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DAY 3 AFTERNOON

For Informational Purposes Only

29TH FEB 2024 - AFTERNOON

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Yang Berhormat Yang Di-Pertua

Your Honourable Members, respected and esteemed heads, both male and female members of this venerable council,

Your Honourable Members. As you are aware this morning, the Bill titled "An Act to withdraw a sum of money from the consolidated funds for the Financial Year 2024/2025 and to allocate that money for certain purposes" has been comprehensively and detailedly presented by the Yang Berhormat Menteri di Jabatan Perdana Menteri and Menteri Kewangan dan Ekonomi II and has received support from the Yang Berhormat Menteri di Jabatan Perdana Menteri and Menteri Pertahanan II.

Therefore, I would now like to offer the opportunity to Your Honourable Members, especially the Your Honourable Appointed Members who wish either to question or debate this Bill.

However, I would like to draw attention to relevant parties that the debate should focus on the basis and principles of richness according to Standing Order 28 (2) of the Regulations for the Majlis Mesyuarat Negara. I wish to remind everyone that all questions and debates must be related to the policy and content of the introduction that was presented earlier.

Now, I would like to invite Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abd. Rahman bin Haji Ibrahim to begin the debate. Please go ahead, Your Honour.

Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abd. Rahman bin Haji Ibrahim

Thank you, Yang Berhormat Yang Di-Pertua.

In the name of Allah, the Most Gracious, the Most Merciful; peace and blessings be upon our Prophet Muhammad, his family, and companions, and all who follow him,

Yang Berhormat Yang Di-Pertua and Your Honourable Members. Peace, mercy, and blessings of Allah be upon you, Firstly, I would like to express my profound gratitude to Yang Berhormat Yang Di-Pertua for giving me the opportunity to participate in the debate on the Financial Year 2024/2025 Budget Bill. I also extend my highest congratulations to the Ministry of Finance and Economy and the Prime Minister and Menteri di Jabatan Yang Berhormat Menteri Kewangan dan Ekonomi II for presenting the Financial Year 2024/2025 budget, which was informative and detailed, outlining objectives, focuses, and clear targets.

Personally, I believe the budget document and introduction presented by the Yang Berhormat Menteri di Jabatan Perdana Menteri and Menteri Kewangan dan Ekonomi II are very comprehensive, extensive, and robust.

It covers nearly all major aspects of generating sustainable, dynamic, and competitive economic growth. I am also grateful and pleased with the initiatives proposed and implemented by the Government under the leadership of His Majesty the Sultan and Yang Di-Pertuan of Negara Brunei Darussalam, particularly in securing new Foreign Direct Investments (FDIs) that would transform the economic structure and landscape in the non-oil and gas sector.

Efforts are also underway to increase contributions from GLC joint ventures and foreign investors in the agribusiness and poultry sectors. Likewise, integrated efforts in enhancing capacity building in both the public and private sectors in this country through technical-commercial training and expertise impartation are commendable. We also welcome initiatives related to enhancing connectivity and providing affordable services and digital transformation efforts in both government and private sectors.

We hope these initiatives will have a wide and across-the-board impact, on the ground, and will further improve the living standards and well-being of the citizens and residents of this country, especially in socio-economic aspects.

Hopefully, these initiatives will further stimulate economic activity and, in turn, provide more employment opportunities for locals and reduce the poverty rate in this country. These measures also align with the theme "Shoulder The Burden Together For A More Prosperous Future" in the country's effort to achieve Wawasan Brunei 2035 for a quality society. I applaud and congratulate these efforts and achievements.

May Allah wish, the teachings will facilitate all our affairs to make this nation based on being a safe, prosperous country with His Majesty's forgiveness and its citizens and residents always in welfare under the wise and visionary leadership of His Majesty the Sultan and Yang Di-Pertuan of Negara Brunei Darussalam.

I noticed in the 2024/2025 Budget, the government has increased its overall allocation by about $90 million.

Correct me if I am wrong or right, compared to the Financial Year 2023/2024 even though the country is again projected to experience a budget deficit of $2.99 billion. I understand that the moderate increase in the budget is a cautious step, and the government is also strengthening the country's sustainability, especially in a global economy that, despite being more stable, is still challenging and unpredictable.

Moreover, in the current challenging geopolitical atmosphere that could potentially affect the prices of the country's main commodities. However, I feel that in practicing prudent expenditure, we also need to make policy adjustments so that they are growth-friendly, stimulating high-impact economic activities while increasing national revenue to reduce the budget deficit and create more new and quality job opportunities.

To this end, please allow me to discuss a few main issues that might be closely examined in implementing the 2024/2025 Budget. This view of mine is by practicing the Whole of Nation Approach in our effort to support and uphold the policies of His Majesty the Sultan and Yang Di-Pertuan of Negara Brunei Darussalam.

Yang Berhormat Yang Di-Pertua and Your Honourable Members, the first matter I will address is regarding financing provided under the Development Expenditure.

This financial year 2024/2025, the Government will allocate 500 million for this purpose. Even though this amount is the same as the allocation for the Financial Year 2023/2024, which I feel could be reasonable at this stage considering this is the first year of the 12th National Development Plan implementation.

As usual, the first year is more focused on planning and preparing for projects to be implemented. My concern, however, is about the total amount to be allocated for the 5-year implementation period of NDP-12, indicating an estimate plus 40 billion total budget.

I understand that this figure is not static and can be reviewed depending on the needs and current interests of the country. I am aware that during the previous NDP-11 period, some of the NDP projects had to be postponed. This is understandable because the country was also affected by the COVID-19 pandemic.

I also realize that the amount of government provision for salaries, allowances, and operational expenses has been increasing year by year, and for the Financial Year 2024/2025, it amounts to about $4.33 billion.

Nonetheless, I still believe that this country needs a reasonable amount of capital expenditure from the government.

