Monodon project to boost local shrimp industry
Into global market: A local fishmonger showing off his catch for sale. Picture: BT file photo
IZAM SAID YA'AKUB
BANDAR SERI BEGAWAN
Monday, March 31, 2008
THE anticipated arrival of a Specific Pathogen Free (SPF) Black Tiger shrimp being bred in Brunei could carve a niche in international high value seafood markets.
During the Sixth Aquaculture Seminar organised by the Fisheries Department on Saturday, the local shrimp industry was informed that the SPF process is nearly complete with genetically improved post-larvae available in September.
Dr George Chamberlain, Technical Director of Integrated Aquaculture International (IAI) disclosed the information in his update of the three-year project which has seen the IAI develop advanced aquaculture technology to produce large black tiger shrimp for export.
Stocks of black tiger shrimp have been established and moved from primary quarantine to secondary quarantine toward potential SPF status.
Once established, the breeding of SPF black tiger shrimp will be set to begin, marking a new chapter in the history of Brunei's fairly infant shrimp industry.
The importance of the SPF black tiger shrimp, which is also known as Penaeus monodon, to Brunei shrimp industry revolves around the challenges faced by the local shrimp farmers.
High costs for post larvae, feed and labour, coupled with low international prices for shrimp means that for exports will need to target a different market.
During the seminar, Dr Chamberlain outlined that the industry needs to "produce large high value shrimp for the premium markets".
The Monodon is a larger shrimp and even locally is sought after, however despite being on the verge of something potentially big, Brunei will also need to convince the International market.
Plans to acquire Hazardous Analysis Critical Control Point (HACCP) and EU Certifications are also in the pipeline, with continuing contacts with large buyers in North America and participation in international seafood shows and markets are also ongoing to further develop the brand image of Brunei's shrimp.
The results of the venture between IAI and the Department of Fisheries are not mutually exclusive to specific-pathogen-free shrimp but also genetically-improved post-larvae, high-performing feeds, and sustainable farming systems and techniques aimed to produce quality shrimp for premium markets.
The Brunei Times
Monday, March 31, 2008
Sunday, March 23, 2008
Town and country planning in Brunei
Town and country planning in Brunei
ROZAN YUNOS
BANDAR SERI BEGAWAN
Sunday, March 23, 2008
IN BRUNEI, the land use planning system normally known as Town and Country Planning is the planning system by which the government seeks to maintain a balance between economic development and environmental quality. Its official history in Brunei is relatively recent.
However land use planning can be said to have been in existence as early as 1906 when McArthur, the first British Resident in Brunei declared that everyone should live on dry land rather than on the water as has been the tradition for last few hundred years.
Before WWII, the government's preoccupation was to get a viable and financially independent government and a modern administration and not much focused on planning and development. The government's land policy then was to establish ownership of land in the country and the disbursement of those lands later.
Before the discovery of oil, most lands were used for rubber plantations. There was a scramble for land for rubber planting by the mid-1920s. The government encouraged people from Kampong Ayer to settle on dry land and take up agriculture. In the 1930s large areas of forests were designated as "forest reserves" — totalling about 42 per cent of the country's areas. When oil was discovered in Seria, one of the first tasks BMPC, the predecessor company to Brunei Shell faced was to build an infrastructure.
After WWII, reconstruction was essential. But that was delayed as there were shortages of all kinds: materials, machinery, shipping, labour, artisans and professionals including "town planners" as stated by Horton in his paper entitled "The British Residency in Brunei 1906-1959".
A new town plan was prepared for the capital during 1947 and it was hoped to make a "serious start" on the work of reconstruction in 1948. Kuala Belait got its own plan in 1949 but the Seria model was not approved until 1950. Roads, buildings, padang, shophouses and open spaces were carefully provided for in the town plans.
The first Brunei Development Plan 1953-1958 was all embracing and with over $100 million to be spent in those first five years. The emphasis was on the implementation of resettlement schemes, the expansion of education and medical services, the provisions of water supplies, and the improvement of agriculture and fisheries.
It also called for major extensions of roads and communication, bridges, buildings, power stations and installation of broadcasting and telephone system.
The plan was a major departure from the ad hoc manner previous British Residents generally spent money.
In 1958, Borneo Bulletin reported that "rarely has a place changed its appearance so quickly as quickly as Brunei Town.
"Gone are most of the shacks — apart from the seemingly permanent hovels of Kampong Ayer — of former years, and in their places, have arisen the steel and concrete buildings of a more modern age — offices, shops, restaurants and similar enterprises".
With the existence of subsequent Five-year National Development Plans, the need to establish a proper authority was certainly required. A Town and Country Planning Authority was considered vital in order to guide the direction of Brunei's physical development efforts.
In September 1965, the State Secretariat who is responsible for the development plan established a Development Department and created the first Town and Country Planning Officer post with several other staffing including a draughtsman and a technical assistant.
Directions were also given by His Majesty Sultan Haji Omar Ali Saifuddien Saadul Khairi Waddien for the appointment of a consulting Town Planning firm, Messrs Alister MacDonald and Partners to initiate work on an Outline Development Plan for Bandar Brunei (subsequently Bandar Seri Begawan) pending the recruitment of a qualified Brunei Town Planning Officer. The preparation of the plan was in response to the rapid development that was taking place in BSB. The plan was completed and forwarded to the Development Department.
A seconded officer from the Ministry of Housing and Local Government in UK arrived in Brunei to implement the Outline Development Plan, to prepare a zoning plan and to prepare physical plans for the whole country. A Town Planning Section was formed within the Development Department.
