DAY 10 MORNING
11TH MARCH 2024 - MORNING
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Yang Mulia Jurutulis
In the name of Allah, the Most Gracious, the Most Merciful. The First Meeting of the 20th Session of the Majlis Mesyuarat Negara is convened today, Monday, 30th Syaaban 1445 corresponding to 11th March 2024, starting with the recitation of the prayer for prosperity.
DOA SELAMAT
The prayer for prosperity was recited by Yang Dimuliakan Begawan Pehin Khatib Dato Paduka Haji Awang Suhaili bin Haji Metaili Al-Hafiz (Imam of the Jame' 'Asr Hassanil Bolkiah Mosque).
Yang Berhormat Yang Di-Pertua
(missing jawi words), we are grateful to الله سُبْحَانَهُ وَتَعَالَى for His mercy and permission, allowing us to gather again today and to convene on the tenth day of the First Meeting of the 20th Session of the Majlis Mesyuarat Negara. Blessings and peace upon our Greatest Leader ﷺ and his family, companions, and the faithful followers till the end of time.
Your Honourable Members. The Majlis Mesyuarat Negara continues to discuss the Bill (2024) Supply, 2024/2025 proposed by Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II. To allow us to review this Bill one by one in an orderly and swift manner, I hereby adjourn the session of the Majlis Mesyuarat Negara and we will reconvene in Committee Stage in full.
(The Majlis Mesyuarat is adjourned)
(The meeting reconvenes in Committee Stage)
Yang Berhormat Pengerusi
Your Honourable Members. This Council is now in full Committee Stage to consider the Bill (2024) Supply, 2024/2025 proposed by Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II.
Your Honourable Members. The Committee meeting on Saturday afternoon discussed and reviewed the budget under the Ministry of Finance and Economy and its departments.
So, before we move on to the Ministry of Finance and Economy, where we have begun to discuss the budget of this ministry, I understand that Yang Berhormat Menteri Hal Ehwal Luar Negeri II would like to take the opportunity to make a statement and response to the questions that were raised by Your Honourable Members during the discussions of the Ministry of Foreign Affairs last Saturday morning. Therefore, I now invite Yang Berhormat Menteri Hal Ehwal Luar Negeri II. Please go ahead.
Yang Berhormat Menteri Hal Ehwal Luar Negeri II
In the name of Allah, the Most Gracious, the Most Merciful, and peace be upon you. Firstly, kaola would like to thank Yang Berhormat Pengerusi for the opportunity to make some clarifications and explanations regarding some questions that were raised in the last meeting by Your Honourable Members.
Among them are questions that were posed by Yang Berhormat Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Haji Awang Suyoi bin Haji Osman, Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin, and Yang Berhormat Dayang Chong Chin Yee.
On this matter, in response to the questions, are as follows:
Are there enough officers and staff to perform substantive work aside from logistical work because the budget does not indicate an increase in this regard and shows that our representation can carry out duties effectively? In responding to this query, I want to state that the ministry operates according to the allocated budget and staffing. Currently, in terms of staff, the ministry has 578 people in and outside of the country, with 403 people within the country and 175 abroad. Thus, in an ideal situation, the ministry indeed welcomes the addition of officers and staff.
However, from a pragmatic standpoint, the ministry's approach is to operate using the existing human resources optimally as far as possible. The ministry is always seeking approaches to secure additional positions to accommodate the needs of the ministry's continually progressing human resources but is subject to the prevailing circumstances.
In this matter, even though the number of Brunei Darussalam's diplomats and staff abroad is not as high as other countries when compared, the ministry will ensure that the existing human resources have comprehensive skills and expertise to allow them to perform their duties effectively and ensure the country's interests are always safeguarded.
Overall, the ministry also ensures that smooth resolution or coordination between the representatives abroad and the ministry is maintained to provide the necessary support and guidance.
To answer the next question, how does the ministry evaluate the performance of representative offices regarding representation, it's challenging to ascertain whether the allocations match the needs and functions of the representation and why not follow the KPIs of each representation that benefit in terms of trade and tourism to this country?
It would serve as motivation for those representations. Generally, representative offices have various roles and responsibilities. This includes producing substantive reports, political, economic, or social, carrying out administrative duties, coordinating official visits, and looking after the well-being of Brunei Darussalam citizens abroad. Each representative office is also tasked with identifying opportunities to expand the economy through coordination with government agencies including the trade and tourism sectors.
In this matter, it's requested to understand that the expectations for representative offices vary among one another, and according to the interests of those countries. For instance, in terms of trade, Brunei Darussalam has a high-trading volume with some countries which might not be the same with other countries.
Meanwhile, considering the existing number of representative offices, the ministry needs to give more attention to those countries and must be strategic in its approach.
Furthermore, to answer the next question: Does the Ministry of Foreign Affairs plan to have its diplomatic academy or cooperate with local universities to enhance professionalism and capacity like the academies held in friendly countries?: In responding to this, thus far, the planning for establishing a diplomatic academy is always under internal consideration. It will require several important aspects.
Among them are:
to have a suitable location, which will be selected for its proximity to the ministry or its relation to the ministry.;
Skilled manpower, experienced in foreign diplomacy issues or in networking and cooperation issues with relevant countries.;
Regarding the required allocations. Thus, securing a location and skilled manpower and then securing a high allocation are necessary. This needs to be focused on to ensure that the academy can operate optimally in the long term. This has been considered for a long time and is still under consideration, only the location has not yet been acquired.
For Your Honourable Members' information, this is not a new issue and has been raised more than 20 years ago. But, God willing, with the new Ministry of Foreign Affairs building, this will be able to be undertaken more smoothly.
However, the ministry will prioritize increasing the capacity of officers and staff, such as enhancing their skills through leadership courses, negotiation courses, public speaking courses, and so on, as well as consular, protocol, administration, finance, and other matters.
Since the establishment of this Ministry 40 years ago, regulations for pursuing Masters or postgraduate degrees have evolved, and we must follow the rules set by the relevant agencies.
In previous years, the Ministry of Foreign Affairs has applied to pursue Masters degrees abroad, and more recently, more have taken up scholarships offered by partner countries. For example, ten officers from this country have received sponsorships to pursue Masters degrees in 2022 to 2023 in Australia, fully funded by the Australian Government. In addition, there are also short courses offered in diplomatic training by countries like India, Turkiye, Netherlands, Singapore, Malaysia, China, South Korea, Japan, and New Zealand.
Next, to address the question of whether the Ministry of Foreign Affairs has a strategic plan that can be shared to see the direction of the ministry in line with the stated allocations. In general, the strategic approach of this ministry is to continue strengthening cooperative relationships with partner countries, as kaola said in the introduction, is to build and maintain that bridge so it remains open for a close relationship in terms of trade, investments, tourism, and so on.
We also aim to establish more strategic cooperation at various levels with some countries, for instance, with Viet Nam we have comprehensive partnership, with Laos strategic partnership, with the United Kingdom strategic partnership, and with Australia comprehensive strategic partnership. This ministry will continue with this approach and work towards upgrading cooperation and good relationships with the relevant countries.
From a strategic perspective, it is to enhance the level of cooperation with countries with which we have diplomatic relations.
In this matter, foreign policies like maintaining good relations with all countries, not intervening in the internal affairs of other countries, and so on are consistent and unchanged.
In addition, this ministry also provides tasking papers that enable Ambassadors, High Commissioners of Brunei Darussalam, and officers and staff working at overseas representations to identify and implement the set interests to move forward, the ministry is examining ways to further enhance the effectiveness and strategy in the implementation of foreign policy, especially in conjunction with the 40th Anniversary Celebration of the Establishment of the Ministry of Foreign Affairs.
Next, to answer a remaining question posed by Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin. Are we constructing our buildings or renting available buildings? There are as many as 15 representative office buildings, 11 houses or official residency apartments for heads of representation, and a total of 54 units or apartments for home-based staff officers under the control of the Ministry of Foreign Affairs. In terms of constructing our buildings, subject to the increase in activities and also in terms of the cost-benefit of having those buildings will be considered from time to time. Indeed, renting buildings in the short term is cheaper but maybe in terms of the long term will be more expensive than constructing our own buildings.
