DAY 5 AFTERNOON
8TH MARCH 2023 - AFTERNOON
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(The parliamentary session resumed at 2.30 pm)
Your Honorable Chairman
In the name of Allah, peace be upon you and His mercy and blessings. Praise be to Allah.
Honorable Members of the National Assembly are still discussing the proposed Supply Bill (2023) for the year 2023/2024, which was suggested by the Honorable Minister in the Prime Minister's Department and the Minister of Finance and Economy II.
To enable us to examine the topics contained in the bill, I will adjourn this National Assembly meeting and we will convene at the Committee level.
(The National Assembly is adjourned)
(The meeting is held as a Committee)
Your Honorable Speaker,
Honorable Members are now fully convened at the Committee level to consider the Supply Bill (2023) for the year 2023/2024, which has been proposed by the Honorable Minister in the Prime Minister's Department and the Minister of Finance and Economy II.
Praise be to Allah, at the Committee meeting held this morning, we were able to complete and approve the Prime Minister's Department and its subordinate departments, as well as the Ministry of Defense.
Before we discuss and debate the Ministry of Finance and Economy, I understand that the Honorable Minister of Foreign Affairs II is unable to attend for certain duties outside the country.
Therefore, the discussion for the Ministry of Foreign Affairs will be postponed until the Honorable Minister concerned returns to this chamber. Now we will move on to the next topic.
Yang Dimuliakan Jurutulis
Ministry of Finance and Economy, Title SD01A to Title SD09A.
Your Honorable Chairman
Honorable Members. The Committee meeting now moves on to examine the Ministry of Finance and Economy and its subordinate departments.
Before these small topics are opened for discussion, I would like to give the Honorable Minister in the Prime Minister's Department and the Minister of Finance and Economy II the opportunity to provide an introduction to the preparation of his ministry's budget for the Financial Year 2023/2024, and I invite the Honorable Minister to do so.
Thank you, Your Honorable Speaker.
Your Honorable Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II
In the name of Allah, the Most Gracious, the Most Merciful. Peace be upon you all and may the blessings of Allah be upon you.
Your Honorable Speaker and Honorable Members. The Ministry of Finance and Economy plays a crucial role in making Brunei Darussalam a dynamic and resilient economy, in line with the third goal of Wawasan Brunei 2035 and the aspirations outlined in the Economic Blueprint. Apart from being the main facilitator to ensure that all parties in the government and private sectors are aligned towards achieving the aspirations of the Economic Blueprint, the Ministry of Finance and Economy has also identified internal efforts that need to be implemented to support these aspirations. As identified in the Strategic Plan of the Ministry of Finance and Economy for the period 2021 to 2025, the provisions provided will enable the Ministry of Finance and Economy to implement initiatives that support the four (4) aspirations in the Strategic Plan, namely:
Economic development and diversification;
Maintaining fiscal sustainability through the efficient use of government financial provisions;
Effective engagement and cooperation with stakeholders; and
Delivering excellent services.
Strengthening the government's fiscal position will remain a priority for the Ministry of Finance and Economy through prudent policies in managing the budget and national finances through fiscal consolidation, as well as expanding the country's revenue base while increasing the annual output of each ministry.
However, a balanced approach must be taken to ensure that the government's efforts to diversify economic activities and strengthen the private sector are not hindered. Insha Allah, with integrated and continuous efforts with relevant parties, as well as the use of technology to streamline processes and improve service quality, will have a positive impact on the government's fiscal position in the medium and long term. Towards this end, all departments, divisions, and statutory bodies under the Ministry of Finance and Economy will always work together in a coordinated manner and also work with other ministries and the private sector, including GLCs and FDIs, to support efforts to realize these aspirations, as shared during the presentation of the Supply Bill 202/2024 last Monday.
Your Honorable Speaker and Honorable Members. For the Financial Year 2023/2024, the allocation provided under the Ministry of Finance and Economy amounts to $1,014,060,440.00, of which $215,022,350.00 is for the needs of the Ministry of Finance and Economy and its four departments. Meanwhile, $799,083,090.00 is provided under the Title SD09A - Common Services to finance the common needs of all ministries and departments.
Under the category of Staff Salaries, an allocation of $61,848,370.00 has been provided for the Ministry of Finance and Economy and its four departments, including payment of salaries, bonuses, allowances, as well as contributions to the Employees Trust Fund (TAP) and the Supplemental Contribution Pension (SCP) and National Pension Scheme (SPK) for 2,126 positions.
Under the category of Recurring Expenditure, a total of $153,173,980 is provided to finance the needs of the Ministry of Finance and Economy and its four departments.
Meanwhile, under the Title of Miscellaneous Expenditure, a total of $180,855,940 has been provided.
Under this Recurring Expenditure category, I would like to share that for the Ministry of Finance and Economy and its four departments, $9.5 million is allocated for Asset Maintenance to finance repair and maintenance work on assets, equipment, and facilities.
A total of $2.86 million is allocated for Operational Expenditure, including expenses for the Ministry of Finance and Economy and its departments, such as the purchase of uniforms and accessories for Customs and Royal Excise Officers.
A total of $1.17 million is allocated under the Department of Economic Planning and Statistics to conduct the Population and Housing Census, Annual Business Census, Household Expenditure Survey, Labor Force Survey, and Annual Survey of Industries.
A total of $2.86 million is allocated for Information Technology, including financing MOFE Consolidated Maintenance and Support for Systems amounting to $16.18 million and payment of TAFIS Maintenance and Support licenses, e-Invoice, and Microsoft License amounting to $4.27 million.
Your Honorable Speaker and Honorable Members. As I have mentioned earlier, the allocation under the Title SD09A - Common Services is provided to finance the common needs of all ministries and departments that require it.
Your Honorable Speaker and Honorable Members, Under the category of Expenditure, a sum of $6.9 million is allocated for Operational Expenses, including $3.02 million for the rental of photocopier machines managed by the Department of Public Works for all ministries and government departments to facilitate monitoring and control so that allocations and human resources can be optimally utilized.
Education expenditure is allocated a total of $28.7 million. This includes the provision of Education Allowances given as a facility to government officials and employees, including Special Education Allowances for Children with Special Needs in Private Schools, amounting to $1.9 million. Miscellaneous expenditure is allocated a total of $216.5 million to finance expenses, including the renovation of the Women's Hostel under the Comprehensive Renovation and Improvement Project of the Brunei Hall building, amounting to $3.34 million with a planned cost of £$19.51 million.
For the repair and replacement of air conditioning and chiller systems, ministries and government departments are allocated $10 million to finance maintenance costs under the ministries, including financing implementation services for the Electronic and Case Management System, amounting to $538,000 with a planned cost of $2.9 million.
The replacement and upgrading of equipment and buildings at the International Conference Center amount to $630,000, and the Restoration and Upgrading Project of Mosques and Surau and Worship Halls throughout the country for 31 mosques amount to $2 million with a planned cost of $7.53 million. Under the Expenditure Focus Account, a total of $66.45 million is allocated, including financing the Implementation Costs of the New SAP Platform under the Tafis 2.0 Project, amounting to $11.88 million.
