BUSINESS OPPORTUNITIES IN DARUSSALAM

18 March 2013 Brunei – “Abode of Peace”

Land Size : 5,765 sq km Population : 393, 400

Top 10 in & Oceania Human Development Index (United Nations 2011) #7 in Asia for ‘Best Living Standards’ (Mercer Report 2011) # 3 in ASEAN for Quality of Education (GCR, World Economic Forum, 2011-12)

Politically and Economically Stable No History of Natural Disasters No History of Terrorism related incidents

*Exchange Rate USD1=BND1.25 Economic Overview

#1 in the World Macroeconomic Environment (GCR, World Economic Forum, 2011-12) GDP (2012 est) : B$21 billion GDP per capita (2012) : B$52 ,315 GDP growth (2013 est) : 2.3% GDP composition (2012) • Oil & Gas : 67.7% • Government services : 11.7% • Private : 20.6% Inflation (2012) : 0.5% No Government Debt

*Exchange Rate USD1=BND1.25 #5 Richest Nation in the World (Forbes 2012) Successful Oil & Gas Sector

With our strengths well displayed in the Oil & Gas sector, Brunei is more than ready to look at viable ways to diversify our economy.

Total Exports : BND 15.6 Billion - 95.6% from Oil & Gas (2012 est))

Crude Oil 50.8% LNG 44.8%

Methanol 1.5%

Others 2.9%

* Others include Manufactured articles, Machinery and Transport Equipments Vision for the Future

WAWASAN 2035 “To be one of the Top 10 nations in the world recognized for its Quality of Life and Dynamic and Sustainable Economy” High Quality of Life

Under Wawasan 2035, Brunei aims to be one of the Top 10 nations in the world recognised for its Quality of Life.

Politically and Economically Stable No History of Natural Disasters No History of Terrorism related incidents #7 in Asia for ‘Best Living Standards’ (Mercer Report 2011) #16 in the world for High Pay and Productivity (GCR 2011-12) Innovative Islamic Initiatives

Brunei’s credibility guarantees the highest Islamic standard and quality in Halal certification #1 in the world to issue guidelines on the production of ‘Halal Pharmaceuticals’ in 2010.

Brunei is currently drafting similar guidelines for the production of ‘Halal Cosmetics’. International Network Connectivity

Brunei is currently connected to TWO major submarine cables: . Asia-America Gateway (AAG) . Southeast Asia- Middle East- Western Europe Cable (SEA-ME-WE) . A third cable, the ‘South-East Asia- Cable’ (SJC) will be ready by 2013.

80% of its Capacity is Under-utilised Access to Key Markets

Brunei’s strategic agreements with key international partners means greater access to significant markets.

Population GDP (trillion) (million) 2011 2011 ASEAN Economic 597 2.14 Community ASEAN-NZ 602 2.28 ASEAN-AUS-NZ 623 3.2 ASEAN- 1,941 9.44 ASEAN-KOREA 647 3.25 ASEAN-JAPAN 725 8.12 ASEAN-INDIA 1,838 3.99 Trans-Pacific Strategic 479 17.41 Economic Partnership ASEAN-Regional Comprehensive 3,387 19.78 Economic Partnership

The ‘ASEAN Economic Community’ to be established in 2015, envisages a simple market and production base in a highly competitive region integrated within the global community Financial Partnership

Credible financial support and partnership through means of co-investment from both ‘Build & Lease’ government and private investors. business models also Potential partners include the Ministry of Finance made available for and Brunei Government’s private equity funds: strategic projects. Strategic Development Capital Fund, Aureos- BICB and Soft Bank Investments Brunei. Research & Training Grants

Ranked amongst ‘Most Improved’ countries in Innovation Performance (Global Innovation Index 2012)

Brunei Research Incentive Scheme (BRISc) BRISc is a cost-sharing grant created to address the funding needs of private sector R&D, for both local and foreign companies. The Government will cost share between 80% - 50% of the costs of R&D activities, at a maximum of B$5 million per application. Companies are encouraged to collaborate with either the Institutes of Higher Learning or Government Agencies to carry out their R&D. Five focus areas of research: . Energy . Environment . Food Security . HealthCare / Health Sciences . ICT Training Grants Available grants for potential investors to improve competency and skill sets of local manpower. Tax Incentives

Tax Exemptions in Brunei No Personal Income Tax

No Sales Tax

No Payroll Tax

No Capital Gains Tax

No Export Tax

No Manufacturing Tax

Corporate Income Tax in Brunei : 20% Pioneer Status: Companies can apply to be exempted from Corporate Income Tax, Import Duties on Raw Materials and Machinery for up to 8 years. The BEDB

REPORTING LINE

Established by His Majesty, The Sultan in 2001 Vision A leading Economic Development Agency recognised for its Professionalism, Progressive and Result Driven Culture. Mission To grow and diversify Brunei Darussalam’s economy by attracting investments and strengthening local businesses enabled through research and innovation. Key Focus Areas

ATTRACTING INVESTMENTS

Promote Foreign Direct Investments in Export-Oriented Manufacturing and Services as well as Research Collaboration in Brunei.