Next, to answer the remaining question posed by Yang Berhormat Dayang Chong Chin Yee. How does the ministry ensure the confidentiality of citizens' personal data in the e-Register collection? The e-Register system is hosted through the government's website, Central Web Hosting under the National e-Government Center. This ministry's website used is called SSL (Secure Sockets Layer), which is a security protocol that provides encryption protection to safeguard privacy and integrity while browsing and transmitting information through e-Register.
Personal information submitted by the public is received by consular officers and representative offices based on the destination country and it is categorized as confidential and not to be shared with other agencies or irrelevant individuals. This is one of the information control methods where only the said officer has access to the information.
Hopefully, these are some of the questions that kaola requested time to respond to, and in the meantime, kaola thank you, Yang Berhormat Pengerusi.
Yang Berhormat Pengerusi
Thank you for the response made by Yang Berhormat Menteri Hal Ehwal Luar Negeri II, regarding the questions that were already raised last Saturday. Are there any other Your Honourable Members who would like to add?
Now, to resume the debate on the topics under the Ministry of Finance and Economy Budget. I still have a list of Your Honourable Members who have expressed their desire to participate in debating the relevant topics.
I would like to take this opportunity once again to remind Your Honourable Members to make their questions or inquiries more concise and focused on the intended questions. I believe there is no need to start the questions with such lengthy explanations because the relevant Your Honourable Ministers already know about these matters. So if they don’t know, they will ask back. There is no need to make this a prelude because the relevant Honourable Ministers have already made a prelude. So, if the one asking also makes a prelude, then our time will be wasted listening to lengthy preludes that will cause the tasks to be delayed.
I now invite Yang Berhormat Awang Haji Md. Salleh bin Haji Othman. Please.
Yang Berhormat Awang Haji Md. Salleh bin Haji Othman
Thank you, Yang Berhormat Pengerusi.
In the name of Allah, The Most Gracious, The Most Merciful. Peace, mercy, and blessings of Allah be upon you, Your Honourable Chair and Your Honourable Members. Firstly, kaola would like to express gratitude to Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II for the comprehensive introduction filled with information and the ministry's direction towards aiming for the Financial Year 2024/2025 Budget.
Kaola fully support the proposal raised by my colleague Yang Berhormat Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Awang Haji Adanan bin Begawan Pehin Siraja Khatib Dato Seri Setia Haji Md. Yusof regarding cooperatives. In developed countries, the practice of cooperatives has been introduced in schools. Through the School Cooperatives Program, there are benefits for producing students who are business and enterprise literate and fostering the spirit of cooperation between cooperatives and to increase the financial resources of both the schools and students.
Kaola sees this initiative from a broader perspective on cooperatives affairs, direction, and good practices so that it can be pioneered by students and among the Municipal and Village Consultative Councils. With consistent guidance, it is possible to create successful cooperative companies with the best systemic governance, thereby streamlining the country's economy. As understood, the Ministry of Finance and Economy through the Cooperative Development Unit, Industrial and Business Ecosystem Division has held briefing sessions and exhibitions on the best practices of corporate governance for cooperatives for 2 days starting on 9-30 November 2022 themed "Conducive Business Environment, Enhancing Cooperative Sustainability".
The question is, previously, kaola suggested that these cooperatives could be widely promoted by targeting the participation of the new generation as an effort towards producing future entrepreneurs and business members, with the will of Allah.
Typically, the members of cooperatives are comprised of the senior group compared to the younger generation. So far, what is the involvement in the establishment of cooperatives in schools? To regain public and community trust in investing in cooperatives, kaola suggests there must be law enforcement to take action against any untrustworthy leaders such as those misappropriating cooperative funds and assets.; and
Kaola is pleased to touch on the Tender Projects of the Government. This issue needs to be reviewed again in terms of its suitability by considering its impact on government expenditure. This relates to issues of delays caused by projects not being completed according to the set schedule. Reasons such as lack of construction materials stock, rainy season, reduced workers are unacceptable excuses.
In this case, the government should firmly place officers with integrity and trustworthiness in carrying out duties. This includes imposing high penalties for delays so that contractors will not be careless in managing and executing the projects. Therefore, it is suggested that the rules and conditions in tender documents could be reviewed again, taking into account the matters mentioned earlier. I seek enlightenment from Yang Berhormat Menteri regarding this.
Thank you, May Allah grant success and guidance, peace, mercy, and blessings of Allah be upon you;
Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II
Thank you, Yang Berhormat Pengerusi. Thank you for the question posed by Yang Berhormat earlier.
Regarding cooperatives, kaola would like to share that since the responsibility for cooperatives was transferred to the Ministry of Finance and Economy about 3 years ago. Several efforts have been enhanced in terms of monitoring and improvement among several cooperatives existing in the country at this time. So far, 'kitani' are making all the cooperatives in this country concerned with governance issues such as annual general meetings and so on. Luckily, 'kitani' see the results in several cooperatives at this time that have significantly improved their performance in terms of financial achievements and so on. At this time, the effort to further advance cooperative activities will continue.
Currently, cooperatives are involved in several fields, including not only gas stations but also involved in education, agriculture, transportation, and so on. So 'kitani' will continue, with the will of Allah, to share this information with the public, anyone interested in establishing a new cooperative or joining an existing one can enhance 'awareness' on this issue.
Regarding the involvement of schools in these cooperatives, it can be in consultation with any cooperative they are interested in participating with. At this time, there is a cooperative involved in education. So, if there are schools that have the funds to continue joining this cooperative, kaola are not quite sure of schools that have their own funds to get involved in cooperatives. If they want to understand more about what exactly the role of cooperatives is, they can visit the Ministry of Finance and Economy II for clearer information, in the name of Allah, The Most Gracious, The Most Merciful.
Regarding tenders. The government is indeed monitoring this issue from time to time, not only under the Ministry of Finance and Economy II. 'Kitani' are also looking at problems or improvements that 'kitani' need to make from feedback from all ministries, not only under the Ministry of Finance and Economy II. That is all kaola can share. Thank you, Yang Berhormat Pengerusi.
Yang Berhormat Pengerusi
Thank you, Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II. Now I invite Yang Berhormat Awang Mohammad bin Abdullah @ Lim Swee Ann.
Yang Berhormat Awang Mohammad bin Abdullah @ Lim Swee Ann
In the name of Allah, The Most Gracious, The Most Merciful. All praise be to Allah, the Lord of the Worlds, The Most Gracious, The Most Merciful, Owner of the Day of Judgment.
Your Honourable Chair and Your Honourable Members. Alhamdulillah, kaola welcome the planning and direction of the ministry under the Budget for the Financial Year 2024/2025. Thank you for the comprehensive and thorough introduction by Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II.
Kaola would like to discuss the Royal Customs and Excise Department. The Entry and Exit System (EES) and the Vehicle Entry Exit System (VES) were fully utilized on 1st August 2020. The application process for both systems was conducted online.
Kaola welcomes the government's efforts in implementing new systems to keep pace with current advancements. At the same time, the country is moving forward in adopting cashless payment methods, as seen in developed countries. However, we need to consider the pros and cons of this system from the users' and the public's perspective, where conducting regular surveys on users is a good step towards improving the existing services. This includes identifying common problems faced by the public, such as failures in making online payments due to various factors.
Providing payment counters that accept credit cards at control posts is one way to address this. In connection with this, kaola seeks clarification on whether payment counters at government departments, including those at control posts and Brunei International Airport for duty and import payments, use cashless payment methods?
Thank you,
In the name of Allah, the Most Gracious, the Most Merciful. All praises be to Allah, Lord of all worlds. Peace and blessings be upon you.
Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II
Thank you, Yang Berhormat Pengerusi. Also, thank you for the question raised by Yang Berhormat.
Regarding payments at customs control posts, and other control posts using credit cards, the answer from kaola is that our control posts now accept credit cards. If someone applies for EES or VES not online, at our control posts, we have a counter for people to apply in person and can use a credit card as a payment method. Computers are also available at control posts for those who still wish to use online payment. That is all from kaola. Thank you, Yang Berhormat Pengerusi.
