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Statistical Data (Q2, 2004)

• GDP Growth (Provisional Esti-mate) : -2.8 %

• Change in CPI : 0.6%

• Total Exports (f.o.b): BND 1,274.4 million (April-May)

• Total Import (c.i.f): BND 385.3 million (April-May)

• Government Revenue : BND 1,357.6 million

• Government Expenditure : BND 900.8 million

Volume 3, Issue 2

Date : 9/2004

BRUNEI ECONOMIC BULLETIN

Brunei Darussalam Sec-ond Quarter Economic Review and Outlook

1

Crude Oil Price Index 13

Economic Outlook 14

8th National Develop-ment Plan

15

Short-Term Economic Recovery 18

THE LONG TERM OBJEC-TIVES OF BRUNEI DA-RUSSALAM’S DEVELOP-MENT PLAN OF 1986-2005: What has been the level of achievement in enhancing the quality of life?

21

JPKE List of Publications 29

Miscellaneous 29

Inside this issue:

Gross Domestic Product

Brunei Darussalam’s economy for this quarter is estimated to con-tract by 2.8 per cent from BND 1,172.9 in Q1 2004 to BND 1,140.2 in Q2 2004. Compared to the same quarter last year, it is also estimated to contract by 1.1 per cent (Chart 1.1).

The oil and gas sector has registered contraction of 5.4 per cent in Q2 2004 year-on-year. It also contracted by 5.8 per cent in Q2 2004 compared to Q1 2004. The average weighted oil production de-creased by 3.8 per cent from 209,790 barrels per day in Q2 2003 to 201,738 barrels per day in Q2 2004 (Table 1.1). The average weighted LNG production also dropped by 8.8 per cent from 1,042,283.9 MMBtu1 per day in Q2 2003 to 950,639.01 MMBtu per day in Q2 2004 (Table 1.2). The oil and gas sector in the first half of 2004 declined by 2.9 per cent compared to the same period last year.

BRUNEI DARUSSALAM SECOND QUARTER 2004 ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS

THE EDITOR: BRUNEI ECONOMIC BULLETIN (BEB) JPKE (DEPARTMENT OF ECO-

NOMIC PLANNING AND DEVELOP-

MENT) PRIME MINISTER'S OFFICE Phone: +673-2-233344 Fax: +673-2-230226 Email: [email protected] BEB Panel of Advisors ♦ Permanent Secretary

Prime Minister’s Office ♦ Director General JPKE, ♦ Deputy Director Generals

JPKE BEB Editors ♦ Directors, JPKE ♦ Assistant Directors, JPKE BEB Contributors ♦ Hj Abd Razak Hj Angas ♦ Abd Amin Hashim ♦ Shahrom Hj Suhaimi ♦ Hj Mazlan Hj Mohd Salleh ♦ Mashor POKID Dato Paduka

Hj Musa ♦ Shamsul Bahrin Hj Mohd

Hussain ♦ Dk Hjh Siti Nirmala Pg Hj

Mohammad ♦ Zureidah Hj Abit ♦ Pg Metussin Pg Hj Tuah ♦ Hj Joharry Hj Karim ♦ Hjh Aisah Hj Sani ♦ Hjh Norfatiniwati Hj Muhammad BEB Publishers ♦ Noor Jusmin Hj Abd Samad ♦ Hairol Nizam Hj Abd Hamid

1Million British Thermal Unit

2001 2002 2003 2004

JAN 207,290 215,020 207,785 213,223

FEB 191,472 204,550 199,502 211,055

MAC 197,709 201,230 206,610 197,933

APR 179,623 186,880 210,221 212,929

MAY 169,771 193,561 205,183 201,172

JUN 186,537 203,188 214,122 191,130

JUL 194,308 204,150 205,119

AUG 193,504 216,474 203,128

SEP 193,351 192,335 210,727

OCT 188,568 199,427 197,564

NOV 213,154 211,479 214,029

DEC 224,901 207,524 212,788

Crude Oil Production for the year

195,065 203,021 207,240

Average Crude Oil Produc-tion Q1

199,069 207,013 204,803 207,323


178,546 194,532 209,790 201,738


193,725 204,450 206,277


208,828 206,085 208,063

Average Crude Oil Produc-tion 1H

188,751 200,738 207,311

Average Crude Oil Produc-tion 2H

201,276 205,268 207,170

Table 1.1: Oil Production Unit – Barrels/Day

Source: Petroleum Unit, Prime Minister’s Office

THE EDITOR BRUNEI ECONOMIC BULLETIN (BEB) JPKE (DEPARTMENT OF ECONOMIC PLANNING AND DEVELOPMENT) PRIME MINISTER’S OFFICE

P A G E 2 B R U N E I E C O N O M I C B U L L E T I N

The oil and gas production index (OGPI) contracted by 5.4 per cent from 109.2 in Q2 2003 to 103.3 in Q2 2004. On a quarter-on-quarter basis the OGPI also contracted by 5.8 per cent from 109.7 in Q1 2004 (Table 1.3).

The price of crude oil averaged at US$38.20 per barrel in Q2 2004 compared to US$27.33 per barrel a year ago and US$35.59 in Q1 2004. Meanwhile, the price of LNG averaged at US$4.71 per MMBtu compared to US$4.70 per MMBtu a year ago and US$4.67 in Q1 2004.

The overall non-oil and gas sector is estimated to expand by 3.9 per cent in Q2 2004 compared to the same period last year. Compared to Q1 2004, it is estimated to grow marginally by 0.4 per cent. The year-on-year growth was supported by im-provement in forestry; mining; quarrying and manufacturing; wholesale and retail; and transport and communication sec-tors.

Activities in the agricultural sector are estimated to register a 1.4 per cent growth in Q2 2004 compared to the same period a year ago. This was due to the increase in the production of vegetables; ornamental horticulture (trees); cut flowers; vari-ous plantations; and chicken eggs (Table 1.4). On a quarter-on quarter basis, this sector is also estimated to grow by 5.3 per cent in Q2 2004.

The forestry sector grew at an estimated rate of 21.0 per cent in Q2 2004 year-on-year. Compared to Q1 2004, it registered a 17.8 percent growth. The production of round timber in-creased by 32.3 per cent from 25.1 thousands cubic metres in Q2 2003 to 33.2 thousands cubic metres in Q2 2004 (Table 1.5). Compared to Q1 2004, it registered an increase of 5.4 per cent from 31.5 thousands cubic metres. The production of bakau poles also increased by 14.9 per cent from 28.2 thousand pieces in Q2 2003 to 32.4 thousand pieces in Q2 2004. Com-pared to Q1 2004, it increased by 26.6 per cent, from 25.6 thou-sand pieces during that quarter.

Activities in the fishery sector are estimated to decline by 22.8 per cent compared to the same period last year. Compared to Q1 2004, this sector also registered a decrease of 60.1 per cent. The largest downward effect was from the production of the capture industry. The production dropped by 24.8 per cent from 4,242.8 metric tonnes in Q2 2003 to 3,192.0 metric tonnes in Q2 2004 and on quarter on quarter basis the production dropped by 57.1 per cent from 7,440.6 metric tonnes in Q1 2004 (Table 1.6).

BRUNEI DARUSSALAM Q2 2004 ECONOMIC REVIEW & OUTLOOK AND RECENT ECONOMIC DEVELOPMENTS

Unit - MMBtu/Day 2001 2002 2003 2004

JAN 1,033,542.9 1,046,388.0 1,118,431.0 1,117,753.6

FEB 962,006.0 1,095,799.0 1,112,133.0 1,073,981.0

MAC 1,141,934.0 990,443.0 1,165,771.0 1,063,286.8

APR 864,858.0 750,836.0 1,037,552.0 1,126,284.33

MAY 682,869.0 687,569.0 1,002,617.0 785,019.35

JUN 960,671.0 915,497.0 1,088,055.0 946,134.00

JUL 838,649.0 1,061,756.0 1,050,631.0

AUG 936,035.0 1,061,236.0 948,691.0

SEP 1,023,296.0 980,426.0 970,991.7

OCT 1,048,142.0 1,062,589.0 992,310.7

NOV 976,540.0 1,037,404.0 1,038,770.0

DEC 1,146,837.0 1,059,582.0 1,062,209.0 LNG Production for the Year 968,124.0 978,804.0 1,049,143.0 Average LNG Production Q1 1,048,621.7 1,042,490.4 1,132,777.6 1,085,249.5 Average LNG Production Q2 834,448.5 783,567.4 1,042,283.9 950,639.01 Average LNG Production Q3 931,674.8 1,035,060.1 990,426.5 Average LNG Production Q4 1,058,049.4 1,053,363.3 1,031,013.2 Average LNG Production 1H 940,943.4 912,243.8 1,087,280.5 1,017,944.23 Average LNG Production 2H 994,862.1 1,044,211.7 1,011,005.5

Source: Petroleum Unit, Prime Minister's Office

Table 1.2: LNG Production

2000 2001 2002 2003 2004

JAN 109.7 108.0 111.2 110.9 112.8

FEB 113.1 100.0 109.0 107.7 110.6

MAC 112.6 108.0 104.4 112.0 105.6

APR 103.7 92.6 91.6 109.2 113.0

MAY 98.7 83.2 92.0 106.2 97.8

JUN 75.9 98.2 102.7 112.2 99.4

JUL 93.3 97.1 107.8 107.8

AUG 93.7 99.9 112.2 103.8

SEP 91.6 102.6 100.9 107.2

OCT 91.8 101.7 106.1 103.2

NOV 107.0 108.3 109.6 110.6

DEC 109.0 118.0 108.9 110.9

Average Index for the Year 100.0 101.5 104.7 108.5

Average Index for Q1 111.8 105.5 108.2 110.3 109.7

Average Index for Q2 92.8 91.2 95.4 109.2 103.3

Average Index for Q3 92.9 99.8 107.0 106.2


Average Index for H1 102.3 98.3 101.7 109.7

Average Index for H2 97.7 104.6 107.6 107.2

Base year 2000=100 Source: Petroleum Unit, Prime Minister’s Office

Table 1.3: Oil and Gas Production Index

Table 1.4: Agricultural Sector

Q2 03 Q1 04 Q2 04 growth (%)

growth (%)

(Q-O-Q) (Y-O-Y)

Crop Production

Vegetables (Tons) 2,564.02 2,023.0 3,012.0 48.9 17.5

Fruits (Tons) 835.7 836.0 806.0 (3.6) (3.6)

Ornamental horticulture (trees) 55,956.0 74,536.0 56,966.0 (23.6) 1.8

Cut Flowers (unit) 29,693.0 31,258.0 34,459.0 10.2 16.1

Various Plantations (Tons) 61.1 62.0 87.0 40.0 42.4

Livestock Production

Buffaloes (Tons) 50.4 16.1 30.0 86.3 (40.5)

Cattle (Tons) 0.4 3.1 0.3 (90.3) (25.0)

Goats (Tons) 0.07 1.3 - - -

Broiler Chicken (Tons) 4,166.2 4,242.0 3,967.0 (6.5) (4.8)

Chicken Eggs (Millions) 26.1 27.7 28.4 8.8

Fresh Milk (Litres) 22,939.0 24,519.0 16,900.0 (26.3)

Source: Agricultural Department

Table 1.5: Forestry Sector

Q2 03 Q1 04 Q2 04 growth (%) growth (%)

(Q-O-Q) (Y-O-Y)

Round Timber ('000 Cubic Metres) 25.1 31.5 33.2 5.4 32.3

Bakau Poles (Thousand Pieces) 28.2 25.6 32.4 26.6 14.9

Source: Forestry Department

-6

-4

-2

0

2

4

6

8

10

12

14

16

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04

Total Oil Non-o il

Chart 1.1: Growth of Gross Domestic Product Year-on-year

%

P A G E 3


B R U N E I E C O N O M I C B U L L E T I N

The mining, quarrying and manufacturing sector registered an estimated growth rate of 8.6 per cent in Q2 2004 compared to Q2 2003 due to the increase in production of cement, sawn timber, charcoals, reverse osmosis water, cable and bricks. On a quarter-on-quarter basis this sector grew by an estimated 4.1 per cent compared to Q1 2004 (Table 1.7).

The construction sector has shown improvement year-on-year and registered an estimated 5.7 per cent growth in Q2 2004. It is also estimated to expand by 7.4 per cent compared with the previous quarter.

The wholesale and retail trade sector posted an estimated 8.5 growth in Q2 2004 compared to Q2 2003. Compared with the previous quarter, this sector is estimated to have expanded by 6.1 per cent. Survey on selected major wholesale companies registered a 4.6 per cent growth in the value of sales in Q2 2004 year-on-year. On a quarter-on-quarter basis the value of sales also increased by 3.8 per cent. Meanwhile, survey on selected major retail companies registered a 14.4 per cent increased in the value of sales in Q2 2004 year-on-year. Likewise, on a quarter-on-quarter basis the value of retail sales rose by 8.4 per cent.

The restaurants and hotels sector is estimated to contract by 5.4 per cent in Q2 2004 compared to the same period last year. Compared with the previous quarter, it is estimated to have contracted by 1.5 per cent. The hotels occupancy rates have dropped by 7.7 per cent from 31.0 per cent in Q2 2003 to 28.6 per cent in Q2 2004 (Chart 1.2). However, on a quarter-on-quarter basis the rates have increased by 1.3 per cent com-pared to Q1 2004. Meanwhile, the value of sales from the se-lected major restaurants declined by 3.1 per cent compared to Q2 2003. On quarter-on-quarter basis the value of sales also dropped by 4.2 per cent.

The transport and communication sector grew at an estimated 17.1 per cent in Q2 2004 compared to a year ago. Compared with the previous quarter, this sector is estimated to have ex-panded by 5.4 per cent. The improved year-on-year growth was mainly attributed to better performance in the communi-cation sector (Chart 1.3). The volume of cargo handled also increased by 33.1 per cent in Q2 2004 compared to a year ago (Chart 1.4).

The banking and finance sector registered a contraction of 7.0 per cent in Q2 2004 compared to Q2 2003. However, compared to Q1 2004 it grew by 3.8 per cent. Total interest income from loans and advances stood at BND 107.0 million in Q2 2004 compared to BND 115.0 million and BND 114.8 million col-lected in Q2 2003 and Q1 2004 respectively (Chart 1.5).

The insurance sector is estimated to register a contraction of 0.4 per cent in Q2 2004 compared to the same period a year earlier. However, compared to Q1 2004, it expanded by 26.8 per cent.

Table 1.6: Fishery Sector

Q2 03 Q1 04 Q2 04 growth (%)

growth (%)

(Q-O-Q) (Y-O-Y)

Capture Industry (Metric Ton-nes)

4,242.83 7,440.61 3,192.0 (57.10) (24.77)

Commercial 1,016.96 662.99 875.15 32.0 (13.94)

Small Scale Fishermen 3,225.87 6,777.62 2,316.83 (65.82) (28.18)

Aquaculture Industry (Metric Tonnes)

112.28 146.52 156.54 6.84 39.42

Fish 17.45 19.71 21.01 6.60 20.40

Prawn 70.90 97.53 106.59 9.29 50.34

Fresh Water Fish 23.93 29.28 28.94 (1.16) 20.94

Total Production 4,355.11 7,587.13 3,348.54 (55.87) (23.11)

Source: Fishery Department

Table 1.7: Mining/Quarrying/Manufacturing Sector

Q2 03 Q1 04 Q2 04 growth

(%) growth

(%) (Q-O-Q) (Y-O-Y)

Cement Production (Tonnes)

57,969.0 55,471.3 59,041.5 4.5 1.5

Sawn Timber Produc-tion (Thousands cubic metre)

13.3 11.0 15.0 36.4 12.8

Fish Processing Produc-tion (Tonnes)

144.7 128.1 130.13 1.6 (10.1)

Charcoals Production (thousand Kg)

6.3 4.4 6.7 52.3 6.3

Cable Production (Kg) 158,662.0 165,388.2 202,682.9 22.5 27.7

Roofing Production (Tonnes)

705.6 652.9 543.0 (16.8) (23.0)

Switchboard Production (Unit)

1,227.0 512.0 965.0 88.5 (21.4)

Reverse-Osmosis Water Production (thousand litres)

112.0 115.0 117.0 1.7 4.5

Source: Department of Economic Planning & Development

%

2 7

2 9

3 1

3 3

3 5

3 7

3 9

4 1

Q1 0 3 Q2 0 3 Q3 0 3 Q4 0 3 Q1 0 4 Q2 0 4

Chart 1.2: Hotel Occupancy Rate

0

4

8

12

16

20

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04

Chart 1.3: Growth Rate of Communication Sector

%

0

100,000

200,000

300,000

400,000

500,000

frei

ght t

onne

s

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04

Chart 1.4: Seaborne Cargo Handled

100

105

110

115

120

125

130

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04

BN

Dm

illio

n

Chart 1.5: Banks Loans and Advances


The average Consumer Price Index (CPI) for the second quar-ter of 2004 was 101.3, an increase of 0.6 per cent from 100.7 in Q1 2004 (Table 2.1. The CPI for April, May and June 2003 stood at 101.3, 101.3 and 101.2 respectively (Table 2.2). The CPI for January to June 2004 increased by 0.4 per cent com-pared to that of 100.6 in the same period last year. The aver-age CPI for the second quarter 2004 compared to the same period last year recorded a marginal increase of 0.7 per cent from 100.6 to 101.3.