Furthermore, an allocation of $50 million is provided for Expenditure to address Infectious Disease Outbreaks to meet the needs of addressing the outbreak. Meanwhile, expenditure to address Natural Disasters is allocated $25 million. Among others, this includes financing the Road Elevation Works in flood-prone areas, amounting to $10 million with a planned cost of $18.8 million.
Under the category of Progress, a sum of $8.91 million with a planned cost of $264.09 million is allocated, among others, to finance the Stock Exchange of Brunei Darussalam Opening Project, Microeconomic Cluster Development Project, Brunei Bay Development Project, Muara Besar Island, and National Business Service Platform.
Your Honorable Speaker. That is all that I can share as information and guidance for the Honorable Members. Before I close, as is usually done in previous years, I seek permission for the allocation of the Department of Aviation under His Majesty Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar 'Ali Saifuddien Sa'adul Khairi Waddien, Sultan and Yang Di-Pertuan Negara Brunei Darussalam or HMSF, which is classified as a closed department and cannot be discussed.
Thank you, Your Honorable Speaker.
Your Honorable Speaker
Honorable Members. I believe that the statement presented by the Honorable Minister in the Prime Minister's Office and Second Minister of Finance and Economy II regarding the direction of his ministry or his ministry's budget is clear and comprehensive.
I have also been informed that the Honorable Members have had the opportunity to hold discussions together with this relevant ministry.
However, I now open the topic of the Ministry of Finance and Economy for discussion. With me are a list of Honorable Members who would like to participate in discussing the departments under the Ministry of Finance and Economy.
Therefore, I will begin by inviting the Honorable Dayang Hajah Safiah binti Sheikh Haji Abd Salam. Please proceed, Your Honorable.
Your Honorable Dayang Hajah Safiah binti Sheikh Haji Abd Salam
Thank you, Your Honorable Speaker.
Your Honorable Speaker and Honorable Members. Assalamualaikum warahmatullahi wabarakatuh. I refer to the topic SD01A - Department of Finance and Economy. Before that, I would like to express my highest appreciation and gratitude to the Honorable Minister in the Prime Minister's Office and Second Minister of Finance and Economy II for the clear introduction for my guidance here.
Regarding the topic SD01A - Department of Finance and Economy. In the Ministry of Finance and Economy's efforts to expand the country's economy for the welfare of the people in this country, I have only one question proposing opportunities for investment if any, in efforts to develop this economy, taking into account the increasing number of Brunei Darussalam's Hajj pilgrims to Saudi Arabia, which is a focus for some Brunei society, especially during school holidays, bringing family members including the elderly and young children.
So, we often hear complaints and grievances from our people who are there (in the holy land), especially during high season periods. For example, in December and now during the months of Sha'ban and Ramadan.
Among the things we often hear is that accommodations are cancelled by hotel managers and the like, and the high cost of expenses.
In this opportunity, I would like to propose whether the Ministry of Finance and Economy has plans to expand the government's investment in land, such as purchasing 4 or 5-star hotels in Mecca and Medina that are 100% owned by the Brunei government, and giving priority to accommodations for the citizens of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam through tourism agencies that manage Umrah operations.
In my opinion, with investments like this, it not only provides convenience and comfort for our people, but it can also create job opportunities for local children in hotel services and management, for example. Or by opening restaurants in these hotels that serve Bruneian cuisine with staff from local children. That's all I want to propose here. Thank you, Your Honorable Speaker. Peace be upon you and may Allah's mercy and blessings be upon you.
Your Honorable Minister in the Prime Minister's Office and Second Minister of Finance and Economy
Thank you, Your Honorable Speaker. Thank you for the question from Your Honorable Dayang Hajah Safiah binti Sheikh Haji Abd Salam regarding the country's investment in the holy land to provide hotels owned 100% by the government for the convenience of pilgrims to perform the Hajj and Umrah and so on.
This matter has been taken seriously by the government for decades. At present, the government already has hotels in Mecca and Medina. So, if our people during the Hajj season, they usually book these hotels. Maybe sometimes when our people perform Umrah, they book through travel agents and the like. Maybe these travel agents use other hotels. Sometimes, if booked through travel agents, they may use hotels that we cannot control. So, there is a possibility that some of these bookings are cancelled when they arrive in Mecca or Medina.
Indeed, our country's investment is already present. This is not only the responsibility of the Ministry of Finance and Economy, but also involves the Ministry of Religious Affairs. At present, there are already hotels owned by the government. Thank you, Your Honorable Speaker.
Your Honorable Speaker
Your Honorable Pehin Udana Khatib Dato Paduka Seri Setia Ustaz Haji Awang Badaruddin bin Pengarah Dato Paduka Haji Awang Othman, Minister of Religious Affairs. There is a reaction.
Your Honorable Minister of Religious Affairs
Thank you, Your Honorable Speaker. I welcome the proposed question and with that, a clear and firm response from my colleague, Your Honorable Minister in the Prime Minister's Department and Second Minister of Finance and Economy.
Hopefully, the meaning of our position having hotels in the cities of Mecca and Medina will remain ان شاء هللاand one thing that was raised by Your Honorable Dayang Hajah Safiah binti Sheikh Haji Abd Salam earlier is that there may be some privileges in terms of rates or rentals for our people compared to others.
That, of course, is from the perspective of business estimates, such as profits and losses, and so on, but what is important is the assurance that we have hotels and will continue to have hotels and will be able to accommodate such needs.
One fact is that these hajj and umrah operators are more likely to seek the cheapest accommodation during the hajj and umrah seasons. So it is not necessarily proven that in the past they did not use our hotels in Ajyad in Mecca and Taibah in Medina. They chose other hotels, that's the problem, and this is not only considered from a financial aspect but also from a religious aspect that our hajj and umrah affairs are under the Ministry of Religious Affairs.
Your Honorable Speaker
Thank you. Now we move on to another member. I now invite Your Honorable Awang Amran bin Haji Maidin.
Your Honorable Awang Amran bin Haji Maidin
Thank you, Your Honorable Speaker. بسم هللا الرحمن الرحيم السالم عليكم ورحمة هللا وبركات ف َ س َـَل ُم عَلى أَش ِّ ْـر َّ َّـَلةُ َوال َ ب العَالَمِّ ْينَ َوالص ِّ ال َح ْم ُد هلل َر َ َ األ ْن ِبيَـاءِ َوال ُم ْر َس ِليْـن Greetings. I am pleased to touch on the topic of SD01A - Ministry of Finance and Economy. I bring up issues and problems that have affected the public, namely the increase in prices of goods and services that have skyrocketed, affecting the expenses of entire families.
To balance the expenses of the affected people, it is requested that the government consider double payments to pension recipients and I also suggest that priority be given to pensions through bank accounts as a start. Thank you.
Your Honorable Minister in the Prime Minister's Department and Minister of Finance and Economy II
Thank you, Your Honorable Speaker, and thank you for the question from Your Honorable. As understood, the question is requested for the government to consider double payment for monthly pensions. This proposal needs to be further examined, it may not be a big problem. So, I will discuss it first and consider its suitability, but it is not a major issue.
However, every month, many pension recipients still come to the Ministry of Finance and Economy instead of choosing to receive their pensions through the bank. Therefore, we need to see if there are some recipients who may physically come to the Ministry of Finance and Economy twice a month.
