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Economic Problems of Low-Income Immigrant Workers in Brunei Darussalam

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Economic Problems of Low-Income Immigrant Workers in Brunei Darussalam i.yySwiJjiii/jj APPLIED ECONOMIC ANALYSIS IN BRUNEI DARUSSALAM EVALUATION OF ECONOMIC GROWTH AND TRADE, MICROECONOMIC EFFICIENCY AND ANALYSIS OF SOCIO - ECONOMIC PROBLEMS Kwabena A. Anaman and Ismail Duraman Universiti Brunei Darussalam APPLIED ECONOMIC ANALYSIS IN BRUNEI DARUSSALAM: EVALUATION OF ECONOMIC GROWTH AND TRADE, MICROECONOMIC EFFICIENCY AND ANALYSIS OF SOCIO-ECONOMIC PROBLEMS EDITED BY KWABENA A. ANAMAN AND ISMAIL DURAMAN DEPARTMENT OF ECONOMICS FACULTY OF BUSINESS, ECONOMICS AND POLICY STUDIES UNIVERSITI BRUNEI DARUSSALAM BANDAR SERI BEGAWAN BRUNEI DARUSSALAM First Published 2003 by Universiti Brunei Darussalam Jalan Tungku Link Bandar Seri Begawan BE1410 Brunei Darussalam Copyright © 2003 authors All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission, in writing, from the publisher. Cataloguing in Publication Data Applied economic analysis in Brunei Darussalam : evaluation of economic growth and trade, microeconomic efficiency and analysis of socio-economic problems / edited by Kwabena A. Anaman and Ismail Duraman. ix, 204 p. ; 25 cm. ISBN: 99917-1-126-0 1. Brunei Darussalam - Economic conditions. 2. Brunei Darussalam - Social conditions. I. Anaman, Kwabena A. II. Ismail bin Haji Duraman, Haji. HC445.85 A66 2003 III NAMES OF CONTRIBUTORS 1. Dr. Awang Haji Ismail bin Awang Haji Duraman, Vice-Chancellor, Universiti Brunei Darussalam (UBD). Professional Literary Name: Ismail Duraman 2. Dr. Kwabena Asomanin Anaman, Senior Lecturer, Department of Economics, UBD. Professional Literary Name: Kwabena A. Anaman 3. Dr. John Onu Odihi, Senior Lecturer and Head, Department of Geography, UBD. Professional Literary Name: John O. Odihi 4. Dr. Razali Mat Zin, Senior Lecturer, Department of Management Studies, UBD. Professional Literary Name: Razali M. Zin 5. Dayang Hajah Salma binte Awang Haji Abdul Latiff, Senior Lecturer, Department of Management Studies, UBD. Professional Literary Name: Salma A. Latiff 6. Dayang Rosnah binte Awang Opai, Lecturer, Department of Economics, UBD. Professional Literary Name: Rosnah Opai 7. Dayang Hartini binte Awang Haji Mohammed Yussof, Lecturer, Department of Economics, UBD. Professional Literary Name: Hartini Yussof 8. Dayang Kartini binte Awang Haji Kabri, Professional Officer, Government of Brunei Darussalam, Bandar Seri Begawan. Professional Literary Name: Kartini Kabri 9. Dayangku Hartinie binte Pengiran Mohammed Kassim, Trade and Corporate Financing Executive Officer, PerbadananTabung Amanah Islam Brunei (Brunei Islamic Trust Fund), Bandar Seri Begawan. Professional Literary Name: Hartinie M. Kassim 10. Dayangku Sri Joedianna binte Pengiran Haji Mohammed, Graduate, UBD. Professional Literary Name: Sri Joedianna Mohammed 11. Dayang Rina Hayane binte Awang Haji Sumardi, Graduate, UBD. Professional Literary Name: Rina H. Sumardi 12. Dayangku Suzelawati Fazidah binte Pengiran Haji Sulaiman, Final Year Student, Department of Economics, UBD. Professional Literary Name: Suzelawati F. Sulaiman 13. Dayang Suhaila binte Awang Matzan, Final Year Student, Department of Economics, UBD. Professional Literary Name: Suhaila Matzan IV CONTENTS ITEM PAGE CONTRIBUTORS IV PREFACE VII SECTION A MACROECONOMIC ANALYSIS: EVALUATION OF ECONOMIC GROWTH AND TRADE CHAPTER 1 Prospects and Challenges of Economic Growth and 1 Diversification in Brunei Darussalam by Ismail Duraman CHAPTER 2 Can the Construction Industry Pull the Rest of the 16 Economy out of a Recession? Evaluation of the Causality Links Between the Construction Industry and the Macroeconomy in Brunei Darussalam by Kwabena A. Anaman CHAPTER 3 Estimation of the Aggregate Demand of Labour in 24 Brunei Darussalam Using Dynamic Econometric Models by Kwabena A. Anaman CHAPTER 4 Analysis of the Health and Environmental Quality 47 Adjusted Gross Domestic Product for Brunei Darussalam by Sri Joedianna Mohammed and Kwabena A. Anaman CHAPTER 5 Analysis of Trade Flows Between Brunei Darussalam 67 and Other Members of the Association of Southeast Asian Nations by Suhaila Matzan, Kwabena A. Anaman and Ismail Duraman SECTION B MICROECONOMIC ANALYSIS: ANALYSIS OF THE EFFICIENCY OF VARIOUS INDUSTRIES AND SERVICES CHAPTER 6 Economic Analysis of the Adoption and Use of Internet 85 Services by Householders in Bandar Seri Begawan by Kartini Kabri, Kwabena A. Anaman, Ismail Duraman and Rosnah Opai V CHAPTER 7 Analysis of Aggregate Production Function and 104 Technical Efficiency of the Agricultural Sector in Brunei Darussalam by Kwabena A. Anaman, Suzelawati F. Sulaiman, and Hartini M. Yussof CHAPTER 8 A Survey-Based Analysis of Factors Influencing the 117 Efficiency of the