The average CPI for Q2 2004 rose by 0.6 per cent compared to Q1 2004 due to the hike seen in Major Group indices of Recreation & Entertainment by 4.6 per cent; Food & Non-Alcoholic Beverages by 0.7 per cent; and Housing, Water, Electricity & Maintenance by 0.4 per cent.

The Recreation & Entertainment index increased by 4.6 per cent due to higher price of Holiday Package Expenses which rose by 7.0 per cent.

The increase in the price of Fresh Chicken by 13.2 per cent contributed to the increase in the Major Group Index of Food & Non-Alcoholic Beverages by 0.7 per cent.

The Major Group Index of Transport rose by 0.4 per cent as a result of an increase in the Purchase of Vehicles Index by 2.4 per cent.

The Housing, Water, Electricity & Maintenance index rose to 0.4 per cent due to the increase in Accommodation price by 1.0 per cent.

The largest downward effect on the CPI for this quarter came from Clothing and Footwear (Chart 2.1). This was due to the decline in the sub-group indices of Ready-Made Clothing Accessories by 1.2 per cent; Materials for Male/Female by 3.0 per cent; Wedding Dress, Accessories and Rental by 2.1 per cent; Tailoring Charges by 1.5 per cent; and Footwear by 1.2 per cent.

The average CPI for Q2 2004 increased by 0.7 per cent com-pared to 100.6 in the same period last year (Table 2.1). The Recreation & Entertainment Index advanced by 8.3 per cent which accounted for half of the increase in the overall CPI. The Major Group Indices of Food & Non-Alcoholic Bever-ages also increased by 1.7 per cent; Transport by 1.4 per cent; Education by 0.5 per cent; and Miscellaneous Goods and Services by 0.7 per cent respectively.

The Recreation & Entertainment Index witnessed a sharp increase of 8.3 per cent when compared to the same period last year. This was mainly due to a 12.8 per cent rise in the price of Holiday Package Expenses which was a conse-quence of the increase in prices of Umrah Package which coincide with school holidays.

The increase in prices of Beef (Cattle), Fresh and Frozen; and Fresh Chicken by 22.7 per cent and 17.8 per cent respectively


Consumer Price Index

CPI Changes for the Q2 2004 relative to Q1 of 2004

CPI Changes for the Q2 of 2004 relative to the same period in 2003

Source: Department of Economic Planning & Development

Table 2.1 : Consumer Price Index Q2 2003, Q1 and Q2 2004

Commodity Group Weight Q2 03 Jan-June 03

Q1 04 Q2 04

Jan-June 04

All 10,000 100.6 100.6 100.7 101.3 101.0

I Food & Non-Alcoholic Beverages 2877 99.0 99.5 100.0 100.7 100.4

II Clothing & Footwear 561 99.5 98.8 97.5 96.0 96.7

III Housing, Water, Electricity & Mainte-nance

884 100.1 100.0 98.0 98.4 98.2

IV Household Goods & Operations 860 100.4 100.1 95.7 95.0 95.4

V Transport 2251 105.0 104.3 106.1 106.5 106.3

VI Communication 548 95.5 96.1 94.2 93.3 93.8

VII Education 471 99.4 99.8 99.9 99.9 99.8

VIII Medical & Health 98 98.5 98.2 98.2 98.2 98.2

IX Recreation & Enter-tainment

814 100.0 100.1 103.5 108.3 105.9

X Miscellaneous Goods & Services 636 100.6 100.4 101.4 101.3 101.4

Commodity Group Weight 2004

April May June

All 10,000 101.3 101.3

I Food & Non-Alcoholic Beverages 2877 100.8 100.7 100.7

II Clothing & Footwear 561 93.4 98.6 95.9

III Housing, Water, Electricity & Maintenance 884 98.1 98.5 98.7

IV Household Goods, Services & Operations 860 95.0 96.2 93.7

V Transport 2251 106.8 106.2 106.6

VI Communication 548 94.0 93.2 92.8

VII Education 471 99.9 100.1 99.7

VIII Medical & Health 98 98.1 98.3 98.3

IX Recreation & Entertainment 814 109.5 106.9 108.4

X Miscellaneous Goods & Services 636 100.6 101.7 101.6

101.2

Table 2.2: Consumer Price Index April-June 2004

Chart 2.1: CPI Percentage Changes Between Q2 2004 and Q1 2004

- 0 . 1

0

0

- 0 . 9

0 . 4

- 0 . 7

0 . 4

- 1. 5

0 . 7

4 . 6

- 5 0 5

Food & Non Alcoholic Beverages

Clothing & Footwear

Housing, Water, Electricity &M aintenance

Household Goods, Services &Operat ions

Transport

Communicat ion

Educat ion

M edical & Health

Recreation & Entertainment

M iscellaneous Goods & Services



accounted for the largest upward movement of the Major Group Index of Food & Non-Alcoholic Beverages.

The Miscellaneous Goods and Services index rose by 0.7 per cent as a result of increases in sub-group indices of personal care by 0.4 per cent and Personal Effects and Other Personal Goods by 4.4 per cent.

The largest downward influence was from the Household Goods and Operations Index (Chart 2.2). The index dropped by 5.4 per cent as a result of decreases in the prices of Furni-ture (11.9 per cent); Floor Covering (8.2 per cent); Household Furnishings (0.2 per cent); Audio, Video Equipments, Musical Instruments (4.5 per cent); Household Equipments and Elec-trical Appliances (7.1 per cent); Kitchen Appliances and Uten-sils (7.6 per cent); Crockery and Cutlery (6.8 per cent); House-hold Operation (0.7 per cent); and Other Household Services (0.4 per cent).

The 0.4 per cent increase in the CPI was brought about by the increase observed in Major Group indices of Food and Non-Alcoholic Beverages by 0.9 per cent; Transport (1.9 per cent); Recreation and Entertainment (5.8 per cent); and Miscellaneous Goods and Services (1.0 per cent) (Chart 2.3).

The 0.9 per cent increase in the index for Food and Non-Alcoholic Beverages was the result of increases in the sub-group indices of Meat and Meat Products (9.3 per cent); Dairy Products and Eggs (5.6 per cent); Cooking Oils and Fats (7.2 per cent); Vegetables (1.5 per cent); Sugar, Sugar Preserves and Confectionery (3.6 per cent); Coffee, Tea and Cocoa (0.6 per cent; and Food/Drink Away From Home (0.2 per cent).

The Transportation index rose by 1.9 per cent reflecting an in-crease in the price of Private Road Transport by 1.9 per cent and Air Transport by 3.3 per cent.

The Major Group Index of Recreation and Entertainment in-creased by 5.8 per cent due to the soaring prices of Holiday Package Expenses which rose by 9.8 per cent.

The Miscellaneous Goods and Services index was up by 1.0 per cent due to the increases in sub-group indices of Personal Care; and Personal Effects and Other Personal Goods by 0.8 per cent and 5.4 per cent respectively.

The largest downward effect was from the Major Group Index of Household Goods & Operation (Chart 2.3). The price dipped by 4.7 per cent as a result of decreases in the price of Furniture (10.2 per cent); Floor Covering (4.9 per cent); Audio, Video Equipments, Musical Instruments (4.4 per cent); Household Equipments and Electrical Appliances (7.0 per cent); Kitchen Appliances and Utensils (7.8 per cent); Crockery and Cutlery (6.5 per cent); and Household Operation (0.2 per cent).

CPI Changes for the period January-June 2004/2003

Chart 2.2: CPI Percentage Changes Between Q2 2004 and Q2

2003

0 .7

8 .3

- 0 .3

0 .5

- 2 .3

1.4

- 5.4

- 1.7

- 3 .5

1.7

-10 0 10

Food & Non Alcoholic Beverages

Clothing & Footwear

Housing, Water, Electricity &M aintenanceHousehold Goods, Services &OperationsTransport

Communication

Education

M edical & Health



Chart 2.3: CPI Percentage Changes for the period of January-

June 2004 relative to the same period in 2003

1.0

5.8

0 .0

0 .0

- 2 .4

1.9

- 4 .7

- 1.8

0 .9

- 2 .1

-10.0 -5 .0 0.0 5.0 10.0

Food & Non Alcoho lic Beverages

Clothing & Footwear

Housing, Water, Electricity &M aintenance

Household Goods, Services &Operations

Transport

Communication

Education

M edical & Health



Consumer Price Index 2002=100

(Jan-June 2004)

1 0 0 . 1

1 0 0 . 8

1 0 1 . 21 0 1 . 31 0 1 . 2

1 0 1 . 3

9 8 . 0

9 9 . 0

10 0 . 0

10 1. 0

10 2 . 0

Jan Feb M arch Apr M ay June

Index



In Q2 2004, the Government revenue of BND 1,357.6 million exceeded its expenditure of BND 900.8 million, which re-sulted in a budget surplus of BND 456.8 million compared to BND 239.4 million during the same quarter last year (Table 3.1). The budget surplus in Q2 2004 was primarily due to the decrease in government expenditure, when com-pared to the government finance in Q1 2004.

The total revenue fell by 2.9 percent from BND 1,398.0 mil-lion in Q1 2004 to BND 1,357.6 million in Q2 2004. However, it was BND 132.3 million (10.8 percent) higher compared to BND 1,225.3 million collected in Q2 2003.

As shown in Table 3.2, in Q2 2004, 53.5 percent of the total revenue collected was in the form of tax revenue and only 46.5 percent was from non-tax sources. The former com-prises of taxes on net income and profits, taxes on interna-tional trade, and taxes on goods and services, which de-creased from BND 824.7 million in Q1 2004 to BND 726.9 million in Q2 2004. The decrease was mainly due to the drop in oil and gas corporate taxes, from BND 758.4 million in Q1 2004 to BND 643.2 million in Q2 2004. The increase in corpo-rate taxes by 43.8 percent from other companies was not enough to compensate for the decrease in the oil and gas corporate taxes. Nevertheless, the tax collected in Q2 2004 was BND 86.2 million higher than the amount collected in the same quarter last year.

The non-tax revenue, which consists of property income, administrative fees and charges on sales of goods and fines including telecommunication and utilities, and others, re-corded an increase of BND 57.4 million from BND 573.3 million in Q1 2004 to BND 630.7 million in Q2 2004. The Q2 2004 figure was also an increase of 7.9 per cent (BND 46.0 million) compared to that in Q2 2003. The increase was mainly due to the increase in the dividends paid by the oil and gas companies, as shown in Table 3.2. This figure in-creased by 36.4 percent from BND 322.1 million in Q1 2004 to BND 439.3 million in Q2 2004; and by 15.9 percent com-pared to that of Q2 2003.

The government expenditure, which comprises current and capital expenditures (CAPEX), decreased by 37.0 percent from BND 1,429.5 million in Q1 2004 to BND 900.8 million in Q2 2004 (Table 3.2). This was due to the decline in both current and capital expenditures over the period from BND 1,202.5 million and BND 227.0 million in Q1 2004 to BND 768.5 million and BND 132.3 million in Q2 2004 respectively. Of the total current expenditure during this quarter, 43.7 percent was for personnel emoluments (Wages & Salaries).

CAPEX, which includes Other Charges Special Expenditure (OCSE) and Development Expenditure (DE), decreased by 41.7 percent compared to that recorded in Q1 2004. Com-pared to Q2 2003, CAPEX recorded a decrease of BND 72.6 million (-35.4 percent) from BND 204.9 million. However, the DE increased by 13.9 percent from BND 70.4 million in Q1 2004 to BND 80.2 million in Q2 2004, but dropped slightly by 3.3 percent from the same quarter last year. The

Government Revenue

Fiscal Sector

Fiscal Position

Government Expenditure

Table 3.1:GOVERNMENT FINANCE (BND MILLION)

Q1 2004 Q2 2004 Q2 2003

Total Revenues 1,398.0 1,357.6 1,225.4

Tax 824.7 726.9 640.7 Non-tax 573.3 630.7 584.7

Total Expenditure 1,429.5 900.8 986.0

Current 1,202.5 768.5 781.0

Capital 227.0 132.3 204.9

Budget Surplus/ (Deficit) (31.5) 456.8 239.4

Source: Treasury Department, Ministry of Finance Table 3.2: GOVERNMENT REVENUE & EXPENDITURE (BND MIL-LION) Q1 2004 Q2 2004 Q2 2003 Total Revenue 1,398.0 1,357.6 1,225.4 Tax revenue 824.7 726.9 640.7

Taxes on net income and profits

797.5 698.7 612.1

Corporate taxes 796.5 698.0 611.0

Oil & Gas production companies

758.4 643.2 560.5

Other companies 38.1 54.8 50.5

Individuals (estate duty) 0.0 0.0 0.4

Stamp 0.9 0.7 0.7

Taxes on international trade 24.3 25.6 25.9

Import duties 24.3 25.6 25.9

Motor vehicles tax 14.1 14.2 14.2

Tobacco 5.1 5.4 5.2 Others 5.1 6.0 6.5

Taxes on goods and ser-vices

3.0 2.6 2.7

Licences 3.0 2.6 2.7

Financial companies 0.1 0.1 0.0

Others 2.9 2.5 2.7

Non-tax revenue 573.3 630.7 584.7

Property income 497.8 570.4 513.3 Oil sector 482.1 561.2 485.4

Oil & Gas Royalties 160.0 121.9 106.3

Dividend paid by oil companies 322.1 439.3 379.1

Other 15.7 9.2 27.9

Other royalties 0.3 0.4 0.4

Rent and interest 3.9 3.0 5.1

Others 11.5 5.8 22.4

Administrative fees and charges on sales of goods and fines

74.8 59.6 70.7

Telecom & utilities 54.9 40.6 50.5

Other 19.9 19.0 20.2

Other non-tax revenue 0.7 0.8 0.7

Total Expenditure 1,429.5 900.8 986.0

Current 1,202.5 768.5 781.0 Wages & Salaries 422.8 336.2 316.1 OCAR 465.6 284.3 286.8 Charged 314.1 148.0 178.1 Capital 227.0 132.3 204.9 OCSE 156.6 52.1 104.1

Development Expenditure 70.4 80.2* 82.9

Investment in Public Enter-prise

NA NA 18.0

Budget Surplus/ Deficit (31.5) 456.8 239.3

NA - Not Available

Source: Treasury Department, Ministry of Finance (includes latest entries for the Quarter) * Provisional



OCSE recorded a decrease of 66.7 percent from BND 156.6 million in Q1 2004 to BND 52.1 million in Q2 2004. Compared to Q2 last year, OCSE also fell by half, from BND 104.1 mil-lion.