If everyone uses the bank, it will be easier to manage. So, we need to see first if the system can handle some recipients receiving twice and some receiving once. We also need to consider the capability of the current system. Thank you.
Your Honorable Speaker
I now invite Your Honorable Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Haji Awang Suyoi bin Haji Osman.
Your Honorable Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Haji Awang Suyoi bin Haji Osman
Thank you, Your Honorable Speaker. Before I continue my argument, to avoid any confusion, does this fall under the title SD010, Your Honorable Speaker?
Your Honorable Speaker
This falls under the title SD01A to SD09A - Ministry of Finance and Economy.
Your Honorable Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Haji Awang Suyoi bin Haji Osman
In that case, Your Honorable Speaker, I request for a postponement, thank you.
Your Honorable Speaker
Now, we move on to Your Honorable Dayang Hajah Rosmawatty binti Haji Abdul Mumin.
Your Honorable Dayang Hajah Rosmawatty binti Haji Abdul Mumin
Thank you, Your Honorable Speaker. Bismillahirrahmanirrahim, I have two questions Your Honorable Speaker:-
I would like to refer to SD04A, Account 'B' - Recurring Expenditure Account Code B00300 under the rental-related program and activities with an estimated expenditure of $1,116,000.00. I request for clarification on the status of the rent-to-own scheme that was proposed in the First Meeting of the Eighteenth Session of the National Assembly 1443H/2022M; and
I also request for clarification on Account Code B00600 - Operating Expenditure related to operations. There is an increase from $120,000.00 to $1,290,690,000.00. This is an increase of $1,170,690,000.00.
Thank you.
Your Honorable Minister in the Prime Minister's Department and Minister of Finance and Economy II
Thank you, Your Honorable Speaker and thank you, Your Honorable, for the first two questions on rent-to-own.
This matter has been proposed before, but it was not continued for certain reasons. It is understood that one ministry has tried to implement this scheme, but until now it has not been successful. Therefore, this matter needs to be further studied by the relevant ministry.
In terms of operation, I am not sure which section is responsible for this, but we cannot compare it year to year because there are differences in needs from year to year. So, we cannot suddenly decide to buy a computer, for example, and then not buy it for the next three years. The allocation for the operation decreases, so it is time for the computer to be replaced, which will automatically increase the allocation.
That is the nature of the operation that we cannot compare every allocation as it depends on the specific needs. Thank you, Your Honorable Speaker.
Your Honorable Chairman
Now, I invite Your Honorable Pengiran Haji Isa to speak.
Your Honorable Pengiran Haji Isa bin Pengiran Haji Aliuddin
Thank you, Your Honorable Speaker.
Assalamualaikum warahmatullahi wabarakatuh.
I would like to refer to SD01A Code 005-000. This is related to the Companies Act 1965, which regulates the organization and operation of a private limited company. It is a mechanism that allows a business owner to obtain investment by selling shares to investors within and outside the country. The Companies Act binds all those who are currently or will be conducting business as a private limited company.
In addition to the Companies Act, such companies are managed by the Board of Directors, and the management of the company is a legal requirement stipulated in documents called the Memorandum and Articles of Association, which are required by the Companies Act.
So, the requirements to become a director and shareholder are all included in the Act. Sections 138 and 149 detail the requirements for directors, such as the number of directors, qualifications, who is not eligible, director's responsibilities, and so on.
The regret of many traders and investors is due to the emergence in recent years of unwritten rules and policies implemented by the Registrar of Companies (ROC), among them are:
Holders of green ICs are not allowed to become directors.
Those who are directors in other companies are not allowed to become directors of new companies.
Shareholders from foreign individuals are no longer allowed. Shareholders must be from local individuals and local corporate entities, not from foreign countries. The ROC conducts interviews to determine whether their applications to become directors or shareholders will be approved. It should be emphasized here that the Companies Act has clearly specified the requirements for becoming directors and shareholders, taking into account the interests of local people.
Unwritten rules and policies as practiced by the ROC are contrary to the Companies Act, which has never given such power to the ROC. This hinders economic development by making it difficult and demoralizing for those who want to venture into business or invest in businesses in this country.
The ROC needs to amend and add to the Companies Act if they think that the existing laws do not achieve the goals they desire, and not by taking powers that are not available in existing laws.
That's the first point. I would like to ask for Your Honorable's permission to ask a question about the Brunei Darussalam Central Bank (BDCB). Thank you, Your Honorable.
The Workmen's Compensation Act requires every employer to obtain workmen's compensation insurance for each of their employees. Workers who have accidents while working will be compensated regardless of whether the accident was caused by their own negligence. The maximum compensation limit is $28,800 if the worker dies and $36,600 if the worker does not die.
However, if the employer has committed any negligence, such as not providing a safe working system, not providing safety clothing, not ensuring that safety clothing is used, not maintaining the safety of tools and machines used by workers, the employer can be sued for compensation for that negligence. This is relevant because Brunei will have a lot of agriculture that uses machines.
Therefore, employers can be sued for negligence. This is a common law claim and is outside the compensation provided under the Workmen's Compensation Act. Claims under common law can reach hundreds of thousands of dollars, and even millions of dollars. Until recent years, workmen's compensation insurance also covered unlimited common law claims. With that, employers can feel relieved that these common law claims will be paid for by the insurance they have purchased.
Your Honorable, the unlimited protection of common law claims has been terminated by almost all insurance and takaful companies in this country. Most of them limit the maximum amount that can be claimed by employers under common law claims to only $100,000. The rest must be paid by the employer themselves.
The question is, the action of insurance and takaful companies to limit the protection of common law claims is a time bomb that is looming over every employer in our country. Most employers will not be able to pay hundreds of thousands of dollars from their own cash flow if their employees are injured in an accident. What's worse, many employers are lulled into a false sense of security that they will be protected by the insurance or takaful they have purchased.
This time bomb will surely explode at any time for some employers in the future. Imagine if a company has collected half a million or a million dollars over 10 years, and suddenly their employee is injured and the court awards a maximum payment of $100,000 for the claim, the employer will have to pay the rest and as a result, the micro and small companies in our country will automatically close, go bankrupt, and become insolvent. In comparison, third-party motor insurance provides unlimited protection if there is a claim due to driver negligence. This is the difference. This is because the Motor Vehicle Insurance Act, Third Party Risk Act 90 requires every vehicle to be protected by third-party insurance without limit.
The insurance companies' argument that providing unlimited common law protection to employers is too burdensome is not logical if investigated thoroughly. Insurance companies can mitigate their risk burden by increasing insurance premiums to employers or over-insuring these risks. Perhaps the insurance companies' profits will not be as high initially, but it is far from harming them.
Ensuring greater profits for insurance companies should not be the basis for such action, as doing so will expose local companies to clear risks and they will face what I mentioned earlier, which is bankruptcy and insolvency.
Thank you, Your Honorable Speaker. Thank you for the two questions from Your Honorable Pengiran Haji Isa bin Pengiran Haji Aliuddin.
Your Honorable Minister in the Prime Minister's Department and Second Minister of Finance and Economy
Thank you, Your Honorable Speaker.
