue. We have successfully exported fruits and fisheries product to China, table eggs and processed products to Singapore and meat-based processed products to East Malaysia. In the coming years, MPRT aims to expand the more market destinations and varieties of products.
A number of programs has been put in place by the Ministry to open up markets and encourage the expansion of trade and GDP. First initiative is to work closely with other government and private agencies to provide our farmers with the necessary information on the requirements of the importing countries and relevant export procedures and processes. In addition to that, we also provide G2G platform to facilitate negotiations that enable exporting agricultural and fisheries products to international markets. The department under the ministry continuously works to enhance its services as the Competent Authority facilitating exports such as:
- Improving infrastructure and laboratory facilities to reach international standard;
- Accreditation of laboratories, ISO/IEC 17025 from the International Accreditation Organization;
- Collaborating with the Brunei Darussalam Food Authority (BDFA) on the development of food safety standards;
- Provide technical advisory services to achieve farm management and/or manufacturing standards (Brunei Good Agricultural Practices (Brunei GAP), Good Animal Husbandry Practices (GAHP), Certificate of Analysis (Maximum Residue Limit (MRLs), microbiology, heavy metals, Veterinary Drug Residues, Hazard Analysis Control Critical Point (HACCP), Good Manufacturing Practices (GMP);
- Facilitate inspection/audit by the Competent Authority of the Importing Country & also facilitate in the issuance of export requirement documents such as Phytosanitary Certificate, Veterinary Health Certificate and Animal Health Certificate.
Meanwhile, in supporting the development of our tourism industry, our key strategic directions and initiatives have been mainly focusing on diversifying, strengthening and promoting tourism products based on three core themes – culture, nature and adventure; improving infrastructure; and enhancing the quality of tourist service providers through capacity building and certification to attract and increase number of tourist arrival. We fostered strong collaborations between the government and private sector entities in implementing projects that involve development of tourism facilities, for instance, ecotourism resort in Ulu-Ulu Temburong and restaurant in Bukit Patoi, Temburong.
The tourism industry has great potential to provide opportunities for revenue generation such as job employment, value chain, investments and other spillovers. In this regard, the Ministry through the Tourism Development Department is in the final stage of formulating ‘Brunei Darussalam Tourism Industry Roadmap 2024-2035’ which entails, improving the tourism and travel ecosystem, strategic initiatives to overcoming the challenges faced, as well as outcomes to be achieved. The roadmap will hopefully provide guidance and harness stakeholder collaboration in the tourism sector.
In support of conservation of national forest resources, the Ministry through the Forestry Department, will continue to ensure that efforts in protecting and conserving national forests resources, including biological diversity, will be implemented continuously to ensure that national development is in line with sustainable development and at the same time to support the implementation of the Brunei National Climate Change Policy.
In the effort to generate and increase government revenue collection through the forestry sector, the Ministry of Primary Resources and Tourism with the cooperation of the Brunei Climate Change Office (BCCO) is exploring opportunities for carbon market. This is also to support the National Climate Change Policy strategy- especially in Strategy 6, which is Carbon Pricing.
In order to carry out this program, the Ministry is now assessing baseline data on the current forest carbon stocks through the National Forest Resources Inventory Project, which is being carried out by the Forestry Department. The Ministry of Primary Resources and Tourism is working with the Economic Research Institute for ASEAN and East (ERIA) to validate the data findings from the National Forest Resources Inventory Project, which will then be used for the forest carbon project. The baseline data will be further interpreted and utilized to assess the feasibility of conducting forest carbon projects in Brunei.
Q: In light of the UAE-Brunei Darussalam joint committee meeting in December 2022 that covered a wide range of sectors, including agriculture, how does your excellency foresee the strengthening of bilateral relations between the two countries impacting agriculture and exports?
The strengthening of bilateral relationship between Brunei and UAE, particularly in the field of Agriculture, can give a significant impact on the agricultural sector of both countries through huge opportunities to increase production in the agricultural sector; not just limited to fulfilling local consumption or demand, but for exports such as raw materials and inputs in value-added and processed products.
Brunei Darussalam will continue to ensure that the growth of agriculture sector will remain positive by ensuring strategies and initiatives such as the potential bilateral cooperation are able to boost production and productivity as well as continue to be implemented through our initiatives such as Agriculture Pilot Project, Contract Farming for youth, Business Expansion Program, Local Market Facilitation, Export Market Facilitation, as well as opening up of new areas for crops, livestock and paddy production.