As shown in Chart 4.1, the domestic narrow money (M1) expansions increased by 1.8 percent, from BND2,481.3 mil-lion in March 2004 to BND2,525.2 million in June 2004. This expansion was affected by an increase in M1 components where currency in circulation increased by 0.9 percent from BND656.2 million to BND662.0 million and demand deposits increased by 2.1 percent from BND1,825.1 million to BND1,863.2 million. Within the same period, broad money (M2) increased marginally by 2.6 percent from BND10,856.7 million to BND11,135.4 million due to the increase in quasi money. Fixed deposit increased by 3.3 percent from BND5,639.4 million in March 2004 to BND5,827.1 million in June 2004 and savings and others (current deposits and call money) increased by 1.7 percent from BND2,736 million in March 2004 to BND2,783.1 million in June 2004. On a year-on-year basis, broad money increased by only 9.7 percent from BND10,150.2 million in June 2003 to BND11,135.4 mil-lion in June 2004.

Assets and Liabilities in the banking system are shown in Table 4.1. The commercial banks’ total assets and liabilities increased by 6.6 percent from BND13,690 million in March 2004 to BND14,594 million in June 2004. This was due to an increase in domestic and foreign deposits with banks and other assets. Domestic and foreign deposits increased by 12.3 percent from BND6,272 million in March 2004 to BND7,045 million in June 2004. Similarly, loans and advances increased by 0.8 percent, from BND5,392 million to BND5,437 million and other assets also increased by 8.8 percent from BND909 million to BND989 million. Liabilities in the banking system also increased where deposits rose by 2.7 percent from BND10,201 million to BND10,473 million. This was due to increases in demand deposits by 2 percent from BND1,825 million to BND1,863 million, time deposits by 3.3 percent

Money Supply Monetary Sector

Assets and Liabilities

Assets / Liabilities 2003 2004 June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Assets 12,925 12,218 12,081 12,900 12,683 12,798 13,495 13146 13117 13,690 13,514 13,391 14,594 Cash 169 163 165 138 174 208 245 176 171 175 145 154 146 Due from bank : 5,907 5,225 4,979 5,737 5,508 5,557 6,204 5,738 5,715 6,272 6,110 5,920 7,045 in BD 1,100 784 614.3 912 862 795 1023 1,048 1082 1,151 1,105 1,048 1,488 outside BD 4,807 4,441 4364.5 4,825 4646 4,762 5181 4,690 4633 5,121 5,005 4,872 5,557 Loans and Advances 5,259 5,269 5304 5,346 5351 5,392 5387 5,398 5383 5,392 5,373 5,385 5,437 Investment 721 689 744 775 744 726 715 873 925 942 961 985 977 Other assets 869 872 889 904 906 915 944 961 923 909 925 947 989 Liabilities 12,925 12,218 12,081 12,900 12,683 12,798 13,495 13146 13117 13,690 13,515 13,390 14,593 Deposits 9,504 9,255 9,313 9,768 9,659 9,825 10,205 9914 9861 10,201 10,075 9,973 10,473 Demand 1,971 1,853 1837 1,986 1899 2,038 2149 1967 1932 1,825 1,686 1,739 1,863 Time 4,998 4,902 4980 5,280 5214 5,218 5457 5257 5207 5,640 5,629 5,445 5,827 Saving 2,535 2,500 2496 2,502 2546 2,569 2599 2690 2722 2,736 2,760 2,789 2,783 Due to bank 1,541 1,077 877 1,240 1,111 1,023 1,394 1308 1319 1,538 1,445 1,400 2,060 in BD 1,308 970 771 1,130 1016 931 1222 1182 1221 1,444 1,354 1,306 1,937 outside BD 233 107 106 110 95 92 172 126 98 94 91 94 123 Other liabilities 1,880 1887 1891 1892 1913 1950 1896 1924 1937 1,951 1,995 2,017 2,060

TABLE 4.1 – Assets and Liabilities

Source: Financial Institution Division, Ministry of Finance

BN

D m

illio

n

Month

Chart 4.1 Money Supply

0

2000

4000

6000

8000

10000

12000

June July Aug Sep Oct Nov Dec Jan Feb M ar Apr M ay June

CIC M 1 Qm M 2

2003 2004


from BND5,640 million to BND5,827 million and savings by 1.7 percent from BND2,736 million to BND2,783 million during the same period.

Other liabilities increased by 5.6 percent from BND1,951 million to BND2,060 million. On a year on year basis, the banking assets and liabilities rose by 12.9 percent from BND12,925 million in June 2003 to BND14,594 million in June 2004.

Lending aggregates, as shown in Table 4.2, rose by only 0.9 percent from BND5,391 million in March 2004 to BND5,438 million in June 2004. The main contributor to the increase was Personal Loan which comprised 66.6 percent (BND 3,621) of the total loans recorded in June 2004. Loans to Construction, Gen-eral Commerce and Mortgage contributed 8.9 percent (BND484 million), 8.6 percent (BND476 million), and 8.46 percent (BND460 million), respectively. Lower contributions from Agri-culture (0.6 percent), Credit and Finance (0.5 percent), Manufac-turing (1.67 percent), Professional Services (0.8 percent) and Transportation (3.7 percent) were also recorded

As also observed in the first quarter, loan aggregates was still dominated by Personal Loans. In comparison, the share of loans to productive sectors such as Agriculture and Manufacturing to total loans was still minimal, when combined, represented only 2.3 percent of total.

Compared to lending direction in the first quarter’s, loans to several economic sectors were down by almost 25 percent on average. Loans to Agriculture dropped by 19.5 percent from BND41 million to BND33 million. Similarly loans to Mortgage decreased by 2.1 percent from BND470 million to BND460 mil-lion while loans to Professional Services decreased by 54.3 per-cent from BND94 million to BND43 million. However, loans to other sectors have recorded increases. Substantial increase was observed for loans to Credit and Finance which increased by 28.6 percent from BND21 million to BND27 million. Loans to Construction increased by 7.6 percent from BND450 million to BND484 million while loans to General Commerce rose by 2.4 percent from BND465 million to BND476 million. Loans to Manufacturing increased marginally by 1.1 percent from BND90 million to BND91 million while Personal Loans rose by 1.5 percent from BND3,567 million to BND3,621 million. Loans to Transportation grew by 5.2 percent from BND193 million to BND203 million.

Non-performing loans (NPLs) declined further owing to the favourable economic conditions (the growth in non-oil GDP by 3.9 per cent). Preliminary information in Chart 4.2, showed that NPLs based on 6-month classification moderated to BND7.63 million in June 2004, down from BND14.88 million in March 2004. NPLs based on 3-month classification fell to BND25.90 million, down from BND29.09 million. Improvements in the level of NPLs were also due to lower incidence of new NPLs and write-offs of bad loans coupled with strong recoveries and reclassification of NPLs to performing loans.

Non-performing loans aggregates decreased by 1.0 percent from BND651.74 million in March 2004 to BND645.52 million in June 2004. On a year-on-year basis, NPLs decreased by 7.5 per-cent from BND698.18 million in June 2003. The ratio of the NPL


Lending

Non-Performing Loans

2003

Mar Jun Sep Dec Mar Jun

Total 4347 4386 4486 5386 5391 5438

Agriculture 34 35 33 33 41 33

Credit & Finance 15 17 22 23 21 27

Manufacturing 89 91 96 90 90 91

Transportation 186 197 213 201 193 203

Construction 467 457 471 460 450 484

General Commerce 497 478 497 481 465 476

Professional Services 107 115 94 100 94 43

Personal Loans 2479 2528 2591 3517 3567 3621

Mortgage 473 468 469 481 470 460

2004

TABLE 4.2 – Direction of Lending


0

100

200

300

400

500

600

700

800

Jun Jul Aug Sep Oct Nov Dec Jan Feb M ar Apr M ay Jun

60-90 days 91-120 days >120 days Tot al

2003 2004

BN

D M

illio

n


Chart 4.2 Non-Performing Loans

Month


to loans aggregates decreased by 0.3 percentage points from 12.1 per-cent in March 2004 to 11.8 percent in June 2004 and decreased on a year-on-year basis by 4.1 percentage points from 15.9 percent in June 2003 to 11.8 percent in June 2004. Although the decrease in the NPL was a positive sign to the banking system, the NPL was still a cause of concern and there was a need for greater domestic economic improve-ment and other financial tools to address the situation.

On a positive note, the financial strength of the domestic banking sys-tem as a whole is still adequate to provide liquidity to finance real out-put expansions.

The interest rates in the Brunei Darussalam banking system had de-clined continuously over the past five years through the end of 2003, apparently squeezed by a combination of regulatory and market pres-sure. Surprisingly the prime lending rates remained unchanged at 5.5 percent per annum since September 2000. Deposits rates (Chart 4.3) were also unchanged as in last quarter of 2003 at 0.225 percent, 0.25 percent and 0.3375 percent for the 3, 6 and 12-month deposits respec-tively. Savings deposit rates varied according to the amounts depos-ited. There is no interest for deposits of less than BND 499.99. The in-terest rates of 0.05 percent is specified for deposits of between BND500 and BND99,999.99 and 0.1 percent for deposits of BND100,000.00 and above.

Singapore’s lending rates of 5.3 percent also remained constant since the last quarter of 2003. The 3, 6 and 12-month deposits were still un-changed at 0.41 percent, 0.52 percent and 0.71 percent respectively. Similarly, the highest negotiated Singapore’s savings deposit rates of 0.23 percent remained unchanged. Generally, the rates offered by banks in Singapore were more attractive for various investments than those offered by the domestic banking system.

From January 2004 to June 2004, the Brunei Dollar depreciated against the US dollar from 1.6987 to 1.7120 on average and from 1.7020 to 1.7243 at end of period. Based on past trend, the US dollar is expected to weaken and forecasted to prevail at 1.58 against the Brunei Dollar at the end of the year.

Conclusion

The growth momentum of the monetary sector as a whole were de-pendent on the progress in the domestic economic developments and activities and the indirect impact of the exchange rate volatility affect-ing demand and supply of domestic trades.

In April 2004, the total trade was BND 844.1 million which was an in-crease of 5.4 per cent from BND 801.2 million in April 2003. However in May 2004, there was a slight reduction in total trade by 0.02 per cent from BND 815.6 million in May 2003 to BND 815.5 million. Similarly, total trade decreased by 3.4 per cent between April and May 2004.

A trade surplus of BND 466.7 million was recorded in April 2004 which was 27.2 per cent higher than April 2003 figure of BND 366.8 million. In May 2004, a trade surplus was also recorded which was 0.7 per cent higher from BND 419.3 million in May 2003 to BND 422.4 mil-lion. However, there was reductions in trade surplus by 9.5 per cent between April and May 2004 (Chart 5.1).

Both the total trade and trade surplus showed downward trend for the period between January to May 2004 (Chart 5.2).


Interest and Exchange Rates 0

0.050.1

0.150.2

0.25

0.30.35

0.4

Jun Aug Oct Dec Feb Apr Jun

3 6 9 12

Chart 4.3 – Deposit Rates in Brunei Darussalam Banking System

Source: Hongkong and Shanghai Banking Corporation

External Sector

Total and Balance of Trade

%

-

200

400

600

800

1,000

BN

D M

illio

n

Total Exports 584.0 655.4 617.5 619.0

Total Imports 217.2 188.7 198.2 196.6

Total Trade 801.2 844.1 815.6 815.5

Balance of Trade 366.8 466.7 419.3 422.4

April 2003 April 2004 M ay 2003 M ay 2004

CHART 5.1: BRUNEI DARUSSALAM EXPORT, IMPORT & BALANCE OF TRADE, APRIL-MAY 2003 & APRIL-MAY 2004

0

500

1000

1500

BN

D M

illio

n

Total Exports 689.4 627.4 714.4 655.4 619.0

Total Imports 205.6 335.8 194.0 188.7 196.6

Total Trade 895.1 963.2 908.4 844.1 815.5

Balance ofTrade

483.8 291.6 520.4 466.7 422.4

Jan 2004

Feb 2004

M ar 2004

Apr 2004

M ay 2004

CHART 5.2: BRUNEI DARUSSALAM EXPORT, IMPORT & BALANCE OF TRADE, JANUARY-MAY 2004

P A G E 1 0 B R U N E I E C O N O M I C B U L L E T I N


The total exports in April 2004 increased by 12.2 per cent from BND 584.0 million in April 2003 to BND 655.4 million. In May 2004, total exports were BND 619.0 million which was an in-crease of 0.2 per cent from BND 617.5 million in May 2003.

However there were reduction in total exports by 5.6 per cent between April and May 2004. Exports in April and May 2004 were still dominated by oil and gas which contributed 90.2 per cent and 92.9 per cent of total exports respectively.

With respect to the trend of total exports for the period be-tween January and May 2004, it showed some correlation with the Oil and Gas exports since Oil and Gas were the major ex-ports for Brunei Darussalam (Chart 5.3).

Oil and Gas exports in April 2004 were BND 591.2 million which was an increase of 8.5 per cent from BND 545.0 million in April 2003. Oil and Gas exports in May 2004 also increased by 4.8 per cent from BND 548.8 million in May 2003 to BND 575.3 million. However Oil and Gas exports decreased by 5.6 per cent in May 2004 on a month-month basis.

Petroleum exports (crude and condensate) in May 2004 was BND 387.2 million which was 25.6 per cent higher compared to May 2003. The increase was due to higher oil price which recorded average oil price per barrel of US$39.40 in May 2004 compared to US$27.18 in May 2003. Similarly, the petroleum exports increased by 11.6 per cent in April 2004 from the same month of 2003 as a result of higher oil price which recorded average oil price per barrel of US$37.23 in April 2004 com-pared to US$27.69 in April 2003. On month on month basis, petroleum exports increased by 15.1 per cent in May 2004.

The LNG exports in April 2004 was BND 254.9 million. This was an increase of 4.6 per cent compared to BND 243.6 million in April 2003. In contrast to April 2004, the LNG exports de-creased by 21.8 per cent from BND 240.6 million in May 2003 to BND 188.1 million in May 2004. Similarly, the LNG exports decreased by 26.2 per cent between April and May 2004. The decrease was due to lower LNG production for exports which recorded only 908,235.81 MMBtu/day in May 2004 compared to 1,036,790.0 MMBtu/day in May 2003. The average LNG price for April and May 2004 were US$4.68 per MMBtu and US$4.74 per MMBtu respectively.

The Non-Oil and Gas exports in April 2004 were BND 64.2 million. This was indeed an increase of 64.4 per cent from BND 39.0 million in April 2003. The increase was mainly due to higher exports of Machinery & Transport Equipment in April 2004 of BND 29.1 million which was an increase of 154.3 per cent from BND 11.4 million in April 2003.

In May 2004, Non-Oil and Gas exports decreased by 36.4 per cent from BND 68.7 million in May 2003 to BND 43.7 million. This was mainly due to lower exports of Garment in May 2004 of BND 23.4 million which was a decrease of 41.2 per cent from BND 39.7 million in May 2003.

Similarly, Non-Oil and Gas exports decreased by 32.0 per cent in May 2004 on a month-month basis. The decrease was mainly due to lower exports of Machinery & Transport Equip-ment by 52.2 per cent in May 2004 (Table 5.1).

Exports

BND Million % Change

April 2003

April 2004

May 2003

May 2004

Apr '03 & Apr '04

May '03 & May

'04

Apr '04 & May '04

Oil and Gas 545.0 591.2 548.8 575.3 8.5 4.8 (2.7)

Petroleum 301.3 336.3 308.2 387.2 11.6 25.6 15.1

LNG 243.6 254.9 240.6 188.1 4.6 (21.8) (26.2)

Non-Oil & Gas

39.0 64.2 68.7 43.7 64.4 (36.4) (32.0)

Garment 20.8 27.4 39.7 23.4 31.8 (41.2) (14.8)

Machinery & Trans-port Equipment

11.4 29.1 16.2 13.9 154.3 (14.1) (52.2)

Others 6.8 7.7 12.8 6.4 13.0 (49.9) (16.5)

Total Ex-ports

584.0 655.4 617.5 619.0 12.2 0.2 (5.6)

TABLE 5.1: EXPORTS BY MAJOR COMMODITY, APRIL-MAY 2003 AND APRIL-MAY 2004

400

500

600

700

800

900

30

40

50

60

70

80

90

Total Exports 689.4 627.4 714.4 655.4 619.0

Oil and Gas 624.6 544.6 659.0 591.2 575.3

Non-Oil & Gas 64.8 82.8 55.4 64.2 43.7

Jan '04 Feb '04 M ar '04 Apr '04 M ay '04

CHART 5.3: EXPORTS BY MAJOR COMMODITY, JAN-MAY 2004

BN

D M

illio

n B

ND

Millio

n



With respect to the destination of exports, in April 2004, 44.4 per cent of the total exports were to Japan, followed by ASEAN countries (22.4 per cent), Australia (12.7 per cent) and Korea (9.7 per cent) (Chart 5.4). Compared to April 2003, Brunei’s exports to Australia, Korea and Japan in April 2004 increased by 59.7 per cent, 30.6 per cent and 21.8 per cent re-spectively. Exports to China and ASEAN countries declined by 99.4 per cent and 3.0 per cent respectively. The huge decrease of Brunei Darussalam’s exports to China was due to no Petro-leum exports in April 2004.