However the first plan was not able to be implemented fully and as a result of a paper presented to the Council of Ministers, it was felt that the Town Planning Section be detached to be the Town and Country Planning Department. This was formed on 1st January 1972.
A British expatriate was appointed as the first Commissioner of Town and Country Planning Department. He was then assisted by a staff of six and operated out of a small office at Jalan Kumbang Pasang. On September 19, 1972, the legislation "Town and Country Planning Order" (TCPO) was enacted which marked the beginning of real planning work.
With the 1972 Order, the department was able to play a pivotal role in guiding and controlling development in areas declared as Development Control Areas.
Several Planning schemes were produced such as Muara Planning Scheme and Gadong Planning Scheme. Two authorities — Development Control Competent Authority (DCCA) and Subdivision Control Competent Authority (SCCA) were formed. Originally both were chaired by the Commissioner of Town and Country Planning but since January 1996 the Surveyor General chaired the SCCA.
Prior to independence, Brunei faced the challenges of a new and independent nation. The need for a comprehensive framework to guide the process of physical development became evident during the 1970s and 1980s. Population growth, traffic volumes, public utilities and urban housing dominated the needs of the populace.
In 1983 the Town and Country Planning Department moved to the Public Works Department building at the Old Airport Government Complex. Internally, the department also formed the Landscape Section in that same year.
With Brunei's independence in 1984, the department came under the auspices of the Ministry of Development until today. In 1985 the Government noted the need for the preparation of the National Master Plan and called out for one to be commissioned. The preparation of this plan was carried out by an international consultant and was completed at the end of 1987.
The main aims included the preparation of a comprehensive physical and conceptual framework for the realisation of national objectives; the identification of optimum locations for a full range of land uses; and the preparation of statutory physical development plans covering the whole of Brunei. It was to secure the best use of the country's scarce land resource, and to establish an orderly framework for physical development over a 20 year period.
The enlargement of Bandar Seri Begawan also forced the planners to rethink what our capital should be and whether the old plans are still viable and workable.
Town and Country Planning faced many challenges in the future. The Town Planners need to be aware of the need to plan more and to explore creative mechanisms in order to improve the state of the country's urban and rural areas. But it is not just planners, everyone in the country need to share the roles in national planning and development. It takes focus, unity, creativity and commitment to attain goals and achievements in our efforts to build the nation.
The writer runs a website on Brunei at bruneiresources.com.
The Brunei Times
ROZAN YUNOS
BANDAR SERI BEGAWAN
Sunday, March 23, 2008
IN BRUNEI, the land use planning system normally known as Town and Country Planning is the planning system by which the government seeks to maintain a balance between economic development and environmental quality. Its official history in Brunei is relatively recent.
However land use planning can be said to have been in existence as early as 1906 when McArthur, the first British Resident in Brunei declared that everyone should live on dry land rather than on the water as has been the tradition for last few hundred years.
Before WWII, the government's preoccupation was to get a viable and financially independent government and a modern administration and not much focused on planning and development. The government's land policy then was to establish ownership of land in the country and the disbursement of those lands later.
Before the discovery of oil, most lands were used for rubber plantations. There was a scramble for land for rubber planting by the mid-1920s. The government encouraged people from Kampong Ayer to settle on dry land and take up agriculture. In the 1930s large areas of forests were designated as "forest reserves" — totalling about 42 per cent of the country's areas. When oil was discovered in Seria, one of the first tasks BMPC, the predecessor company to Brunei Shell faced was to build an infrastructure.
After WWII, reconstruction was essential. But that was delayed as there were shortages of all kinds: materials, machinery, shipping, labour, artisans and professionals including "town planners" as stated by Horton in his paper entitled "The British Residency in Brunei 1906-1959".
A new town plan was prepared for the capital during 1947 and it was hoped to make a "serious start" on the work of reconstruction in 1948. Kuala Belait got its own plan in 1949 but the Seria model was not approved until 1950. Roads, buildings, padang, shophouses and open spaces were carefully provided for in the town plans.
The first Brunei Development Plan 1953-1958 was all embracing and with over $100 million to be spent in those first five years. The emphasis was on the implementation of resettlement schemes, the expansion of education and medical services, the provisions of water supplies, and the improvement of agriculture and fisheries.
It also called for major extensions of roads and communication, bridges, buildings, power stations and installation of broadcasting and telephone system.
The plan was a major departure from the ad hoc manner previous British Residents generally spent money.
In 1958, Borneo Bulletin reported that "rarely has a place changed its appearance so quickly as quickly as Brunei Town.
"Gone are most of the shacks — apart from the seemingly permanent hovels of Kampong Ayer — of former years, and in their places, have arisen the steel and concrete buildings of a more modern age — offices, shops, restaurants and similar enterprises".
With the existence of subsequent Five-year National Development Plans, the need to establish a proper authority was certainly required. A Town and Country Planning Authority was considered vital in order to guide the direction of Brunei's physical development efforts.
In September 1965, the State Secretariat who is responsible for the development plan established a Development Department and created the first Town and Country Planning Officer post with several other staffing including a draughtsman and a technical assistant.
Directions were also given by His Majesty Sultan Haji Omar Ali Saifuddien Saadul Khairi Waddien for the appointment of a consulting Town Planning firm, Messrs Alister MacDonald and Partners to initiate work on an Outline Development Plan for Bandar Brunei (subsequently Bandar Seri Begawan) pending the recruitment of a qualified Brunei Town Planning Officer. The preparation of the plan was in response to the rapid development that was taking place in BSB. The plan was completed and forwarded to the Development Department.