The necessity and benefits of providing capital expenditure and a reasonable amount were addressed in my speech yesterday in this honorable council. I only wish to add that this view of mine takes into account the on-the-ground feedback from the public, especially the business community in this country.

This group feels that the development of the private sector at this time is still not very strong. The number and amount of direct and new foreign investments are not very significant, and the contribution from government-owned companies is considered limited despite the involvement of GLCs in two mega projects such as the Petro Chemical and Refinery project in Pulau Muara Besar and the Brunei Fertiliser Industry.

This matter is crucial and needs to be closely scrutinized because from the feedback received, several economic sectors have started to be affected. For instance, in the construction and housing industry, where local consulting firms have begun downsizing, bank loans for the water and energy transport industry have also experienced a downturn, as reported in the third quarter of 2023 by the Department of Economic Planning and Statistics and the Central Bank of Brunei Darussalam.

Similarly, the report related to merchandise trade recorded a decrease of 21.3% compared to the third quarter of 2022. At the same time, the overall trade as a percentage of GDP also decreased to 131.6% from 144.9% in the third quarter of 2022. Oil and gas exports declined by 43.3% while the value of downstream industry exports and domestic commodity exports also decreased compared to the second quarter of 2022.

We hope that with this government expansion, it will ignite a new spirit and breath into the business community in this country to be more active in generating and stimulating economic activities in their respective fields.

Therefore, kaola would like to request enlightenment from the Ministry of Finance and Economy whether the total Capital Expenditure allocated in the 12th RKN is deemed sufficient and capable of achieving the projected growth forecasted by AMRO this year. Can it aid the country in achieving the status of a dynamic and resilient economy as envisioned in Wawasan Brunei 2035, while at the same time reducing the unemployment and poverty rates in this country?

Is the allocation provided in the 12th RKN, especially for sectors like education, health, housing, and those related to living standards capable of further improving the country's human development index position as suggested in the Sustainable Development Goals? Kaola personally believes to achieve these targets, all stakeholders including the public sector, private sector, government-owned companies, and FDI need to collectively make a reasonable amount of investment every year to stimulate economic activity and create more jobs, trading opportunities, and new services.

What is crucial is having a clear direction, a confident and business-friendly ecosystem, and policies and regulations that encourage and facilitate businesses to thrive.

Yang Berhormat Yang Di-Pertua, the second issue that kaola wishes to bring up is about the lack of alignment and balance between economic focus and the provision of housing in major sectors. In the Economic Blueprint and the formulated roadmap, five main clusters have been identified to be developed as catalysts toward the diversification of the country's economy.

These five clusters include the downstream industry, food, services, information and communication technology, and tourism.

Regard the issue of food security in the food industry, it is apparent to us in the 12th National Development Plan, the government has allocated a significant amount of about $230 million over the next 5 years to support this objective. Through the initiatives mentioned, kaola hopes this allocation will serve as a catalyst and encourage more involvement of the local private sector and FDI to drive changes in the agribusiness and food sector, which in turn will increase the production of retail and agri-food products not only for local consumption but also for export.

Kaola is also grateful for the budget allocation towards supporting digital transformation within the government, in the nation's efforts towards becoming a connected smart nation as presented by Yang Berhormat Menteri earlier.

What’s important is the coherence and alignment of agencies ensuring the impact is felt not only by public servants but also in enhancing the business ecosystem in this country for all citizens and residents.

Towards this aim, kaola seeks clarification on the strategic measures of the ministry and other government agencies in aligning digitalisation hardware developments with software developments, or in terms of implementing ongoing change management and capacity building not only for involved officers and stakeholders but also for students so they are always future-ready and industry-ready. Furthermore, the national digitalisation system should nurture and shape students to think holistically, strategically, and tactically. Yang Berhormat Yang Di-Pertua.

At the same time, when we critically need resources allocated in certain other clusters, for example, the tourism sector which is allocated a budget of $36.4 million, kaola feels it is very minimal, limited, and barely enough to make a significant impact. As one of the main clusters, it seems reasonable investments should be provided for leapfrogging this sector so the country can attract more tourists and subsequently balance the outbound currency flow.

In addition, this investment is expected to generate more spinoffs for the country's economic activities, especially in the hospitality and related services sector like hotels, retail, transportation, restaurants, and others, the positive effects of which will open up more job opportunities for locals.

Ultimately, we can only set tourist entry targets of approximately 370,000 people in 2024 and about 550,000 tourists in 2029. These targets are too modest to stimulate and invigorate economic activity for related sectors and sub-sectors.

The consequence is, our pie is not growing for everyone to share and claim it, indicating we need to invest more to overcome technical stagnation and niche as a nation that is stable, safe, secure with friendly and hospitable citizens. Kaola realizes that building new tourism infrastructure for the convenience of citizens and tourists will require significant capital investments.

This need not be provided by the government alone but can also be executed through the private sector, Public-Private Partnership, and FDI. However, all these require a coordinated and integrated approach. Mature broadcasting, improvement of a conducive business ecosystem, and proactive, pro-business delivery system are needed.

Furthermore, it also entails exploring other tourism options like educational tourism, health tourism, Islamic Tourism, cultural tourism, Conferencing Centre, sports tourism, among others in addition to the existing ecotourism.

Yang Berhormat Yang Di-Pertua, The last matter kaola wishes to touch on is regarding government agencies' incentives and the role of local financial institutions in developing merchants/traders, whether established or Micro, Small and Medium Enterprises (MSMEs), to gain access to financial capital.

This group, especially young local entrepreneurs, is essential to be provided with the necessary facilities to advance their businesses. By this, kaola does not mean handouts but in terms of pro-business policies and regulations, and practical training such as management, mitigation, finance, technical skills, technology, and innovation.

To this extent, kaola observes many efforts have been made to activate and encourage youth to engage in business. Congratulations to the government and the youth who possess the spirit and passion for independence. However, kaola notices there are policies that are not aligned with their implementation.