In May 2004, Japan remained the dominant exports market which accounted for 35.0 per cent of total exports, followed by Korea (13.9 per cent), ASEAN countries (9.9 per cent), China (8.3 per cent) and Australia (6.0 per cent) (Chart 5.5). Com-pared to May 2003, Brunei’s exports to Korea and China in May 2004 increased by 87.4 per cent and 70.6 per cent respec-tively. Exports to ASEAN countries, Australia and Japan de-clined by 60.9 per cent, 27.4 per cent and 19.0 per cent respec-tively.

In comparison to April 2004, Brunei Darussalam’s exports in May 2004 to Korea increased by 36.0 per cent from BND 63.3 million to BND 86.1 million. There was also a significant in-crease in exports to China from BND 187,492 in April 2004 to BND 51,479,048 in May 2004 due to exports of mineral fuels recorded at BND 51,476,041 in May 2004. However, there were reductions in exports to ASEAN Countries, Australia and Ja-pan by 58.1 per cent, 55.6 per cent and 25.6 per cent respec-tively (Table 5.2).

In April 2004, total imports were BND 188.7 million, which was a decrease of 13.1 per cent compared to April 2003 im-ports of BND 217.2 million. The decrease in imports was due to the decline in the imports of Crude Material Inedible by 63.5 per cent, Mineral Fuels (23.5 per cent), Food & Live Animals (22.4 per cent), Manufactured Goods (14.0 per cent), Miscella-neous Manufactures Articles (13.5 per cent), Machinery & Transport Equipment (13.2 per cent) and Animal & Vegetable Oils and Fats (3.4 per cent). Such decreases were moderated by the increases in Beverages & Tobacco by 49.9 per cent, Miscel-laneous Transactions and Commodities (24.6 per cent) and Chemicals (10.2 per cent).

In May 2004, total imports decreased slightly by 0.8 per cent from BND 198.2 million in May 2003 to BND 196.6 million due to the reduction in the imports of Miscellaneous Transactions and Commodities by 48.5 per cent, Crude Material Inedible (20.4 per cent), Manufactured Goods (18.4 per cent), Animal & Vegetables Oils & Fats (8.6 per cent), Chemicals (0.8 per cent) and Mineral Fuels (0.5 per cent). The increases in Food & Live Animals by 34.3 per cent, Beverages & Tobacco (19.1 per cent), Miscellaneous Manufactured Articles (8.7 per cent) and Ma-chinery & Transport Equipment (0.4 per cent) were insufficient to offset the total reduction in imports.

On the contrary, total imports increased by 4.2 per cent in May 2004 on a month-on-month basis due mainly to high imports of Food & Live Animals by 35.5 per cent and also imports of Machinery & Transport Equipment by 12.0 per cent in May 2004 (Table 5.3).

Imports

CHART 5.4: EXPORT MARKET IN APRIL 2004

ASEAN22.4%

JAPAN44.4%

CHINA0.0%

OTHERS10.8%

AUSTRALIA12.7%

KOREA9.7%

CHART 5.5: EXPORT MARKET IN MAY 2004ASEAN

9.9%

JAPAN35.0%

KOREA13.9%

AUSTRALIA6.0%

CHINA8.3%

OTHERS26.9%

TABLE 5.2: EXPORT MARKET FOR APRIL-MAY 2003 AND APRIL-MAY 2004


April 2003

April 2004

May 2003

May 2004

Apr '03 & Apr

'04

May '03 & May

'04

Apr '04 & May '04

ASEAN 151.5 147.0 157.5 61.6 (3.0) (60.9) (58.1)

JAPAN 238.9 290.9 267.2 216.4 21.8 (19.0) (25.6)

KOREA 48.4 63.3 45.9 86.1 30.6 87.4 36.0

AUSTRA-LIA

52.1 83.2 50.8 36.9 59.7 (27.4) (55.6)

CHINA 29.4 0.2 30.2 51.5 (99.4) 70.6 27,356.7

OTHERS 63.8 70.9 65.8 166.6 11.2 153.1 135.0

TOTAL EXPORTS

584.0 655.4 617.5 619.0 12.2 0.2 (5.6)

TABLE 5.3: IMPORTS BY COMMODITY, APRIL-MAY 2003 AND APRIL-MAY 2004


April '03

April '04

May '03

May '04

Apr '03 & Apr '04

May '03 & May '04

Apr '04 & May '04

Food & live animals 30.1 23.4 23.6 31.7 (22.4) 34.3 35.5

Beverages & tobacco 4.0 6.0 3.6 4.3 49.9 19.1 (28.3)

Crude material inedi-ble

5.5 2.0 1.8 1.4 (63.5) (20.4) (29.2)

Mineral fuels 1.7 1.3 1.6 1.6 (23.5) (0.5) 17.8

Animal & vegetable oils and fats

1.3 1.3 1.4 1.3 (3.4) (8.6) 1.0

Chemicals 14.9 16.5 16.8 16.7 10.2 (0.8) 1.2

Manufactured goods 64.7 55.7 61.1 49.9 (14.0) (18.4) (10.4)

Machinery & trans-port equipments

70.5 61.2 68.2 68.5 (13.2) 0.4 12.0

Miscellaneous manu-factured articles

23.7 20.5 19.0 20.7 (13.5) 8.7 1.1

Miscellaneous trans-actions and commodi-ties, n.e.cmanufactured articles

0.7 0.8 1.0 0.5 24.6 (48.5) (41.8)

Total imports (c.i.f) 217.2 188.7 198.2 196.6 (13.1) (0.8) 4.2



Total imports showed a downward trend for the period be-tween January and May 2004 (Chart 5.6). The high total im-ports in February 2004 was due to high imports of Machinery & Transport Equipment from the European Union.

In April 2004, Machinery and Transport Equipment consti-tuted 32.4 per cent of total imports, followed by Manufactured Goods (29.5 per cent), Food & live animals (12.4 per cent), Mis-cellaneous Manufactured Articles (10.9 per cent) and Chemi-cals (8.7 per cent) (Chart 5.7).

In May 2004, Machinery and Transport Equipment remained the major imports commodity which accounted for 34.9 per cent of total imports, followed by Manufactured Goods (25.4 per cent), Food & live animals (16.1 per cent), Miscellaneous Manufactured Articles (10.5 per cent) and Chemicals (8.5 per cent) (Chart 5.8).

With regards to the origin of imports, in April 2004, 48.9 per cent of total imports were from ASEAN countries, followed by the USA (10.8 per cent), Japan (9.5 per cent), the European Union (9.3 per cent), Hong Kong (5.9 per cent), China (5.4 per cent) and Australia (2.1 per cent) (Chart 5.9).

Compared to April 2003, Brunei Darussalam’s imports in April 2004 from Australia, the USA, Japan, Hong Kong, ASEAN countries, China and the European Union decreased by 37.0 per cent, 30.1 per cent, 24.1 per cent, 20.2 per cent, 11.7 per cent, 2.6 per cent and 1.0 per cent respectively.

In May 2004, ASEAN countries remained the main source of imports which accounted for 47.4 per cent of total imports, followed by the USA (12.1 per cent), Japan (11.0 per cent), the European Union (8.7 per cent), China (6.2 per cent), Hong Kong (5.2 per cent) and Australia (3.4 per cent).

In comparison to May 2003, Brunei Darussalam’s imports in May 2004 from China increased by 42.5 per cent, followed by the USA (33.2 per cent), Australia (9.9 per cent), Japan (9.6 per cent) and Hong Kong (5.2 per cent). However, imports from the European Union and ASEAN countries declined by 29.9 per cent and 6.3 per cent respectively.

Compared to April 2004, Brunei Darussalam’s May 2004 im-ports from Australia increased by 72.7 per cent, followed by Japan (20.6 per cent), China (19.0 per cent), the USA (16.0 per cent) and ASEAN countries (1.0 per cent). However, imports from Hong Kong and the European Union declined by 8.2 per cent and 2.6 per cent respectively (Table 5.4).

Food & live animals12.4%

Others6.1% Chemicals

8.7%

M achinery & transport

equipments32.4%

M anufactured goods29.5%

M iscellaneous manufactured

articles10.9%

CHART 5.7: MAJOR COMMODITY IMPORTS IN APRIL 2004

Others4.6%

Food & live animals

16.1%M iscellaneous manufactured

articles10.5%

M anufactured goods25.4%

M achinery & transport

equipments34.9%

Chemicals8.5%

CHART 5.8: MAJOR COMMODITY IMPORTS IN MAY 2004

104.6

17.7

23.6

29.2

10.514.16.1

11.3

92.3

17.5

17.9

20.4

10.311.23.915.1

99.5

24.4

19.7

17.88.69.86.1

12.2

93.2

17.1

21.6

23.7

12.210.36.7

11.7

0%

20%

40%

60%

80%

100%

April '03 April '04 M ay '03 M ay '04

ASEAN EU JAPAN USA CHINA HONG KONG AUSTRALIA OTHERS

B N D M il l io n

CHART 5.9: ORIGIN OF IMPORTS, APRIL-MAY 2003 AND APRIL-MAY 2004

TABLE 5.4: ORIGIN OF IMPORTS, APRIL-MAY 2003 AND APRIL-MAY 2004


April '03 April '04 May '03 May '04 April '03

& April '04

May '03 & May

'04

April '04 & May

'04

ASEAN 104.6 92.3 99.5 93.2 (11.7) (6.3) 1.0

EU 17.7 17.5 24.4 17.1 (1.0) (29.9) (2.6)

JAPAN 23.6 17.9 19.7 21.6 (24.1) 9.6 20.6

USA 29.2 20.4 17.8 23.7 (30.1) 33.2 16.0

CHINA 10.5 10.3 8.6 12.2 (2.6) 42.5 19.0

HONG KONG

14.1 11.2 9.8 10.3 (20.2) 5.2 (8.2)

AUSTRALIA 6.1 3.9 6.1 6.7 (37.0) 9.9 72.7

OTHERS 11.3 15.1 12.2 11.7 32.9 (4.7) (22.5)

TOTAL IMPORTS

217.2 188.7 198.2 196.6 (13.1) (0.8) 4.2

150

200

250

300

350

Total Imports 205.6 335.8 194.0 188.7 196.6

Jan 2004 Feb 2004 M ac 2004 Apr 2004 M ay 2004

CHART 5.6: TOTAL IMPORTS, JANUARY-MAY 2004

BN

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Trend Line


The average weighted Crude Oil Price Index (COPI) for Q2 2004 in-creased by 39.8 per cent year-on-year from 92 to 128.6. On a quarter-on-quarter basis, the COPI increased by 7.3 per cent from 119.8 (Table 6.1). Brunei Darussalam’s average weighted crude oil price decreased by 3.2 per cent from US$38.47 per barrel in March 2004 to US$37.23 per barrel in April 2004 (Table 6.1 and Chart 6.1). Then it rose by 5.8 per cent to US$39.4 in May 2004. However, it decreased again by 4 per cent to US$37.83 per barrel in June 2004. The average weighted crude oil price stood at US$38.2 per barrel in Q2 2004 compared to US$27.33 per barrel in Q2 2003 and US$35.59 per barrel in Q1 2003. World oil prices closed at around US$35.45 per barrel at the end of Q1 2004. Prices remained stable above US$33.45 per barrel throughout April 2004. May 5 then saw oil prices hit a fresh 13-year high reaching US$39.40 per barrel due to tight supplies in the US and the fear that violence in the Middle East would intensify. A day later, prices rose further to US$39.40 per barrel amid renewed violence in the Middle East. On May 13, oil prices hit an all-time high reaching US$40.60 per barrel following worries about global demand and gasoline supplies. Prices rose further on May 17 to a new record high (around US$41.40 per barrel) on concern that rapid fuel demand growth would outpace global supplies at a time when traders feared an attack on the Middle East oil infrastructure. Prices eventually fell a day later to around US$40.10 per barrel on signs that the oil producers' cartel, the Organi-zation of Petroleum Exporting Countries (OPEC), would vote to in-crease production when it was due to meet in June 2004. May 24 however saw oil prices rose again to around US$41.30 per bar-rel due to soaring oil demand caused by global economic expansion. There has been higher than expected oil demand in industrialized countries. China’s rapidly expanding economy also has created a huge demand boost. Prices then remained stable around US$40.90 per barrel throughout the end of May 2004. On June 1, oil prices struck a new record high (around US$41.70 per barrel) on concerns that a violence campaigns by Islamic militants in Saudi Arabia could destabilize the world’s biggest crude exporter. The next two weeks subsequently saw oil prices on a falling trend to around US$38.39 per barrel amid expectations that higher OPEC pro-duction and rising imports of the United States of America (USA) would increase inventories in the USA, the world's largest energy con-sumer. Prices however increased again on June 18 to around US$38.50 per barrel after attacks on pipelines in Iraq. The next two weeks then saw oil prices declined gradually and eventually closed at around US$37.50 per barrel at the end of June 2004.


Average Weighted Crude Oil Price Index

Table 6.1 : Average Weighted Price of Crude Oil

Unit - US$/Barrel

2001 2002 2003 2004

JAN 26.24 19.67 30.02 32.73

FEB 27.27 20.17 30.98 36.22

MAC 26.79 22.99 33.41 38.47

APR 27.75 24.76 27.69 37.23

MAY 28.99 25.73 27.18 39.40

JUN 28.05 24.60 27.07 37.83

JUL 25.99 26.31 30.03 AUG 24.91 27.85 30.35 SEP 24.96 28.64 29.35 OCT 20.19 26.60 32.39 NOV 18.79 26.51 32.27 DEC 18.60 31.02 31.35

Average W.Crude Oil Price for the Year

24.67 25.33 30.17

Average W.Crude Oil Price Q1 26.73 20.87 33.41 35.59

Average W.Crude Oil Price Q2 28.23 25.03 27.30 38.20

Average W.Crude Oil Price Q3 25.29 27.59 29.33

Average W.Crude Oil Price Q4 19.19 28.02 32.00

Average W.Crude Oil Price 1H 27.45 22.95 30.33 36.89

Average W.Crude Oil Price 2H 23.19 27.51 30.71

Average Weighted Crude Oil Price Index

2001 2002 2003 2004

JAN 88.3 66.2 101.0 110.2

FEB 91.8 67.9 104.3 121.9

MAC 90.2 77.4 112.5 129.5

APR 93.4 83.3 93.2 125.3 MAY 97.6 86.6 91.5 132.6 JUN 94.4 82.8 91.1 127.3 JUL 87.5 88.6 101.1 AUG 83.8 93.7 102.2 SEP 84.0 96.4 98.8 OCT 68.0 89.5 109.0 NOV 63.2 89.2 108.6 DEC 62.6 104.4 105.5

Average Index for the Year 83.0 85.3 101.5



Average Index for Q3 85.1 92.9 98.7

Average Index for Q4 64.6 94.3 107.7

Average Index for 1H 92.4 77.2 102.1

Average Index for 2H 78.1 92.6 103.4

Base year 2000=100



24.60

26.31

30.98

33.4132.73

36.22

38.4737.23

27.0727.18

30.03

29.3530.35

32.39

26.5126.60

28.64

24.76

25.73

31.02

30.02

39.4

37.83

27.6927.85

31.35

32.27

20

25

30

35

40

45

APR 2002 JUL OCT JAN 2003 APR JULY OCT JAN 2004 APR

Chart 6.1: Brunei Darussalam Average Weighted Crude Oil Prices

US

$/

Barr

el


The economy of Brunei Darussalam is expected to grow further in Q3 2004 and again the non-oil private sector is likely to provide the mo-mentum. On the production side, the oil and gas sector may not show significant increase due to “capacity constraint”. However, the higher oil price may contribute to higher export revenue and the resulting general spill-over effects. Furthermore, economic expansion of regional economies may help boost business confidence in this country. The non-oil private sector will be enhanced by expansions in mining, quarrying and manufacturing, construction, wholesale and retail trades, transportation and communication and other services sectors. These are the sectors which have revealed significant growth during the first half of 2004. The restaurant and hotel sector in particular, will be boosted by the upcoming royal birthday and wedding functions. Furthermore, an examination of job vacancies1 in the private sector has revealed a significant increment over the past two quarters, especially in the services sector. With better economic outlook and more invest-ment, job opportunities are also anticipated to increase further along with non-oil sector growth. As expected, the government financial position (budget surplus) has improved in Q2 2004 compared to Q1 2004 but this was largely due to the decline in government current expenses. During the same period, the government development expenditure is expected to increase again in Q3 2004. Since October 2003, the broader measure of money supply, M2, has increased during the last three quarters. Non-performing loans have also decreased, especially after February 2004. Similarly, loans ad-vances have also increased generally in Q2 2004 compared to the pre-vious quarter, even though the bulk goes to personal requirements. All of these developments show some level of confidence in both the busi-ness community and the consumers and the same is expected to persist in the next quarter. On the external sector, although the trade statistics showed a decline in exports between April and May 2004, imports are increasing during the same period. This is especially true for both tradeable and invest-ment goods such as those under machinery and transport equipment and foods and live animals categories. These trade indicators, together with the aforementioned, are positive signs of a growing economy, at least in the short and the medium term.