Yang Berhormat Pengerusi
Thank you. I now invite Yang Berhormat Haji Awang Sulaiman bin Haji Nasir.
Yang Berhormat Haji Awang Sulaiman bin Haji Nasir
Thank you, Yang Berhormat Pengerusi.
In the name of Allah, the Most Gracious, the Most Merciful. All praises be to Allah, Lord of all worlds. Peace and blessings be upon you.
Yang Berhormat Pengerusi and Your Honourable Members. Kaola takes this opportunity to express congratulations and thanks to the introduction presented by Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II, towards realizing the mission and vision for the Financial Year 2024/2025 Budget. It is hoped that all that is planned can be successfully implemented.
Kaola is pleased to touch upon the current business trends in Negara Brunei Darussalam. The year 2023 and recent years have been a test for traders, whether they run large, medium, or small businesses. However, Negara Brunei Darussalam is not exempt from the fast-changing business trends.
The social commerce revolution is among the business trends that present an attractive alternative for online shopping. Furthermore, the trend for businesses to shift towards Digital Operations Platforms is increasingly widespread as they seek new alternatives to attract customers such as:
- Providing apps for ordering and delivery without personal contact;
- Offering self-pickup services at stores or suitable locations;
- Providing easily accessible websites, especially mobile-friendly ones; and
- Increasing live chat services to promote, sell, and offer business products.
With this digital transformation, kaola views it as an indicator of the direction and challenges towards providing conducive infrastructure and facilities.
In connection to this, kaola seeks clarification on business trends in Negara Brunei Darussalam that will continue to develop over the next 5 years? According to studies or records, what are the highest or most popular types of businesses ventured into by local youths?
What are the government's plans and efforts to ensure that these business trends can be capitalized upon by local youths, especially Small and Medium Enterprises (SMEs) to foster the country's economic growth? This is all that kaola can convey and seeks clarification from Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II on this matter.
Thank you, May Allah grant us success and guidance, Peace be upon you, and God's mercy and blessings.
Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II
Thank you, Yang Berhormat Pengerusi. Thank you, Yang Berhormat for the question raised earlier.
Indeed, digital transformation is a development phenomenon that we see could continue to grow in the coming years. Therefore, the government encourages us all to welcome digitalization, etc. The government has provided infrastructure such as reliable and fast connectivity. We saw during COVID-19, many of our people, especially small business owners, also participated in the digital platform. The question about what might be popular businesses for our local youths to participate in in the next 5 years?
For kaola, this digital platform, we mostly see in terms of food where it's becoming popular everywhere. Secondly, we use digital platforms to advertise our businesses, not necessarily just food. So, anyone involved in matters like consultancy or types of goods sold could use digital platforms to advertise our services. This actually depends on public reception. The question raised earlier was in terms of businesses. But, we must also look at the demand side, not just the supply side. In terms of what development will be in the future, we'll see what the demand side is like. So, only then can we respond, we can't predict now but don't know what actually the future demand for products or services needed will be. So this is where, for any SMEs, we can plan based on the current COVID-19 pandemic. Most of them were involved with food, some boutiques sold scarves, clothes, etc., so that's what's popular.
However, SMEs need to continue to analyze the future market. In terms of demand and so forth. So, they need to be more agile and more flexible.
That's all kaola can share. Thank you, Yang Berhormat Pengerusi.
Yang Berhormat Pengerusi
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. Peace be upon you, and God's mercy and blessings. Thank you, Yang Berhormat Pengerusi.
Yang Berhormat Pengerusi and Your Honourable Members. First, kaola would like to thank Yang Berhormat Pengerusi for giving kaola the opportunity to participate in the discussion. Kaola will proceed directly to the question.
Yang Berhormat Pengerusi and Your Honourable Members.
Do not overlook the contribution from oil and gas operations. Greetings and congratulations on the diligent efforts of the ministry through the Economic Blueprint and similar initiatives to diversify sources in increasing the country's revenue so as not to wholly depend on the oil and gas industry. The revenue from the oil and gas industry, which has been considered as the goose that lays the golden eggs for Negara Brunei Darussalam and has been the main engine for the country's growth over six decades, now faces sustainability challenges.
Initiatives to diversify the economy and not solely depend on oil and gas have yielded encouraging results. Kaola takes note of the latest report indicating that downstream activities have surpassed the oil and gas sector. The oil and gas industry's revenue was reported to be affected due to a decrease in production rates, thereby missing out on the opportunity to gain greater revenue with the current high oil and gas prices.
Even though efforts to diversify the economy are being actively enhanced, kaola hopes that the ministry and related agencies will not neglect but sincerely focus on urging oil and gas companies to intensify their efforts by increasing initiatives to boost production and reduce operational costs.
It is important to remind oil and gas operators who have previously enjoyed significant profits from high production and low-cost operations to continue investing and contributing new capital into this sector even in challenging return environments.
The reasons for reduced returns should not prevent them from exploring the use of alternative technology methods to maintain and increase production. At the same time, seeking operational efficiencies to reduce costs without neglecting health, safety, and environmental standards.
What measures and action plans will the ministry take through specific agencies to ensure that oil and gas companies do not merely do business as usual but continue to invest in asset resolution and recovery efforts, and search for new operators to explore and develop marginal fields in areas they currently control?;
Foreign Direct Investments review. Where do we fall short? Our success in attracting Foreign Direct Investments (FDI) remains low. According to the ASEAN 2023 Investment Report, Brunei Darussalam has been at the bottom among ASEAN member countries consistently. With FDI reportedly recording a negative value of $300 million in 2023. Kaola understands that this report is incorrect and inaccurate. If this fact is wrong, what efforts will the ministry make to correct it so that potential investors interested in investing in our country do not misunderstand that the investment environment in our country is not conducive.
In discussion sessions with the ministry, it was reported that various efforts have been made to attract Foreign Direct Investments (FDI), especially in selected sectors. However, these consultation efforts did not result in significant investments and most failed to reach an agreement at the final stage due to certain reasons.
Kaola is sure the ministry has made assessments and considered the lessons learned from the failed discussions with these potential investors. Please enlighten, what are the main stumbling blocks that caused the failures of the negotiations? Do we need to improve our approach to obtain mutually beneficial terms and conditions that attract both parties?
It seems that FDI efforts are exclusively led by government agency. How can the ministry actively involve the private sector to complement the government's efforts in achieving FDI targets? Perhaps the terms and conditions of FDI are unclear and only known to government agencies exclusively, which is a challenge. Transparency in this matter is important. Taking examples from other economies, establishing special economic zones with transparent terms and conditions might empower private investors to accompany and assist the government in planning and attracting FDI directly.; and
FTAs. There are several Free Trade Agreements that have been signed. Covering a total of 24 economies with a potential market reach of about $3 billion.
Even though there is a broad scope for business, there is a gap in understanding and awareness amongst the business community in this country about the details of these FDI agreements and the opportunities provided. This raises the question, how can we effectively communicate the benefits and terms and conditions offered by the addressed FTAs to local traders, especially Micro, Small, and Medium Enterprises, to gain their benefits.;
The collection of revenue from foreign businesses in ensuring the growth and sustainability of our economy is crucial to ensure all foreign businesses operating in Brunei Darussalam contribute. Although these companies repeatedly say their tax revenue does not reach the set threshold, we must maintain the principle that all entities, regardless of size or industry, play a role in developing the economy.
Consider just a small business of ours selling "Nasi Katuk". If this local merchant himself fails to record a profit, it will surely close business shortly after operation. Therefore, if foreign entities continually report no profit to yield low tax returns from the size of their operations, just look at the luxury cars driven by the business owners requiring further detailed investigation. By ensuring transparency and compliance with financial regulations, we maintain the integrity of our economy while creating a conducive environment for capable and prosperous economic growth; enforcement of collection of taxes is important.;
Ease of Doing Business; We need to congratulate various agencies that have taken good initiatives to improve our global standing in terms of starting a business. According to the World Bank's Ease of Doing Business Report for Brunei Darussalam in 2020, Brunei Darussalam ranked 4th among ASEAN countries behind Singapore, Malaysia, and Thailand and Brunei Darussalam is 16th in terms of ease of starting a business globally and is the 66th easiest country to do business among 150 countries in the world. It also reported that our country is the easiest to obtain credit globally.
