Doing Business 2017 Report
“Equal Opportunity for All”
1
In Doing Business 2017 Report, Brunei Darussalam has achieved the most improved
country in the world; 4th in ASEAN and 13th out of 29 countries in Asia Pacific
Doing Business 2017 Report
#1
#4
#13
The most improved
country in the world
Position in ASEAN
Position in Asia
Pacific region; ahead
of China and India
2
Brunei has continuously improved since 2015; jumping a further 25 places in
Doing Business 2017 Report
72
2017 Report
97
105
2015 Report
Distance to
Frontier: 58.02
Indicators
improved in
ranking:
• Dealing with
Construction Permits
• Trading Across
Borders
2016 Report
Distance to Frontier:
60.28
Indicators improved
in ranking:
• Starting a Business
• Getting Credit
• Paying Taxes
• Resolving Insolvency
Distance to Frontier:
65.51
Indicators improved in
ranking:
• Getting Electricity
• Getting Credit
• Protecting Minority
Investors
• Paying Taxes
• Enforcing Contracts
• Resolving Insolvency
• Registering Property
• Trading Across Borders
3
8 out of 10 indicators have improved in rankings and 2 indicators have fallen by 4
places
Indicator
Brunei Rank
(DB 2016)
Brunei Rank
(DB 2017)
Change in Ranks
Overall (out of 189)
*97
72
+25
Starting a Business
75
84
4
Dealing with Construction Permits
33
37
4
Getting Electricity
76
21
 55
Registering Property
135
134
1
Getting Credit
78
62
 16
Protecting Minority Investors
118
102
 16
Paying Taxes
96
89
7
Trading Across Borders
143
142
1
Enforcing Contracts
115
93
 22
Resolving Insolvency
997
57
 40
Source: World Bank Doing Business Report 2017
4
Out of 10 indicators, 4 have shown significant improvements and 4 slight
improvements based from the DTF score analysis against the best in the world
Change in Distance to Frontier (DTF) Score from 2016 to 2017
DTF 2016
DTF 2017
87.6
86.8
-0.1
86.7
+15.8
76.5
-0.4
72.4
76.1
+1.7
71.8
70.7
60.0
57.7
57.3
55.1
+10
50.0
+14.1
Resolving
Insolvency
+0.9
+3.7
56.8
53.5
50.7
50.7
+6.7
45.0
41.1
Getting
Electricity
51.7
Getting
Credit
Protecting
Minority
Investors
Enforcing
Contracts
Paying
Taxes
Trading
Across
Borders
Registering
Property
Starting a Dealing with
Business Construction
Permits
5
In order to reach Top 20 target, government agencies and private sector need to
maintain focus and drive more progress with pace and urgency
Indicator
Reforms completed
What’s next to do for next year
• Elimination Business License for majority types of
businesses;
• Automatic registration to Tax and Employee’s
Provident Fund’s systems
• Merging of name reservation and
incorporation by December 2016.
• Eliminate the requirement of certifying
Memorandum of Association and
stamping of share certificates
Dealing with
Construction
Permit
• Streamline process from 17 steps to 5 steps and
from 119 days to 37 days;
• Implementation of Building Control Order
• Risk-based Assessments of Applications
• Streamlining of approval of permits for
commencing construction works
• Introduction of OneBiz online system for
applications
• To review and reduce number of
procedures based on Building Control
Order.
• To continue monitoring performance to
obtain construction permits.
Getting
Electricity
• Upgrading of network infrastructure and reliability
projects
• Reduction of procedures to get electricity from 5
steps to 3 steps for new warehouse that requires
new infrastructure
• Reduction of time from 56 days to 17 days
• Implementation of SCADA system
• Compensation for power outages via credit
scheme
• Electricity Order to be gazetted by
December 2016 that will make EIDPMO
as a regulator to Department of
Electrical Services.
Starting a
Business
6
In order to reach Top 20 target, government agencies and private sector need to
maintain focus and drive more progress with pace and urgency
Indicator
Reforms completed
What’s next to do for next year
Paying Taxes
• Tax refund policy of 30 days
• Increase in Capital Allowance rates for Industrial
Building
• Employee tax made easier via E-Amanah online
system
• To improve time taken for post-filing
processes in particular Tax Audit, Tax
Refund and Tax Appeal
Registering
Property
• Reduction of procedures from 7 to 4 steps;
• Internal process improvement for Memorandum of
Transfer approval; and
• Implementation of online system for land
applications known as LARIS.
• To ensure time taken to register
property will be streamlined to be at
Top 20 benchmark
Getting
Credit
• The gazettement of the Secured Transaction Order
2016
• Expanded the scope of its data coverage i.e.