1These job vacancies are monitored based on those advertised in the Borneo Bulletin from January to June 2004. Between Q1 and Q2 of 2004, there was an increase in job opportunities of nearly 50 percent, from 293 to 432 job vacancies. The bulk of these opportunities (76 percent of total in Q2 2004) are in the professionals, technicians and clerical occupational categories.


Economic Outlook for Q2 2004


For the fiscal year of 2004-2005, a total of BND 900 million has been allocated to implement some 480 projects of the 8th National Development Plan. Out of this amount, BND 526 million has been allocated to fund 210 on-going projects, including projects which have been completed, but are awaiting penultimate and final pay-ments.

The balance of this fund (BND 374 million) will finance the imple-mentation of the remaining 270 projects. The BND 900 million allocation has been distributed to major de-velopment sectors as shown in Table 1 below.

From Table 1, the Social Services Sector receives the highest alloca-tion of BND 207 million. Out of this, 46 per cent will be utilised to fund on-going projects while the remaining 54 per cent has been allocated to finance projects that are yet to be implemented.

Meanwhile, the Miscellaneous Sector receives the least allocation of just over BND 25 million, for which 67 per cent will be used to finance on-going projects.

Out of 210 on-going projects, a total of 70 projects (with allocations of about BND 80 million) were completed. Table 2 summarizes the status of on-going projects.

Out of a total of 270 projects, 9 were completed (with allocation of BND 2.8 million). The status of other new projects is as shown in Table 3.

A. On-Going Projects

Q2 2004 IMPLEMENTATION ACHIEVEMENT: PHYSICAL STATUS

B. Newly Implemented Projects

8th NATIONAL DEVELOPMENT PLAN Q2 2004 Project Implementation Review

TABLE 1: Budget Allocation by Major Sectors and Category of Projects

Sectors On-Going Projects New Projects

TOTAL SECTORAL ALLOCATION

(BND) & % of Total Sectoral Allocation

(BND) & % of Total Sectoral Allocation

(BND)

Industry & Commerce 74,458,000

(81.78%) 16,590,000

(18.22%) 91,048,000

Transport & Communication 100,429,000 67,213,000

167,642,000 59.91% 40.09%

Social Services 94,638,000 112,478,000

207,116,000 45.69% 54.31%

Public Utilities 90,910,000 75,580,000

166,490,000 54.60% 45.40%

Public Buildings 62,675,000 22,850,000

85,525,000 73.28% 26.72%

Security 64,250,000 28,900,000

93,150,000 68.97% 31.03%

Miscellaneous 16,689,000 8,340,000

25,029,000 66.68% 33.32%

ICT 22,000,000 42,000,000

34.38% 65.63%

GRAND TOTAL 526,049,000 373,951,000

(41.55%)

900,000,000

58.45% 100%

64,000,000

COMPLETED PRO-JECTS

ON-GOING PRO-JECTS

PROJECTS IN OTHER STAGES1

Number of Pro-

jects

BND million

Number of Pro-

jects

BND million

Number of

Projects

BND million

TOTAL 70 79.7 129 426.5 11 19.8

TABLE 2: BREAKDOWN OF STATUS OF ON-GOING PROJECTS Q2 2004

1 & 2 Other Stages here include projects which are in the process of preparing tender documents, pre-design, design, concept formulation and awaiting appointment of consultants. It also includes projects which are being KIVed and other stages prior to implementation

Status Number of New Pro-

jects

2004 Alloca-tion BND mil-

lion

Completed 9 2.8

Under Implementation 31 84.0

Tender Awarded 2 2.8

Awaiting Tender 33 74.1

Tendering Process 28 53.9

Other stages2 167 156.3

Total 270 373.9

TABLE 3: STATUS OF NEW PROJECTS FOR Q2 2004


During Q2 2004, 10 consultants were appointed to undertake pro-jects as shown in Table 4.

The breakdown of the financial warrants issued in Q2 2004, by major sectors is as shown in Table 5. A total of about BND 189 million worth of warrants for all major sectors were approved. The Transport and Communication Sector received the highest amount of about BND 74 million, accounting for 41 per cent of the total value of warrants issued.

Chart 1 shows expenditure in Q2 2004 for each major sector.

The Transport and Communication Sector recorded the highest expenditure, especially during Q2 2004 as compared with the rest of the major sectors. During this period, this sector spent BND 35 million or 47 per cent against approved warrants of BND 74 mil-lion.

The Miscellaneous Sector registered the least spending in Q2 2004, amounting to BND 0.23 million or 19.7 per cent against ap-proved warrants.

Overall, expenditure in Q2 2004 amounted to BND 78.4 million or 8.7 per cent against 2004-2005 allocations and about 42 per cent against approved warrants worth BND 189 million. This is shown in Table 5 and Chart 2.

8 t h N A T I O N A L D E V E L O P M E N T P L A N

Expenditure

Q2 2004 IMPLEMENTATION ACHIEVEMENT: FINANCIAL STATUS

Warrants Issued

B. Appointment of Consultants

No VOTE NO PROJECT DESCRIPTION DATE OF

APPOINT-MENT

1 816-007 Telemetry for BSB Sewerage Sys-tem

10-May-04

2 815-016 Renovation to Block 3 and Outpatient Clinic at Raja Isteri Pengiran Anak Saleha Hospital, BSB

18-May-04

3 815-015 Renovation and Repair to Accident and Emergency Unit at Raja Isteri Pengiran Anak Saleha Hospital, BSB

18-May-04

4 803-016 Development of Marine Park: Na-tional Turtle Conservation and Man-agement Centre

27-May-04

5 817-001-007

BSB/Muara/Tutong Water Supply Scheme Stage 6: Improvements to Planned Maintenance

27-May-04

6 801-003 Development Schemes for Fruit Industry – Phase 2 – Plantation Infrastructure Development for Merangking, Bukit Sawat, Belait District

27-May-04

7 806-035 Medical Institute Building, UBD 27-May-04 8 820-015-

002-003 H3 Houses at Kg Meragang Housing Scheme

27-May-04

9 820-015-002-004

H4 Houses at Kg Meragang Housing Scheme

27-May-04

10 818-001-001

Dumping Area, Kuala Belait, Phase 1 27-May-04

TABLE 4: PROJECTS WITH APPROVED CONSULTANTS FOR Q2 2004

SECTORS 2004 Alloca-

tion (BND)

Warrants Issued (BND)

Percentage Of Warrants

Issued Against Total Warrants

Q2 2004 Expenditure

(BND)

Percentage of Ex-penditure

Against Allocation

Percentage of Ex-penditure

Against Warrants

Industry and Commerce 91,048,000 12,143,796 6.44% 4,768,582 5.2 39.3

Transport and Communication 167,642,000 74,236,279 39.35% 35,055,782 20.9 47.2

Social Services 207,116,000 47,255,236 25.05% 18,884,608 9.1 40.0

Public Utilities 166,490,000 23,107,563 12.25% 6,849,292 4.1 29.6

Public Building 85,525,000 13,219,957 7.01% 4,251,226 5 32.2

Security 93,150,000 7,000,213 3.71% 4,362,909 4.7 62.3

Miscellaneous 25,029,000 1,196,688 0.63% 235,609 0.9 19.7

ICT 64,000,000 10,493,368 5.56% 4,046,751 6.3 38.6

Grand total 900,000,000 188,653,100 100.00% 78,454,759 8.7 41.6

Table 5: ALLOCATION, WARRANT AND EXPENDITURE, Q2 2004

Chart 1: SPENDING BY SECTORS, Q2 2004

BN

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s

4.050.24

4.364.256.85

18.89

35.06

4.77

0

5

10

15

20

25

30

35

40

Sectors

Q2 (2004)

Ind

ust

ry &

Co

mm

erce

Tran

spo

rt &

Co

mm

un

icat

ion

Soci

al

Serv

ices

Pub

lic

Uti

litie

s

Pub

lic

Bu

ildin

gs

Sec

urity

Mis

cella

neo

us

ICT

CHART 2: NDP Major Sectors - Allocation, Warrants, Expenditure, Q2 2004

91

168 166

86 93

25

64

12

74

2313 7 1

115

3519

4 4 0.2 4

207

47

70

20406080

100120140160180200220

Secto rs2004 Allocation Warrants April 2004 - Jun 2004 Expenditure April 2004 - Jun 2004

Ind

ust

ry &

Co

mm

erce

Tran

spo

rt &

Co

mm

un

icat

ion

Soci

al

Serv

ices

Pub

lic

Uti

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s

Pub

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Bu

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gs

Sec

urity

Mis

cella

neo

us

ICT

BN

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s

Approved warrants for the period of April to June 2004 totaled BND188,653,100, which was 95 per cent of the target.

Expenditure for the same period of time totaled BND 78,454,759 which was 44 per cent of the target.

Up to Q2 2004, the total expenditure recorded was about 42 per cent of total warrants issued for the same period, but only about 9 per cent of total allocations for the said quarter. This is shown in Table 5.

On a year-on-year comparison, spending in Q2 2004 (BND 78.5 million) was a 2 per cent increased as compared to Q2 2003 (BND 77.2 million).

With the increase in spending, physical status of projects had improved on a year – on – year comparison. The number of projects completed was 30 per cent (79 projects) higher in Q2 2004 as compared to Q2 2003 (61 projects).

The record shows, from 210 on-going projects, 70 projects were com-pleted, with total allocation of BND 80 million. Only 11 projects are in ‘other stages’ category, while 129 other projects are still in ‘implementation stage’, with an estimated allocation of BND 427 million.

The remaining 270 new projects, with an estimated allocation of BND 374 million, 9 projects were completed (with allocation of BND 2.8 mil-lion). Thirty-one (31) projects have just commenced their implementa-tion. Sixty-three (63) projects (with allocation BND 130.8 million) that have just been awarded and projects that are in the stage of tendering, are expected to commence implementation in the third and fourth quar-ters of 2004.

While the amount of warrants approved may be high, implementing and client agencies alike have not spent enough to meet the target of an aver-age monthly expenditure of BND 66 million. The reasons for this may be attributed to a number of factors. However the trend appears to strongly suggest delays in many processing stages:

♦ in the process of tendering of projects, specifically in the assessment of tenders by clients and implementing agencies;

♦ in the processing of claims for payments; ♦ in the finalization of accounts for the purpose of paying penultimate

payments and release of retention funds;

Delays are also caused by the re-tendering of projects due to contractors’ failure to undertake or complete the work. As a result, there is an obvi-ous need for additional efforts to address such delays in order to further improve project implementation performance.

JPKE in consultation with the Ministry of Development and the Ministry of Finance are currently working towards resolving the issue.

Spending in the first quarter of the financial year has been observed to be low, as with previous years. However, this will soon pick its momentum in the subsequent quarters.

Four sectors will remain active in the next quarters: (1) Transport and Communications; (2) Social Services; (3) Public Utilities and (4) Public Buildings.

The Security sector and Industry and Commerce sector will probably edge their way towards the four active sectors. This is shown by the dras-tic rise in spending for both sectors.


IMPLEMENTATION PROJECTION

8 t h N A T I O N A L D E V E L O P M E N T P L A N

ANALYSIS OF ACHIEVEMENTS FOR Q2 2004

First Phase

A sum of BND 34,975,776 was spent under Phase 1, of which BND 22,968,721 was for projects implemented by the Public Works De-partment (PWD) and BND 12,007,055 by the Housing Develop-ment Department (HDD).

Construction of 300 houses by the Public Works Department

As shown in Table 1, the contract for Package 1 involving 24 houses in Kg Katok A was being mobilised on site. Altogether, 12 packages were completed involving 276 houses in Kg Katok A and Kg Katok B.

Out of 276 houses completed, 204 houses in Kg Katok A and Kg Katok B were handed over to beneficiaries. The remaining 72 houses are expected to be handed over in Q4 2004.

Construction of 211 houses by Housing Development Department

Table 2 shows there are 3 remaining on-going contracts. Contract H10B, a retendered contract involving 22 terrace houses in Kg Pan-dan is expected to be completed by the end of October 2004. Con-tracts H23B could not be completed as scheduled and need an ex-tension of time. While Contract H29A involving 20 houses in Kg Rimba are expected to be completed by the end of December this year.

Infrastructure Works

The status of the two infrastructure works involving road works at Kg. Katok A and Water Reticulation System in Kg. Katok B, re-mained unchanged since Q4 2003 (Table 3).

Second Phase

A total of BND 10,095,190 has been spent in the second phase.

Construction of 250 houses by the Public Works Department.

As shown in table 4,one of the contracts at Kg Katok B namely package 14 involving the construction of 15 houses retendered in the last quarter 2003 was finally awarded in March 2004.The pro-gress of this contract is very slow. It is estimated to be five months behind schedule.

The construction of 206 houses at Kg Sungai Buloh under packages 17-25 are still on going of which eight packages (17,19,20,21,22,23,24 and 25) involving 184 houses are expected to be completed very soon. While package 18 involving 22 houses is scheduled to be com-pleted by February 2005(Table 4).

Infrastructure Works

By the end of Q1 2004, in Kg. Katok A, one electrical and one water supply works have been completed while telecommunication works was delayed. In Kg. Katok B only the water works project was completed and both the electrical and communication works are delayed due to the delay in the award of contract for package 14 at Kg Katok B.

None of the 5 infrastructure works in Kg Sungai Buloh were com-pleted. The 3 road works contract are still on going and are behind schedule. The electrical and telecommunication works are also de-layed and have exceeded their contract period. This is mainly due to the delay in the construction of sewerline and water works. These contracts, therefore, require extension of time.