The first issue concerns the Registrar of Company Brunei Darussalam (ROCBN). The question is about green IC holders who are not allowed to become directors in Brunei Darussalam or if someone has already become a director in one company, they cannot become a director in another company. Previously, we gave some leeway on this matter until some problems arose, where foreign workers' names were used to become directors here and there.
Some foreign workers were not even aware that their names were being used. Some were also abused by some of our people, bringing in foreign workers so that they could come to this country, register as Company Directors and then be given green ICs without ensuring that they already had jobs in the country. So, such matters are categorized as human trafficking.
Following this issue, ROCBN has taken steps to further investigate every foreign worker who comes to Brunei to become a director. So, if a foreign worker has already been working in Brunei, meaning that they came to Brunei for a job that has been determined, then why is their visa license, work permit, for example, for becoming a bus driver? So, when they come to Brunei, they become a director in another company. So, their work visa is for a bus driver and not for becoming a director in this country.
This is an issue that is feared to be abused. At present, ROCBN is stricter to ensure whether these workers are really directors or not. This is because some foreign workers do not know that their names have been used to become directors. Actually, for foreigners, not all foreign workers in Brunei can become directors, there is no problem. But we do have usual background checks and so on.
The question is about foreign workers who are already in the country and are working. Before they enter, they must apply to the Labour Department and so on to register for the specific position they are applying for. So, when a foreign worker becomes a director, at present, as mentioned earlier, ROCBN and because of the human trafficking issue, this matter will be investigated and taken more seriously. If there is a way to address this issue, it can be reconsidered.
The second issue concerns insurance, I am not sure, but this insurance directive may not be from BDCB. If an employee works in any company, it is the company's responsibility to ensure that the working environment is suitable and will not endanger their employees. But even though we take steps for safety measures and so on, accidents do happen. So, we need to purchase insurance coverage, just in case there are accidents that we did not anticipate.
Your Honorable Speaker,
The question was about insurance sold to companies or employees with a limit of only $100,000, and after that, it must be paid by the employer and so on. However, this is also subject to the insurance purchased and according to the coverage of the insurance.
If we want to buy insurance coverage of $1 million, then we should buy insurance from the relevant company and pay the premium charged by the insurance company. That is Kaola's understanding.
The insurance that was mentioned earlier with a coverage of $100,000, indeed the insurance pays up to $100,000, and the rest must be borne by the employer, so the employer takes the risk.
If we want to take enough coverage, then we can negotiate with the insurance company how much coverage is sufficient. That's all Kaola can answer to the previous questions. Thank you, Your Honorable Speaker.
Your Honorable Menteri Hal Ehwal Dalam Negeri
Please proceed, Dato.
Your Honorable Menteri Hal Ehwal Dalam Negeri
Thank you, Your Honorable Speaker. The question from Your Honorable Pengiran Haji Isa earlier, regarding directorship, is actually a control to ensure that foreigners who hold positions in Brunei do not stay long in Brunei without proper jobs to be made directors. So that is a control and not to cause inconvenience. It started in 2019.
As the Honorable Minister in the Prime Minister's Office and Second Minister of Finance and Economy II explained, after the interview, even the person who proposed to be directors did not know what their job actually was, did not know the language, and so on. That is actually a control and the Ministry of Labour is controlling this matter to ensure that foreign workers in Brunei follow the tasks given and not to stay longer and take advantage. That is only in terms of control. That's all, Your Honorable Speaker.
Your Honorable Chairman
I invite Your Honorable Awang Haji Salleh Bostaman.
Your Honorable Awang Haji Salleh Bostaman bin Haji Zainal Abidin
In the name of Allah, the Most Gracious, the Most Merciful. Thank you, Your Honorable Speaker. Kaola has several questions, so Kaola will read each question and stop for Your Honorable to answer and allow Kaola to continue further, InshaAllah. The first question is about FDI. The continuous efforts of the Ministry of Finance and Economy to attract various Foreign Direct Investments to diversify the sources of the economy from relying solely on the oil and gas industry are highly welcomed and should be given strong support. Congratulations.
Your Honorable, as a retired technical worker from the oil and gas industry, I am excited to learn about the initiatives that diversify the country's economy and increase new industries to supplement the country's income, instead of relying solely on the traditional oil and gas industry that has been the goose that lays the golden eggs. So, more new industries mean more geese that lay golden eggs. Insha'Allah.
My suggestion, in addition to what I proposed during the discussion of the Supply Bill 2023/2024 yesterday, is to incorporate communication and education as the main components in the terms and conditions of FDI's to the public so that there will be no misunderstandings. As only a select few government officials have access to and knowledge of the agreed-upon terms and conditions to attract FDI's to invest in Brunei Darussalam, it is important to educate the public so that they will not make incorrect assumptions and have negative perceptions.
There are a large number of citizens who do not understand why the national budget is still in deficit despite the reported significant revenue of up to $9.1 billion from downstream industries. Perhaps we need to educate the public so that they understand that even though the revenue stream from these new industries is impressive, it has not yet entered the treasury.
I will stop here to give way for the response, and there are seven more questions to follow. Insha'Allah.
Your Honorable Minister in the Prime Minister's Office and Second Minister of Finance and Economy
Thank you, Your Honorable Speaker. First of all, I would like to thank Your Honorable Awang Haji Salleh Bostaman bin Haji Zainal Abidin for his question regarding FDI and the terms and conditions agreed upon by the government with FDI's coming to Brunei Darussalam.
What is important, in my opinion, is that we share with the public the benefits or the need to attract more Foreign Direct Investment into the country. As for the terms and details, if we start sharing them with the public, what can they do? And it will also raise more questions afterward. Because we cannot agree on everything. Because there are various opinions and so on. What is important is that we must unite in this country.
All citizens and residents understand why we need to attract more FDI's into the country. That is the most important thing. As for the details, let the government, with the support of the public, work harder to attract more FDI's into the country.
That is perhaps how we can carry out this work. There is no need to go into detail because if we share it, there will be many more questions, arguments, and so on. Because one person's opinion does not necessarily mean that others will have the same opinion. That is to answer the first question from Your Honorable Awang Haji Salleh Bostaman bin Haji Zainal Abidin. Thank you, Your Honorable Speaker.
Your Honorable Awang Haji Salleh Bostaman bin Haji Zainal Abidin
Since we cannot debate, I will not debate with you. Then we must see in muzakarah ان شاء للاwe will debate the pros and cons of the components that need to be given. ان شاء هللاI will continue with my second question, which is about the stock exchange. I understand that the government's efforts to open a stock exchange are being actively pursued and ان شاء هللاwill be launched soon.
The stock exchange, stock market is a new initiative in this country to help the country and the public to invest, raise the economy of investors and this requires an understanding of the risks and financial benefits and risks.
I suggest that while waiting for the launch of the stock exchange, programs should be expedited to increase the knowledge of the public about stock markets, investment risks, financial awareness, and financial literacy so that potential investors are knowledgeable and not influenced by emotions or crowd pressure. Thank you.
Your Honorable Minister in the Prime Minister's Department and Minister of Finance and Economy II
Thank you. The second question is about the stock exchange. This agenda has been in preparation by the Ministry of Finance and Economy for several years.