How has the positive assessment in these business facilitation initiatives contributed to our economic growth and what are their contributions in percentage to our financial revenue? Moreover, how have these initiatives contributed to reducing unemployment among our graduates and youth? If it does not show a positive impact, should it be continued?;
RKN-11 and 12: Project Completion and Financial Performance. Have we conducted a detailed analysis of the completion of projects in RKN-11 and their financial performance? How many projects have been completed on time according to budget and as planned and what lessons have been learned to ensure the implementation of RKN 12 will be better? Considering our construction contractor community fully depends on the work within the development planning, RKN 12 must deliver what it is intended for; and
Yang Berhormat Pengerusi, the last is Enhancing National Revenue Through National Tax Collection. In response to kaola's question about the plans identified by the ministry and government agencies in efforts to reduce the country's deficit, which will amount to $3 billion for Financial Year 2024/2025 without affecting Public Services and reducing projects that address people's issues: The concerned Yang Berhormat Menteri explained that this deficit is reduced by increasing revenue and productivity and reducing waste in public services.
One avenue to raise national revenue in other countries is from the collection of corporate business taxes (corporate tax), sales or VAT (sales tax), property tax (property tax), personal income tax (income tax), and various other taxes. I am impressed by the concern of Kebawah Duli Yang Maha Mulia Paduka Seri Baginda Sultan dan Yang Di-Pertuan Negara Brunei Darussalam for the welfare and affordability of the people, there are no plans by the government to create Income Tax and Sales Tax to increase national revenue. Therefore, efforts by government agencies in tax collection must be effective. Hence, the issue of tax collection from business entities that reap rewards in Brunei Darussalam must be enhanced and its enforcement strengthened. There are many opportunities for businesses to operate in Brunei Darussalam to contribute part of their profits as tax.
The principle of if opening a business enterprise in Brunei Darussalam and collecting funds from the public whether from sales, collecting rent, or buying or providing service and taking a Foreign Worker Permit to work with it should be evaluated whether they should pay taxes.
Kaola requests enlightenment if there are efforts to review tax collection from businesses that are still unregistered but carry out business on a large scale collecting significant funds from the public, such as unregistered sole proprietorships but have a large quota for bringing in foreign workers without making direct contributions, should they now be required to register with the Register of Companies to become "Sendirian Berhad and provide audited accounts."; and
How about unregistered housing developers who build and sell dozens of rows of houses and shops. Can they have been reviewed to contribute their fund collection as tax? Should individuals or enterprises with rows of rental houses and shops collecting monthly rent now pay tax? Are all businesses or enterprises that obtain contracts with the government already registered and starting to pay taxes? What about businesses known as 'fly-by-night operators' that come to Brunei Darussalam before a celebration to attend exhibitions, bring their products to Brunei Darussalam, sell at Brunei Darussalam prices then take back all the collected money to their home country without paying taxes. The sales money is taken back in full without going through the local bank.
Fly-by-night operators not only fail to contribute to the nation's economy but also undermine the trade of SMEs who pay store rents and expect an increase in sales during the festive season but are impacted by these operators. This is a complaint from SMEs.
As for that, by the grace and guidance of Allah, peace be upon you and His mercy and blessings.
Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II
Thank you Yang Berhormat Pengerusi and thank you for the questions posed by Yang Berhormat.
Regarding the non-oil and gas sector. This indeed is not under the jurisdiction of the Ministry of Finance and Economy, but it relates to our efforts to elevate our economy. So, to answer Yang Berhormat's question, currently, we indeed aim to diversify the economy, but we never once mentioned reducing our efforts to advance the oil and gas sector. We continuously strive to maximize what we can produce from oil and gas. We have never shared with the public that we will reduce oil and gas activities. This question was also raised in the National Assembly Meeting Conference last year, and kaola has answered it. It doesn't need to be raised again.
Indeed, oil and gas companies, like any company, always review their cost of operation, bringing in new technology to improve the company's performance. Not just oil and gas, in any company, this is the underline principles of doing business, always looking out for the cost of the operation, and improving your efficiency and productivity. So, there's no need for us to be reminded of the oil and gas companies, furthermore, our oil and gas company is a multinational company.
Regarding FDI, Yang Berhormat mentioned earlier that the calculation might be wrong, but the FDI report is correct because what is used for it truly follows the OECD Standard. What kaola means in terms of calculation, one needs to look at this data, not to interpret it based on face value only, by just looking at the data and making a conclusion. So, to share, the way FDI is computed, it doesn't mean that in that year, only the amount of incoming is counted, it also counts if the company operating in this country, the FDI, if it has a loan from a financial institution from abroad, then the principal repayment or interest payment, this FDI calculation is taken into account which the payment out is considered as an outflow of FDI.
For example, if an FDI invests maybe $1 billion in this country, so that year, it's $1 billion might include equity investment and also financing of a total of $1 billion, then once it's operational in the following year, it makes a profit and a portion of that profit is paid as principal repayment to the financial institution abroad, it is counted as an FDI outflow. If it pays dividends back to the parent company abroad, that too is considered an FDI outflow. If we see it as a negative FDI, it's because most FDI companies that have been operating in Brunei have been operating for several years in our country and have made profits from these profits paid back to financial institutions abroad or dividends paid back to the parent company, that is made as our negative FDI. But what's important is, we should not just look at the data wholly, what's important is our effort to continue and attract more FDIs into the country. If there are issues, indeed there are several challenges compared with other countries.
Our domestic market is small, qualifications sometimes mismatch for example when we bring in Hengyi Refinery as an example, so how many of us before that were qualified in refinery before we made it involved in that industry, what was available beforehand was only the very small refinery in Seria apart from Hengyi Company for example. This will attract more FDIs into various industries that we might have never been involved in. So, this is an issue we must prepare workers who are more suited for several sectors that we develop. That's our third focus, further enhancing the skills of our workers.
What we need to do is not focus on which specific courses but we generally prepare their foundation, and after there’s FDI coming into any field, at least we have a foundation like TVET, HND and so on. So, if the industry comes, for example, Hyengi that comes here, we arrange courses, we collaborate with Hengyi, currently, there are 8 courses in TVET, HND with Politeknik Brunei and IBTE. So, we can train our people, once they pass, Hengyi currently offers whoever passes will be employed immediately. No need for an interview anymore. These are the opportunities we try to take advantage of. We are, like any other state, we also have strengths and weaknesses.
What we can't get, we always compare with others but what's important is, we continue striving to increase a lot more FDI, this requires cooperation from all parties, God willing.
So, this is the role of the private sector to together advance or play a role in attracting FDI, as kaola shared the other day developing the economy is not one hundred percent under the Ministry of Finance and Economy, other ministries and also the private sector, together we play a significant role in increasing, diversifying our economy further.
If there's less information from the private sector or from any party, we can meet BEDB to get information, AMBD and DARe also always share like Economic Blueprint, what actually are our priority sectors, what we expect the private sector to play a role in, and so on. So, this is indeed something kaola feels the Ministry of Finance and Economy in the coming year, God willing, will further increase the dissemination to the public, God willing.
The third, regarding FDI. This we have also shared in this Assembly Conference, we continue sharing information regarding FDI with the public whether business companies in our country are ready to take advantage of FDI subject to the progress of each business company.
Kaola on Saturday, you shared with our FDI at this time, we have been able to penetrate the markets of Mexico, Chile, Peru and it's because of our fertilizer, our BFI. So, perhaps for Micro, Small, and Medium Enterprises (MSMEs), this FDI has not yet been fully utilized by them, so to make preparations, indeed we always share their details with the private sector. So, even if our Micro, Small, and Medium Enterprises (MSMEs) are not yet ready to take advantage of this FDI, we don't need to worry, this FDI will not go anywhere and will remain there.