Collects credit information from major utility
provider (DST, DES and TelBru)
• Implementation of Collateral Registry
System that will enable Moveable
Property to be made as Collateral
• Amendments to Companies Act for Personal
Remedies in cases of Oppression and Injustice
• Mandatory compliance to the Code of Corporate
Governance for Public Companies
• To bring in World Bank expert to
understand the methodology on PMI
• Task force comprised of AMBD and the
MoF to look into existing Companies Act
and listing rules for Brunei Stock
Exchange
Protecting
Minority
Investors
7
In order to reach Top 20 target, government agencies and private sector need to
maintain focus and drive more progress with pace and urgency
Indicator
Reforms completed and in Progress
• Exports and Imports made easier with a
Brunei Darussalam National Single Window for
Trading
Across
Borders
Enforcing
Contracts
Resolving
Insolvency
permits via Royal Customs and Excise
Department for major imports/exports with
improvements in procedure and time
• Introduction of auto approval for majority noncontrolled goods
• Revised Port Clearance Process for Methanol
Exportation
What’s next to do for next year
• Improve system: Automating duty calculation
through BDNSW or implementing alternative way to
collect sales tax
• Improve the infrastructure and processes:
Implementation of plan to improve Ports efficiency,
including internal processes within Muara Port in the
short term; Investment and rollout of new quay
crane and forklift with the privatization of Muara
Port in the long term
• Transparency: Publishing performance of
forwarders to increase productivity
• Establishment of a dedicated Commercial
Court
• Establishment of Arbitration Centre as
alternative dispute mechanism
• Implementation of Judiciary Case
Management System with online E-filing and
E-payment
To reduce time to resolve commercial dispute by
implementing auto-discontinuance of cases that has
made no progress for more than a year by end of 2016
• Commencement of the Insolvency Order 2016
• To implement actions that will improve
recovery rate by:
• Encouraging companies to exercise the new
Insolvency Order
• Strengthening enforcement
To improve quality of judicial processes index
by:
• Increase accessibility for publication of judgement
and search of judgement within Judicial Case
Management System
• Increasing awareness on Commercial Court
8
DATA MONITORED UNDER
EASE OF DOING BUSINESS
9
GETTING ELECTRCITY
10
On average, we see a positive trend in the reduction in average time taken for
getting Electricity in Bandar Seri Begawan each month from Sep 15 to Sep 16
Average Number of Days in Getting Electricity in Bandar Seri Begawan by Months
100
90
Average Number of Days
80
1
1
29
2
1
70
1
60
49
50
1
47
40
30
36
34
1
64
23
28
14
27
10
23
2
24
17 days TPOR
20
19
2
0
Nov-15
Jan-16
23
24
27
11
Sep-15
4
2
46
42
20
2
Mar-16
May-16
1
5
1
Jul-16
3
3
2
3
Sep-16
Step 3: Supply connection charges & completed application (2 days)
Step 2: DCS.09 (8 days)
Step 1: Approval Survey, SLD, PTD, Prepaid Meter (7 days)
Source: Department of Electrical Services, Brunei (Week 39: 22 – 29 September 2016), Note: Total may not add up due to rounding error
11
TRADING ACROSS BORDERS
12
For Documentary Compliance, only 54% of Non-Controlled Goods and 41% of
Controlled Goods were given approval for import declarations within 2 hours target
Time Taken to Import for Documentary Compliance (Approving Declarations)
(For declaration applications submitted in August 2016)
100%
6%
8%
90%
80%
% of applications
70%
More than 2
hrs to 24 hrs
40%
51%
60%
More than
0.01 hrs to 2
hrs
50%
40%
31%
AutoApproved
30%
41%
20%
10%
More than 24
hrs
23%
Exclude time
to obtain
import permit
0%
Non-Controlled Goods
Declared
Source: RCED, Brunei (August 2016)
Controlled Goods Declared
13
On Border Compliance; only 34% of Full-Container Loads and 10% of Loose-Cargo
Loads are cleared from Muara Port within the 32 hours target
Time Taken To Import For Border Compliance (From Vessel Arrival To Clearance)
(Data for August 2016)
Target for March 2017 is to reduce time
to under 32 hours
100%
90%
18%
(358)
% of applications
80%
36%
(734)
27%
(1,092)
70%
60%
50%
48%
(936)
40%
54%
(1,096)
30%
20%
10%
34%
(672)
0%
FCL
# applications
1,966
Source: RCED, Brunei (September 2016), Note: Total may not add up due to rounding error
51%
(2,032)
10% (195)
22%
(867)
LCL
Overall
2,025
More
than100
hrs
More than
32 hrs to
100 hrs
32 hrs and
less
3,991
15
ENFORCING CONTRACTS
16
58% of Cases in Stage 1 were completed within World Bank’s benchmark of 50
days
Overall Progress for Commercial Cases since February 2016 by Stages
(As of 6 October 2016)
104 Cases
100%
% Cases
70%
42%
(44)
60%
50%
40%
30%
20%
58%
(60)
10%
No Cases
80%
Pending data on Cases
90%
% Completed for
more than
Benchmark & Cases
In Progress
% Completed within
Benchmark
0%
Benchmark
(days)
Stage 1
(Filing & Service)
Stage 2
(Trial & Judgement)
Stage 3
(Enforcement of
Judgement)
50
90
50
Source: Supreme Court, Brunei (6 October 2016), Note: 1) Total may not add up due to rounding error; 2) Cases that are still in progress for less than the benchmark (days) are not included in the analysis; 3)
The number of days indicated by ‘Benchmark' is the number of days that the World Bank has recorded for Brunei’s Stage 1, Stage 2 and Stage 3; 4) Cases where judgment has been entered in Stage 1 will not
proceed to Stage 2. Only 26 out of 75 Cases (35%) that have completed Stage 1 is still active. Data on Stage 2 is still pending.