Construction Industry in Brunei Darussalam by Rina H. Sumardi CHAPTER 9 The Prospects and Challenges of Islamic Business 132 Transactions in Brunei Darussalam By Salma A. Latiff, Ismail Duraman and Razali M. Zin SECTION C ANALYSIS OF SOCIO-ECONOMIC PROBLEMS CHAPTER 10 Analysis of Marital Choice of Women in an Urban 142 Community in Bandar Seri Begawan by Kwabena A. Anaman and Hartinie M. Kassim CHAPER 11 Analysis of the Causality Links Between Aggregate 164 Women Labour Force and the Divorce Rate in Brunei Darussalam by Sri Joedianna Mohammed and Kwabena A. Anaman CHAPTER 12 A Study of Some Specific Socio-economic Problems of 183 Low-income Immigrant Workers in Brunei Darussalam by John O. Odihi Index 200 VI PREFACE Given the rapid changes in the economic and social fabric of Brunei Darussalam (Brunei) over the last 40 years, there has been an increasing need for books and other published works on the economic and social aspects of development in the country. Brunei is scarcely covered in the international published economic literature including the databases of the key international lending agencies such as the World Bank and the International Monetary Fund. This book attempts to fill a small part of the big gap in knowledge about economic and social development issues concerning Brunei. It is the culmination of efforts made by several individuals at Universiti Brunei Darussalam (UBD) over the last five years in undertaking various research projects in three main areas of economic science and related social sciences: (a) macroeconomic analysis (b) microeconomic analysis and (c) analysis of socio-economic problems. The book is divided into three sections in line with the three main themes of economic and social science research undertaken by the authors. The first section consists of five chapters that analyse macroeconomic issues involving economic growth, aggregate labour demand and international trade. The second section deals with the analysis of microeconomic efficiency of various industries and services namely agriculture, construction, internet services and Islamic banking services. This section is made up of four chapters. The third section consists of three chapters dealing with several socio-economic problems. In Chapter 1, the author describes the underlying fundamentals of the economy of Brunei over the period, 1971 to 2001, and outlines the prospects and challenges affecting economic growth and diversification in the country. He offers several suggestions for diversifying the economy and accelerating economic growth. The possibility of using the construction industry, the third largest economic sector, as a vehicle for pulling the economy out of a recession is analysed in Chapter 2. The author concludes that the construction industry is not likely to pull the economy out of a recession. Rather it is the rest of the economy which is likely to pull the construction industry along as it expands. It is generally considered that as an economy expands or grows, more people are employed. The analysis of factors influencing the aggregate demand of labour is undertaken in Chapter 3 using a relatively new econometric technique. Real wage reduction is shown to have higher impact on total employment than output expansion. The recent Asian financial crisis is shown to have had a negative lingering effect on employment in the country. Employment in the private sector has been growing modestly while government sector employment has been declining. In Chapter 4, the authors estimate the social welfare of Brunei by applying the concept of health and environmental quality adjusted gross domestic product. The use of gross domestic product (GDP) as a measure of social welfare fails to take into account of the deterioration of other aspects of social welfare such as health, the environment and social capital that is linked to the growth of GDP. Based on the application of health and environmental quality adjusted gross domestic product, the authors suggest that over the period of the study, 1996-2001, an average of 12% of the country’s unadjusted GDP should be set aside as the real societal costs for maintaining the quality of health of the population, preserving the natural environment and social capital. Chapter 5, the last chapter of Section 1 of the book, is devoted to the analysis of the factors influencing merchandise trade flows between Brunei and the nine other member countries of the Association of Southeast Asian Nations (ASEAN). The authors build on recent studies on international trade involving Brunei. They demonstrate that bilateral trade flows between Brunei and ASEAN countries are driven mainly by the population of the ASEAN countries, historical relationships of ASEAN countries with Brunei and cultural similarities
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