A clear example is when policies to assist MSMEs are not in sync with the interest rates or collateral required by some local financial institutions to the borrowers, whether they are small merchants or well-established ones. This not only makes it difficult but also burdens start-ups and MSMEs to comply.

Foreign investors who are already encouraged also face the same difficulties in obtaining the needed loans, even for investment in assets for operating locations. Ultimately, the country's economy becomes stagnant and does not grow as expected.

Therefore, kaola wishes to know what strategic steps the Ministry of Finance and Economy through the Brunei Darussalam Central Bank are taking to further allocation of the local banking sector to help develop and enhance the ecosystem in this country to make it more conducive because this sector is crucial as a catalyst to stimulate overall economic activities.

That concludes kaola's comprehensive views regarding the Financial Budget 2024/2025 presented.

Kaola prays that this budget will achieve its objectives as a future investment that will enhance the country's prosperity and improve the lives and well-being of its citizens and residents now and in the future. May God bless you.

Thank you, Yang Berhormat Yang Di-Pertua.

Yang Berhormat Yang Di-Pertua

Thank you, Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abd. Rahman bin Haji Ibrahim. I now invite Yang Berhormat Awang Abd Aziz bin Haji Hamdam.

Yang Berhormat Awang Abdul Aziz bin Haji Hamdan

In the name of God, the Most Gracious, the Most Merciful. Peace, mercy, and blessings of God be upon you.

Yang Berhormat Yang Di-Pertua, Your Honourable Members. Kaola would like to extend congratulations and thanks to Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II for the comprehensive presentation and explanation of the Budget Bill themed "United in Building a More Prosperous Future."

Kaola believes that this budget emphasizes the continuous efforts of the government to create an inclusive expenditure framework, calling it prudent expenditure as the main foundation towards stabilizing the country's economy and balancing the deficit faced.

Therefore, drastic measures need to be taken to ensure that the expenditure can be utilized by the populace ensuring new, better, and attractive initiatives that can improve the quality and productivity of government agencies' services in line with the expectations of Kebawah Duli Yang Maha Mulia Paduka Seri Baginda Sultan dan Yang Di-Pertuan Negara Brunei Darussalam.

Besides that, kaola also hopes that this budget will target strategic matters including creating a conducive ecosystem for inclusive mastery in Negara Brunei Darussalam.

This includes promoting new forms of public-private partnership in facing new disruptive behaviors that could contribute to the country's income. Simultaneously, the government's openness to work closely with the private sector in addressing public goods and issues is crucial.

This approach is important as an effort to tackle the issues faced by low-income and incapable citizens. Inclusive business or social business is a business system that should add value to the people and the community. Besides obtaining profits, inclusive business programs can be adapted by both large and small companies. The government's role is as a facilitator for the private sector to implement it. This is a win-win method that benefits all parties to encourage economic growth of the populace and represents a new initiative in the ASEAN Economic Community era.

Yang Berhormat Yang Di-Pertua and Your Honourable Members. In maintaining the ecosystem of existing and planned employment spaces, it needs to be considered comprehensively from all aspects including strategic location, infrastructure facilities, alongside attractive design to create a conducive business infrastructure.

Any business building that is no longer suitable needs to be rejuvenated through business concept transformation methods that are more attractive. Indeed, efforts have been made to diversify industrial sites with more appealing and marketable business concepts. For example, the light industrial site in Kampong Lugu, which is beginning to be known as Lugu Light Industrial Park.

This light industrial area provides facilities such as halls for representative ceremonies that support innovation areas often followed by colorful ceremonies. This is among the examples of business transformation that needs to be done because there are other potential areas such as stalls, night market buildings, etc.

Yang Berhormat Yang Di-Pertua and Your Honourable Members. Kaola fervently hopes that this budget also addresses developing issues often raised by Your Honourable Members during sessions with ministries and this esteemed Council, such as road damage issues, non-functioning street lights, faded signboards, frequently clogged drains, etc. The resolution should be expedited so that the public does not remain dissatisfied long, and happiness and safety are preserved and guaranteed, والله اعلم.

Thank you, وبالله التوفيق والهدايه والسداد وصلى الله وسلم تسليما كثيرا على نبينا محمد وعلى اله وصحبه اجمعين.

Yang Berhormat Yang Di-Pertua

I invite Yang Berhormat Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Haji Awang Suyoi bin Haji Osman.

Yang Berhormat Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Haji Awang Suyoi bin Haji Osman

Thank you, Yang Berhormat Yang Di-Pertua, for giving me the opportunity to discuss the National Budget Estimate for the Fiscal Year 2024/2025.

بِسْمِ اللهِ الرَّحْمٰنِ الرَّحِيْمِ الحمد لله رب العالمين، والصلاة والسلام على أشرف المرسلين، سيدنا محمد وعلى آله وصحبه أجمعين

السلام عليكم ورحمة الله وبركاته and greetings. First, I would like to extend my heartfelt gratitude to Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II for presenting the National Budget for Financial Year 2024/2025.

Kaola warmly welcome the presentation that was so transparent and clearly laid out the efforts and achievements of the Ministry of Finance in strategizing regarding national income sustainability. But at the same time, still capable of implementing measures deserving to lessen impacts while continuously attempting to attract foreign investments.

Kaola appreciates the challenges faced by the ministry in using fiscal policy, managing national finances, driving an economy facing a global crisis, balancing the budget while continuously striving to ensure sustainable economic growth.

For this reason, kaola greatly values the role played by Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II, Deputy Ministers of Finance, Permanent Secretaries, and all officers in the Ministry of Finance currently, as well as by former Finance Ministers in managing the country's finances.

Yang Berhormat Yang Di-Pertua. Kaola will not delve into the allocations of each department under the Ministry of Finance as there will be an opportunity later at the committee levels.

Kaola only has a few questions, the first one is whether what has been presented by Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II is also shared or distributed with other ministries, agencies, Government-Linked Companies (GLCs), and Non-Governmental Organization (NGOs), Private entities not only in sessions like this but all the time.

