Exporting to Brunei

Brunei is a politically stable, oil-rich country located in South-East Asia. In the year up to the end of June 2019, exports to Brunei from the UK totalled £97 million (ONS, 2019).

Economic diversification

Activity is strong in the oil and gas industry, and the country is encouraging economic diversification through major foreign direct investment (FDI) projects in other sectors. These include petrochemical refinery and industrial fertiliser plants (Borneo Bulletin/IMF, 2018.) This supports Vision 2035 - Brunei’s long-term sustainable development plan.

A strategic partner

Brunei is recognised for its political stability, and is located in the heart of South East Asia. It has good access to regional and global markets, and strong trade ties with the Middle East.

Close links with the UK

As a Commonwealth country, Brunei has close links with the UK. Many Bruneians have studied in the UK and have a taste for British goods, and there are many Bristish expats in the country. UK companies operating in Brunei include Shell, Standard Chartered and KPMG.

Ease of doing business

66th

out of 190 countries (World Bank, 2019)

Currency

Brunei dollar

Business languages

Malay, English

GDP per capita

$30,668

UK is $41,030 (IMF, 2019)

Economic growth

0.1%

(IMF, 2019)

Time zone

GMT +8

Opportunities for exporters

There are opportunities for UK companies across a broad range of industries. Our trade advisers in Brunei have identified particular opportunities for UK businesses in the following sectors.

Energy

Brunei’s economy is dominated by the oil and gas sector, which accounts for 65% of the country’s GDP (Index Mundi, 2018).

Oil and gas

The oil and gas industry is the backbone of Brunei’s economy and offers many opportunities to UK companies.

Decommissioning and restoration

Brunei now has an ageing infrastructure that needs to be decommissioned. Dedicated funding is in place for decommissioning and restoration activities over the next 20 years, and the expertise of UK companies will be in demand.

Support services

There’s a continuing need for international companies to partner with local ones to develop a range of support services for Brunei’s oil and gas industry. Sectors of opportunity include shipyard maintenance and repairs, marine supplies and heavy waste management.
Education

There’s a major national push for standards and accreditation to support Brunei’s aim to create a well-educated, highly-skilled workforce.

Need for Technical Vocational Education Training (TVET)

Brunei is inviting UK and other international companies to partner with local ones in providing accredited training programmes in TVET. The aim is to develop young people’s skills, assist their transition to work and thus support the country’s economic development.

Education strategy

The Brunei Ministry of Education’s Strategic Plan 2018-2022 focuses on teacher leadership and career management, the deployment of technology to promote financial literacy, and the use of ICT in classrooms. UK firms can play a big part in these initiatives.
Financial services

Building upon existing relationships and establishing new ones with international investors, financial institutions and financial centres, Brunei is aspiring to become an international hub of Islamic finance.

Stock exchange

The Brunei stock exchange is being established to meet the needs of investors in Islamic and ethical securities. UK firms with relevant experience could play a key role in its future success.

Finance

Brunei is developing a fund management industry. Important initiatives include an Islamic Funds Hub enabling the global buying and selling of Syariah-compliant investment products, fund management operational support services, and the valuation and rating of Islamic investment vehicles. UK companies can bring their expertise to these activities.

Doing business in Brunei

Preparing to Export

VAT

If you’re registered for VAT in the UK, it may be possible to zero-rate the goods you export to Brunei, provided certain conditions are met.

There’s no VAT or any other consumption-based taxes in Brunei.

Regulations

Brunei is an Islamic country and prohibits the sale of alcohol and tobacco. All businesses including shops and restaurants shut between 12 pm and 2pm every Friday. The working week for the Brunei government is Monday to Thursday and Saturday, while in the private sector it’s Monday to Friday.

Withholding tax

Technical services, and scientific, technical, industrial or commercial knowledge or information, are subject to a 10% withholding tax.

Brunei does not levy withholding tax on dividends that have been assessed to tax, regardless of whether they’re paid to a resident or a non-resident.

Operating in Brunei

Intellectual property

As a first step, we advise you to speak to an intellectual property lawyer if you think you need patent protection when exporting.

Intellectual property is protected through international registration systems for patents and designs through the World Intellectual Property Organization for Patent Cooperation Treaty system, Hague System and Madrid Protocol. Brunei has passed legislation on trade marks, industrial designs, copyright and patents, but there is room to strengthen their enforcement.