17
DEALING WITH
CONSTRUCTION PERMITS
18
Dealing with Construction Permits
5 Steps’ Performance
20
14
Planning Permission
days
Average Days
Approved
STEP 1
15
10
11
8
8
6
7
8
9
9
6
10
9
8
6
5
0
Q1- 2015 Q2-2015
40
Development
Approval
14
days
Q4-2015
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
32
30
19
Average Days
Approved
STEP 2
32
Q3-2015
22
25
23
20
10
10
10
8
10
11
2
2
0
Q1- 2015 Q2-2015
25
Permit to
Commence
Development
1
day
Q4-2015
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
1
1
1
1
1
1
1
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
9
8
9
8
9
21
17
20
Average Days
Approved
STEP 3
Q3-2015
17
12
15
14
8
10
5
0
Q1- 2015 Q2-2015
30
27
Q3-2015
Q4-2015
Jan-16
24
21
Occupation Permit
7
days
16
Average Days
Approved
STEP 4
20
16
11
10
5
7
0
Q1- 2015 Q2-2015
Q3-2015
15
Q4-2015
Jan-16
14
14
11
1
day
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
1
1
1
1
1
May-16
Jun-16
Jul-16
Aug-16
Sep-16
11
9
10
Average Days
Approved
STEP 5
Water Connection
Feb-16
4
5
0
Q1- 2015 Q2-2015
Q3-2015
Q4-2015
Jan-16
Feb-16
Mar-16
Apr-16
19
STARTING A BUSINESS
20
Since September 2016, companies are able to register within 24 hours
Realising TPOR of 24 hours for Starting A Business (Reservation & Incorporation) as of 8 Oct ‘16
(for companies that have been incorporated since 1 Jan ‘16)
Reservation
Incorporation
45
41.4
38.7
40
Average Time Taken (in hours)
38.8
35
28.9
30
25
22.5
24.5
20.3
16.0
15.1
14.2
15.8
13.5
13.9
10
5
26.2
27.9
20.9
20
15
25.3
26.0
12.9
8.3
7.4
14.2
6.4
16.2
10.8
11.0
11.4
10.4
6.5
5.0
0
Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16
Source: Revenue Division, Ministry of Finance, Brunei (8 October 2016), Note: 1) Total may not add up due to rounding error; 2) The above dataset only contains companies that have been incorporated
since 1 January 2016; 3) Total number of companies incorporated since 1 January 2016 is 556 companies; 4) Time taken is total time taken for both reservation and incorporation of companies; 5) Data for
Jan to Jul 2016 includes weekend days while data for Aug to Oct 2016 excludes weekend days
21
HALAL CERTIFICATION
22
Since July 2016,businesses are able to obtain Halal Certificate within 45 days
Average Time Taken of Obtaining Halal Certificate as of October 2016
(For New Applications (Lancar) since 1 January 2016)
BKMH
Average Time Taken (in days)
70
MUIB
63.5
60
9.5
50
62.5
11.5
43.3
40
40.0
34.0
10.3
12.0
28.0
30
54.0
10.0
51.0
9.0
14.0
20
33.0
24.0
10
0
29.0
No application
recorded
14.0
28.0
20.0
Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16
Source: BKMH (Sept 2016) and MUIB Data (8 Oct 2016). Note: 1) Total may not add up due to rounding error; 2) The ‘month’ represents the month where the applicant submitted the application to BKMH; 3)
Total new applications since 1 January 2016 is 49; 4) TPOR for BKMH is 35 calendar days and TPOR for MUIB is 10 calendar days
23
FOREIGN DIRECT INVESTMENT
IN BRUNEI
24
In creating a sustainable & dynamic economy, Brunei Darussalam
proactively seeks FDI projects in these 5 priority clusters.