There is a widespread perception that the government is not taking action to boost our economy. While the news provided is mostly about economic developments overseas, thus obscuring our situation. This by itself gives a negative impression of Brunei and easily discourages investors and tourists from coming to Brunei.

Kaola next also wants to ask whether the Ministry of Finance has mechanisms for periodically monitoring the performance of each expenditure, not just at the year-end. So that what is done by each ministry can be monitored and aligned with the actions of the related ministries. This allows a plan to be implemented according to its schedule and supporting each other.

Kaola only wants to see every allocation used has a positive impact on the nation, especially in addressing the country's problems such as unemployment issues, poverty issues, weaknesses in the private sector, outflow of money from the country, rising prices of necessities, efforts toward attracting foreign investments to the country.

Issues on how we can develop the tourism sector, how we can increase the output from agriculture, fishing, and agrifood all of which depend on the efficiency of the Ministry of Finance in giving budget allocation not just according to the needs of each concerning ministry (not viewed in isolation) but as part of a closely related budget system.

By focusing on how the allocation for one ministry can cause development in another ministry, the government, especially the Ministry of Finance, is certainly evaluating how to facilitate a situation where there is a multiplier effect allowing other ministries to achieve their targets.

Investing in infrastructure can support economic development by contributing to business efficiencies, which will lead to employment and in turn also have positive spillovers across various sectors such as transportation, housing, agriculture, Small and Medium Enterprises among others.

Here, kaola believes that a whole of government and whole of nation approach can be seen as to how effective it is and how critical it is to sustainable development. It prolongs a comprehensive understanding that each sector within the government is interdependent on one another and budget allocation strategies can optimize the achievement of each government sector. For example, allocation and investment in education can empower the workforce to produce high productivity.

But for that, jobs also need to be created in fields that have been identified either in the government or private sectors. Jobs will not exist without encouragement or allocation in potential sectors that can provide jobs such as the construction industry, tourism, agriculture and/or fishing, petrochemical industry, etc. Several times we encounter situations where a ministry is unable to continue its strategic agenda due to insufficient allocation. Consequently, projects cannot be completed, affecting other developments.

In this matter, kaola believes we should continue to look for various initiatives with an open mind and inclusive approach to address the issue of diminishing state revenue while national expenditure continues to rise. Highlighting the essence and strategies and planning discussed in this Council is when it brings significant change that can be enjoyed by all layers of the population, especially those affected.

Finally, kaola would like to express support for the 2024/2025 Budget that has been presented, we all hope that this Budget, although not perfect and expected, can smoothly drive our government machinery while being capable of generating economic growth in the short and long term.

Sincerely,

Yang Berhormat Yang Di-Pertua

I now invite Yang Berhormat Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Awang Haji Adanan bin Begawan Pehin Siraja Khatib Dato Seri Setia Haji Md. Yusof.

Yang Berhormat Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Awang Haji Adanan bin Begawan Pehin Siraja Khatib Dato Seri Setia Haji Md. Yusof

Thank you, Yang Berhormat Yang Di-Pertua.

In the name of Allah, the Most Gracious, the Most Merciful All praise be to Allah, the Lord of the Worlds, and prayers and peace be upon the Leader of the Messengers And no aggression except against the oppressors

Honorable Excellencies, Ladies, and Gentlemen

Peace be upon you, and Allah's mercy and blessings and salutations. Yang Berhormat Yang Di-Pertua and Your Honourable Members.

Firstly, kaola is pleased to express the highest appreciation and gratitude to Yang Berhormat Yang Di-Pertua for giving kaola the opportunity to debate the National Budget for the Financial Year 2024/2025.

On this occasion, kaola would also like to congratulate and thank Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II for successfully presenting the Appropriation Bill for the Financial Year 2024/2025 comprehensively with relevant data and showing the improvement in strategy and actionable plans according to needs and priorities in a continuous effort to drive and advance a more robust, dynamic, and sustainable socioeconomic status of the country.

This also takes into account transcending social affairs, security, welfare, and the well-being that leads to a higher quality of life to be enjoyed among the citizens and residents of Negara Brunei Darussalam.

On this occasion, kola would like to appreciate and congratulate Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II and all staff of the Ministry of Finance and Economy and parties involved in preparing the framework including proclaiming initiatives to be implemented so meticulously and systematically aimed at facilitating stakeholders to serve as guidelines in implementing until they become a reality for the success of all.

Yang Berhormat Yang Di-Pertua and Your Honourable Members. What I can observe, all the steps and efforts that have been and are being planned to be implemented to achieve national policies for diversifying industries not only based on oil and gas industry but also to create a significant impact that not only can increase economic growth but also create various economic spin-off effect industries and more job opportunities among local youth especially in the professional sector and more entrepreneurship and those who dare.

What is expected with the presence of rapid developments later and also economic growth and business activities as well as job opportunities among local youth will help the government in reducing the unemployment rate of the country more significantly and also can help us together eradicate poverty.

Yang Berhormat Yang Di-Pertua and Your Honourable Members. As experienced by developed countries, research and development are given priority as seen by their high per capita income like South Korea 4.5%, Japan 3.5%, Germany 3.13%, and Belgium 3.4% of each country's total GDP.

This realizes the absolute importance of providing for and developing research and development in contributing and empowering a more dynamic and sustainable economic growth.

In addition to that, among the benefits that can be obtained include creating more high-skilled and professional job opportunities, creating more new alternative products and industries, increasing innovation, creativity and entrepreneurship, increasing productivity and also importantly, attracting more direct investment and foreign traders in those countries.

Following the example of the aforementioned developed countries, Negara Brunei Darussalam should also prioritize and further increase specific allocations related to research and development to enable this country to avoid development and progress significantly and dynamically and in turn will be far more powerful towards Wawasan Brunei 2035.