A seconded officer from the Ministry of Housing and Local Government in UK arrived in Brunei to implement the Outline Development Plan, to prepare a zoning plan and to prepare physical plans for the whole country. A Town Planning Section was formed within the Development Department.
However the first plan was not able to be implemented fully and as a result of a paper presented to the Council of Ministers, it was felt that the Town Planning Section be detached to be the Town and Country Planning Department. This was formed on 1st January 1972.
A British expatriate was appointed as the first Commissioner of Town and Country Planning Department. He was then assisted by a staff of six and operated out of a small office at Jalan Kumbang Pasang. On September 19, 1972, the legislation "Town and Country Planning Order" (TCPO) was enacted which marked the beginning of real planning work.
With the 1972 Order, the department was able to play a pivotal role in guiding and controlling development in areas declared as Development Control Areas.
Several Planning schemes were produced such as Muara Planning Scheme and Gadong Planning Scheme. Two authorities — Development Control Competent Authority (DCCA) and Subdivision Control Competent Authority (SCCA) were formed. Originally both were chaired by the Commissioner of Town and Country Planning but since January 1996 the Surveyor General chaired the SCCA.
Prior to independence, Brunei faced the challenges of a new and independent nation. The need for a comprehensive framework to guide the process of physical development became evident during the 1970s and 1980s. Population growth, traffic volumes, public utilities and urban housing dominated the needs of the populace.
In 1983 the Town and Country Planning Department moved to the Public Works Department building at the Old Airport Government Complex. Internally, the department also formed the Landscape Section in that same year.
With Brunei's independence in 1984, the department came under the auspices of the Ministry of Development until today. In 1985 the Government noted the need for the preparation of the National Master Plan and called out for one to be commissioned. The preparation of this plan was carried out by an international consultant and was completed at the end of 1987.
The main aims included the preparation of a comprehensive physical and conceptual framework for the realisation of national objectives; the identification of optimum locations for a full range of land uses; and the preparation of statutory physical development plans covering the whole of Brunei. It was to secure the best use of the country's scarce land resource, and to establish an orderly framework for physical development over a 20 year period.
The enlargement of Bandar Seri Begawan also forced the planners to rethink what our capital should be and whether the old plans are still viable and workable.
Town and Country Planning faced many challenges in the future. The Town Planners need to be aware of the need to plan more and to explore creative mechanisms in order to improve the state of the country's urban and rural areas. But it is not just planners, everyone in the country need to share the roles in national planning and development. It takes focus, unity, creativity and commitment to attain goals and achievements in our efforts to build the nation.
The writer runs a website on Brunei at bruneiresources.com.
The Brunei Times
Tuesday, March 11, 2008
Food security among many issues raised
Food security among many issues raised
Start of the day: Speaker of the council, Pengiran Indera Mahkota Pengiran Anak (Dr) Haji Kemaludin ibni Al-Marhum Pengiran Bendahara Pengiran Anak Haji Mohd Yassin (behind the bearers) arriving for yesterday's morning session of the Legislative Council meeting. Picture: Rudolf Portillo
KHAIRUNNISA IBRAHIM
BANDAR SERI BEGAWAN
Tuesday, March 11, 2008
MEMBERS of the State Legislative Council yesterday discussed various issues related to the primary resources sector, particularly those concerned with agriculture and forestry, when they convened for the morning session of the ongoing state budget deliberations.
Several concerns by the public that was relayed by the non-governmental members of the council, as well as those selected to represent the four districts, included the need for greater promotion of local products and help for local farmers and fishermen.
Among the issues that were raised in yesterday's morning session of the meeting were:
Food security in Brunei
There are schemes in place to ensure that the security of the national food supply, said the Minister of Industry and Primary Resources, Pehin Orang Kaya Setia Pahlawan Dato Seri Setia Dr Hj Ahmad Hj Jumat yesterday.
He was responding to a query raised by the Belait representative to the council, Hj Mohd Shafiee Ahmad, regarding the status of Brunei's food security.
"The issue of food security is very controversial," said the minister. "However, I can say that so far there has been no incidences of food shortage."
He also noted that the country is well prepared in case crisis threatens the supply of food to the country.
Pehin Dato Dr Hj Ahmad said: "I can assure that the policies, process and action plans are in place to establish our position now and in the future regarding food security."
Promoting agriculture as a commercial venture
Future generations should be encouraged to view the agriculture as a lucrative commercial venture, so as to heighten local participation in the sector and increase agriculture's contribution to the gross domestic product.
"People are the most important resource and engine of growth," he stressed.
Pehin Dato Dr Hj Ahmad noted that agri-business is a burgeoning field in the agriculture industry, alongside livestock and cultivation.
The ministry is actively pursuing and training youngsters to increase their interest and skills in this area.
Its entrepreneurship development centre in Sinaut, for instance, regularly hosts programmes for students during the school holidays so that they can learn about being entrepreneurial and business-savvy.
Such programmes are also hoped to spark their interest in making a living by participating in the agricultural sector.
The young should be encouraged to be less dependent on jobs in the government sector, but instead venture into the agriculture sector.
Heart of Borneo
Roadshows and meetings should be held to inform the public regarding the development of the Heart of Borneo initiative, Dato Paduka Hj Puasa Orang Kaya Seri Pahlawan Tudin said yesterday.