Thus, in efforts to increase production, our Ministry allocates farming sites whereby around 3,000 hectares of land under the Agricultural Development Areas is still available for development for the production of livestock and crops. The Ministry also provide technical advisory services to farmers, encouraging them to highly adopt suitable technology according to their capital abilities, farming management to consistently supply and reduce in cost of production, and boost in exploring opportunities to add value and downstream processing.
For other areas of cooperation that both countries can explore is knowledge sharing and technology transfer; diversification of agricultural products; sharing of agricultural practices as well as providing capacity building and human resources development.
Q: Considering the UAE travel and tourism market’s projected growth to US$51.30 million in 2024 with an annual growth rate of 6.87% until 2028, what measures have been implemented to encourage tourism from the UAE and the Middle East?
The Ministry is proactively engaged in enhancing tourism influx into Brunei Darussalam. In 2023, there was a 274.3% increase in tourist arrivals, from 35,701 arrivals in 2022 to 133,630 arrivals in 2023. Concurrently, there was a significant rise of 284% in tourism receipts, escalating from $19.5 million in 2022 to $74.8 million in 2023.
Predominantly, tourists visiting Brunei are from China, Korea, Japan, Malaysia, and Australia, primarily for leisure and business pursuits. Looking ahead, we aim to further promote and leverage opportunities within the Middle East market. We believe that Brunei’s strategic location in the heart of Southeast Asia makes it an ideal gateway to the region’s diverse offerings. Middle Eastern travelers can easily explore neighboring countries and embark on multi-destination adventures, adding a dynamic dimension to their holiday experience.
Brunei Darussalam’s natural landscapes offer a tranquil sanctuary away from the hustle and bustle of city life, appealing to travelers from the Middle East who value tranquility and relaxation. From secluded waterfalls, jungle treks and canopy walks tucked away in the rainforest to untouched coral reefs teeming with marine life, Brunei’s natural beauty invites visitors to unwind and rejuvenate in a peaceful setting.
Furthermore, Brunei’s rich cultural heritage holds immense appeal for travelers eager to immerse themselves in the traditions and customs of our nation. Our Islamic heritage is intricately woven into the fabric of daily life, evident in the stunning architecture of our mosques, the vibrant tapestry of our festivals, and the warm hospitality of our people. Middle Eastern visitors will find a sense of familiarity and connection in Brunei’s Islamic ethos, fostering a deep appreciation for our shared cultural heritage.
In line with the Ministry’s latest objectives, through the Tourism Development Department, tourism activities are meticulously developed and tailored to cater to niche markets under the categories of Nature, Adventure, and Culture. These activities are curated into thematic packages and itineraries. Particularly, Diving, Golf, and Bird Watching activities stand out as unique offerings that Brunei Darussalam can present to the UAE and the broader Middle East, promising a distinctive experience. Some of these bespoke packages include:
- Bird Watching Experience: Offering enthusiasts the opportunity to observe rare and endemic bird species.
- Reef and Wreck Adventures: Providing tourists with a glimpse into our vibrant coral reefs, diverse marine life, and intriguing wreck sites.
- Eco Farm Getaway: Immersing travelers in the intricacies of environmental sustainability through agricultural exploration.
Additionally, the Ministry has implemented a range of strategic initiatives such as extending invitations to social media influencers based in the UAE and the Middle East region aimed at raising awareness and promoting Brunei Darussalam as a destination for leisure, education and wellness. Furthermore, efforts are underway to organize familiarization trips for agents in the UAE, particularly in Dubai, owing to its direct connectivity to Brunei (Dubai – BWN).
Collaborating closely with the Sarawak Tourism Board, Brunei Tourism and Royal Brunei Airlines are orchestrating a Brunei-Kuching multi-destination familiarization trip for Dubai agents in September 2024. The primary focus of this famtrip is to spotlight eco-tourism and our rich cultural heritage, including Islamic tourism. Moreover, agents specializing in educational groups are cordially invited to partake in this familiarization trip.
In our future plans, we aim to execute targeted marketing campaigns, participate in travel trade shows and exhibitions, and collaborate forged partnerships with key stakeholders in the UAE and the Middle East.
Q: Considering Brunei’s open economy and economic diversification efforts, what specific tax incentives and opportunities are being offered to attract UAE investors, particularly in sectors such as agribusiness?
Brunei Darussalam is dedicated to advancing its economic diversification efforts, evident through significant progress in non-oil and gas sectors like food, downstream oil and gas, and manufacturing. Food, in particular, stands out as a priority sector identified in our economic blueprint, offering substantial potential to bolster the country’s economy. We emphasize the imperative of enhancing both domestic food production for food security as well as export driven initiatives.