أ ْلح ْمدُ ِ هلِلas a result of the work that has been done, the system is almost ready. However, to make the stock exchange successful, it is not just about the system. It requires several supporting factors, especially the readiness of the banks, for example, to become primary dealers, secondary dealers, and also the readiness of the companies that we want to list, what is their record, and so on.
After that, the company directors. Are there enough experienced company directors to become independent directors in the companies that will be listed on the stock exchange? After that, the corporate secretary who is responsible can process issues such as ensuring transparency in each company and several other factors.
We can do these things, but we must also understand the investment mentality in this country for future investments. So this is indeed an effort by the Ministry of Finance and Economy when the stock exchange is almost ready, a roadshow will be conducted and the public will be educated on the risks and rewards of investment. The public must understand that, like any investment, not all guarantee profits. Every investment has its risks too.
Your Honorable Speaker, how each investor structures their investment portfolio is subject to individual circumstances. Therefore, before the stock exchange is launched, education will be provided to the public. While some individuals may already be experts in investment, not everyone is. To ensure that they do not rush to buy whatever is listed on our stock exchange, they have to make informed decisions. Thank you, Your Honorable Speaker.
Your Honorable Awang Haji Salleh Bostaman bin Haji Zainal Abdidin
Question three, Your Honorable Speaker. Kaola would like to congratulate the government agencies on their joint efforts in achieving the terms and conditions of Brunei's participation in the existing Free Trade Agreements (FTA). Brunei has been blessed with the action of signing several collective trade agreements in the ASEAN and Asia Pacific regions. The question is, how can we as a country benefit from these FTA agreements? Kaola suggests that Small and Medium Enterprises (SMEs) should benefit from these FTAs, and that indicators should be shared to show the success of SMEs that have taken advantage of the discussed FTAs.
Kaola suggests considering the establishment of a trade academy within MFA, MOFe, MPRT, which will play a specific role in communicating, teaching, and training SMEs about the contents of the FTAs, so that our trading community, including Micro, Small and Medium Enterprises (MSMEs), can benefit from the FTAs that have been negotiated together.
Secondly, are there any initiatives that use the expertise and Global Network of Brunei Economics Development Board and Brunei Darussalam Assets, which have joined forces to attract Foreign Direct Investment (FDI) from countries that do not have access to Brunei's FDI terms to invest and use Brunei as a platform, to make joint ventures to enter new markets and indirectly attract local SMEs as suppliers to these joint ventures? I yield the floor.
Your Honorable Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II
Thank you, Your Honorable Member. This is regarding the Free Trade Agreement (FTA) that our government has participated in. Firstly, we have heard in recent years about the Regional Comprehensive Economic Partnership (RCEP), which is an FTA between ASEAN countries and five other countries in this region, such as China, Australia, New Zealand, Japan, and Korea.
After we entered into this agreement, the Ministry of Finance and Economy has taken steps to share details with industry players.
This has already been done, so currently the government is still in negotiations to finalize another FTA, namely the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), involving 11 countries. Our country, Brunei, is involved in the final stage of finalization.
Another one championed by the United States, the Indo-Pacific Economic Framework, only started negotiations last year.
In sha Allah, we will continue to negotiate with 13 other countries in this economic framework.
What is the purpose of us joining several FTAs as mentioned earlier, as we are a small country. So previously, we did not have many goods to export.
What are the benefits to our country, for the Ministry of Finance or the Brunei government, in joining these FTAs so that we can upgrade because in each FTA agreement, there are many chapters. So each chapter provides an opportunity for our country to upgrade trading policies.
For other countries, they see Brunei as a country with up-to-date and modern trading policies. So if one day our industry has increased with products to be exported, it will be easy for us to export our goods to other countries. We don't have to wait until we have products to export before entering into these FTAs. So, this is to prepare for improving our image as a trading country.
By accepting an agreement involving 2 billion people, one third of the world's population. So this is a great opportunity, and it is important that we further improve our products to be exported to other countries. If that is done, then when the time comes, we will have products to export.
The FTA will make it easier for us to export. For example, this is related to the CPTPP. Since we have BFI Fertilizer, Chile is one of the founders of CPTPP, including Brunei. So it has a special advantage, if currently urea can be exported to Chile without paying taxes there. So this is the first time in our history to export goods to Chile.
This is an agreement that makes it easier for us to export our goods, not just urea. In one day, there are other products as well. So on top of that, if we are in the CPTPP, there may be other countries that are not part of the CPTPP or the Regional Comprehensive Economic Partnership (RCEP). They can establish a company in Brunei as an FDI.
Your Honorable,
If they establish their company in Brunei, it means that it is considered a company from Brunei rather than from their home country. Therefore, they can benefit from our terms and conditions under the FTA. So, to benefit our MSMEs, if there is already FDI, like myself, we should share the benefits.
Every FDI that comes to invest in our country, we give them the opportunity to maximize their opportunities to spin off to our FMSMEs and on top of that, generate new jobs for our local children. That may be the answer to the third question earlier. Thank you, Your Honorable Speaker.
Your Honorable Speaker
Thank you, Your Honorable Minister in the Prime Minister's Department and Minister of Finance and Economy II.
Your Honorable Speaker
Thank you, Your Honorable Minister in the Prime Minister's Department and Minister of Finance and Economy II. Earlier, we invited Your Honorable Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Haji Awang Suyoi bin Haji Osman to provide information or questions, which we left for a while to settle some matters. Now he is ready and I invite Your Honorable to speak. Please, Your Honorable Pehin.
Your Honorable Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Haji Awang Suyoi bin Haji Osman, PSNB., DPMB., PJK., PIKB., PKL
Thank you, Your Honorable Speaker.
ِ ُالرحْ يم السَّال ُم عل ْي ُك ْم ورحْ مة ُهللا وبركاتُه َّ الرحْ َٰم ِن َّ ّٰللا ِ ِِس ِْم ه ف َ َّ َّـَلةُ َوال َ س َـَل ُم عَلى أش ِّ ْـر َ ب العَالَمِّ ْينَ َوالص ِّ ال َح ْم ُد هلل َر َس ِليْـن ْ َ َ األن ِبيَـاءِ َوال ُم ْر
Peace be upon you. First of all, I would like to express my gratitude to Your Honorable Minister in the Prime Minister's Department and Minister of Finance II for presenting the topic under the Ministry of Finance.
I will not comment much on the provisions under the Ministry of Finance, but I appreciate the role played by the Ministry of Finance, which, among other things, manages the country's finances to balance income and expenditure, ensures our financial position is stable, and distributes spending to government ministries and departments.
I just want to touch on the issue of economic diversity under the Industrial Title that can ensure the future of the country. I believe we must be clear about this diversity, even though we often mention diversity. I think we may need to state it again or be more specific, which industries we will focus on and how we will support them.
Let us take the example of the Argo Food industry. To what extent are the necessary infrastructures provided to support local entrepreneurs such as roads, drainage systems, electricity supply, advisory services, finance, market distribution, warehouse facilities, and others? This is to prevent entrepreneurs from facing stumbling blocks in developing their businesses.
This problem should be addressed as a whole, not piecemeal. It is suggested that these facilities be managed through a one-stop agency so that entrepreneurs do not have to run around to different government agencies for different services or approvals.