"This initiative has garnered widespread support from those countries involved," he said, but pointed out that in Brunei, interested members of the public are only able to keep tabs on the progress of the projects through reports in the media.
"Information about the Heart of Borneo (HoB) should be shared with the public through relevant meetings to discuss the aims and objectives of the initiative, its advantages and benefits, the implementation and running processes, monitoring and security issues and others, related issues such as the area allocated to the project," said Dato Hj Puasa.
"With these briefings, it is hoped that this initiative will receive the cooperation and support towards the successful establishment of the project."
In response, the minister said that while the HoB has been formally endorsed by all three Bornean governments, further action needs to be approved before the initiative can move forward.
A council to govern the goings-on of the HoB has been proposed, he added, but this is also pending approval.
While he could not divulge in detail what the HoB action plan will entail, Pehin Dato Dr Hj Ahmad said that the ministry can and will consider holding roadshows for the public.
Exploring the biomedical potential of Brunei's forests
The agreement between Brunei Darussalam and Japan's National Institute of Technology and Evaluation (Nite) to explore the micro and macro-organisms that exist in Brunei and establish a bio-research industry here is a welcome development, Dato Paduka Hj Idris Hj Abas pointed out yesterday.
"This is a positive venture, as Brunei is rich in its biodiversity, and the (agreement) can lead to added benefits for the country socially and economically," he said.
However, he questioned whether the country is legally prepared to protect its rights to its forest resources, should valuable discoveries be made and be in demand globally.
If such a legal framework should be made, it should also incorporate aspects of conservation and sustainability of Brunei's forest resources, he added.
According to Pehin Dato Dr Hj Ahmad, Brunei has its own bio-diversity centre, which occupies several hectares in Sungai Liang.
In terms of the legal aspects of the agreement, he continued, Brunei's Forestry Department is working with the State Attorney to work out the terms of a proposed memorandum of understanding between Nite and the biodiversity centre.
The MoU will hopefully be signed this year, said the minister, who did not specify a date.
The Brunei Times
Start of the day: Speaker of the council, Pengiran Indera Mahkota Pengiran Anak (Dr) Haji Kemaludin ibni Al-Marhum Pengiran Bendahara Pengiran Anak Haji Mohd Yassin (behind the bearers) arriving for yesterday's morning session of the Legislative Council meeting. Picture: Rudolf Portillo
KHAIRUNNISA IBRAHIM
BANDAR SERI BEGAWAN
Tuesday, March 11, 2008
MEMBERS of the State Legislative Council yesterday discussed various issues related to the primary resources sector, particularly those concerned with agriculture and forestry, when they convened for the morning session of the ongoing state budget deliberations.
Several concerns by the public that was relayed by the non-governmental members of the council, as well as those selected to represent the four districts, included the need for greater promotion of local products and help for local farmers and fishermen.
Among the issues that were raised in yesterday's morning session of the meeting were:
Food security in Brunei
There are schemes in place to ensure that the security of the national food supply, said the Minister of Industry and Primary Resources, Pehin Orang Kaya Setia Pahlawan Dato Seri Setia Dr Hj Ahmad Hj Jumat yesterday.
He was responding to a query raised by the Belait representative to the council, Hj Mohd Shafiee Ahmad, regarding the status of Brunei's food security.
"The issue of food security is very controversial," said the minister. "However, I can say that so far there has been no incidences of food shortage."
He also noted that the country is well prepared in case crisis threatens the supply of food to the country.
Pehin Dato Dr Hj Ahmad said: "I can assure that the policies, process and action plans are in place to establish our position now and in the future regarding food security."
Promoting agriculture as a commercial venture
Future generations should be encouraged to view the agriculture as a lucrative commercial venture, so as to heighten local participation in the sector and increase agriculture's contribution to the gross domestic product.
"People are the most important resource and engine of growth," he stressed.
Pehin Dato Dr Hj Ahmad noted that agri-business is a burgeoning field in the agriculture industry, alongside livestock and cultivation.
The ministry is actively pursuing and training youngsters to increase their interest and skills in this area.
Its entrepreneurship development centre in Sinaut, for instance, regularly hosts programmes for students during the school holidays so that they can learn about being entrepreneurial and business-savvy.
Such programmes are also hoped to spark their interest in making a living by participating in the agricultural sector.
The young should be encouraged to be less dependent on jobs in the government sector, but instead venture into the agriculture sector.
Heart of Borneo
Roadshows and meetings should be held to inform the public regarding the development of the Heart of Borneo initiative, Dato Paduka Hj Puasa Orang Kaya Seri Pahlawan Tudin said yesterday.
"This initiative has garnered widespread support from those countries involved," he said, but pointed out that in Brunei, interested members of the public are only able to keep tabs on the progress of the projects through reports in the media.
"Information about the Heart of Borneo (HoB) should be shared with the public through relevant meetings to discuss the aims and objectives of the initiative, its advantages and benefits, the implementation and running processes, monitoring and security issues and others, related issues such as the area allocated to the project," said Dato Hj Puasa.
"With these briefings, it is hoped that this initiative will receive the cooperation and support towards the successful establishment of the project."
In response, the minister said that while the HoB has been formally endorsed by all three Bornean governments, further action needs to be approved before the initiative can move forward.
A council to govern the goings-on of the HoB has been proposed, he added, but this is also pending approval.
While he could not divulge in detail what the HoB action plan will entail, Pehin Dato Dr Hj Ahmad said that the ministry can and will consider holding roadshows for the public.