In terms of investment opportunities, Brunei Darussalam have allocated strategically Agricultural Development Areas tailored to accommodate investors keen on agricultural ventures. These sites are equipped with essential amenities such as access roads, electricity and domestic water supply, ensuring seamless operational requirements.
As for FDI Opportunities in Aquaculture, the Department of Fisheries has designated land- based areas and offshore sites dedicated to fish cage culture and Land Based Aquaculture activities.
Aligned with our efforts to promote modern technology adoption, we actively encourage FDI to enhance agricultural and fisheries productivity through cost-effective and sustainable methods. This includes initiatives like drip irrigation in crop cultivation and Recirculating Aquaculture System (RAS) in fisheries.
Our focus extends beyond primary production. We also emphasize on processing & value-added industry in the agrifood and fish processing. This entails development of meat-based and plant-based processed products catering to various consumers.
Brunei Darussalam is politically and economically stable alongside a favorable business environment, making it an attractive destination for investors. We provide limited firms, whether formed as foreign branches in Brunei or as registered entities outside of Brunei Darussalam, with a favorable tax regime. Sales, manufacturing, capital gains, and personal income are all exempt from taxation.
Companies establishing themselves in Brunei Darussalam may also be eligible for tax exemptions by applying for investment incentives (pioneer status) or by establishing themselves in the Brunei Free Trade Zone (FTZ). Additionally, Brunei Darussalam has signed the CPTPP and RCEP. Businesses can benefit from more than 92% of tariff elimination and reduction among RCEP Parties with such admission. By granting Brunei investors “no less favourable” treatment than other investors in RCEP Parties, the RCEP will further encourage Brunei’s investment in RCEP Parties.
Recognizing our people as the primary drivers of economic growth and advancement, we have long prioritized the provision of high-quality education aimed at cultivating a highly educated, skilled and innovative workforce. This commitment aligns with Goal No.1 of Brunei Vision 2035, underscoring our dedication to fostering a prosperous and sustainable future.
Q: To what extent will the roadmap master plan increase foreign direct investment (FDI)?
In the Food Industry Roadmap, it has been determined to strengthen the entire food industry value chain, with particular emphasis on rectifying gaps to maximize opportunities in the ecosystem.
A key strategic initiative is encouraging participation of Government Linked Companies (GLC) and Foreign Direct Investment (FDIs) in the production and Research and Development (R&D) of animal/aquatic feed, fertilizers, seeds, seedlings, parent stock (breeder)/broodstock, fertilized eggs. This initiative aims to mitigate input costs, ensure the attainment of high-quality yield and strengthen the competitiveness of the agriculture, fisheries, manufacturing and food processing activities.
The involvement of FDIs and Joint Ventures (JVs) is anticipated to significantly enhance the value chain of the Food Industry by broadening the collaboration on research and development, expertise and technologies.
Brunei has successfully attracted FDIs from various regions including the People’s Republic of China, Singapore, Taiwan, Japan, Abu Dhabi, Malaysia and have forged Joint Venture in the aquaculture as well as seafood processing industry. Brunei are also pursuing market penetration in regions such Europe.
Q: What is your final message to the UAE and the Middle East about the benefits of collaboration and investing in your sectors?
It is with great optimism and anticipation that I extend this final message, highlighting the immense benefits awaiting through collaboration and investment in Brunei’s sectors.
Firstly, our collaboration presents a gateway for the UAE and Middle East to diversify export market opportunities to new regions. With Brunei Darussalam strategically positioned to easily access ASEAN markets and BIMP EAGA, we can leverage our existing export markets in China, Malaysia, Hong Kong, Indonesia, Japan, Singapore, Taiwan, and Australia, amplifying trade and fostering economic growth.
Moreover, this partnership holds immense potential for improving both countries’ economic growth by increasing Gross Domestic Product. By tapping into the strengths of each nation and fostering mutually beneficial trade relationships, we can stimulate economic activity and unlock new avenues to increase our GDP.
Leveraging on BIMP EAGA and the high-quality infrastructure in Brunei, we are able to obtain good source of raw materials, particularly in agriculture, to value add in Brunei and export to other regions, including china, by taking advantage of the relatively good connectivity and market access.
In essence, by embracing collaboration and investment, we are striving to broaden our export horizons, promoting economic growth, capitalize on distinctive selling propositions, and securing the vital resources required for sustained success in the global marketplace.
This is an extended version of the article published in Gulf News’ Brunei Business Feature on July 29, 2024.
Brunei Business Feature published in Gulf News, an initiative by BEDB