Secondly, regarding the tourism industry as an example, is it still one of the diversified industries that we feel has the potential to be a source of national income? To what extent do we support this industry with concrete support?
If we used to refer to it in capital letters, I hope it is still in capital letters. If not, I fear we will lose sight of the goal post.
I still remember that we discussed our tourism industry in this august House and followed it up with scholarship offers for our students to take courses related to tourism. However, when these students graduate, the priority we emphasized has decreased and they cannot find jobs in the tourism sector, some of them only becoming hotel receptionists. We do not want this to happen again as it is detrimental to all parties.
Finally, Your Honorable Speaker, I would like to raise the issue of the construction industry, which I believe is also identified as a major industry for Brunei Darussalam as a developing country. With the reduction in government spending on development projects, it has an adverse impact on contractors and consultants.
Some contractors have already reduced their workforce to a minimum to avoid closing down. In addition, GLCs prefer to hire external consultants rather than local ones, which further adds to the problems faced by local contractors and consultants. They also face problems with slow payments, labor shortages, and so on.
In this matter, I request clarification from the Honorable Minister in the Prime Minister's Office and Second Minister of Finance on what kind of diversification we mean or which industries we recognize as diversification in our efforts to achieve sustainable economic growth.
Thank you, Your Honorable Speaker. Peace be upon you and may Allah's mercy and blessings be upon you.
Your Honorable Minister in the Prime Minister's Department and Minister of Finance and Economy II
Thank you, Your Honorable Speaker and thank you, Your Honorable Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Haji Awang Suyoi bin Haji Osman, for the questions.
If we look at our Economic Blueprint, we do have several priority sectors that we focus on. While the government aims to diversify our economy, we must also focus on several sectors. Our focus cannot be too wide, and the Agri-Food sector is one of the main sectors for our country, including tourism.
The suggestion to establish a one-stop agency to address issues and so on is indeed a good suggestion. Previously, it was also suggested that we follow the current example where if there are FDIs that want to come to this state, we have a team to handle these FDI issues. So, our approach and our approach seem to be very effective.
For MSMEs in this country, following the suggestions we have heard in recent days, God willing, we will consider whether the business ecosystem industry or Darussalam Enterprise will think of establishing a team to help our MSMEs with their business problems. This is something that my colleague from the Ministry of Primary Resources and Tourism and I are considering to further develop our tourism sector.
In terms of construction, the question is why GLCs sometimes use technical expertise from foreign countries or maybe companies from foreign countries in this field. But as far as I know, we always use local companies, but there is one example where we asked for a quotation from this local company and at the same time opened it up to foreign companies. If we look at the number of tourists coming to this country, compared to 2018, it has increased significantly in 2019. At that time, it was hoped that in 2020 it would continue to increase, so it was affected by COVID-19 and decreased.
The quotation received was very different, the foreign company was much cheaper than the local company. This is an example of why we choose a company because GLCs must also maintain their cash flow, maintain their cost of operation, and so on. If the price is comparable, it can be considered, but this is more than 10 times the difference. That is why GLCs choose companies from foreign countries.
Your Honorable, after being selected, the foreign company pays withholding tax to the government, including that withholding tax, it is still much cheaper than local companies. This is a matter of GLCs running the company as a company, not a charity.
Naturally, hopefully, local companies will over time try to improve their efficiency and so on so that their costs are competitive over time.
This may be one way to open competition to improve the efficiency of our local companies as well. So, that may be the only answer to the questions asked earlier.
Thank you, Your Honorable Speaker.
Your Honorable Speaker
I now invite Your Honorable Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Awang Haji Adanan bin Begawan Pehin Siraja Khatib Dato Seri Setia Haji Mohd Yusuf.
Your Honorable Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Awang Haji Adanan bin Begawan Pehin Siraja Khatib Dato Seri Setia Haji Mohd Yusuf, PSNB., DPMB., PHBS., PJK., PIKB., PKL
In the name of Allah, the Most Gracious, the Most Merciful.
Thank you, Your Honorable Speaker, and also thank you to the Honorable Minister in the Prime Minister's Department and Minister of Finance and Economy II who has given an introduction on the budget of the Ministry of Finance and Economy.
As presented by the Honorable Minister in the Prime Minister's Department and Minister of Finance II for the Financial Session 2023/2024 last Thursday, a deficit of $2.97 billion is expected.
In this regard, I would also like to know whether the government is still experiencing outstanding revenue collection from either the government or any other collection that needs to be collected.
From here, I also found that the reduction in arrears of revenue collection for the government sector from 2019 to 2020 was $7.912 million, but unfortunately, it has increased, in 2020 to 2021 it increased to $723.95 million. In this case, the actual target should be a decrease, but it is increasing, and it is estimated that it will decrease and is also expected to decrease by $2.2 million, but it is increasing.
In addition, I would also like to know how much of this amount is actually outstanding revenue collection of the government at this time compared to the future. Is it increasing or decreasing? This is solely for us to at least reduce the government's deficit, and in addition, I also request clarification or information on what procedures can be used to ensure that outstanding government revenue can be collected.
Both of Your Honorable, I would like to seek clarification on the procedures for selecting or considering those offered through the government tender board or mini tender board in the ministries, if it is not against government policy.
The reason I raise this issue is that sometimes projects or services given to these contractors do not meet the desired standards, and sometimes they subcontract to other contractors and we do not know the standard of these subcontracts or whether they are registered with the Ministry of Development or have certain standards that can provide services.
For example, if we compare the cleaning services provided by JPMC or Specialist Centre in JPCC with the services provided by the Raja Isteri Pengiran Anak Saleha Hospital, there is a significant difference.
Are we really giving the tender to those who are truly qualified and have standards that we can trust to provide quality services, let alone services that meet the standard quality that we should receive in this matter?
Thirdly, I would like to raise here that there is participation in expos from regional and international trade exhibitions in the explanation provided by the Ministry of Finance. What I would like to request clarification on is the impact of the expos we participate in abroad or whether we have the opportunity to market any type of products or services from the results of the expos or our participation.
As far as I know, there are current products showcased in expos abroad that have the potential to be exported, but unfortunately, the producers who participate are not willing to sell or export their products.
This is a question of whether we are looking for ways to penetrate these markets or just participating in expos without any follow-up, but we identify that there is potential in the exhibition for some products that are marketable and have demand abroad.
This matter should be given attention and appropriate assistance should be provided so that these opportunities can be seized, whether it is from MSMEs that can penetrate with appropriate assistance, especially in terms of mass production.
Maybe they are only releasing the product manually and with mechanization, they may be able to penetrate international markets.
That's all perhaps Your Honorable Pehin that I can provide my views and once again I express my sincere thanks to Your Honorable Speaker for giving me the opportunity this afternoon. Thank you, Peace be upon you and God's mercy and blessings.
Your Honorable Minister in the Prime Minister's Office and Second Minister of Finance and Economy
Thank you, Your Honorable Speaker. Thank you, Your Honorable Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Awang Haji Adanan bin Begawan Pehin Siraja Khatib Dato Seri Setia Haji Mohd Yusuf for the three questions.
Firstly, regarding outstanding collections. Kaola is currently waiting for information regarding these outstanding collections. So for now, Kaola would like to share that while these collections may help to overcome the government deficit to some extent, it is not a long-term solution to address this deficit issue.