STRENGTHENING INCREASING R&D ENHANCING THE VALUE DELIVERING LOCAL BUSINESSES AND INNOVATION OF INNOVATION INFRASTRUCTURE PROJECTS Grow Micro Businesses and Develop a National Supporting and Strengthen Local Innovation System that Promoting Intellectual Complete Infrastructure Enterprises towards encourages Knowledge Property, Strengthening Projects On Time, On Internationalisation. Creation and the Tangibility of Creative Budget and To Quality. Commercialisation in and Innovative Output. Science & Technology and Creative Sectors. Economic Diversification

Tapping into our Hinterland Focus on Emerging New Technologies Pharmaceuticals Vitamins & Food & Food Cosmetics & e.g. vaccines Supplements Ingredients Personal Care

Energy

Adding Value to Brunei’s Resources

Integrated Renewable Energy Petrochemicals Petrochemical Environment e.g. solar Refinery

Regional Hub for Information & Communication Health Care & Multimedia Data Centre/ Health Wireless & Game Software Dev / Disaster Sciences Communication Development New Media Recovery e.g. RFID, GPS e.g. Apple, Centre Android, Linux ICT

Growing our Supporting Industries

Aviation Air & Sea Oil Field Financial Support Food Security Logistics Services Services Services Industrial Sites Petrochemical Industries

SUNGAI LIANG INDUSTRIAL PARK Methanol Export Facility (SPARK) Total Site Size : 271ha Brunei Methanol Company (BMC) US$600mil /181 jobs * First downstream petrochemical BMC plant in Brunei. (24 ha) PROPOSED 850,000 tons per year Methanol Plant . Mitsubishi Gas Chemicals (Japan) PETROCHEMICAL . ITOCHU Corporation (Japan) PROJECT . Petroleum Brunei (Brunei) (90 ha) Started operations : May 2010 Second Petrochemical

US$2.8bil / 470 jobs . Integrated Petrochemical Complex including ammonia, urea & derivatives

New Opportunities: . Methanol Derivatives *80 km to Brunei International Airport . Gas-Based Petrochemicals . Ammonia-Urea based downstream (e.g. for the fertilisers/plastics/textile industries) Oil & Gas Related Industries

PULAU MUARA BESAR (PMB) Total Site Size : 955ha Zhejiang Hengyi (China) . Refinery and Aromatics Complex . US$4bil (Phase 1) / 800 jobs / 260 ha . Target StartStart Operation Operation: : 2015May 2010 Infrastructure . Bridge to PMB . Main Road across PMB Island . Target Start Construction : 2013 Integrated Marine Supply Base . Centralised facility providing fabrication yard, storage, berthing facilities, etc to cater for the Oil & Gas Upstream development. . Target Request For Proposals: 2013 New Opportunities: . Oil and Gas Based Petrochemicals . Metal Smelting Light Manufacturing Industries

Lambak Kanan Vocational School LAMBAK KANAN EAST (LKE) Youth Development INDUSTRIAL PARK Centre Total Site Size : 137.2ha . Food & Beverage, Pharmaceuticals and Light Manufacturing Industries Viva Pharmaceutical (Canada) . Halal Pharmaceuticals and Nutraceuticals Manufacturing . US$18.5mil / 100 jobs / 2ha Potential Investors . Value add service to Oil Country Tubular Goods (OCTG) . LED light assembly plant

*11 km to Brunei International Airport InfoComm & High-Tech Industries

Potential Data RIMBA DIGITAL JUNCTION Centre/Disaster Recovery Centres Total Site Size : 15ha (7.2ha) (2.77ha) Proposed . Information and Communication MPTC Technology and other High-Tech Industries CAE Multi-Purpose Training Centre (Canada) . Multi-Purpose Training Centre . US$102mil / 35 jobs / 2.4ha Lot 2 (3.0ha) . Co-investment with Brunei Government Proposed National National Data Centre Data Centre . Data Centre for Energy & e-Government . US$80mil / 250 jobs / 5ha

Executive Housing

*11 km to Brunei International Airport Energy Intensive Industries

Existing Bukit Panggal Power BUKIT PANGGAL INDUSTRIAL PARK Station Boundary • Total Site Size : 50ha • Energy Intensive Manufacturing activities

Proposed Papermill Potential Investors 15ha (600m x 250m) • Specialty Paper Mill • Silica Sand

*40 km to Brunei International Airport THANK YOU

THE BRUNEI ECONOMIC DEVELOPMENT BOARD Block 2K, Bangunan Kerajaan, Jalan Ong Sum Ping Bandar Seri Begawan BA1311, Brunei Darussalam Tel: +673-223 0111 Fax: +673-223 0082 www.bedb.com.bn