SHORT TERM ECONOMIC RECOVERY

PUBLIC HOUSING DEVELOPMENT SCHEME Table 1: Implementation Status of Housing Development Scheme Phase 1 (PWD)

Site Pack-age Num-ber

No. Of Houses

Types of Houses Status

PROJECTS RETENDERED Kg. Katok A 1 24 E ON GOING Sub Total 1 24 E

PROJECTS COMPLETED 2 26 E COMPLETED 3 22 E COMPLETED 4 25 E COMPLETED 5 24 E COMPLETED 6 21 D COMPLETED 7 23 D COMPLETED 8 23 C COMPLETED 9 24 C COMPLETED 10 19 C COMPLETED Kg Katok B 11 29 D COMPLETED 12 20 C COMPLETED 13 20 C COMPLETED Sub Total 12 276 C/D/E TOTAL 13 300 C/D/E Source: Department of Implementation and Monitoring, JPKE Table 2: Implementation Status of Housing Development Scheme Phase 1 (HDD)

Site Con-tract Number

No. of Houses Types of

Houses Status Comple-tion Date/(Revised)

PROJECTS RETENDERED Kg. Pandan H10B 22 TERRACE ON GOING 31/10/2004 Kg. Rimba H23B 13 D ON GOING 31/07/200

4 H29A 20 D ON GOING 31/12/200

4 Sub Total : To Be Retendered

3 55 TERRACE /D

PROJECTS COMPLETED Lambak Kanan H35A 19 D COMPLETED Kg Pandan H10A 5 D COMPLETED H10C 22 TERRACE COMPLETED H10D 22 TERRACE COMPLETED Kg Rimba H23A 12 D COMPLETED H29B 32 D COMPLETED

H29C 17 D COMPLETED H29D 27 D COMPLETED Sub Total : Completed 8 156 D,TERRACE TOTAL 11 211 D,TERRACE Source: Department of Implementation and Monitoring, JPKE

Table 3: Implementation Status of Infrastructure Phase 1 – (PWD) Site Project Status

Kg Katok A 1. Improvement of Jalan Tungku DELAYED Kg Katok B 2. Supply & Laying Water Pipe DELAYED

Source : Department of Implementation and Monitoring, JPKE Table 4: Implementation Status of Housing Development Scheme— Phase 2 – (PWD)

Site Package Number

No. of Houses

Types of Houses Status

Kg Katok B 14 15 D & E ON GOING 15 15 E COMPLETED Kg Katok A 16 14 D COMPLETED Kg Sungai Buloh 17 22 D ON GOING 18 22 D ON GOING 19 28 D ON GOING 20 24 D ON GOING 21 24 D ON GOING 22 24 D ON GOING 23 23 E ON GOING 24 24 E ON GOING 25 15 E ON GOING Total 12 250 Source : Department of Implementation and Monitoring, JPKE

The maintenance of government buildings, compounds and assets under the Short-Term Economic Recovery Plan continues to be im-plemented by the Department of Planning and Estate Management, Ministry of Education and Department of Building Services, Public Works Department.

The projects were implemented in 5 stages beginning March 2002 in which the first 2 phases were awarded in 2002. The third and the fourth phase of the project were awarded in the Q1 and Q2 2003 respectively. The fifth phase (re-tendered) was awarded in Decem-ber 2003.

The overall number of works tendered in the five phases was 412, in which 387 contracts were awarded to 231 successful companies (Table 5).

Under Phase 1, the total number of contracts was 51 and only 50 were awarded to 31 companies. For Phase 2, out of the total num-ber of 134 contracts, only 128 contracts were awarded to 82 compa-nies. Under Phase 3, the total number of contracts was 139 and only 132 were awarded to 68 companies. A total of 66 contracts were tendered under Phase 4, whereby only 55 contracts were awarded to 33 companies. Under Phase 5, a total of 22 contracts were awarded to 17 companies (Table 5).

Overall physical progress

With regards to the physical progress, out of 363 contracts that were carried out, 325 contracts were completed and paid. A total of 10 contracts were completed and still under final measurement stage, whilst 14 contracts were still under implementation. A total of 3 contracts were to be terminated due to several reasons such as fail-ure of the awarded contractors to complete the contracts on time. As of Q2 2004, 11 contracts were reported delayed (Table 6).

Progress for each phase

Phase 1

As of 30th June 2004, out of the 50 contracts under Phase 1, 48 were implemented of which 46 contracts were completed, 2 contracts were terminated due to the failure of the awarded contractors to complete the contracts on time while the remaining 2 contracts were delayed (Table 6). Payments made for this phase totalled BND 958,137.38.

Phase 2

Under Phase 2, 82 contractors were given a total of 128 contracts amounting to BND 4,318,088.79. As of 30th June 2004, 107 contracts out of 111 implemented were completed, 1 contract was still under final measurement stage, and 1 contract was delayed. A total of 17 contracts were terminated due to failure of the awarded contractors to complete the contracts. A total of 2 contracts were to be termi-nated (Table 6). Payment made for this phase totaled BND 3,899,752.16.



MAINTENANCE OF GOVERNMENT BUILDINGS, COMPOUNDS AND ASSETS

PHASE TOTAL NO. OF CONTRACTS

NUMBER OF CONTRACTS AWARDED

NUMBER OF SUCCESSFUL COMPANIES

1 51 50 31

2 134 128 82

3 139 132 68

4 66 55 33

5 (re-tendered)

22 22 17

TOTAL 412 387 231

TABLE 5: DISTRIBUTION OF CONTRACTS, NUMBER OF CONTRACTS & NUMBER OF SUCCESSFUL COMPANIES

* As of 30th June 2004

PHASE NO. OF WORKS

AWARDED

NO. OF WORKS TER-

MINATED

NO. OF IMPLE-MENTED WORKS

NO. OF WORKS COM-PLETED AND

PAID

NO. OF WORKS COMPLETED AND

FINAL MEAS-UREMENT

NO. OF WORKS UNDER IMPLEMEN-

TATION

NO. WORKS

DELAYED

NO. OF WORKS TO BE TERMINATED

1 50 2 48 46 0 0 2 0 2 128 17 111 107 1 0 1 2

3 132 5 127 117 3 1 5 1

4 55 0 55 40 6 9 0 0 5 22 0 22 15 0 4 3 0

TOTAL 387 24 363 325 10 14 11 3

* As of 30th June 2004

TABLE 6: PHYSICAL IMPLEMENTATION PROGRESS

Phase 3

For Phase 3, 68 contractors were awarded a total of 132 contracts amounting to BND 10,240,663.91. At the end of Q2 2004, 117 con-tracts out of 127 implemented were completed, 3 contracts under final measurement stage, 1 contract under implementation, and 5 were terminated. The remaining 5 contracts were delayed and 1 contract will be terminated (Table 6). Payments made for this phase totalled BND 7,592,109.61.

Phase 4

Under phase 4, 33 contractors were awarded a total of 55 contracts with a total value of BND 4,311,024.86. As of Q2 2004, 40 contracts out of 55 implemented were completed, 6 contracts were still under final measurement stage, whilst the remaining 9 contracts were still under implementation (Table 6). Payments made for this phase totalled BND 2,337,462.70.

Phase 5

Out of 22 re-tendered contracts which were implemented under Phase 5, 15 contracts were completed, 4 under implementation, and 3 were delayed (Table 6). As of 30th June 2004, payments made for this phase totalled BND 204,997.37.

In Q2 of 2004, 21 loan applications with a total value of BND 4,189,113.00 were approved (Table 7). These loans were for financ-ing projects in the sectors construction (51.6 per cent), ICT (16.8 per cent), business (16.7 per cent), services (12.4 per cent), primary re-sources (1.3 per cent), and manufacturing (1.2 per cent).

By comparison, in Q2 2003, 10 loans were approved amounting to BND 1,116,200.00. The loans approved for Q2 2004 reflect the con-tinuing high interest of entrepreneurs on the scheme as observed in Q1 2004, where 20 loans were approved with the amount of BND 5,187,300.00. Since the introduction of the scheme in January 2001 until June this year, the total number of loans approved reached 198 and the overall value BND 45,455,285.00 (Table 8). Loans were distributed to all categories of firm ownership, with 79.0 per cent going to firms owned by Rakyat Jati and majority Rakyat Jati (Table 9).

P A G E 2 0


SECTORS SECTORS

LOAN AMOUNTS APPROVED THROUGH BANKSLOAN AMOUNTS APPROVED THROUGH BANKS

(No. of Loans in bracket)(No. of Loans in bracket)

BAIDURIBAIDURI

(BND)(BND) HSBCHSBC

(BND)(BND) IBBIBB

(BND)(BND) IDBBIDBB

(BND)(BND) TOTALTOTAL

(BND)(BND)

SERVICESSERVICES 88 30,00030,000

(1)(1)

257,400257,400

(5)(5) 230,000230,000

(2)(2) 517,400517,400

BUSINESSBUSINESS 66 220,000220,000

(2)(2) 430,000430,000

(3)(3) 50,00050,000

(1)(1) 700,000700,000

CONSTRUCTIONCONSTRUCTION 44 1,492,5311,492,531

(1)(1) 450,000450,000

(2)(2) 220,000220,000

(1)(1) 2,162,5312,162,531

ICTICT 11 704,182704,182

(1)(1) 704,182704,182

MANUFACTURINGMANUFACTURING 11 50,00050,000

(1)(1) 50,00050,000

PRIMARY RESOURCESPRIMARY RESOURCES 11 55,00055,000

(1)(1) 55,00055,000

TOTALTOTAL 2121 2,446,7132,446,713 930,000930,000 582,400582,400 230,000230,000 4,189,1134,189,113

NUMBER OF NUMBER OF LOANS AP-LOANS AP-PROVED PROVED

Table 7: Loans Approved by Banks According To Economic Sectors, Q2 2004.

LOANS APPROVED

NO VALUE BND

Services 77 11,204,400.00

Primary Resources 16 4,243,400.00

Business 43 4,935,072.00

ICT 22 10,628,604.00

Manufacturing 4 354,000.00

Tourism 2 555,000

Construction 34 13,534,809.00

Total 198 45,455,285.00

SECTORS

Table 8:Table 8: Loans Approved in the Working Capital Credit Fund, Loans Approved in the Working Capital Credit Fund, January 2001 January 2001 –– June 2004 June 2004

WORKING CAPITAL CREDIT FUND SCHEME

Category of Company Ownership

Total ‘Rakyat Jati’

‘Rakyat Jati’ Majority

Majority Citizens and Permanent Resi-

dence Citizens and others

Firms Number ♦ Proportion

135 68.2%

30 15.2%

26 13.1%

7 3.5%

198 100%

Loan Amounts Value ♦ Proportion

BND 29,111,179 64.1%

BND 6,643,897 14.6%

BND 6,737,678 14.8%

BND 2,962,531 6.5%

BND 45,455,285.00 100%

Table 9: Loan Approved To Firms Table 9: Loan Approved To Firms


Since regaining its full independence, Brunei Darussalam has gone through nearly two decades of National Development Plan (NDP) programs which started in 1986. Since then this country has experienced various economic and socio-political transforma-tions which have influenced the quality of life of its people. For the first time in 1986, Brunei Darussalam engaged itself in its plan for long term development encompassing a period of two decades (1986-2005) and embracing four National Development Plans, starting with the 5th NDP. Obviously, the outlined long term de-velopment objectives have their roots in and basis on develop-mental experiences prior to 1986 as well as on the aspirations dur-ing that time for the future.

This article reviews the socio-economic achievements that have been observed in Brunei Darussalam with respect to some rele-vant long term objectives. The achievements are analyzed based on policies and programs as incorporated in the corresponding National Development Plans. A number of variables could be util-ized to examine the quality of life of the people. In this article, quality of life is appraised based on indicators of the basic necessi-ties of life, namely, education, health and housing and to some extent the environment. Wherever relevant, cross-country bench-marking is done to examine Brunei Darussalam’s position vis-à-vis those countries during certain period of time. If the indicators show some level of under-achievements then they signal to some presence of pertinent issues that need to be considered seriously. These are the challenges and problems that need to be addressed in future planning.

MACROECONOMIC OBJECTIVES AND THE LONG TERM NDP OBJECTIVES

For any nations, irrespective of whether they are developed, developing or less developed countries, their economic progress are based on the achievement of basic macroeconomic objectives which ultimately leads to maintenance if not improvement in the people’s quality of life. The macro-economic objectives ensure:

ο Sustainable economic growth; ο Full employment of resources; ο Price Stability; ο Equitable distribution of income; and ο External balance.

For some countries, even though some of the above objectives are not outlined explicitly, they are expressed in a different way and yet are inclined towards the ultimate goals of the macroeconomic objectives. For Brunei Darussalam, it has outlined its nine long-term development objectives which carry with them some ele-ments of the macroeconomic objectives, as shown in BOX 1. Apart from addressing the macroeconomic objectives, some of the long term objectives also emphasized on social welfare and the envi-ronment as well as the interests of the indigenous Brunei citizens. Even though the objective of equitable distribution of income is not expressed explicitly, this objective has been practiced in Brunei Darussalam in its very own way in the form of in-kind transfers. These include the provision of services in education, health and other social services with minimum charges or even virtually-free. Indeed, the government has a very important role in this respect through the opening of its employment opportuni-ties and the arrays of generous fringe benefits.


THE LONG TERM OBJECTIVES OF BRUNEI DARUSSALAM’S DEVELOPMENT PLAN OF 1986-2005: What has been the level of achievement in enhancing the quality of life?

Introduction

The National Development Plans, commencing with the 5th NDP, were developed based on the nine long term objectives. Almost all of the development programs are centered on physical infrastruc-ture developments. These physical infrastructure developments of course are inevitable and are precursor to and complement of hu-man development. However, it was argued that once a country has gone through or “completed” the development of these pre-requisites, attention should be emphasized on soft infrastructure development. In this respect the 8th NDP is pivotal as it has placed a premium on non-physical infrastructural programs. The 8th NDP budget has been specifically apportioned to areas in human re-sources, science and technology and ICT developments. Further-more, these efforts will be instrumental in taking Brunei Darussa-lam forward into the new economy of the 21st century. None the less, the relationship between physical infrastructure and human development will become obscure if their development is not based on a systematic and strategic planning. In this respect, the formulation of an acceptable national vision supported by outlines of long term perspectives plan is necessary.

ACHIEVEMENTS OF THE LONG TERM DEVELOPMENT OBJECTIVES

The long term objectives outlined above represent both aspects of development, economic and socio-political ones. Both aspects are obviously intimately-related and two-way in nature. On the one hand, the sustainability and strength of economic growth are the foundations of socio-political integrity. On the other hand, socio-political integrity and stability are necessary and pre-conditions for the economy to grow. The ultimatum borne out of socio-political cohesion and economic expansion is of course improve-ment in the quality of life1. The quality of life of the people could be evaluated, among others, through indicators of life expectancy, literacy rate and per capita income, all of which requires aspects of economic growth, employment generation, low inflation rate and stable socio-political and natural environment.

Whatever the intentions and efforts on the part of the government with regard to economic development, the improvement in the quality of life is still the ultimate goal. This aspect of development fits into the universal and current trend of development which

P A G E 2 2


1The long term development objectives outlined in BOX 1 are interdependent, especially for the first objective to improve the quality of life of the people. This objec-tive is realized by the other eight objectives; it is the end product and therefore merits being the ultimate goals of development.

BOX 1 THE LONG TERM DEVELOPMENT OBJECTIVES 1986-2005

ο Improve the quality of life; ο Maximize (optimize) the economic utilization of national resources; ο Develop new export-oriented and import substitution industries; ο Accelerate human resources development to meet the demand of an increasingly sophisti-

cated economy; ο Maintain full employment and increase productivity level; ο Maintain a moderate rate of inflation; ο Foster a dynamic, disciplined and caring society with its citizens as agents for progress

and development; ο Encourage and nurture the development of “Rakyat Melayu” as leaders of industry and

commerce; and ο Have a clean and healthy environment.


emphasizes “development with a human face”2 . The trends in the quality of life indicators enable us to fathom whether a nation has accomplished its socio-economic objectives and targets. For Brunei Darussalam, all the long term objectives outlined above are sup-portive of the ultimate goal to improve the quality of life of the people.

From a universal perspective, the objective to improve the quality of life covers some characteristics and indicators as listed in BOX 2. For most of the characteristics listed, government has a vital role to help accomplish them, more so for Brunei Darussalam which has been well known for its welfarism. In this respect, ac-cording to the United Nations Development Programme, Brunei Darussalam is ranked 33rd among 177 nations on its Human De-velopment Index of 20043. Brunei Darussalam is ranked top among Islamic nations, second only after Singapore among ASEAN member countries; and 5th among Asians (Japan, Hong Kong, Singapore, South Korea and Brunei Darussalam in that or-der).