Exploring the biomedical potential of Brunei's forests
The agreement between Brunei Darussalam and Japan's National Institute of Technology and Evaluation (Nite) to explore the micro and macro-organisms that exist in Brunei and establish a bio-research industry here is a welcome development, Dato Paduka Hj Idris Hj Abas pointed out yesterday.
"This is a positive venture, as Brunei is rich in its biodiversity, and the (agreement) can lead to added benefits for the country socially and economically," he said.
However, he questioned whether the country is legally prepared to protect its rights to its forest resources, should valuable discoveries be made and be in demand globally.
If such a legal framework should be made, it should also incorporate aspects of conservation and sustainability of Brunei's forest resources, he added.
According to Pehin Dato Dr Hj Ahmad, Brunei has its own bio-diversity centre, which occupies several hectares in Sungai Liang.
In terms of the legal aspects of the agreement, he continued, Brunei's Forestry Department is working with the State Attorney to work out the terms of a proposed memorandum of understanding between Nite and the biodiversity centre.
The MoU will hopefully be signed this year, said the minister, who did not specify a date.
The Brunei Times
Thursday, February 28, 2008
Economic Diversification (Booz Allen Hamilton)
Economic Diversification
The Road to Sustainable Development
A strong, growing, sustainable economy is the goal of every nation in the world. A sustainable economy enhances a nation’s standard of living by creating wealth and jobs, encouraging the development of new knowledge and technology, and helping to ensure a stable political climate. A diverse economy—that is, one based on a wide range of profitable sectors, not just a few—has long been thought to play a key role in sustainability.
Our recent research study confirms that this is indeed the case. There is a demonstrable link between economic diversity and sustainability, and diversification can reduce a nation’s economic volatility and increase its real activity performance.
This study grew out of our work helping Middle East governments, particularly those in the Gulf Cooperation Council (GCC), formulate their economic development strategies and agendas for transformation—their transitions from economies based on a single commodity to robust, well-diversified economies. These countries, rich in hydrocarbons and heavily invested in oil and gas, face a particularly daunting challenge in diversifying. It was important to determine just how critical economic diversity was to the creation of their sustainable economies.
Evaluating economic diversification
To make that determination, we broadened our focus beyond the Middle East region and scrutinized 19 countries with varying levels of economic maturity to assess their economic diversification, volatility, and health.
Our initial analysis of economic diversification involved the GCC; the Group of Seven (G7) nations (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States); and what we termed transformation economies, those that became industrialized nations in the latter half of the 20th century (Hong Kong, Ireland, New Zealand, Norway, Singapore, and South Korea). Three key findings emerged:
GDP should be distributed across economic sectors. We determined a “concentration ratio” and a “diversification quotient.” Concentration ratio measures a nation’s concentration in a given sector. The diversification quotient is the inverse of the concentration ratio, providing a metric that policymakers can use to gauge economic diversity. The lower the concentration ratio and the higher the diversification quotient, the more diversified a nation’s economy.
Concentration is not inevitable in hydrocarbon-rich economies. Abu Dhabi has a high concentration ratio: It drew 59 percent of its 2005 GDP from oil and gas, and growth in non-oil sectors continued to lag. However, other oil-rich countries have deliberately lowered their concentration ratio: Only 5 percent of Dubai’s GDP, for example, came from the oil and gas sector in 2005, and Canada’s oil and gas trade represents just 4 percent of its GDP.
Labor distribution should support growth. Employment distribution generally reflects and shapes GDP distribution across sectors. In the GCC, employment is distributed unevenly, compared to G7 and transformation economies. The oil and gas sector, producing 47 percent of GCC countries’ GDP, provides work for only 1 percent of the employed population. Government services constitute around 20 percent of total GCC employment. A majority of workers are laboring in sectors that support other economic sectors, rather than driving growth.
Evaluating economic sustainability
Through further analysis of productivity; competitiveness; and the relationship of economic volatility to concentration, employment, and economic performance, we determined that there was a statistically significant relationship between economic diversification and sustainability. Specifically, we found that:
Poor economic diversity is linked to low productivity and competitiveness.
High economic concentration leads to volatile growth and fluctuating economic cycles.
Volatility in concentrated economies may spawn structural unemployment issues and engender systemic risks.
External trade (exports of goods and services) helps reduce economic volatility.
Recommendations for policymakers
Economic diversification is measurable, monitorable, and now known to be a critical component of a sustainable economy. But policymakers who decide to increase diversification have their work cut out for them. They must keep economic diversification front and center when creating development agendas, and must rigorously measure and monitor economic diversity in evaluating the success of their policies. Policymakers should:
Diversify economic bases’ output and input distributions. Stakeholders should encourage the movement of labor and capital into productive economic sectors, as well as the development of new knowledge and technology.
Foster the growth of the external sector by exporting a wide range of high-value-added goods and services internationally.
Enhance the productivity and competitive levels of the economic base through resources and strategic investments, including enhancing human and financial capital, technology, and knowledge to entrench innovation. Innovation allows economies to create economic value from scratch.
Use the metrics of economic concentration and diversification, as well as economic sustainability and uncertainty, as targets when determining policy.
Create clear diversification strategies and mechanisms to mitigate economic volatility and spillover effects, uncertainty, and perturbed business cycle transitions.
Our findings provide a firm reminder to policymakers worldwide that a key to building a strong, sustainable economy is building a diversified economy—one that is not overly dependent on a single commodity and that has a strong external as well as internal focus.