In relation, kola also seeks clarification from Yang Berhormat Menteri Kewangan dan Ekonomi II whether the allocation for research and development in this country is adequate for the years 2024/2025 and also in planning progress sufficient to stimulate economic growth and achieve Wawasan Brunei 2035 and what percentage of the GDP is allocated for research and development.

Yang Berhormat Yang Di-Pertua and Your Honourable Members. Many strategic plans and initiatives have been provided by the government to further enhance business activities in Negara Brunei Darussalam especially in developing towards the five identified main sectors other than oil and gas to expedite their growth even more in the export-oriented product industry. I am also excited to hear the plans laid out and 🤲🏼 May Allah make it easy. May it be successful fully implemented as intended.

However, we must also be prepared to face any possibilities of risks that can hinder planning and product export opportunities. Among matters that need to be addressed and paid attention to proactively are:-

  1. The possibility of insufficient raw materials from abroad which could affect production especially for exports;

  2. Difficulty obtaining raw materials within a stipulated time to avoid production delays; and

  3. Insufficient labor force and problems often faced by foreign companies, related to local workers who are sometimes not present on the designated time. This is also a challenge and an issue that needs attention, how technology transfer can be overtaken by local youth.

Yang Berhormat Yang Di-Pertua and Your Honourable Members. This year's budget presentation has paid much attention to business infrastructure and the development of industries in non-oil and gas sectors with the intention to transform the economic structure of the country towards a more stable structure while providing training schemes based on the needs of local industries. I have also reviewed the budget presentation earlier.

Yang Berhormat Yang Di-Pertua and Your Honourable Members. Kaola would like to raise the question of how social issues such as poverty eradication and unemployment problems are addressed because what I find here it is not specifically presented in the budget 2025 perhaps it will be integrated or there are action plans that even though there are still تحت التجارة expected whatever plans, initiatives and action plans carried out responsibly, with integrity, full commitment involving all stakeholders* not only within the government but also including the private sector as well as all citizens and residents in this country.

Furthermore, we together often discuss supporting a "Whole of Nation Approach" and "Whole of Government Approach" in ensuring the specified objectives are ultimately achieved to reach the esteemed goal of Wawasan Brunei 2035.

Finally, let us all pray to the Almighty, seeking His blessings so that His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam, under the auspices of the State Council leadership, shall forever be preserved and guided, thus continually developing our beloved Nation of Brunei Darussalam with prosperity, peace, and affluence, blessed by His divine grace. And together, we strive to make Brunei a Zikir Nation.

In conclusion, here at the end, I share all the recommendations put forth by the Minister at the Prime Minister's Office and the Second Finance and Economy Minister regarding the budget for the year 2024/2025.

That's all, may God grant us guidance and peace, and thank you, Yang Berhormat Yang Di-Pertua Majlis.

Yang Berhormat Yang Di-Pertua

I invite Yang Berhormat Awang Zainol bin Haji Mohamed.

Yang Berhormat Awang Zainol bin Haji Mohamed

Thank you, Yang Berhormat Yang Di-Pertua.

In the name of Allah, the Most Gracious, the Most Merciful, all praises to Allah, Lord of all the worlds, and peace and salutations upon the most noble messengers. Kaola fully supports the Bill 2024, the Expenditure for 2024/2025. Congratulations to Yang Berhormat Minister at the Prime Minister's Office and the Second Finance and Economy Minister for a comprehensive and detailed explanation. What has been presented is very precise and aligns with our aspirations towards achieving the nation's visions, particularly Brunei Vision 2035.

Yang Berhormat Yang Di-Pertua, the public should be grateful because the spending still adheres to the necessities of welfare and public well-being grounded in education, health, citizenship, public amenities, and in aiding the less fortunate and disabled, as well as assisting entrepreneurs in the private sector and individual workers. The Budget Theme for the Fiscal Year 2024/2025 "Building a Prosperous Future Together" focuses on specific areas, and looking into the future makes us incredibly optimistic because many provisions will not only tackle economic issues and other sectors in our country but also create a skilled, marketable, employable, and future-ready citizenry.

Yang Berhormat Yang Di-Pertua, Kaola is intrigued by the prioritized projects including in agriculture, industry, aquaculture, rice cultivation, livestock projects, and other implementations that will bring blessings and fortunes to the people of this nation.

Hopefully, the planning will succeed with the achievement of cooperation from all government agencies on a Whole of Nation basis and successfully develop a more advanced economic landscape. New initiatives to elevate the country's economic performance will hopefully be integrated with this Expenditure Bill and related matters will continuously benefit the people and nation, especially in foreign investments for boosting the country's economy.

Kaola wishes to touch on a few matters:

  1. The cooperation and coordination among ministries and government departments are crucial to be effectively carried out so that the responsibilities can be executed by the responsible parties. Communication channels between government agencies are very important so that maintenance and conversion in village areas can be promptly and efficiently performed for the safety of the nation's inhabitants.; and

  2. Kaola would also like to address the Public Recovery Action (TPOR). As grassroots representatives, Kaola shares the concerns voiced by villagers about the lack and delay of information disseminated when submitting certain applications through the related agencies. Priority should be given to ensuring applicants have access to sufficient information, especially regarding the status of their applications.

To improve this situation, Kaola proposes involving local authorities such as village heads or chiefs as information coordinators needed by applicants to minimize issues and sometimes expedite the necessary processes.

This can also be linked with the management of zakat which might need improvement in the management process and provide clearer explanations to applicants more efficiently and effectively. There are specific applicants who face difficulties checking all application statuses through the existing system.

Therefore, it is suggested that better communication and coordination between local authorities and applicants as well as increasing transparency in the application process. The goal is to ensure that applicants can be provided assistance quickly without unnecessary difficulties.

On this occasion, Kaola also wishes to express appreciation and congratulations to all parties involved in the implementation of the National Service Programme (PKBN). Early this year, Members of the Legislative Council had the opportunity to visit the PKBN training area and it has proven to be a good platform in preparing the youth for readiness and facing future challenges.