That is what Kaola shares in this presentation paper, we must continue to attract more FDI into the country so that it can offer jobs for local children and spin-offs for our MSMEs.
For every FDI that comes to Brunei Darussalam, there are sometimes joint venture partners in FDI investments. So from our FDI, in which we have a share, hopefully one day we will receive dividends if the company is profitable, we will receive taxes and for the goods brought into the country, we will receive custom duties as well. These are some of the revenues we can obtain from each FDI if we participate in joint ventures with these companies. If there are more, God willing, it will at least help to further increase government revenue. In terms of Tender Board procedures and so on, if the amount is below $250,000, it goes through the Mini Tender Board. So if it is more than that, there is still the National Tender Board.
In terms of sub-standard work and so on, each ministry needs to monitor the work of these contractors. If we see that the standard is lacking, it does not necessarily mean that we should continue with that contractor. We can argue with them or not reappoint them after their contract ends.
This is a practice that we need to implement so that the contractor does not provide sub-standard service or a service that may be of a different level compared to JPMC and PJSC, which is different from the old building of Hospital Ripas.
So, it depends on their level of service that we engage. Each ministry can think of ways to ensure that we are not shortchanged by the contractor.
In terms of expos, actually, compared to other countries, not many participate in expos. Among those we have participated in are the Nanning Expo, where most businesses sold out their products. After that, as Your Honorable Pehin mentioned, people still order but our companies are not able to produce mass volumes for the interested market. Most of these MSMEs are not able to build large factories and so on.
Your Honorable, we have already established, for example, a Food Processing Centre. This Food Processing Centre is open to MSMEs and they can use the Processing Centre provided they meet the requirements, such as Good Manufacturing Practice, Sub-Standard Hubs, and so on. They can use the processing centres to process their goods so that they meet the standards and for export markets in the future. Some MSMEs have hopes for their products.
For Cottage Industry such as One Village One Product (1K1P), if they produce products such as RBC, a central kitchen is opened for One Village One Product (1K1P) to use their facilities for manufacturing food and so on. This is the government's effort to help our MSMEs.
Indeed, if every MSME builds their own factory, it will be very expensive. So with the facilities we provide, we also open them up to them so that they can use the existing facilities to further develop their products, whether for export or domestic purposes. The goal is to improve the standards and quality of their respective products. That's all I can answer for the questions earlier.
Your Honorable Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Awang Haji Adanan bin Begawan Pehin Siraja Khatib Dato Seri Setia Haji Mohd Yusuf
Your Honorable Pehin, may I intervene? What you also mean is, for example, the Housing Project in Mengkubau and the Housing Project in Lugu. Possibly it is sub-contracted until the project is delayed and there are certain problems.
Those are some of the things that you raised earlier. Is it taken into account that the sub-contractor has registration with the Ministry of Development or has standards that enable them to carry out all those projects well and perfectly? That's what you raised so that it doesn't harm the government.
Your Honorable Speaker
It would be good if we consider the Ministry of Development when raising that question later.
Your Honorable Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Awang Haji Adanan bin Begawan Pehin Siraja Khatib Dato Seri Setia Haji Mohd Yusuf
Your Honorable, that was the question you asked earlier about the characteristics of tendering. That includes the tendering process. That's all, Your Honorable. Thank you.
Your Honorable Minister in the Prime Minister's Office and Second Minister of Finance and Economy
Thank you, Your Honorable Speaker, for the opportunity for me to specifically answer the problematic project. I don't know much about the Lugu Project. Indeed, later my colleague at the Ministry of Development can answer.
Indeed, there are issues in Mengkubau, so legal action has been taken. That is all I, the speaker, have to answer the previous question. Thank you.
Your Honorable Speaker
I invite Your Honorable Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman bin Haji Ibrahim.
Your Honorable Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman bin Haji Ibrahim
Thank you, Your Honorable Speaker, for giving me the opportunity to participate in discussing the proposal for the Ministry of Finance and Economy II Budget.
بسم للا الرحمن الرحيم السالم عليكم ورحمة للا وبركاته
Your Honorable Speaker and Honorable Members, peace be upon you. Thank you also to the Minister in the Prime Minister's Office and Minister of Finance and Economy II for the introduction earlier.
Actually, I would like to raise 4 matters, but Your Honorable Awang Haji Salleh Bostaman bin Haji Zainal Abidin has taken 1 question, and Your Honorable Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Awang Haji Adanan bin Begawan Pehin Siraja Khatib Dato Seri Setia Haji Mohd Yusuf has taken half. So, there are only 2½ questions left for me, Your Honorable Speaker.
Regarding Minor Title 114 on the establishment of the Brunei Darussalam Stock Exchange. I just want to give a suggestion before it is launched. Another important matter that needs to be considered is the laws and regulations for the establishment of the Brunei Darussalam Stock Exchange, which must be resolved first before we launch the exchange.
Regarding the Treasury Department's Expenditure Estimate SD054. I noticed that the revenue collection target from the non-oil and gas sector is estimated at $942 million in the Financial Year 2022/2023 and remains constant at $945 million until 2025/2026, which is a projection.
So, my question is the same as the one I raised about the Electricity Department, why is it stagnant while non-oil sector activities and the country's overall progress from year to year are increasing.
Your Honorable Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Awang Haji Adanan bin Begawan Pehin Siraja Khatib Dato Seri Setia Haji Mohd Yusuf highlighted the outstanding arrears, which in the Financial Year 2020/2021 amounted to $723.95 million.
I would like to know what new programs will be implemented in Revenue Collection Management because I noticed that the allocation for Title 002-006 has jumped from $309,160.00 to $7,511,830.00. My question is, if there are new systems and methods to be implemented, what is the additional revenue that the Treasury Department and other government agencies are expected to collect.
Minor Title 1104-009, Cluster Development (Macroeconomy). I would like clarification on the program under this Minor Title, which has a planned cost of $47,543,597 and an allocation of $475,000 in the Financial Year 2023/2024.
May the details be shared for public knowledge so that it can be welcomed by interested parties, especially Micro, Small and Medium Enterprises (MSMEs), for these companies to plan their proactive involvement.
As we are aware, the Department of Economic Planning and Statistics (JPES) has recently shared data on the inflation rate in the country for the year 2022. The inflation rate is 3.7% in 2022 compared to 1.7% in 2021.
We conclude that inflation in the country is imported inflation due to the fact that most of the country's necessities come from outside the country. This is something we are aware of and understand.
However, we would like to know what the country's strategy is to reduce dependence on imported food in the short, medium, and long term.
Although we are informed from time to time that our food supply is always maintained and sufficient, proactive steps to increase food security still need a lot of improvement.
Perhaps one way we can explore a large-scale commercial program for the basic needs of food security is through collaboration between GLCs with foreign direct investors and local entrepreneurs so that at least the benefits can be achieved by local traders as well.
I understand that some efforts have been made in rice cultivation and aquaculture, but I still believe that this is not enough to lower the prices of basic goods because the supply is still limited in the medium and long term.
That's all I can raise, Your Honorable Speaker. Thank you for the opportunity given to me to raise these matters. Thank you. السالم عليكم ورحمة هللا وبركاته.
