Preparation Before Doing Business in Brunei Successfully

ASEAN has a country with the smallest population but has per capita income that is the second highest in ASEAN, the country is called Brunei. Many businessmen are now looking for details about doing business in Brunei. Before entering the market, there are things you need to know first.

Understanding market overview, market challenges, market opportunities, and strategy to enter the market will help you succeed in growing and expanding your business to Brunei. Doing business will be easier if you have the best strategy and understanding about the market.

Market Overview of Brunei Darussalam

Brunei is a country in Southeast Asia that is a Sultanate country and rich in oil. The location of this country is on the northern coast of Kalimantan or Borneo. The country has a largely educated English speaking population and extremely excellent infrastructure.

The government in Brunei focused on diversifying the economy. They also focused on bringing the foreign investment to enter the country. Brunei has good airline connections and telecommunications. There is no personal income, export, or sales taxes.

The political situation in Brunei is also stable, making the country one of the best climates for the investors. This country encourages FDI or foreign direct investments in the domestic economy.

Doing Business in Brunei and Its Challenges

Two years ago, in 2019, the population in Brunei was 459,500. The numbers show that Brunei’s local market is considered as small market. The foreign enterprises get 100% ownership, not only of the investment and operation but also in business scope.

There is no requirement for foreign investors to find a local partner in order to expand and grow the business to Brunei’s market. But in some cases, some foreign companies are still required to get one local partner in order to qualify the project for the government.

Unfortunately, some United States investors or businesses may expect long delays when they are dealing with Brunei’s local government.

Opportunities to Do Business in Brunei

Brunei Darussalam has the open economy that is favorable to the foreign trade. The opportunities to invest in Brunei are driven by consumer demand and by government planning. FDI is really important to Brunei since it is the key role in the technological and economic development.

Brunei is offering assorted investment incentives as well as various activities that are conducted by Brunei’s Ministry of Finance and Economy. Most attractive sectors to enter in Brunei are including commercial aviation, medical equipment, defense equipment, food and beverage, and also oil and gas.

Besides, in the sector of agriculture, some opportunities are also available in food production, food imports, aquaculture, and the fishing industry.

Conduct Brunei Market Analysis to Enter Brunei’s Market

Businesses from the other countries, especially the United States, need to build a strong personal relationship especially with the local customers and representatives through the regular visits. Setting up branch office or subsidiary companies in Brunei can also be a great strategy to enter Brunei’s market.

Doing business in Brunei will be much easier if you prepare the best strategy to enter the market and to build a stronger relationship. Let the experienced one help you expand to Brunei and grow your business successfully.

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