The involvement of youth in this program has brought significant benefits not only to the youths themselves but to society as a whole. Thank you, Yang Berhormat Yang Di-Pertua.

Yang Berhormat Yang Di-Pertua

I invite Dayang Hajah Rosmawatty binti Haji Abdul Momin

Yang Berhormat Dayang Hajah Rosmawatty binti Haji Abdul Mumin

Thank you, Yang Berhormat Yang Di-Pertua. In the name of Allah, the Most Gracious, the Most Merciful, and we seek help through Him, peace, and blessings be upon the Messenger of Allah and upon his family and companions. Furthermore, with your permission, Yang Berhormat Yang Di-Pertua, I would like to express my heartfelt gratitude to the Honourable Prime Minister and the Second Minister of Finance and Economy, for the presentation of the Financial Year 2024/2025 Budget Papers, which was delivered with such clarity and complete with detailed facts regarding the strategic focus that is very satisfying.

Yang Berhormat Yang Di-Pertua and Your Honourable Members, all praises to Allah, Lord of all worlds, I also wish to thank all Your Honourable Members who have provided their views and highest support to the Ministry of Finance and Economy and to the Honourable Minister at the Prime Minister's Office and the Second Minister of Finance and Economy, for the presentation of the Financial Year 2024/2025 Budget Papers, which was delivered with such clarity and complete with detailed facts regarding the strategic focus that is very satisfying.

All praises to Allah, kaola and certainly other Your Honourable Members feel grateful for the increase in the Budget for the Fiscal Year 2024/2025. This increase surely brings various benefits to our people and country. May the discussed budget be utilized wisely to enhance societal well-being and propel our nation towards a better future.

Kaola agrees and fully supports the presented allocation. Kaola also wishes to congratulate all ministries and departments for their hard work, striving to elevate efforts and initiatives in making governmental learning and youth equally striving to explain expenditures without compromising the living standards of society and the nation.

Kaola is pleased to hear of several programs and initiatives under the Human Workforce and Employment Council (MPEC) monitored to create a local workforce that is employable and marketable.

Kaola also understands that the government has been persistent towards initiatives for digitalization transformation, hoping this plan will be evaluated fairly among all departments and the public. Kaola also suggests the use of league tables like in football leagues to make this system more transparent. Kaola believes the use of digital technology will simplify work efficiently and reduce the time needed to complete routine tasks.

Kaola notes there is a considerable budget for initiatives supporting the health sector including the enhancement of service quality and provision at JPMC and PISC. This will undoubtedly boost the potential for medical advancements contributing to the country's economy.

The government has made various efforts to develop the tourism sector including in promotion and modern, efficient airport infrastructure development.

Kaola also advocates for more active Islamic tourism. This can be done by promoting Islamic tourism infrastructure such as mosques and Treasure Halls that depict the concept of Malay Islamic Monarchy.

Kaola is also pleased about import substitution as presented this morning. Kaola suggests further enhancing the list of local products and offering them at affordable prices for the common people. This requires a change in mindset at all levels of society in Negara Brunei Darussalam. As kaola understands, a large part of our country's income comes from oil and gas, it would be better for our projects to accelerate renewable energy projects conducted by the Energy Department.

Kaola notes that the cost of the 2024/2025 Budget is increasing, and there are challenges in the implementation of projects under this expenditure. Therefore, kaola proposes that each project should have KPIs that encompass employment opportunities for the people of Brunei. Kaola hopes that all projects under the 2024/2025 Budget can proceed smoothly with the full cooperation of the government and agencies involved to ensure the successful implementation of these projects above.

Yang Berhormat Yang Di-Pertua

I invite the next speaker, Yang Berhormat Dayang Chong Chin Yee.

Yang Berhormat Dayang Chong Chin Yee

Thank you, Yang Berhormat Yang Di-Pertua and greetings.

Yang Berhormat Yang Di-Pertua and Your Honourable Members. First of all, kaola would like to express the highest appreciation and thanks to Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II, for the comprehensive and clear presentation of the Supply Bill (2024), Fiscal Year 2024/2025.

Kaola fully supports the Budget in line with the theme "Bersatu Membina Masa Depan Yang Lebih Makmur" which demonstrates the high commitment and concern of the Government under the wise leadership of Kebawah Duli Yang Maha Mulia Paduka Seri Baginda Sultan dan Yang Di-Pertuan Negara Brunei Darussalam towards the welfare and well-being of the citizens and residents in this country to continue living in peace and prosperity, with high progress and competitiveness.

It's very encouraging to see the significant allocation for advancing our country's digital transformation. This forward-thinking investment will definitely signal towards improving and modernizing our country’s infrastructure, reflecting the commitment and readiness for the future. However, as we shift our focus towards this innovative approach, it is important to look not only from a quantitative approach but also qualitatively. Thus, kaola is interested in understanding the return on investment (ROI) expected from these digital transformation initiatives.

The question is, in what way are these projects expected to open up measurable economic benefits to our country? Specifically, what are the projected contributions of these initiatives to the gross domestic product (GDP) or other major economic indicators? Thank you.

Yang Berhormat Yang Di-Pertua

I now invite Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin.

Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin

In the name of Allah, the Most Gracious, the Most Merciful. Thank you, Yang Berhormat Yang Di-Pertua.

Congratulations, kaola, to Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II, who has presented the Financial Year 2024/2025 Budget.

Apologies, as kaola has not been able to fully digest the budget content due to not having the chance to view the slides, so at this short moment, kaola will form a quick overview and will request clarification and make suggestions and comments when discussing the ministry budgets later, God willing.

Your Honourable Members, first of all, congratulations to all involved, by the grace of hard work from all government layers, including the relevant agencies and the private sector that have contributed to economic growth enabling us to achieve a surplus budget for the Fiscal Year 2022/2023. Almighty, mercy still flows by bestowing His blessings to our country, Negara Brunei Darussalam.