From one perspective, such an achievement is a pride to the na-tion. However, what is more important is the degrees to which we as a nation are able to sustain if not improve on it. In terms of life expectancy, registration in educational institutions and the liter-acy rate, Brunei Darussalam’s achievement is relatively high and even surpassing those attained by some developed countries. However, the generally declining trend since the early 1980’s in the per capita income variable signals toward the need for a more concerted effort in improving it. This is especially true where there is a wide gap between the per capita income arising out of the oil and gas industry and that of the non-oil and gas private economy. Improvement in the per capita income is one of the im-portant pre-conditions for further growth and structural change.

CHART 1 shows the GDP per Capita for Brunei Darussalam be-tween 1985 and 2003. The trend in GDP per Capita shows a close relationship with oil price, at least between 1985 and 1999. The high GDP per Capita for 1985 reflects the relatively high price of oil during that year (US$26.50 per barrel). In 1998, the world’s oil price dropped drastically to US$11.91 per barrel and the GDP per Capita moved in the same direction.

Since the 1970’s, Brunei Darussalam has been one of the world’s richest countries. In 2002 (based on UNDP Human Development Index of 2004), in terms of the GDP per Capita it is fourth among East Asian nations after Japan, Hong Kong, and Singapore. How-ever, due to Brunei Darussalam’s dependence on oil and gas re-sources, the GDP per Capita does not truly indicate a strong rela-tionship between economic growth and development. On the one hand, there is the issue of sustainability of this economic structure. While the benefits to the country as a whole are obvious, this eco-nomic structure suffers the problems characteristic of rentierism4. On the other hand, however, especially in consideration of the strong role of the Brunei Darussalam’s government in the distri-bution of wealth, the relatively high GDP per capita is a positive indication of the overall development of the economy. But this should not preclude us from examining the real and long-term effects on the well-being of the people.

Theoretically, the trickle down effect of growth arising out of a vital sector5 to the economy occurs through forward and back-



♦ people; ♦ population growth and density ♦ population structure ♦ families and households

♦ knowledge and skills; ♦ educational enrolment ♦ qualification levels

♦ economic standard of living; ♦ income level ♦ household expenditure ♦ social deprivation ♦ costs

♦ economic development; ♦ economic growth ♦ employment ♦ growth in entrepreneur ♦ retail sales ♦ tourism

♦ housing; ♦ housing costs and affordability ♦ size of households ♦ government housing provision

♦ health; ♦ life expectancy ♦ infant mortality ♦ diseases ♦ access to medical and health facilities

♦ natural environment; ♦ waste management ♦ air and water quality ♦ biodiversity ♦ drinking water quality

♦ built environment; ♦ city environment ♦ green space ♦ noise pollution ♦ traffic and transport ♦ public transport

♦ safety and comfort; ♦ perception of safety ♦ road casualties ♦ crime levels

♦ social connectedness; and ♦ electronic communications ♦ community strength and spirit ♦ diversity

♦ civil and political rights. ♦ Involvement in decision making

Source: Quality of Life in New Zealand’s 8 Largest City 2003

BOX 2 QUALITY OF LIFE INDICATORS

2United Nations Development Programme 3Human Development Index (HDI) is a composite index of human development which takes into consideration indexes of Per Capita Income, Literacy Rate and Enrol-ment in Educational Institutions and Life Expectancy. 4Rentierism refers to (is measured as) the proportion of rents in government revenue, with 40 % as the benchmark. Rentierism and natural resource dependency are not the same thing, though in practice they are highly correlated. Natural resource dependency is generally measured as the share of natural resource exports as a percentage of GDP. (Herb, 2003). 5For Brunei Darussalam this refers to the oil and gas sector, which has been the staple of the economy for more than three decades.

GD

P p

er

CA

PIT

A (

BN

D)

OIL

PR

ICE (U

SD

)

CHART 1 BRUNEI DARUSSALAM’S GDP PER CAPITA, 1985-2003

0

500010000

1500020000

25000

3000035000

40000

0

5

10

15

20

25

30

35

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

ward linkages, consumption linkage and fiscal linkage. In this linkage context, Tse and Fernandez (1987), based on available information during the time of write-up, contends that the experience of Brunei Darussalam economic development in the 1970’s and early 80’s was one where there was “growth without development”. In other words, economic growth (growth in output) during the period under consideration did not con-tribute significantly to socio-economic development. That was then. However, what needs to be put in the right perspective is the fact that socio-economic development in Brunei Darussalam is unique. Forward and backward linkages and consumption linkage may be minimal but fiscal linkage is strong. Today, the government, for example, has been an important source of employment opportunities for its people, afforded to Bruneians a wide range of social services and in many cases virtually free. Sustainability, of course is the most pertinent issue in this respect.

The quality of life or standard of living is also related to the costs of liv-ing. If the costs to support decent lifestyles are high, it will translate into a decline in the purchasing power of nominal dollar. Generally, the costs of living are associated with the rates of inflation. The higher the rates of inflation in an economy, the more expensive it is to purchase goods of the same worth as before. The trend for the rates of inflation for Brunei Darussalam between 1986 and 2003 is shown in CHART 2. On average, the rate of inflation during the period is approximately 1.5 percent, which is quite low and satisfies the national long-term objective to main-tain a moderate rate of inflation. However, there are a few exceptions during the period where the rates are very much higher in 1993 (4.3 per-cent) and 1995 (6.0 percent). Apart from that, Brunei Darussalam has also experienced a deflation of -2.3 percent in 2002. A deflation is a situation where an economy experiences a decrease in the general price level. Typically, the benefits of deflation go to consumers and purchasers of intermediate inputs.

The control or stabilization of price levels in Brunei Darussalam is mainly sought through administrative procedures rather than through monetary devices (policies) as usually practiced in other economies. The trend in the rates of inflation in Brunei Darussalam reflects the country’s trade policies. The increase in the rate of inflation in 1995, for example, was in line with the government’s decision to increase import duties on automobiles in early 1995; from 20 percent to as high as 200 percent ac-cording to engine capacity. When the government made a u-turn in No-vember 2001 by decreasing the the import duties to their original across-the-board rate of 20 percent (15 percent for heavy vehicles), the policy is reflected in the negative inflation rate for 2002. Apart from policies as such, the government had also enacted the Price Control Act in 1977. Continuous monitoring has been practiced to prevent deliberate price increases.

However, because Brunei Darussalam imports almost all of its economic requirements, it has not been able to contain inflationary pressures aris-ing out of its import trading partners. In this regard, Brunei Darussalam faces the policy dilemma that befits common interests, between nations as well as between consumers and producers within Brunei Darussalam. The adoption of import substitution policy, for example, will become more meaningful if the costs of production in this country are low and competitive. To some extent, such a policy will enable Brunei Darussa-lam to reduce imported inflation. Never the less, the participation and membership of Brunei Darussalam in ASEAN Free Trade Arrangement (AFTA), for example, is beneficial to consumers even though this may have some negative effects on potential producers of homogenous or related goods.

CHART 3 indicates the rate of inflation for Brunei Darussalam relative to those rates experienced by ASEAN4. In comparing the inflation rates for Brunei Darussalam with respect to the ASEAN4 rates, there is a general

P A G E 2 4


%

-3

-2

-1

0

1

2

3

4

5

6

7

1985 1987 1989 1991 1993 1995 1997 1999 2001 2003

CHART 2 THE RATES OF INFLATION IN BRUNEI DARUSSA-LAM, 1986-2003

-2.3

0.61.21.7262.44.31.3 -0.1-0.4

-4

-2

0

2

4

6

8

10

12

1992 1994 1996 1998 2000 2002

Brunei M alaysia PhilippinesSingapore Thailand

CHART 3 COMPARISON OF THE RATES OF INFLATION IN ASEAN5, 1992-2002


trend that the rates for Brunei Darussalam is lower especially when compared to that of the Philippines, Thailand and Malaysia. After 1995, the inflation rates of Brunei Darussalam were a mirror image of the rates of inflation of Singapore. While Malaysia, Thailand and the Philippines were adversely affected, Brunei Darussalam (and Singapore) seemed to have been insulated from the negative effects of the Asian Financial Cri-sis in 1998. The effects of the financial crisis had been prominent on the exchange rates of countries in the region but the effects were relatively in favour of the Bruneian currency. Both Malaysia and Singapore are major trading partners of Brunei Darussalam, especially as a source of imports. The deflation in 2002 for Brunei Darussalam reflects not only on the trade policy it has adopted, but also on the movement of inflation rates in its trading partners. Specifically, as observed in Chart 3, this is shown by the identical trend in the direction of Singapore’s inflation rate. The stabilization effects of the rates of inflation in the other ASEAN countries seemed to be at work during the period under consideration. In this case, observe that the inflation rates for Singapore, Philippines and Thailand move in the downward direction. In other words, since we import substantially from these countries, any downward trend in their inflation rates will translate into lower rate of inflation for Brunei Darus-salam.

Human resources development is an important basis for the improve-ment of the quality of life. When the level and quality of education im-proved over time, in general it is associated with the same improvement in the quality of life of individuals employed with higher wages. In its unrelenting efforts to ensure a high quality of life of the people, the gov-ernment has undertaken numerous programs that give direct effects to the quality of life especially in education, medical and health and hous-ing. In the areas of education, programs related to the provision of basic infrastructure and human resources development has been undertaken and progressing. The country’s achievement in education has been rela-tively high. Indicators such as the literacy rate and the rate of enrolment in educational institutions are at par with, if not better than, the more developed nations.

The rates of literacy depicted in CHART 4 shows the rate for Brunei Darussalam in relation to the rates for regional economies in 2001. The literacy rate (94.7 percent) for Brunei Darussalam is relatively high. It is higher than the rates for Singapore, Malaysia and Hong Kong although far below that of Japan and South Korea. What is more important for Brunei Darussalam apart from improving the rates of literacy and regis-tration in educational institutions is to ensure a high level of quality of its human resources that could help bring the country forward. This issue becomes more relevant in an era where the competitive advantage of a nation is the educational quality of its people especially in the areas of science and technology and research and development.

A number of other indicators could be utilized to gauge both the quality and quantity of educational standards apart from the literacy rates. Indi-cators such as registration in educational institutions, the teacher:student ratio, the percentage of students in tertiary education as well as the proportion of expenditure on education out of total expendi-ture, all have shown encouraging developments and helps positively towards improving the quality of life of Bruneians.

Reflections about the quality of life could also be seen through health indicators. In this context, the indicator of life expectancy is the general measurement for the quality of life of the people. Life expectancy indica-tor is vital as it reflects socio-economic progress in connection to life styles, access to medical and health services as well as the implied de-velopment in other aspects of medical and health. In this respect, the government has also played important roles in ensuring high health standards through the implementation of various programs and strate-gies within and outside of the National Development Plans. Improve-ment in the quality of life has also directly helped the development in



94.7

87.9

92.5

99.0 97.9

93.5

82

84

86

88

90

92

94

96

98

100

Brunei Darussalam Malaysia Singapore Japan South Korea Hong Kong

%

CHART 4 LITERACY RATES FOR BRUNEI DARUSSALAM AND SELECTED

medical and health especially medical and health services supplied by the private sector. In a way this has lightened the burden of the govern-ment in terms of its medical and health expenditures.

CHART 5 gives another picture about the quality of life in Brunei Da-russalam where the life expectancy in 2001 is 76.1 years which is lower compared to 78.1 years for Singapore and 81.3 years for Japan. Never the less, the life expectancy for Brunei Darussalam is higher compared to Malaysia and South Korea. On a gender basis, in 2001 the life expec-tancy for male is 74.0 years while it is 77.1 years for the female. This is an improvement compared to 1991 where the rates are 72.1 years for the male and 76.5 for the female. In reflecting the relationship between GDP Per Capita and Life Expectancy, especially for Japan, Hong Kong and Singapore, there seemed to be some correlation between the two vari-ables. This implies that one of the important policies is to improve on income generation. But the trend in the kind of diseases and health problems inflicting the Bruneian population, i.e. those related to afflu-ence such as heart diseases, cancer, hypertension, obesity and diabetes, signals to the needs of non-income policies.

Apart from life expectancy rates, health quality could also be associated with the indicator of infant mortality per 1,000 births. This indicator is a reflection of the success, or otherwise, of health-care programs as well as the level of health-care awareness. For Brunei Darussalam, the mortality rate of 6.8 per 1,000 births shows some positive development even though this rate is higher compared to those experienced by the more developed nations such as Singapore and Japan. (CHART 6) Indeed, this rate is far lower compared to 21.7 per 1,000 births in 1979 and 12.1 per thousand births in 1985. Efforts, though, needs to be multipled to narrow the gap between that experienced by Brunei Darussalam and other countries which have lower infant mortality rates.

The ability to acquire a decent dwelling is also one of the basic necessi-ties for a respectable standard of living. A number of factors could be taken into consideration when analyzing issues related to housing. This includes the ability to purchase and the cost of housing, household over-crowding, house ownership and the role of the government in provid-ing and subsidizing the purchase of housing. Overcrowding in a house-hold could be analyzed through the indicator of the size of household. This indicator is vital in determining accessibility and ability to pur-chase a home, especially for the head of a household. For the low in-come earner and those with limited ability to ownership usually share a home with other family members. This indicator also tells the extent of housing needs of the masses. Apart from those issues, an overcrowded dwelling may lead to undesirable health and educational problems.

For Brunei Darussalam, the provision of housing and facilitation of house ownership has been one of the many priorities of the government. This includes the provision of zero interest loan schemes for govern-ment employees, housing schemes of various kinds, resettlement and land ownership for its citizens. The achievement in the provision of housing through housing schemes has been far below the ideal level. The waiting list for housing scheme continued to be long, perhaps, partly due to the rapid population growth in the 1980’s.

In general, TABLE 1 shows the average size of household in Brunei Da-russalam. The stagnating size of household in Brunei Darussalam since the early 1980’s signals the need to step-up effort and efficiency in hous-ing provision especially in the process of housing development6. Even though the population growth for Brunei Darussalam has declined to 2.5 percent in 2001 compared to 3.1 percent in 1991, the demand for housing has increased overwhelmingly. This was partly due to the population structure of Brunei Darussalam where a very large percent-age consists of the young population. In the future, the demand for housing is bound to be high as well, as the population structure changed very little since the 1980’s.



76.1

72.8

78.1

81.3

75.2

79.7

68

70

72

74

76

78

80

82

Brunei Darussalam Malaysia Singapore Japan South Korea Hong Kong

Years

CHART 5 LIFE EXPECTANCY RATES FOR BRUNEI DARUSSA-LAM AND SELECTED ASIAN COUNTRIES, 2001

6.8

8.0

3.0 3.0

5.0

0

1

2

3

4

5

6

7

8

9

Brunei Darussalam Malaysia Singapore Japan South Korea

%

CHART 6 INFANT MORTALITY RATES FOR BRUNEI DARUSSA-LAM AND SELECTED ASIAN NATIONS, 2001

1981 1991 2001

Average size of household

5.8

5.8

6.0

TABLE 1 THE AVERAGE SIZE OF HOUSEHOLD IN BRUNEI DA-RUSSALAM

6The slightly higher average size of household in 2001 (6.0 persons) may be due to the employment of domestic helpers, personal drivers and gardeners.

In TABLE 2, the issue of housing in Brunei Darussalam could be ob-served where the provision of houses to the masses through a number of government housing schemes are unable to meet the increasing de-mand. From the demand side, the population structure as mentioned above is an important variable. This is also true of the levels of income which play differing roles. From one perspective, for a family with a low income per capita this may force them to share dwelling with their close relative, or if affordable, may choose a low-cost housing scheme. From the other point of view, for a family with above average to high per cap-ita income they may opt for a corresponding housing scheme such as the government employee housing scheme. Whatever the circum-stances, the national housing scheme undoubtedly is faced with exces-sive demand due to a number of factors such as the availability of finan-cial loans, provision of land for housing development and infrastruc-tural facilities.