Maybe what will happen maybe FDI will further increase from time to time and this is what the Ministry of Finance and Economy always shares with the private sector, so if any party will ask in more depth, they can contact the Ministry of Finance and Economy. Next regarding the collection of revenue from foreign companies, kaola will just share that foreign companies before they want to conduct business in the country, must register their company with the Registry of Companies and Business Names Division (ROCBN) in Negara Brunei Darussalam.
So once they register, it is considered a Brunei local company and no longer a foreign company. If they register involving a foreign company, they must register as a Private Limited Company (Sdn. Bhd), so of course being a Private Limited Company, every year they must submit an Annual Tax Return to the Revenue Division at the Ministry of Finance and Economy and from there, we collect the tax, corporate tax, and so on.
So, in terms of whether we're collecting the taxes that need to be paid, indeed the Revenue Division if seen from achievements over the past few years, every year has seen increases.
So, this indeed is an effort that has been carried out from several years back and is not something new and is indeed an effort that has been undertaken a long time ago.
Thank you to Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin for the reminder, so to answer that question, it is indeed being carried out by the Ministry of Finance and Economy at this time. Further on the ease of doing business, to share with Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin, in 2021 the ease of doing business was dissolved by the World Bank. The reason being, as we see in the statistics as shared by Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin earlier, it seems that some countries were manipulating data, so whatever rankings we see sometimes are not accurate, hence, the World Bank dissolved the ease of doing business, and there's no longer a ranking of ease of doing business.
However, the Ministry of Finance and Economy continues to take some KPIs under ease of doing business from before and keeps monitoring our business environment's achievements and finds ways for us to continue to improve or further refine our ecosystem.
Next, on the sixth question regarding the National Development Plan (RKN-11), unfortunately, we experienced COVID-19 and many private companies also could not carry out some projects because consultants and workers could not enter, goods were hard to import, and so forth. So most of these projects are delayed, hence for the government some plans were not continued and implemented but as the steps always taken by the National Development Planning teams (RKN) under the Ministry of Finance and Economy, meetings are held with ministries in terms of projects under the National Development Plan (RKN) to understand or find ways so that these projects can be carried out as soon as possible. Indeed, this is an effort we continue and in the National Development Plan 12 (RKN 12) some measures have also been proposed for us to further improve our processes, God willing, with the efforts taken and to be taken more effectively, God willing, in terms of the implementation of projects under the National Development Plan.
The seventh on tax collection, at this time what exists are corporate tax and withholding tax. Taxes such as in other countries do not exist at this time. So before we consider whether those taxes mentioned by Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin earlier can be implemented in Brunei, we also have to consider the implications especially to the low-income group but this is a matter that needs to be checked from time to time. To answer this question, the Ministry of Finance and Economy is always reviewing this matter and indeed it is with your strong support
If there are changes, it will be shared or feedback will be taken from the community and from the private sector and so forth. So that's what I can share and another on fly by night operators, this actually if anyone from foreign countries wants to conduct business in the country if not registered is considered illegal. So this is a matter for enforcement agency together with us to tackle if there are members of the public or Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin have the knowledge who is operating fly by night, report to the relevant authorities. Thank you, that's all I can answer.
Yang Berhormat Pengerusi
Now, I invite Yang Berhormat Awang Lau How Teck.
Yang Berhormat Awang Lau How Teck
Thank you, Yang Berhormat Pengerusi, good morning and peace be upon you. First, I would like to express appreciation and thanks to Yang Berhormat Minister at the Prime Minister's Office and Minister of Finance and Economy II for the presentation shared. In connection with that, I have a proposal that I would like to raise under Topic SDO4A, Department of Economic Planning and Statistics.
Yang Berhormat Pengerusi and Your Honourable Members.
As we know, most of the society and citizens of the Nation of Brunei Darussalam at this time often go out and holiday in neighboring countries. In this matter, it is not impossible for them to go on holiday without shopping for basic necessities that can be obtained more cheaply in neighboring countries.
I am pleased to raise this matter because there is a very clear price comparison of goods in the Nation of Brunei Darussalam and in neighboring countries. This matter is also closely related to purchasing power. I also understand that the price comparison is also influenced by factors such as parallel imports.
Yang Berhormat Pengerusi and Your Honourable Members. Regarding this, I would like to request further enlightenment regarding the measures taken by the Ministry of Finance and Economy especially in terms of aspects to provide convenience and incentives towards providing welfare, safety and comfort for the citizens as well as encouraging shoppers to spend within the country to support the local economy.
For example, several local companies have given shopping vouchers within the country and not in the form of cash as a rebate. This step can encourage and increase sales volume in the Nation of Brunei Darussalam.
That is all, thank you Yang Berhormat Pengerusi.
Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II
Thank you, Yang Berhormat Pengerusi. Thank you, Yang Berhormat Awang Lau How Teck for the question to encourage the public to spend within the country.
To answer these questions, I also would like to share my own view. In terms of our people going abroad, actually, we discussed this in the previous State Legislative Council Meeting. Maybe for anyone, indeed there is an interest to go abroad occasionally, it's not possible to be years within the country only. If there’s an opportunity, people also want to holiday abroad and so forth.
So, it cannot be stopped. Sometimes people have already gone abroad, there's indeed expenditure abroad. Some go abroad not only for holiday or taking the family on holiday, it's specifically to cross to the neighboring country for shopping and immediately come back.
We need to look to avoid such a scenario, we must understand more about what kind of goods are always bought abroad. Not all goods in neighboring countries are cheaper than our country. Because some goods in the Nation of Brunei Darussalam are cheaper compared to neighboring countries.
So, we need to understand what actually are the goods they buy every week, month, and so forth. If we give vouchers, I think that it does not solve this problem. Neighboring countries give vouchers to address inflation issues or ways to help low-income groups and so forth.
When they want to spend, they spend in stores within the country. So, to address the issue raised by Yang Berhormat earlier, giving vouchers might not solve the problem. If we give vouchers, it's the same thing, vouchers are used to buy goods that may be cheaper from neighboring countries. So, still, they go abroad to purchase goods in neighboring countries that are cheaper than our country. So, it is not going to solve the problem.
What we need to do is to look at what products are cheaper in neighboring countries for addressing this issue. We might be able to work with distributors. Is our volume not big compared to neighboring countries?
There are goods that might be manufactured in neighboring countries, so if it is brought into the Nation of Brunei Darussalam with transportation costs and so forth, the price is higher.
This matter is not only about either we forbid the public from going abroad or give vouchers, we could also work with wholesale distributors, looking at cost of goods, potential margin because if the wholesaler still 'withholds' their profit margin, then the goods are priced high causing the public to go abroad.
This is not going to benefit the wholesaler too. If the wholesaler wants to encourage the public to buy within the country, perhaps they need to look at the margin, their profits and also identify goods that are more expensive within this country.
Actually, in this matter, the Ministry of Finance and Economy is working with the National Chamber of Commerce & Industry of Brunei Darussalam. There are results but not yet complete. Just an initial study so that we understand more what actually attracts our people to go abroad for shopping in neighboring countries. That's an effort under the Ministry of Finance and Economy to address this issue.
But to forbid people from going abroad, I don't think we have the ability to do that. Thank you, Yang Berhormat Pengerusi.
Yang Berhormat Pengerusi
I invite Yang Berhormat Pengiran Haji Isa bin Pengiran Haji Aliuddin.
Yang Berhormat Pengiran Haji Isa bin Pengiran Haji Aliuddin
Thank you, the wise Yang Berhormat Pengerusi.
In the name of Allah, the Most Gracious, the Most Merciful. All praises be to Allah, Lord of all the worlds. Peace and blessings be upon the noblest of prophets and messengers, our master Muhammad, and upon his family and companions.
Peace, mercy, and blessings of Allah be upon you. Thank you to Yang Berhormat Minister at the Prime Minister's Office and Minister of Finance and Economy II for the very clear preamble in preparing the budget and the direction of the Ministry of Finance and Economy for the Financial Year 2024/2025.
Considering our country is a welfare state that provides free education and healthcare, it's very understandable why we face such a deficit. However, the success of a country is also measured from non-financial aspects. More importantly, we still receive invaluable blessings.
Therefore, as long as we base our lives on Subhanahu Wa Ta'ala, who provides sustenance Ar-Razzaq and we remain religiously devout, this deficit balance does not exist. (missing jawi words) which means, "And you, which is Allah, are the best of providers".