Taking the steps outlined in this study will help policymakers create long-term, sustainable growth. In so doing, they will ensure stability and a high standard of living for their nations.
Copyright 2008 Booz Allen Hamilton Inc. All rights reserved.
"Booz & Company" and "booz&co." are service marks of Booz Allen Hamilton Inc.
The Road to Sustainable Development
A strong, growing, sustainable economy is the goal of every nation in the world. A sustainable economy enhances a nation’s standard of living by creating wealth and jobs, encouraging the development of new knowledge and technology, and helping to ensure a stable political climate. A diverse economy—that is, one based on a wide range of profitable sectors, not just a few—has long been thought to play a key role in sustainability.
Our recent research study confirms that this is indeed the case. There is a demonstrable link between economic diversity and sustainability, and diversification can reduce a nation’s economic volatility and increase its real activity performance.
This study grew out of our work helping Middle East governments, particularly those in the Gulf Cooperation Council (GCC), formulate their economic development strategies and agendas for transformation—their transitions from economies based on a single commodity to robust, well-diversified economies. These countries, rich in hydrocarbons and heavily invested in oil and gas, face a particularly daunting challenge in diversifying. It was important to determine just how critical economic diversity was to the creation of their sustainable economies.
Evaluating economic diversification
To make that determination, we broadened our focus beyond the Middle East region and scrutinized 19 countries with varying levels of economic maturity to assess their economic diversification, volatility, and health.
Our initial analysis of economic diversification involved the GCC; the Group of Seven (G7) nations (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States); and what we termed transformation economies, those that became industrialized nations in the latter half of the 20th century (Hong Kong, Ireland, New Zealand, Norway, Singapore, and South Korea). Three key findings emerged:
GDP should be distributed across economic sectors. We determined a “concentration ratio” and a “diversification quotient.” Concentration ratio measures a nation’s concentration in a given sector. The diversification quotient is the inverse of the concentration ratio, providing a metric that policymakers can use to gauge economic diversity. The lower the concentration ratio and the higher the diversification quotient, the more diversified a nation’s economy.
Concentration is not inevitable in hydrocarbon-rich economies. Abu Dhabi has a high concentration ratio: It drew 59 percent of its 2005 GDP from oil and gas, and growth in non-oil sectors continued to lag. However, other oil-rich countries have deliberately lowered their concentration ratio: Only 5 percent of Dubai’s GDP, for example, came from the oil and gas sector in 2005, and Canada’s oil and gas trade represents just 4 percent of its GDP.
Labor distribution should support growth. Employment distribution generally reflects and shapes GDP distribution across sectors. In the GCC, employment is distributed unevenly, compared to G7 and transformation economies. The oil and gas sector, producing 47 percent of GCC countries’ GDP, provides work for only 1 percent of the employed population. Government services constitute around 20 percent of total GCC employment. A majority of workers are laboring in sectors that support other economic sectors, rather than driving growth.
Evaluating economic sustainability
Through further analysis of productivity; competitiveness; and the relationship of economic volatility to concentration, employment, and economic performance, we determined that there was a statistically significant relationship between economic diversification and sustainability. Specifically, we found that:
Poor economic diversity is linked to low productivity and competitiveness.
High economic concentration leads to volatile growth and fluctuating economic cycles.
Volatility in concentrated economies may spawn structural unemployment issues and engender systemic risks.
External trade (exports of goods and services) helps reduce economic volatility.
Recommendations for policymakers
Economic diversification is measurable, monitorable, and now known to be a critical component of a sustainable economy. But policymakers who decide to increase diversification have their work cut out for them. They must keep economic diversification front and center when creating development agendas, and must rigorously measure and monitor economic diversity in evaluating the success of their policies. Policymakers should:
Diversify economic bases’ output and input distributions. Stakeholders should encourage the movement of labor and capital into productive economic sectors, as well as the development of new knowledge and technology.
Foster the growth of the external sector by exporting a wide range of high-value-added goods and services internationally.
Enhance the productivity and competitive levels of the economic base through resources and strategic investments, including enhancing human and financial capital, technology, and knowledge to entrench innovation. Innovation allows economies to create economic value from scratch.
Use the metrics of economic concentration and diversification, as well as economic sustainability and uncertainty, as targets when determining policy.
Create clear diversification strategies and mechanisms to mitigate economic volatility and spillover effects, uncertainty, and perturbed business cycle transitions.
Our findings provide a firm reminder to policymakers worldwide that a key to building a strong, sustainable economy is building a diversified economy—one that is not overly dependent on a single commodity and that has a strong external as well as internal focus.
Taking the steps outlined in this study will help policymakers create long-term, sustainable growth. In so doing, they will ensure stability and a high standard of living for their nations.
Copyright 2008 Booz Allen Hamilton Inc. All rights reserved.
"Booz & Company" and "booz&co." are service marks of Booz Allen Hamilton Inc.
Wednesday, February 27, 2008
Skills development, private-public partnership vital for Brunei ICT growth
Skills development, private-public partnership vital for Brunei ICT growth
SOBRINA ROSLI
BANDAR SERI BEGAWAN
Wednesday, February 27, 2008
BRUNEI's ICT industry is foreseen to grow further during the next few years, subject to proper collaboration efforts, local companies initiative to expand and the nurturing of local ICT skills and expertise.
At a dialogue session between the Prime Minister's Office and the local ICT industry held yesterday,
Pengiran DP Ismail Mohamed, permanent secretary of the Prime Minister's Office told The Brunei Times that though local ICT companies could build upon opportunities offered through the E-government initiative, companies need to also play a role and be more proactive in achieving growth through other areas.