Going forward, celebrating "Bersatu Membina Masa Depan Yang Lebih Makmur", I support that this theme should be highlighted. Let us together practice prayers and deeds to make efforts towards realizing this theme. Yang Berhormat Yang Di-Pertua. Kaola is also excited to know that despite economic challenges, the government is still prepared to provide a budget allocation of $6.2 billion for the Fiscal Year 2024/2025.

Even though it shows a slight increase from last year, but with a potential/deficit of $2.99 billion it will be a great challenge to face. In this short opportunity, kaola would like to make a few questions and views for clarification.

  1. The 2024/2025 deficit budget of $2.99 billion, please may clarification be given later on any initiatives and action plans identified to be implemented together to reduce this deficit gap without compromising the implementation of projects and benefits provided to overcome the issues of the people;

  2. RKN-11 and RKN-12 our performance showcases projects in the National Development Plan $500 million for the years 2024 to 2029. Kaola is excited that the government will continue to provide a large budget for the country's progress, but kaola understands that some projects and implementations in RKN-11 could not be executed and it will be delayed to later. What kaola hopes for is that the implementation of RKN-12 will take into account the experiences in executing RKN-11 so that full performance in implementing projects in RKN-12 can be achieved, God help me.

  3. New Jobs. Kaola emphasizes that there should be a target for new jobs intended in each government project initiative listed in RKN-12, God Willing.

  4. Investment in Sports. Kaola requests planning if there are allocations for making investments in building sports infrastructure to make people's involvement in sports not only as a viable alternative for employment but also can develop, able projects in sports as generating the economy in the sports industry (sports tourism). This infrastructure also makes us hosts for sports at school levels, youth and university levels in Borneo, regional, and ASIA levels. Yang Berhormat Yang Di-Pertua and Your Honourable Members. Kaola also prays and fearfully to Allah Almighty praying for our sustenance to be further blessed and expanded, and kaola supports the Supply Bill 2024/2025. God willing.

Yang Berhormat Yang Di-Pertua

I invite Yang Berhormat Dr. Awang Haji Mahali bin Haji Momin.

Yang Berhormat Dr. Awang Haji Mahali bin Haji Momin

Thank you, Yang Berhormat Yang Di-Pertua. In the name of Allah, the Most Gracious, the Most Merciful. Praise Him and I testify that there is no god but Allah alone with no partner and I testify that Muhammad is His servant and messenger.

Yang Berhormat Yang Di-Pertua and Your Honourable Members.

Peace and blessings be upon you and good greetings. Congratulations on the presentation given by Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II this morning. It was very comprehensive and very clear.

Congratulations on the efforts and initiatives that show progress. And this can give good hope for the citizens and residents of this country. It touches on the supply theme promise of United Building a More Prosperous Future. Therefore, kaola fully supports the Supply Bill (2024) 2024/2025 presented by Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II.

However, kaola requests clarification on the efforts for further enlightening FDI investment friendly for any schemes/invitations related to government companies i.e., GLC. That's all, Your Honour. And peace be upon you, and God’s mercy and blessings.

Yang Berhormat Yang Di-Pertua

Your Honourable Members, we have already heard some questions and also reactions, although 'perhaps' some are initial ones from the Appointed Honourable Members.

So, no matter how it is actually a reaction that can be respected, but I think Your Honourable Members would like to hear a response perhaps from the relevant Minister, even though the response to the core questions or doubts raised by the Appointed Your Honourable Members earlier. So, if the relevant Minister does not object, I would like to give space to the Minister concerned to provide their response thus far. Please, Your Honourable.

Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II

Thank you, Yang Berhormat Yang Di-Pertua.

I am grateful for the opportunity to reply briefly concerning the questions or feedback we heard from some of Your Honourable Members just now. Perhaps if I cannot answer all the questions, the shared feedback, there will certainly be chances later for my colleagues to give their discussions when we talk about expenditures under each ministry. So, I will only touch a bit on some of the main topics. But before that, I received one feedback from Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin

The question was how we could reduce the deficit every year without affecting expenditures. This question, I think, if we think deeply about answering it. Just increase government revenues or reduce unnecessary expenditures (wasted expenditure). So, this matter is not only easily implemented, studies must be conducted so that not only do we reduce expenditure, but the thinking/mindset also includes the possibility of us adjusting the policy or also uplifting the low-income group and also increasing government revenue, right now, our efforts to attract more FDI/ Corporatization to some government services are steps under fiscal consolidation for us to reduce expenditures but do not affect the quality of our services. Indeed, it is an easy answer but its implementation will take time and cooperation from all parties.

Touching on our expenditures, whether it's annual expenditure or RKN-12, maybe we need to think compared to other states, we will not be what will be compared in the coming financial year subject to the revenue that can be collected even before that. If we follow the way other states spend, maybe we can't fulfill all the ministry requirements.

So, however, as a developing country, we must prioritize sponsoring building a better future for our country. So, the steps that need to be taken are as I explained in a few main focuses in our discussion this morning is to develop our human capital through our quality of work so that they can enhance their skills, to help the country develop an economy that is current and also for the future.

Meanwhile, the government is also working to further develop our economy by attracting FDI, establishing GLCs, encouraging PPP, and so on to further expand our economy, generating more quality jobs for our local children, which has always been one of our main focuses to continuously improve our workforce skills. Meanwhile, we also maintain the welfare of the public, develop hospitals, improve infrastructure, and so on.

So, even though the revenue obtained in the previous Financial Year was not sufficient to fund the expenditures for the coming Financial Year, the Government under His Majesty the Sultan and Yang Di-Pertuan of Negara Brunei Darussalam also experiences deficits in hopes that our workforce will continue to enhance their skills.

We are also working to attract more FDI so that one day

we can together develop the country, develop our economy. This is the expectation from year to year. Because of this, our theme continues to build-in, which is invest in our future.