Yang Berhormat Pengerusi and Your Honourable Members. Kaola have several issues to be discussed in this noble council. Code 001/002 regarding neglected government buildings and infrastructure to this day.
As 'kitani' can see around the country that many government buildings in ministries and government departments have been neglected for many years, and some are still visible to this day.
Kaola believes that with suitable modern business methods, these buildings can generate income for the country if they are managed, owned, and then inviting the private sector to rent or use them for their businesses.
kaola's question, can an allocation with Code 001/002, under the Projek Rampaian amounting to $203,157,070 and Projek Fokus amounting to $27.5 million for the purpose of repairing these buildings as part of the government's investment.
What kaola understand, the objective of the Projek Perkhidmatan Rampaian is to manage and process payments related to government estates and other payments on behalf of the government.
The second is regarding the Royal Customs and Excise Department. kaola understand that there are about 15 X-ray machines for scanning goods at entry and exit points and control posts across the country.
kaola also understand that these machines have been damaged and not functioning for a long time, or some were damaged, repaired, and then broken again.
kaola's question, what are the steps that have been and will be taken by the Ministry of Finance and Economy through the Royal Customs and Excise Department to address the issues kaola raised above?
Are there short, medium, and long-term strategies to ensure these X-ray machines are always functioning and used to monitor goods entering and leaving the country, ensuring the safety and security of the nation?
The third question is regarding Hengyi Industries Sdn. Bhd. Regarding the impact and benefits of the largest Foreign Direct Investment (FDI), which is Hengyi Industries Sdn. Bhd. to the country to date.
Phase 1 has ended and now Phase 2 has begun. What kaola would like to raise here is about its impact and benefits to the country to date, in terms of benefits to local companies and also employment opportunities for the local youth, this is the purpose of FDI.
kaola's question is, are there studies to analyze the spin-off effects? How many local companies are involved and benefited from the profits of the development of Phase 1, from the planning stage to its operation?
The fourth issue is Darussalam Assets Sdn. Bhd. (DA). Darussalam Assets Sdn. Bhd. (DA), is a private limited company established in 2012, owns about 36 government-related companies to Government Link Company.
From Darussalam Assets Sdn. Bhd. portfolio in various economic sectors including aviation, telecommunications, power utilities, logistics, agriculture, food and beverage, recreation and tourism, medical, education, hospitality, and real estate. It is part of a government-led initiative to drive strategic economic development to make these companies world-class.
The first question regarding Darussalam Assets Sdn. Bhd. is, 12 years have passed, how many of these companies are already world-class?
The second question, besides internal audit and the audit by the Auditor General. Are these companies also subjected to external audit? Please enlighten us on the results of these audits.
The third question, what are the financial results of these companies? Are they profitable or otherwise? Can this company stand on its own from a positive cash flow?
The fourth question, if not profitable, does the government still inject money to manage these non-profitable companies?
The fifth question, does Darussalam Assets Sdn. Bhd. (DA) appoint from the private sector that is independent to monitor the companies under Darussalam Assets Sdn. Bhd.?
What kaola mean is, the company is run by the private sector/business people, but is there another independent private sector monitoring the business?
The sixth question, kaola believe this idea has been considered before, is it considered by Darussalam Assets Sdn. Bhd. Members at the Supervisory Council, Board of Directors, Management consisting of the private sector, which is as one of the engines of growth in the economy?
That is all, Yang Berhormat Pengerusi. والسلام علیکم ورحمة الله وبركاته
Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II
Thank you, Yang Berhormat Pengerusi. Thank you Yang Berhormat Pengiran Haji Isa bin Pengiran Haji Aliuddin for the several questions raised.
First of all, a general comment regarding Brunei Darussalam as a Welfare State. It's not a question but kaola would also like to add a bit about the statement shared.
Currently, 'kitani' indeed see in terms of health, education, and various services are provided by the government for free. 'Kitani' must understand more, this is indeed a burden to the government that if 'kitani' do not control expenditures in some of these services, it will become a high responsibility for the government.
We need to think of other alternatives so that this fiscal condition of the government is more sustainable in the long run. Regarding neglected buildings, whether the private sector can develop these buildings but first for the government to 'take control' back of the building before handing over to the private sector.
Kaola feels that the suggested capital can be further improved as there is currently a negotiation, multi-storey carpark. This is one example of Public-Private Partnership (PPP). So in the criteria of Public-Private Partnership (PPP), it requires the private sector and the government in this example to share the business risk together.
So for the multi-storey carpark, 'kitani' negotiate with the private sector so that together 'kitani' can repair the building and then continue to develop it.
So other than spending everything to repair the building, it doesn’t "fall back" to the government but after that handed over to the private sector. The private sector does not have investment, just operating it. This is not the same as Public-Private Partnership (PPP) capital.
So these neglected buildings 'kitani' can think of using Public-Private Partnership (PPP), together 'kitani' take part and subsequently bear the operation risk together by providing incentives so that the private sector and the government together have a vested interest because 'kitani' are both investing in the building, that's a mode that is indeed encouraged.
So if there are more thoughts on which buildings are neglected, perhaps the government no longer uses, it can be suggested for us to think together for a solution. Kaola want to add a bit, there are also new projects, the government is thinking if there are private sectors want to take part, to develop and operate, the government has offers for the private sector to run. But it seems there are some projects not interested by the private sector, but this matters can be thought of. Indeed a good proposal for us to think together.
In terms of customs, indeed there is one x-ray machine that is 15 years old and currently broken but for the Customs Department, it feels it is not worth repairing, the cost is more expensive if we buy a new more latest x-ray machine and so on.
So to assure the public, at this time at any control post all have functioning x-ray. Currently, at the port, we cooperate with GLC to buy one x-ray machine that we can x-ray containers at once, no need to open check one by one. Currently waiting for approval from the concerned authority, regarding the x-ray, so if there is already permission, we can operate. It's more efficient.
In terms of Hengyi Phase 2. What impact does it have on local business or local businesses? Indeed every FDI that comes into the country, indeed has its positive impact on local businesses. So depend on direct benefit or indirect benefit. That day kaola saw but this amount needs to be updated again. So whether direct or indirect, Hengyi benefits at least 60 local companies that have. This is the amount last year.
So, the indirect benefit, sometimes like Hengyi it requires some services that cannot be provided by local companies.
So Hengyi brings partners from other countries to make a joint venture with local companies so that they can establish a new service. So that whatever services needed by Hengyi can be implemented in the country, no need to send the goods out for service before being returned to the country.
So there are several benefits, some direct benefits such as catering, security services, transport, and so forth. Those are considered a bit more direct. There are also indirect benefits like joint ventures and so on. This is indeed an effort that we can continue to enhance further.
For Hengyi and any FDI, they prefer to work with local companies because it’s cheaper than sending the goods overseas and then bringing them back into the country after service and so forth.
The fourth is about Darussalam Asset Sdn. Bhd. We must understand more about why Darussalam Asset Sdn. Bhd. was established in 2012. Before that, most of our GLC's did not submit annual reports and such, corporate filings were less satisfactory.
So, this is one of the efforts of the Ministry of Finance and Economy to take over most of these GLCs so that we can not only improve annual reports and so forth but also governance, board of directors, trainings, and so on.
These are the issues to jointly enhance GLCs. Whether they are world-class or not, as a small country, what is the actual criteria for comparing our companies to world standards?
But if we want to look from the perspective of efficiency, impact on the state, a company that kaola can share is UNN. If we look at mobile services speed, we are in the top 10 in the world at this time. We roll out 5G which many states do not yet have. Our penetration into the community reaches more than 90%. This is an achievement compared with other states, perhaps many developed states cannot be compared with us.
So, if in terms of connectivity services and so on, we compare with international standards, mobile speed top 10, top 1 in ASEAN, that’s maybe a comparison we can make. If we compare with revenue, indeed we are a small state, the population is only so many, so it cannot be compared with Vodafone and so on.