"The prospect of Brunei's ICT industry looks good for the next 3 to 5 years...however the companies must not only look for projects on the government sector alone.They must also be proactive in terms of positioning themselves outside the government industry as well as outside Brunei," he said.
By going regional or even international, they would enrich their experiences and knowledge.
"Companies which are proactive can position themselves in any environment in the competitive world...what is important is the self-motivation and an urge to grow and prosper," he added.
He highlighted government initiative to support local ICT companies such as through the Ministry of Industry, Primary and Resources (MIPR) and the i-Centre of the Brunei Economic Development Board but reminded that such services only provide basic fundamentals and knowledge and that ICT is up to the companies to strive.
Human resources in the field of ICT is also an area of concern for Brunei and efforts are being made to address the issue.
Pengiran Mohammad Pg Kamaluddin, chairman of InfoCom Federation Brunei(IFB) said that non-profit organisation can have a role in developing human resources.
"The main challenge is how they want to implement ICT infrastructure and the human resources development, human resource development covers many areas from specialised skills set to end users at a globally accepted scale...because there is quite a large number to cover, IFB can only play a role in development of specialised ICT skills as well as general ICT end users" he said.
Haslina Taib, the chief financial officer at BAG Networks stressed the need for the continuous training of Brunei's graduates within and outside the country.
"They can be exposed to other management skills and business processes in a different environment, you do need to keep educating and training these human resources," she said.
She said dialogues sessions between relevant agencies and the local ICT industry are very important.
The Brunei Times
SOBRINA ROSLI
BANDAR SERI BEGAWAN
Wednesday, February 27, 2008
BRUNEI's ICT industry is foreseen to grow further during the next few years, subject to proper collaboration efforts, local companies initiative to expand and the nurturing of local ICT skills and expertise.
At a dialogue session between the Prime Minister's Office and the local ICT industry held yesterday,
Pengiran DP Ismail Mohamed, permanent secretary of the Prime Minister's Office told The Brunei Times that though local ICT companies could build upon opportunities offered through the E-government initiative, companies need to also play a role and be more proactive in achieving growth through other areas.
"The prospect of Brunei's ICT industry looks good for the next 3 to 5 years...however the companies must not only look for projects on the government sector alone.They must also be proactive in terms of positioning themselves outside the government industry as well as outside Brunei," he said.
By going regional or even international, they would enrich their experiences and knowledge.
"Companies which are proactive can position themselves in any environment in the competitive world...what is important is the self-motivation and an urge to grow and prosper," he added.
He highlighted government initiative to support local ICT companies such as through the Ministry of Industry, Primary and Resources (MIPR) and the i-Centre of the Brunei Economic Development Board but reminded that such services only provide basic fundamentals and knowledge and that ICT is up to the companies to strive.
Human resources in the field of ICT is also an area of concern for Brunei and efforts are being made to address the issue.
Pengiran Mohammad Pg Kamaluddin, chairman of InfoCom Federation Brunei(IFB) said that non-profit organisation can have a role in developing human resources.
"The main challenge is how they want to implement ICT infrastructure and the human resources development, human resource development covers many areas from specialised skills set to end users at a globally accepted scale...because there is quite a large number to cover, IFB can only play a role in development of specialised ICT skills as well as general ICT end users" he said.
Haslina Taib, the chief financial officer at BAG Networks stressed the need for the continuous training of Brunei's graduates within and outside the country.
"They can be exposed to other management skills and business processes in a different environment, you do need to keep educating and training these human resources," she said.
She said dialogues sessions between relevant agencies and the local ICT industry are very important.
The Brunei Times
Wednesday, February 13, 2008
Food security, safety gains importance
Food security, safety gains importance
HADTHIAH PD HAZAIR
BRUNEI-MUARA
Wednesday, February 13, 2008
THE newly approved national development plan (NDP) 2007-2012, which has allocated $101 million for the agriculture department, will ensure increased efforts for Brunei to remain relatively unfazed should there interruptions to its food supply chain.
According to a statement released by the department, its plan includes concentrated efforts on the nation's food security programme and food safety. Stringent food safety measures will ensure that Brunei lives up to international standards and increase its export capabilities.
"By increasing our food security level, we are ensuring that food will remain available, edible and accessible to the citizens of Brunei," an official from the department explained to The Brunei Times.
"The agriculture department has already started its food security programme since the last decade," the statement reported.
Since then, Brunei has managed to attain 100 per cent food self-sufficiency in eggs and broilers.
However, according to a representative from the department, "it is not viable for Brunei to be self-sufficient in all commodities for reasons such as cost of producing and geographical aspects".
Statistics for the first quarter last year show that rice production too has increased. Other commodities that are being looked into in the food security programme are cattle, vegetables and processed foods.
In 2006, the agriculture sector contributed $58.4 million to the nation's gross domestic products (GDP), with a total production output of almost $172 million. By the first quarter last year, the sultanate recorded an 85 per cent self-sufficiency in local vegetables, and 33 per cent in tropical fruits.
With the extra emphasis on food security in the NDP 2007-2012, it is hoped that this sector would not only increase food self-sufficiency, but also cash in a lot more towards Brunei's GDP.