As we have observed, the main issue faced by the authority is a situa-tion where the demand for housing scheme is far in excess of the ability to supply or provide it. Generally, between 2001 and 2003, the national housing scheme has been able to provide to less than 2.0 percent of the demand. This implies and necessitates a reassessment of both the hous-ing and related policy itself as well as the mechanism in the provision of the houses. As iterated above, a shortfall in housing leads to negative implications to the people.

The natural as well as the built environment have important roles in helping to maintain if not improve the quality of life of the people. The quality of life can also be measured based on a few indicators such as forest coverage, air and water quality, the quality of piped water and the quality of natural environment such as beaches and river as well as the built environment. Population growth and economic growth usually exert pressure on the sustainability and richness of the natural environ-ment. Strains due to urbanization and its enlargement and industrial development lead to issues related to the system and management of drainage, waste disposal and sewerage.

In Brunei Darussalam, population growth has indeed put a strain on the balance between the enlargement of urban areas and the natural envi-ronment. Even though the total area covered by virgin forest is still abundant compared to developed areas (CHART 7), there are areas such as the Brunei and Muara district with high population density and rapid economic growth, that have shown symptoms of strain and imbal-ance. In terms of air and water quality, Brunei Darussalam is relatively free from pollution due to the limited number of industries. Never the less, proactive approach is necessary in monitoring pollutants such as those from light industries in the form of used oil and household efflu-ents. With regard to the supply of clean piped water, Brunei Darussalam has scored highly, where clean water is distributed to nearly 100 percent of the population.

The government, on its part, has persistently embarked on efforts to ensure environmental awareness among the public. The establishment of the Department of Environment, Parks and Recreation in May 2002 is a commitment towards environmental concern. This department has developed strategies to maintain and to ensure appropriate and positive environment to enhance the quality of life. (BOX 3)



2001 2002 2003

APPLICATIONS 15,735 15,297 15,128

PROVISION OF HOUSING

438 169 264

SHORTFALL (15,297) (15,128) (14,864)

TABLE 2: THE APPLICATIONS FOR AND PROVISION OF HOUSING UNDER THE NATIONAL HOUSING SCHEME

0

50,000

100,000

150,000

200,000

250,000

300,000

Ha

Brunei-Muara Belait Tutong Temburong

District Area Estimated areas covered by forest

Source: Department of Forestry Website

BOX 3 STRATEGIES TO ENSURE CLEAN AND

HEALTHY ENVIRONMENT ♦ Ensure optimal utilization of natural re-

sources ♦ Prevent and reduce the negative effects on

the environment as a result of population growth and human activities

♦ Ensue a balance between socio-economic objectives and a quality and sustainable environmental concerns

♦ Increase the utilization of latest and envi-ronment friendly technology

♦ Enhance control and enforcement mecha-nism

♦ Enhance awareness of and support from the public

♦ Improve on existing public amenities and services

CONCLUSION

In general, it could be concluded that from the perspective of the quality of life, Brunei Darussalam’s achievements in enhancing it is at par if not better than those attained by some developed countries. All those indi-cators that have been discussed above are only a few of the available indicators to describe the quality of life of Bruneians. Also, those are only general indicators and there are many others that are more specific and able to deepen our knowledge about the quality of life.

In the past, the government played instrumental roles in enhancing the quality of life of the people. This role will undoubtedly be necessary in the future. However, efforts must be stepped-up to ensure a larger and active participation of individuals and the private sector in this direc-tion. Policies that can differentiate between those who really deserve government’s help, in education and health, for example, need to be formulated. Policies that help minimize the burden of the government are important, but so are those that support the growth and develop-ment of the private sector.

While some indicators of the quality of life of Bruneians show some de-gree of accomplishment, others are less persuasive. We noted that Brunei Darussalam has been successful in improving some social as-pects of development but the economic element remained to be desired. Specifically, the GDP per Capita has been declining since the middle of the eighties. Furthermore, the bulk of it arises out of the oil and gas sec-tor. In other words, income from the non-oil private sector has been less significant compared with that derived from the oil and gas sector. Inad-vertently, this feature has implicated some segment of the population in a negative way. The number of unemployed locals has been growing which give rise to some negative social issues.

Therefore, it is in the best interest of the nation that future development planning should focus on enhancing economic growth which brings along with it job opportunities and eventually improvement in the qual-ity of life of the masses. While the role of the private sector is vital to economic growth, the role of the government in the overall socio-economic development is equally important. Development planning for the next 20-30 years should include to augment government’s efficiency in its role to speedily enhance the quality of education at all levels via human resources development, research and development, IT and sci-ence and technology development; to efficiently facilitate ownership of housing; to provide proficiently health and medical facilities; to ensure sound environmental safety and to provide resourcefully state-of-the-art physical infrastructure. Efficiency and timely provision of all these will certainly contribute immensely to development and nation-building as a whole.



• JPKE has dedicated a hotline for the public to make any inquiries, complaints, and comments, regarding

prices, sales and promotion activities. • The hotline is 2230223 is located at Level 3 (West Wing) Department of Implementation and Monitoring,

JPKE, Jalan Ong Sum Ping, Bandar Seri Begawan, BA1311. The hotline operates during office hours. • With this initiative, it is hoped that JPKE can provide and maintain quality assurance services to the public.

Miscellaneous

V O L U M E 3 , I S S U E 2 P A G E 2 9

JPKE HOTLINE

All rights reserved. Copyright of the Government of His Majesty The Sultan and Yang Di Pertuan of Brunei Darussalam. No part of this publication may be reproduced in any material form or by

any means, electronic or mechanical, including photocopying, recording or in any information storage or retrieval system without prior permission from the Government, except for permitted

fair dealing under Copyright Order 2000. © 2002

LIST OF JPKE PUBLICATIONS AVAILABLE FOR PURCHASE

No. List BND

1. Brunei Darussalam Statistical Yearbook 82 / 83, 83/84 7.00

2. Brunei Darussalam Statistical Yearbook 2000 / 2001, 2002 8.00

3. Brunei Statistics of External Trade 1991, 1992, 1993, 1994, 2001, 2002 20.00

4. Vital Statistics 1991, 1992, 1993, 1994, 1998, 2000, 2001, 2002, 7.00

5. 6th and 7th National Development Plan 1991-1995 30.00

6. Seventh National Development Plan 1996-2000 15.00

7. Rancangan Kemajuan Negara ke 7 1996-2000 15.00

8. Rancangan Kemajuan Negara ke 4 1980-1984 7.00

9. Summary Tables of the Brunei Population Census 1991 20.00

10. Report on the 1991 Population Census 20.00

11. Report on the 1991 Housing Census 20.00

12. Report on the Labour Force Survey 1995 10.00

13. Demographic Situation & Population Projection 1991 – 2011 10.00

14. PERJALANAN NBD memasuki ALAF BARU (Kulit Nipis) 25.00

15. PERJALANAN NBD memasuki ALAF BARU (Kulit Tebal) 40.00

16. The JOURNEY Brunei Darussalam into the next Millennium (Hard Cover) 40.00

17. Preliminary Report of the Population and Housing Census 2001 2.50

18. Consumer Price Index for Negara Brunei Darussalam Base 1990 = 100 7.00

19. Preliminary Report of the 2002 Economic Census 2.50


The Editors Welcome any comments and suggestions from readers through:-

BLOCK 2A JALAN ONG SUM PING BANDAR SERI BEGAWAN, BA1311

Volume 3, Issue 2 Date : 09/2004

BRUNEI ECONOMIC BULLETIN Supplementary Copy

Phone: +673-2-233344 Fax: +673-2-230226 Email: [email protected]


GHK Motors 1

Setia Motors 1

QAF Auto 1

Jati Transport 1

Boustead 2

Grand Motors 2

Happy Motoring 2

Premier Automobiles 2

TCY Motors 2

United Motors 2

Lau Motor Sdn Bhd 3

Maju Motors 3

Inside this issue:

COMPANIES TYPES /

ACCESSORIES CERTIFICATE REFERENCE

SR PRICES (BND) CAR MODELS

GHK MOTORS

MITSUBISHI AIRTREK TURBO 4WD 07/04/2004 47,750.00 2.0 A/T JPKE/PC/50/4 MITSUBISHI GRANDIS 2.4 A/T 06/05/2004 45,350.00 JPKE/PC/50/4

MITSUBISHI MAGNA VR A/T 08/05/2004 44,750.00 F38ATYGERJ JPKE/PC/50/4 MITSUBISHI L200 2.8 DOUBLE CAB TURBO 08/05/2004 43,600.00

4WD 4A/T (K77TGJERXFRU) JPKE/PC/50/4

CHEVROLET OPTRA 1.6 M/T 27/05/2004 19,950.00

JPKE/PC/50/4

MITSUBISHI OUTLANDER 2.4 A/T 27/05/2004 39,400.00 JPKE/PC/50/4

MITSUBISHI AIRTREK 2WD A/T 02/06/2004 35,050.00 JPKE/PC/50/4 HYUNDAI ACCENT 5 DRS 1.5 GL A/T 26/05/2004 17,750.00 JPKE/PC/50/03PT II

QAF AUTO BMW 318 I TOURING 5DRS SALOON

15/05/2004 79,850.00

(MOEL 2003-PETROL) JPKE/PC/50/14

BMW 325 CI CABRIOLET 2DRS SALOON

15/05/2004 88,550.00

(MODEL 2003- PETROL) JPKE/PC/50/14

BMW 520 I A/T

27/05/2004 92,550.00

JPKE/PC/50/14 BMW 525 I AUTO 4DRS (MODEL 2003)

03/06/2004 106,850.00

JPKE/PC/50/14 BMW 530 I AUTO 4DRS ( MODEL 3003)

03/06/2004 126,950.00

JPKE/PC/50/14

JATI TRANSPORT

MERCEDES-BENZ S 280

27/05/2004 156,750.00

JPKE/PC/50/13 MERCEDES-BENZ E320

27/05/2004 141,550.00

JPKE/PC/50/13

MERCEDES-BENZ E 200 K

27/05/2004 100,900.00

JPKE/PC/50/13

MERCEDES-BENZ S350L 27/05/2004 170,400.00

JPKE/PC/50/13

MERCEDES-BENZ E 240 17/06/2004 115,500.00

JPKE/PC/50/13

SETIA MOTORS

SR.:- Show Room

SOME ON THE ROAD (OTR) PRICES DO NOT INCLUDE OPTIONAL ACCESSORIES AS LISTED. PLEASE CARE TO CHECK PRICE CERTIFICATES

Approved Price Certificate Issued During the Second Quarter 2004

P A G E 2

COMPANIES TYPES /



BOUSTEAD NISSAN PATROL GRX S/WAGON A/T 07/04/2004 61,950.00

SPECIAL VERSION (TWSSRHAY61URAC-C JPKE/PC/29/13PT VII

SUZUKI LIANA 1.6 H/BACK 24/04/2004 23,250.00

5M/T JPKE/PC/29/13PT VII

SUZUKI LIANA 1.6 H/BACK 24/04/2004 24,350.00 4A/T JPKE/PC/29/13PT VII

KIA PICANTO 1.1L EX 24/04/2004 15,800.00

M./T JPKE/PC/29/13PT VII

NISSAN X-TRAIL COMFORT 4A/T

22/05/2004 35,200.00

JPKE/PC/29/13PT VII

NISSAN TERRANO SE 7 SEATER DIESEL A/T

25/05/2004 57,250.00

JPKE/PC/29/13PT VII

NISSAN TERRANO SLX 7 SEATER DIESEL M/T

25/05/2004 48,300.00

JPKE/PC/29/13PT VII

SUZUKI GRAND VITARA 1.6 3DRS A/T

25/05/2004

30,200.00 JPKE/PC/29/13PT VII

SUZUKI GRAND VITARA 1.6 3DRS MA/T 25/05/2004 27,950.00 JPKE/PC/29/13PT VII

SUZUKI GRAND VITARA 1.6 5DRS A/T 25/05/2004 29,900.00

JPKE/PC/29/13PT VII

SUZUKI IGNIS SPORT 1.5 3DRS H/B M/T 25/05/2004

20,300.00 JPKE/PC/29/13PT VII

GRAND MOTORS KIA PICANTO 1.1L EX M/T 24/04/2004 15,800.00

JPKE/PC/50/15 KIA PICANTO 1.1L EX A/T 10/05/2004

17,350.00 JPKE/PC/50/15

MAZDA F/L MX-5 1.8L 2DRS CONVERTIBLE 05/05/2004

42,650.00 DOHC 6-SPEED M/T ND61 AAC JPKE/PC/50/15

HAPPY MOTORING HONDA ODYSSEY 2.4 EXV 07/06/2004 47,500.00

WAGON A/T JPKE/PC/50/8

PREMIER AUTOMOES

FORD FOCUS 4DRS 1.6 COMFORT ST3 08/05/2004 21,300.00

M/T GASOLINE JPKE/PC/50/18

FORD ESCAPE 2.3 LITRE XLS A/T 4WD 28/06/2004 42,250.00

JPKE/PC/50/18

TCY MOTORS SSANGYONG REXTON RX 270 A/T 24/04/2004 47,900.00

DIESEL JPKE/PC/50/2

SSANGYONG REXTON RX 290 M/T 04/05/2004 35,900.00

DIESEL JPKE/PC/50/2

AUDI TT3.2 QUATTRO DSG A/T 12/06/2004 95,750.00

8N30BL JPKE/PC/50/2

AUDI S4 TIP A/T 12/06/2004 147,250.00

8E2S4L JPKE/PC/50/2

UNITED MOTORS VOLVO XC 90 T6 SUV 4WD A/T 2.9 cc 14/04/2004 102,850.00

JPKE/PC/50/7



SR.:- Show Room


P A G E 3

COMPANIES TYPES /



LAU MOTOR SDN BHD

SUBARU IMPREZA 4D 2.0 GX AWD 05/05/2004 33,300.00

5M/T JPKE/PC/50/10

SUBARU IMPREZA 4D 2.0 STI AWD 05/05/2004 66,650.00

6M/T JPKE/PC/50/10

SUBARU IFORESTER SW 2.5 AWD 05/05/2004 46,100.00

XS 4A/T JPKE/PC/50/10

SUBARU LEGACY 4D AWD 2.0 I 05/05/2004 42,600.00

4A/T

JPKE/PC/50/10

SUBARU LEGACY 4D AWD 2.0 GT 05/05/2004 60,850.00

5A/T

JPKE/PC/50/10

SUBARU LEGACY SW AWD 2.0 I 05/05/2004 45,650.00

4A/T

JPKE/PC/50/10

SUBARU LEGACY SW AWD 2.0 GT 05/05/2004 67,800.00

SPEC B 5A/T

JPKE/PC/50/10

SUBARU OUTBACK AWD 2.5 I 05/05/2004 54,100.00

A/T JPKE/PC/50/10

SUBARU OUTBACK AWD 2.5 I 05/05/2004 49,550.00

LUXURY A/T JPKE/PC/50/10

MAJU MOTORS VOLKSWAGEN POLO 1.4 A/T 2DRS 05/04/2004 28,900.00

HATCH BACK JPKE/PC/50/16

VOLKSWAGEN POLO 1.4 A/T 4DRS 05/04/2004 32,850.00


VOLKSWAGEN POLO 1.4 M/T 2DRS 05/04/2004 31,900.00


VOLKSWAGEN POLO 1.4 M/T 4DRS 05/04/2004 29,800.00


RENAULT KANGOO 1.9 M/T 5DRS HATCHBACK 13/04/2004 26,500.00

DIESEL JPKE/PC/50/16

RENAULT VELSATIS 3.5 A/T 5DRS HATCHBACK 13/04/2004

69,000.00

PETROL JPKE/PC/50/16

RENAULT MEGANE 1.6 A/T 4DRS SEDAN PETROL 13/04/2004

31,600.00

JPKE/PC/50/16

RENAULT MEGANE 1.4 M/T 4DRS SEDAN PETROL 13/04/2004

27,600.00

JPKE/PC/50/16

RENAULT MEGANE II SPORT HATCH 1.6 A/T 3DRS PETROL 11/05/2004 32,850.00



SR.:- Show Room


Notes


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