So, in terms of RKN-12 whether it's sufficient or not, that we follow the government's prudence. We need to make the projects that have been discussed in detail earlier, which will be shared with the public later but the projects in RKN-12 follow the government's priorities so that we can continue infrastructure that is sufficient for us to spend to improve the skills of our local children and so on. Not strongly focused on the business community. If there are projects we need to do, the government will certainly do them.

But it's not because the business community isn't enough business, we must develop more facilities so they can invest. If we do not require the infrastructure then why would the government want to develop it, to become white elephants. That's what we think while discussing the projects under RKN-12, we are considering developing in accordance with the Wawasan Brunei 2035.

In the projects, those 305 projects were distributed, which projects support objective 1, which projects support objective 2, which objective 3, and other enablers projects which cannot be identified whether for objective 1 or 2, but it supports all the objectives.

So, there are reported projects listed in RKN-12. So, if total this morning was also shared, our economy if seen since a few years ago already looks like it's heading in the right direction. The Non-Oil and Gas Sector since 2017 till now averages each year a 4.3% GDP growth. If imagine a country it doesn't have oil and gas, just what's non-oil and gas that means our country's GDP every year compared to other economies, this is an impressive achievement, 4.3% continuously.

Unemployment since the year 2011 (3.9%), 2017 (9%), now our (5.2%) 2022, this includes individuals who are still waiting for work in these 6 months. But if we follow how other states release unemployment, anybody who is not working the unemployed in 6 months down is not counted in statistics. But in our country, we include all so it's 5.2%. So, if we don't count those unemployed under 6 months unemployment is about 2.6%.

But indeed if every individual in Brunei hasn't gotten a job, indeed becomes an issue. The government will indeed think of ways for us to generate jobs for those who have not worked. This matter has indeed been brought to high-level discussion,

if God wills it, will be discussed more in-depth shortly. Indeed, it's an important matter and the government is concerned about this unemployment issue.

Macroeconomic statistics show in terms of our thread with other countries already shows progress until our non-oil and gas export exceeded the oil and gas sector. So why still, the public as shared by Your Honourable Members there's still this business community that complains or feels the economy isn't advancing enough. Indeed, it's a status of regret, Yang Berhormat Yang Di-Pertua.

If we look at our GDP development or growth, most of it is more towards the manufacturing industry like Hengyi, BFI, BMC, and so on. So, if we break it down to other sectors we see in terms of food and beverage there's one subsector that's increasing. If any business involved in food, indeed feels there's progress. But most of our SMEs, especially in the wholesale and retail sector, this sector appears to decline.

Maybe due to this decline, many of our SMEs in this subsector have worries. Why isn't the economy advancing? There are a few reasons, Yang Berhormat Yang Di-Pertua.

We see inflation increasing in the past few years. The deposit and loan rates are higher than before. So indeed, in any economic theory, if the saving rate is higher, it encourages saving, discourages spending.

This is one way to tackle inflation. The second issue, maybe most of our people go abroad at the end of the year so indeed much is spent abroad instead of spending in the retail sector domestically. This is a problem.

While not wanting to give an excuse but how can we control people going abroad? The third issue, we see in this era, many people use online shopping even without going abroad.

Compared to before, most of our people bought necessities domestically. But now can use online shopping. This matter doesn't only happen in Negara Brunei Darussalam. We can see in the United Kingdom, many retail space department stores are closing. This is a phenomenon explaining the economic structure worldwide at this time.

So, this may explain the business sentiment in this country which is also not different from other states. One thing we also need to think about, the economy is not something that can be guaranteed. Is it just changes in GDP that continue to advance? For years it increases and then there comes a time of downturn. So, the business community is forced to face it wherever the cause might be, it's not government’s doing. We indeed like an open economy. Indeed, whatever factors that affect the global economy will also affect our economy. So, we need to respond to it too, that’s why our businesses must also be taught to be versatile.

Indeed, there are times when business is not as good as before. This must be a fact that we must admit. Business cannot be continuously growing. At this time we are part of the world economy, many countries not doing well. Economy not doing well. We also, with our efforts to reduce burdens and these initiatives, are confident that indicators explained by you such as macroeconomic indicator will be able to address issues in terms of economic diversification.

In terms of tourism, maybe one day the esteemed council during the session will answer it but I will add a little more. If compared to tourism numbers in 2019 with 2018, our 2019's tourism number significantly increased because we had many tourists from China. But if we look at the current situation, China's economy is affected. So, the number of tourists from China is decreasing. This is already felt in European countries, America, and also ASEAN. So how are we going to further increase tourism? This is not a straightforward matter but we must continue to work on it.

Kaola will share kaola's views on the reasons that can affect this tourism aspect. There are some questions kaola might not yet be able to explain. Yes, this device has information that kaola will share more on. That is all kaola can share.

Thank you, Yang Berhormat Yang Di-Pertua.

Yang Berhormat Yang Di-Pertua

Thank you, Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II. I think that concludes our discussion for the Bill (2024) Expenditure, 2024/2025 thus as usual and according to our rules it's better now to vote on this Bill. Your Honourable Members who agree please raise your hands.

(All Members raise their hands as a sign of agreement)

Yang Berhormat Yang Di-Pertua

It seems Your Honourable Members agree.

Yang Mulia Jurutulis

"An Act To Supply A Sum Of Money From The Consolidated Fund For The Service Of The Financial Year 2024/2025 and to allocate that money for certain purposes".

Yang Berhormat Yang Di-Pertua

Your Honourable Members. Yes! The Moving Bill: "An Act To Supply A Sum Of Money From The Consolidated Fund For The Service Of The Financial Year 2024/2025 and to allocate that money for certain purposes" has been voted on.

I think that’s enough for our session today, this session as I adjourn and yes, this device we shall reconvene on Saturday, 2 March 2024 as usual starting from 9:30 AM.

That’s all, May Allah bless us with guidance, determination, and the right path

(The Meeting was adjourned)

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