What is important, as with the following questions. We don't need to think about whether we are world-class or not, we continue to improve our company. So in terms of audits, indeed all companies are audited. External auditor, internal auditor, government auditor, all can audit.
So how many companies are profitable? That's a good question. Indeed, it's a statistic that we make, not only which companies are profitable, we also monitor which companies can pay dividends to the government.
Which companies, even though they do not pay dividends, whether they are at a satisfying level of solvency, liquidity, we also monitor what their dividend projection could be given to the government.
So audit status and others, this is how we monitor. This is why Darussalam Assets Sdn. Bhd was established in 2012 until now, thankfully we can see every year there is an improvement. So as a whole picture, we give dividends to the government every year.
Darussalam Assets Sdn. Bhd. as a holding company no longer asks for funding from the government. Most companies in this state already see profit, so this is continued. Indeed, we want our GLC's to continue making profits so that they can pay dividends to the government without needing injection from the government, this is an achievement kaola feels Darussalam Asset has done a good job so far.
Except, at this time Royal Brunei is no longer under Darussalam Asset, it is under another holding company. So, what remains under Darussalam Asset no longer has cash injection from the government.
So for the Private Sector to monitor GLC's, that's the wrong way around. Indeed, the GLC's, the shareholder is the government. The government as a shareholder always monitors GLC's. Moreover, with audits, both external and internal, that should be enough I don't think we need the private sector to monitor GLC's, it already has its responsibility.
Regarding DA Board Members whether we can invite the private sector to join in the board, that is a thought that can be considered. So, at this moment we do have some companies, indeed we appoint CEO from non-government officials holding important positions in running the business.
Some parts of the Board, we also invite the private sector, this can continue to be developed if there are suitable directors, but there must also be someone who can contribute.
That's perhaps the questions from Yang Berhormat Pengiran earlier. Inshallah, hopefully, it has answered all of them. So, if kaola may ask for permission from Yang Berhormat Pengerusi there are some questions raised earlier that kaola did not get a chance to answer.
So kaola would like to refer back to a question posed by Yang Berhormat Awang Abdul Aziz bin Haji Hamdan about the actions taken for offenses under the Price Control Act, Chapter 142 especially price control during the festive season.
So, to answer that question. The Department of Planning, Economy and Statistics through the Department of Consumer Affairs is indeed responsible for enforcing the Price Control Act, Chapter 142 covering the scope of price control, price tag display, and discount sale events.
Through amendments to the said Act, JPES also has the authority to take enforcement action on offenses under seasonal maximum price setting since the year 2021. So, Chapter 10(a) under the said Act, gives power to JPES to impose a compound issued progressively according to the frequency of offenses with an amount not exceeding $1,000.
For the first offense under the category under the same offense, a warning notice will be issued, for subsequent offenses a compound will be issued progressively not exceeding $1,000. If still committing repeated offenses, a maximum fine of $20 thousand and imprisonment for 5 years by the court according to the Price Control Act.
However, so far, there have been no repeated offenses brought to court. JPES is currently reviewing the procedures concerning the enforcement of the said Act.
Next, several questions from Yang Berhormat Dayang Hajah Safiah binti Sheikh Haji Abd. Salam. Her first question is concerning the improvement of the existing system in TAFIS 2.0.
It is with pleasure that kaola shares several improvements to TAFIS 2.0 from TAFIS 1.0 for the general public especially for government suppliers is also the introduction of a new portal known as the Government Vendor Portal.
Among its advantages and benefits are that the public or suppliers will be able to monitor the status of claims and payments from the dashboard provided within that portal.
The dashboard is one of the new functions desired to help in enhancing transparency, efficiency, and accountability for each ministry and department in the process of claims and payments by the public.
TAFIS 2.0 also through this dashboard, can be accessed at any time, 24 hours and reduces the need for the public to visit ministry and department counters just to know the status of payment.
Through TAFIS 2.0 as well, the public or suppliers will be able to update the status of delivery and issuance of invoice claims online furthermore the public will also receive online notifications in TAFIS 2.0 from the ministry and department regarding with goods and services received.
TAFIS 2.0 through the Government Vendor Portal will also be used for the process of quotations and offers issued by the ministry and department. This new function will facilitate tenderers in presenting prices and technical documents online.
For information as well, Inshallah, this will be informed to the public especially to suppliers who will be registered in TAFIS 2.0 on March 18, 2024, to March 23, 2024. The public can obtain further information about it through the mass media of the Ministry of Finance and Economy later.
The second question from Yang Berhormat Dayang Hajah Safiah binti Sheikh Haji Abd. Salam is regarding ensuring government officers and staff involved in the affairs of managing TAFIS 2.0.
To share since 3-4 months ago until now, phased training is being actively implemented by the Treasury Department based on a road mapping presented by each ministry and department.
Next, the third. Regarding the training allocation in TAFIS 2.0, it has been provided in the scope of work for implementing the TAFIS 2.0 System Project where a total of more than 900 thousand has been allocated specifically for training for using this system.
Finally, kaola would like to take this opportunity also on behalf of the staff of the Ministry of Finance and Economy, kaola wishes to say Happy Ramadan to Yang Berhormat Pengerusi, Your Honourable Members, Yang Mulia Jurutulis Majlis Mesyuarat Negara and Yang Mulia Timbalan Jurutulis Majlis Mesyuarat Negara and everyone in this honorable hall. May our deeds be accepted by Subhanallah wa bihamdihi and finally please accept this complete poem,
MMN unites us,
أَفْضَلُ during the noble month of Ramadan,
I apologize if I have misspoken,
May all our worship be accepted.
Thank you, Yang Berhormat Pengerusi.
Yang Berhormat Pengerusi
Thank you, Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II, for answering the questions posed by Your Honourable Members with great patience and clarity.
Therefore, I also want to take this opportunity to join in his greetings to wish everyone a blessed Ramadan. However, we must resolve the matters at hand.
I believe it's enough that we have discussed and debated on this matter, and the title is now ripe for voting. Titles SD01A - SD09A are now up for vote. Your Honourable Members in favor, please raise your hand.
(All Members raise their hands in agreement)
Thank you. There's a unanimous agreement on the titles which have been approved unanimously.
Yang Mulia Jurutulis
Titles SD01A - SD09A under the Ministry of Finance and Economy are incorporated into the Schedule.
Yang Berhormat Pengerusi
Your Honourable Members. We have completed the discussion and debate of the Schedule under the Ministry of Finance and Economy and its departments. We have also completed the voting and approved the ministry's budget.
Before we move on to other topics, I believe we have debated enough this morning, and I would like to adjourn this Committee Meeting, and we will reconvene in Majlis Mesyuarat Negara.
(Committee Meeting adjourned)
(Majlis Mesyuarat resumes)
Yang Berhormat Yang Di-Pertua
Your Honourable Members. We are now reconvened in Majlis Mesyuarat Negara. I think that's enough for our session this morning.
I would like to adjourn the Session of Majlis Mesyuarat Negara this morning, and we will reconvene, إن شاء الله, this afternoon as usual at 2:30 PM.
That's all, وبالله التوفيق والهداية. والسلام عليكم ورحمة الله وبركاتُه
(Majlis Mesyuarat adjourned)
HADIR
YANG DI-PERTUA
Yang Berhormat Pehin Orang Kaya Seri Lela Dato Seri Setia Awang Haji Abdul Rahman bin Dato Setia Haji Mohamed Taib, P.S.N.B., S.L.J., P.H.B.S., P.J.K., P.K.L., Yang Di-Pertua Majlis Mesyuarat Negara, Negara Brunei Darussalam.
AHLI RASMI KERANA JAWATAN (PERDANA MENTERI DAN MENTERI-MENTERI)
Kebawah Duli Yang Maha Mulia Paduka Seri Baginda Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ’Ali Saifuddien Sa’adul Khairi Waddien, Sultan dan Yang Di-Pertuan Negara Brunei Darussalam, Perdana Menteri, Menteri Pertahanan, Menteri Kewangan dan Ekonomi dan Menteri Hal Ehwal Luar Negeri, Negara Brunei Darussalam.
