ASEAN KEY DESTINATIONS
Brunei’s foreign direct investments drop by 25.9 per cent in 2014
FOREIGN direct investments (FDI) in Brunei dropped 25.9 per cent year-on-year to $719.5 million in 2014, according to latest data issued by the
Department of Economic Planning and Development (JPKE).
Over 70 per cent of these FDIs, or $538.6 million, went to the mining and quarrying sector.
A total of $77.3 million in investments went to the manufacturing sector, while $74.7 million went to the wholesale and retail trade sector.
The construction industry recorded a FDI inflow of $28.5 million, while an investment of $26.9 million went to other sectors.
Most of the FDIs came from the United Kingdom, with investors putting in $380.6 million, accounting for more than half of the total FDIs in 2014.
Other major investors include Malaysia, which invested $116.8 million; Netherlands with $68.1 million; and Singapore with $62 million.
Most of the FDIs from the United Kingdom, Netherlands and Malaysia went to the mining and quarrying sector.
JPKE defines FDI inflow as an investment made by a non resident (less than one year) into Brunei, with at least 10 per cent of the shares in “direct investment enterprises.”
FDI includes equity capital, reinvested earnings and intercompany debt transactions, JPKE said.
Brunei’s cumulative FDI per capita was almost double that of the US, the world’s biggest economy and ahead of the European Union, the Oxford Business Group (OBG) said in its report issued December.
OBG, citing UN data, said Brunei’s cumulative FDI per capita as of 2013 stood at $35,000. This, however, trails behind Singapore’s $157,000 per capita cumulative FDI.
From 2009 until the end of 2013, FDI in the sultanate averaged at just under US$900 million ($1.22 billion). But this is higher from the annual average of US$315 million ($418 million) recorded in previous years.
Most of the investments went to the oil and gas sector, leading to an uptick in offshore development.
Some recent FDI projects in oil and gas include the $600 million methanol plant in 2010, a joint venture between the Brunei National Petroleum Company and Mitsubishi and Itochi as well as the Pulau Muara Besar Oil Refinery Project with Zhejiang (Hengyi), which will eventually cost an estimated $10 billion, according to OBG.
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