25
Projects are channeled and views of relevant stakeholders sought
Hengyi
Investment
Proposals
developed
and
submitted
Brunei Fertilizers
Industry
CAE MPTC
Gold Coin
Execution of
proposals
Western Foods & Packaging
Analyze the proposals
Map out the value
proposition,
opportunities and
challenges of the projects
Simpor
Pharma
Support of Proposals
Projects are then presented
to FDI Committee.
Strategic and
Commercial feasibility
of projects discussed
Decision
Gate 1
WC
Amann
Shipping
Delivery of Proposals
Projects will receive
guided assistance from
account managers up till
commercialization phase
Decision
Gate 2
SC
27
Growing number of non-oil and gas related investment projects
(B$150 Million) provides spin-off opportunities and employment for locals
…
Sector
Project
Investment
Year of
Projected
Spin off Activities
Value (USD
Million)
Downstream oil Brunei Methanol Company Sdn Bhd (Methanol
600
and gas
Production)
Brunei Fertilizer Industries Sdn Bhd (Ammonia
1300
and Urea Production)
Hengyi Industries Sdn Bhd (Integrated
4000
Refinery and Aromatics Cracker)
Business Services Amann Shipping Group Sdn Bhd (Container
26
and Shipping Line)
HLDS (B) Steel Sdn. Bhd. (Carbon Steel Pipe
Manufacturing)
SC Tubular Sdn. Bhd. (Oil Country Tubular
Goods Supply and Services)
Cameron (B) Sdn Bhd (Wellhead Repair Facility
and Wellhead Repair Training Centre)
Halal (Food and Simpor Pharma Sdn. Bhd. (Pharmaceutical
Pharmaceuticals) Manufacturing)
Western Foods and Packaging Sdn Bhd
(Margarine Manufacturing)
Hiseaton Fisheries (B) Sdn Bhd (Integrated
Fisheries)
Technology and CAE Brunei Multipurpose Training Centre Sdn
Creative
Bhd [Multipurpose Training Centre)
Industries
Others
Gold Coin (B) Sdn. Bhd. [Animal Feedmill]
MC Biotech Sdn Bhd [ Cultivation of
Microalgae]
Projects In Implementation
Operation Employment
2010
250
2019
200
2019
780
2015
19
50
2016
300
50
2016
150
19
2017
32
26
2014
140
30
2017
100
22.5
2016
125
102
2014
75
12
2013
60
15
2016
50
Projects In Operation
1.
2.
3.
4.
5.
6.
Legal Services
Architects
Civil Engineers
Building Contractors
Accounting Services
Bank and Insurance
Services
7. Transportation and
Logistics
8. Logistics for Container &
LCL Services
9. Security Services
10. Maintenance of General
Machinery & Equipment
11. Cleaning & Pest Control
Services
12. Internet and Telephone
13. Audit, Tax Advisory and
Corporate Secretarial
Services
14. IT Services
15. Connectivity & Network
Services
29
Proposals received from investors is in alignment with our priority sectors
and highest number of proposals received from Korea and China
FDI Projects
Projects in the Pipeline
Source
Country
Projects in Operation and in Implementation
1
4
5
3
2
2
Business Downstream
Services Oil and Gas
7
3
Halal
China
Korea
Indonesia
Japan
India
Malaysia
Poland
Singapore
Taiwan
Canada
Hong kong
Turkey
United
States of
America
TOTAL
No of
No of projects in
projects in
operation and
the pipeline implementation
3
3
1
1
1
2
1
1
1
3
3
1
2
1
2
14
1
13
Technology
and creative
Industries
30
SUCCESS STORY:
MC Biotech Sdn Bhd
Project: Cultivation of Microalgae
MC Biotech Sdn Bhd is a subsidiary of
Mitsubishi Corporation (Japan). In February
2013, Mitsubishi Corporation (MC) along with
their partners, Biogenic Company Limited,
Nippon Suisan Kaisha Limited (Nissui)
established a small scale pilot plant for the
production and extraction of Astaxanthin from
Microalgae (Haematococcus Pluvialis
species).
• This was a pre-commercialization Research
& Development (R&D) project which aimed
to determine the technical and commercial
viability of producing astaxanthin to suit the
local Brunei conditions. The project was
estimated to cost around US$2million and
was fully funded by Mitsubishi Corporation
$2 M Research and
Development Project at
Sungai Jambu
$20 M Investment Facility
at Bio- Innovation Corridor
Creation of 25 Local
Employment
this was largely taken from
Wasan Technical School
Following the success of their pilot plant and
R&D, MC Biotech has now established their
commercial facility at the Bioinnovation
Corridor.
31