Your Honorable Minister in the Prime Minister's Office and Second Minister of Finance and Economy
Thank you, Your Honorable Speaker. Thank you, Your Honorable Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman bin Haji Ibrahim for the previous questions.
Regarding the Brunei Darussalam Stock Exchange, I agree that before the Stock Exchange is launched, we need to make preparations with several issues including laws and so on.
Regarding non-oil and gas revenue, we all understand here that fiscal tools for the government compared to other states are limited.
We have been hoping for years for income tax, fees from each ministry, and also investments. That's all we have been hoping for years for non-oil and gas revenue. There are opportunities for us to expand our sources of income.
We have made efforts on this matter, but it is not easy to launch. One example is that we have imposed a $3.00 fee for border crossings for a car. That alone has increased our income.
But that is not considered a fiscal tool as usual, but what is really needed to increase non-oil and gas revenue, for the government, the normal fiscal tools are something that needs to be considered. We have worked on this matter before, but there are challenges and this matter is being continued to be considered.
For this macroeconomic allocation, it is prepared in case there is a need for projects to be carried out but have not yet been allocated under any title. Therefore, this allocation is provided to be launched as soon as possible to develop the country's microeconomy.
For example, at present, in Tanjung Kajar, there is a shortage of electricity and so on. To advance, we can develop industries, and this allocation can be used. It is not necessary to have projects in the allocation, and this is an amount that we provide when it is useful. The budget is already available to advance the economy.
In terms of inflation, it has been an issue since COVID-19, and we can see that the prices of goods have increased not only in this country. There are two major concerns:
- Price
- Availability of supply.
During COVID-19, we saw that not only could these goods be purchased at any price, but it also depended on the supplier. That is what we are thinking about. If we look at basic goods such as chicken, meat, vegetables, fish, and so on, we have already increased production compared to before, and we will strive to increase it further, but we cannot produce 100% of it in our country.
At present, to address the issue of food security, in collaboration with the Ministry of Primary Resources and Tourism, there are several efforts to find not so conventional approaches. The conventional approach is to grow it ourselves, but it takes time and has a high cost, which may be higher than that of foreign countries.
To address the issue of cost and availability of supply, there are several negotiations with companies from abroad to make a deal to ensure food security and also at a reasonable price.
These are some efforts, in sha Allah, it can be considered as FDI, Your Honorable Speaker. This is one way, and we are also trying to increase production domestically, but we may not be able to produce every basic good 100%. We must also consider alternatives. These are the alternatives that I am talking about, and we will collaborate with several companies to conduct operations here and so on as a step to ensure food security at a reasonable price. In sha Allah. Thank you, Your Honorable Speaker.
Your Honorable Speaker
I invite Your Honorable Awang Haji Salleh Bostaman bin Haji Zainal Abidin to ask his questions, and perhaps tomorrow they will be answered by the relevant Minister.
Your Honorable Awang Haji Salleh Bostaman bin Haji Zainal Abidin
In sha Allah. Thank you, Your Honorable Speaker. Continuing on GLCs, I agree that there should be initiatives to open facilities to help mass production.
I suggest that the proposal for this production facility infrastructure should be made by GLCs outside of the city in all four districts to increase and generate local employment and prevent their migration to the city. That is my question regarding GLCs.
Inflation - food basket. Although the recorded inflation rate is low, about 3% to 5% per year, the people still feel that the prices of food and basic necessities are expensive. This is because people feel that the value of their $100 spending can no longer buy basic goods that they used to get in previous years. $100 can no longer buy and fill their shopping carts in the country. I understand that the Department of Economic Planning and Statistics (JPKE) knows what components are in the typical food basket of Brunei citizens.
I understand that JPKE also has an indication of the prices of basic necessities in the country. Due to the lack of a mature consumer committee in Brunei Darussalam that is not yet mature enough to make price comparisons in the food basket, I suggest that JPKE can collect prices of goods in the food basket that are purchased to make a benchmark of where it is more suitable to buy components in the food basket, not to buy from one store one product, walk 2 kilometers to buy one product and walk another kilometer to buy another product.
Therefore, I request the wisdom of the Ministry of Finance and Economy to provide facilities to make the total price of the contents of the food basket so that the public knows where it is better to stretch the $100 they have.
My sixth question. Budget for 2023/2024. Referring to the observation that I made in the previous discussion, I assume that our 'kitani' budget is conservative and sustainable and affordable.
Two years ago, we achieved a surplus and last year we got a surplus of $300 million; marginal but still a surplus. I request clarification for the public's knowledge of where the funds to finance the budget will come from if it continues to be in deficit. As I suggested, what is our budget proposal if the country needs to achieve more aggressive GDP growth to achieve the goals of Wawasan Brunei 2035 and how to finance it.
Regarding the question on financial instruments to channel the excess revenue of businesses to help the less fortunate, I would like to inform that the government has various initiatives and programs in place to assist the underprivileged. These include financial aid, subsidies, and training programs to improve their skills and employability.
As for the suggestion to encourage businesses to voluntarily contribute a portion of their excess revenue to a fund outside the national treasury, it is a noble idea. However, it is important to note that businesses already contribute to the national economy through taxes and other fees.
Nonetheless, the government will consider this proposal and explore ways to encourage businesses to contribute to the welfare of the less fortunate. We believe that it is our collective responsibility to help those in need and ensure that the benefits of economic growth are shared by all members of society.
Thank you.
Your Honorable Speaker
Your Honorable Minister in the Prime Minister's Department and Second Minister of Finance and Economy may answer now or tomorrow, depending on the wishes of the Members. Shall we continue or take a break and resume tomorrow?
Your Honorable Minister in the Prime Minister's Department and Second Minister of Finance and Economy
ان شاء للا Kaola can answer today if there is agreement from the Members of the National Assembly.
Your Honorable Speaker
It is advisable that we resolve the issues we are facing at the moment and the questions from the Honorable Members earlier will be answered by the Honorable Minister in the Prime Minister's Department and Minister of Finance and Economy II, ان شاء للا tomorrow.
Therefore, I think it is enough for us to discuss and it is time for us to vote on the Title of the Ministry of Finance and Economy so that we do not fall behind in our efforts to approve the Government's budget. So, it is time for us to vote on this matter.
I now want to ask the Members who agree to raise their hands.
(All Honorable Members agree and raise their hands)
Thank you, everyone agrees.
So, the Title of the Ministry of Finance and Economy is approved.
Deputy Clerk
Titles SD01A to SD09A are included as part of the Ministry of Finance and Economy schedule.
Your Honorable Speaker
Honorable Members. I think it is enough for us to discuss and talk this afternoon. It is advisable that we adjourn this Committee Meeting and we will reconvene at the National Assembly Meeting. (Committee Meeting adjourned) (National Assembly Meeting reconvened)
Your Honorable Speaker
Honorable Members. We will reconvene at the National Assembly Meeting. I suggest that we adjourn our meeting for us to rest and we will reconvene ان شاء للاtomorrow as usual starting from 9.30 am. Peace be upon you and God's mercy and blessings be upon you. وباهلل التوفيق والهداية
ADJOURNED
(National Assembly Meeting adjourned)
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