Duli Yang Teramat Mulia Paduka Seri Pengiran Muda Mahkota Pengiran Muda Haji Al-Muhtadee Billah ibni Kebawah Duli Yang Maha Mulia Paduka Seri Baginda Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah, D.K.M.B., D.P.K.T., King Abdul Aziz Ribbon, First Class (Saudi Arabia), The Order of the Renaissance (First Degree) (Jordan), Grand Cross of Crown Order- G.K.K., (Netherlands), Medal of Honour (Lao), DSO (Singapore), Order of Lakandula With The Rank of Grand Cross (Philippines), The Order of Prince Yaroslav the Wise, Second Class (Ukraine), Darjah Kerabat Johor Yang Amat Dihormati Pangkat Pertama (Johor), DSO (Military) (Singapore), P.H.B.S., Menteri Kanan di Jabatan Perdana Menteri, Negara Brunei Darussalam.
Yang Berhormat Pehin Orang Kaya Laila Setia Bakti Di-Raja Dato Laila Utama Haji Awang Isa bin Pehin Datu Perdana Manteri Dato Laila Utama Haji Awang Ibrahim, D.K., S.P.M.B., D.S.N.B., P.H.B.S., P.B.L.I., P.J.K., P.K.L., Special Advisor to Kebawah Duli Yang Maha Mulia Paduka Seri Baginda Sultan dan Yang Di-Pertuan Negara Brunei Darussalam and Minister at the Prime Minister’s Office, Negara Brunei Darussalam. (Not present due to official business)
Yang Berhormat Pehin Udana Khatib Dato Paduka Seri Setia Ustaz Haji Awang Badaruddin bin Pengarah Dato Paduka Haji Awang Othman, P.S.S.U.B., D.P.M.B., P.H.B.S., P.B.L.I., P.J.K., P.K.L., Menteri Hal Ehwal Ugama, Negara Brunei Darussalam.
Yang Berhormat Pehin Datu Lailaraja Major General (Rtd) Dato Paduka Seri Haji Awang Halbi bin Haji Mohd. Yussof, D.P.K.T., S.M.B., P.H.B.S., Minister at the Prime Minister's Office and Menteri Pertahanan II, Negara Brunei Darussalam. (Not present due to official business)
Yang Berhormat Dato Seri Setia Dr. Awang Haji Mohammad Isham bin Haji Jaafar, P.S.N.B., D.P.M.B., Menteri Kesihatan, Negara Brunei Darussalam.
Yang Berhormat Dato Seri Setia Dr. Awang Haji Mohd. Amin Liew bin Abdullah, P.S.N.B., S.P.M.B., Minister at the Prime Minister’s Office and Menteri Kewangan dan Ekonomi II, Negara Brunei Darussalam
Yang Berhormat Dato Seri Setia Awang Haji Erywan bin Pehin Datu Pekerma Jaya Haji Mohd. Yusof, P.S.N.B., S.P.M.B., P.J.K., P.I.K.B., Menteri Hal Ehwal Luar Negeri II, Negara Brunei Darussalam.
Yang Berhormat Dato Seri Setia Awang Haji Ahmaddin bin Haji Abdul Rahman, P.S.N.B., S.P.M.B., P.S.B., P.I.K.B., Menteri Hal Ehwal Dalam Negeri, Negara Brunei Darussalam.
Yang Berhormat Dato Seri Setia Dr. Awang Haji Abd. Manaf bin Haji Metussin, P.S.N.B., S.P.M.B., S.N.B., S.M.B., P.S.B., P.K.L., Menteri Sumber-Sumber Utama dan Pelancongan, Negara Brunei Darussalam.
Yang Berhormat Dato Seri Setia Awang Haji Muhammad Juanda bin Haji Abd. Rashid, P.S.N.B., D.P.M.B., P.I.K.B., Menteri Pembangunan, Negara Brunei Darussalam.
Yang Berhormat Datin Seri Setia Dr. Dayang Hajah Romaizah binti Haji Md. Salleh, P.S.N.B., S.P.M.B., P.I.K.B., P.K.L., Menteri Pendidikan, Negara Brunei Darussalam.
Yang Berhormat Pengiran Dato Seri Setia Shamhary bin Pengiran Dato Paduka Haji Mustapha, P.S.N.B., P.S.B., Menteri Pengangkutan dan Infokomunikasi, Negara Brunei Darussalam.
Yang Berhormat Dato Seri Setia Awang Haji Nazmi bin Haji Mohamad, P.S.N.B., S.M.B., P.I.K.B., Menteri Kebudayaan, Belia dan Sukan, Negara Brunei Darussalam.
AHLI YANG DILANTIK ORANG-ORANG YANG BERGELAR
Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abd. Rahman bin Haji Ibrahim, P.S.N.B., D.P.M.B., P.H.B.S., P.I.K.B., P.K.L.
Yang Berhormat Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Awang Haji Adanan bin Begawan Pehin Siraja Khatib Dato Seri Setia Haji Md. Yusof, P.S.N.B., D.P.M.B., P.H.B.S., P.J.K., P.I.K.B., P.K.L.
Yang Berhormat Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Haji Awang Suyoi bin Haji Osman, P.S.N.B., D.P.M.B., P.J.K., P.I.K.B., P.K.L.
AHLI YANG DILANTIK ORANG-ORANG YANG TELAH MENCAPAI KECEMERLANGAN
Yang Berhormat Dayang Hajah Safiah binti Sheikh Haji Abd. Salam, S.U.B., P.I.K.B., P.K.L.
Yang Berhormat Awang Lau How Teck, P.S.B.
Yang Berhormat Dayang Chong Chin Yee, P.I.K.B.
Yang Berhormat Dr. Awang Haji Mahali bin Haji Momin, S.M.B., P.I.K.B., P.K.L.
Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin, S.N.B., S.M.B., P.I.K.B.
Yang Berhormat Dayang Hajah Rosmawatty binti Haji Abdul Mumin, S.M.B., P.S.B.
Yang Berhormat Pengiran Haji Isa bin Pengiran Haji Aliuddin, P.I.K.B.
AHLI YANG DILANTIK MEWAKILI DAERAH-DAERAH
Yang Berhormat Awang Amran bin Haji Maidin, P.I.K.B., P.K.L., Headman of Mukim Lumapas -Daerah Brunei dan Muara.
Yang Berhormat Awang Lawi bin Haji Lamat, P.K.L., Village Head of Subok - Daerah Brunei dan Muara.
Yang Berhormat Awang Zainol bin Haji Mohamed, Village Head of Putat - Daerah Brunei dan Muara.
Yang Berhormat Awang Mohamad Ali bin Tanjong, P.K.L., Village Head of Lumapas 'B' – Daerah Brunei dan Muara.
Yang Berhormat Awang Haji Daud bin Jihan, P.I.K.B., P.K.L., Village Head of Belimbing – Daerah Brunei dan Muara.
Yang Berhormat Awang Haji Md. Salleh bin Haji Othman, P.I.K.B., Headman of Mukim Bukit Sawat – Daerah Belait.
Yang Berhormat Awang Mohammad bin Abdullah @ Lim Swee Ann, Village Head of Bukit Sawat – Daerah Belait.
Yang Berhormat Awang Haji Mohamad Danial @ Tekpin bin Ya'akub, P.I.K.B., Headman of Mukim Ukong – Daerah Tutong.
Yang Berhormat Awang Abdul Aziz bin Haji Hamdan, Village Head of Sengkarai – Daerah Tutong.
Yang Berhormat Haji Awang Sulaiman bin Haji Nasir, P.S.B., P.I.K.B., P.K.L.P., Village Head of Labu Estate and Piasau-Piasau – Daerah Temburong.
HADIR BERSAMA
Yang Mulia Dr. Dayang Hajah Huraini binti Pehin Orang Kaya Setia Jaya Dato Paduka Awang Haji Hurairah, P.S.B., P.I.K.B., P.K.L., Jurutulis Majlis Mesyuarat Negara, Negara Brunei Darussalam.
Yang Mulia Pengiran Hajah Zaidah binti Pengiran Haji Petra, Acting Timbalan Jurutulis Mesyuarat Negara, Negara Brunei Darussalam.
(The meeting commenced at 9.30 a.m.)
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