At the same time, the agriculture department will be undertaking food safety programmes. Projects will include the establishment of the Brunei Agricultural Laboratory Centre for livestock and crops
This will ensure that local produce remain safe for consumption. "Laboratory examinations on the health of farm animals and the safety of local crops and vegetables will be observed," the statement highlighted. The objective is to gain international standards and boost the sultanate's export potential.The Brunei Times
HADTHIAH PD HAZAIR
BRUNEI-MUARA
Wednesday, February 13, 2008
THE newly approved national development plan (NDP) 2007-2012, which has allocated $101 million for the agriculture department, will ensure increased efforts for Brunei to remain relatively unfazed should there interruptions to its food supply chain.
According to a statement released by the department, its plan includes concentrated efforts on the nation's food security programme and food safety. Stringent food safety measures will ensure that Brunei lives up to international standards and increase its export capabilities.
"By increasing our food security level, we are ensuring that food will remain available, edible and accessible to the citizens of Brunei," an official from the department explained to The Brunei Times.
"The agriculture department has already started its food security programme since the last decade," the statement reported.
Since then, Brunei has managed to attain 100 per cent food self-sufficiency in eggs and broilers.
However, according to a representative from the department, "it is not viable for Brunei to be self-sufficient in all commodities for reasons such as cost of producing and geographical aspects".
Statistics for the first quarter last year show that rice production too has increased. Other commodities that are being looked into in the food security programme are cattle, vegetables and processed foods.
In 2006, the agriculture sector contributed $58.4 million to the nation's gross domestic products (GDP), with a total production output of almost $172 million. By the first quarter last year, the sultanate recorded an 85 per cent self-sufficiency in local vegetables, and 33 per cent in tropical fruits.
With the extra emphasis on food security in the NDP 2007-2012, it is hoped that this sector would not only increase food self-sufficiency, but also cash in a lot more towards Brunei's GDP.
At the same time, the agriculture department will be undertaking food safety programmes. Projects will include the establishment of the Brunei Agricultural Laboratory Centre for livestock and crops
This will ensure that local produce remain safe for consumption. "Laboratory examinations on the health of farm animals and the safety of local crops and vegetables will be observed," the statement highlighted. The objective is to gain international standards and boost the sultanate's export potential.The Brunei Times
Sunday, February 3, 2008
Many Bruneians continue to live in debt
Many Bruneians continue to live in debt
Spending spree: Financial experts have stated that most loans taken out by Bruneians are used to finance consumption activities rather than productive investments. Picture: Bt file photo
DEBBIE TOO
BRUNEI-MUARA
Sunday, February 3, 2008
AFTER the personal loan capping directive, personal loan applications are decreasing. Of the total loans, around 61 per cent were under the category of personal loans, which indicates that most of the loans (close to $6 billion by end of 2005) were used to finance consumption activities rather than going into productive investments. The amount of loans increased by $2 billion from 2001 to close to $6 billion.
On May 16, 2005, the Ministry of Finance issued a personal loan capping directive to the Brunei Association of Banks (BAB).
The objectives of the directives is to reduce the level of personal debts, to promote savings culture and to boost financing to the private sector.
"Before the loan capping directive, it was very easy to apply for a loan, they could loan up to 36 times their salary and the repayment period could go on till their retirement age, but now after the capping, they could only loan up to 12 times their salary and they have a repayment period of not more than six years," said Siti Mas Haji Matasim, a personal banker from HSBC.
She added that the capping directive limited the amount of the loans applied did affect the number of applications.
"Now we get only about two to three loan applications per month," she said.
However, she added that there is no specific age group that applies for loans more than others.
"There will always be people applying for loans, from different generations, you have the fresh graduates, newlyweds, and for the older generation, they would apply for a personal loan for maybe their children's studies, and so on," she said.
"We do not ask them specifically what they apply the loan for, as it is not necessary," she went on to explain.
Baiduri Bank's personal financial planner, Norasfarina Kamarudin said that from Baiduri Bank, there are more locals that apply for personal loans than foreigners.
She added that the criteria for foreigners and locals are different where the foreigners are offered to loan up to four times their salary as compared to locals, who can loan up to 12 times their salary.
When asked whether the personal loans are used for business purposes or to help finance their consumption activities, she replied that there were a number of personal reasons that people took personal loans for.
"Some use it pay off their credit cards, some of the use it for weddings, home renovations, but most of it are more for consumption activities," she said.
She added that some customers have applied for loans from other banks as well.
"One of the criteria from the new directive is that the customer's salary has to be banked into the bank that he or she is applying a personal loan from, but some people move their salary to other banks to apply for loans there as well," she said.
Both personal bankers added that whether it is credit cards or home loans or personal loans, most of the banking clients are still in debt to the bank.
The Brunei Times
Spending spree: Financial experts have stated that most loans taken out by Bruneians are used to finance consumption activities rather than productive investments. Picture: Bt file photo
DEBBIE TOO
BRUNEI-MUARA
Sunday, February 3, 2008
AFTER the personal loan capping directive, personal loan applications are decreasing. Of the total loans, around 61 per cent were under the category of personal loans, which indicates that most of the loans (close to $6 billion by end of 2005) were used to finance consumption activities rather than going into productive investments. The amount of loans increased by $2 billion from 2001 to close to $6 billion.
On May 16, 2005, the Ministry of Finance issued a personal loan capping directive to the Brunei Association of Banks (BAB).
The objectives of the directives is to reduce the level of personal debts, to promote savings culture and to boost financing to the private sector.
"Before the loan capping directive, it was very easy to apply for a loan, they could loan up to 36 times their salary and the repayment period could go on till their retirement age, but now after the capping, they could only loan up to 12 times their salary and they have a repayment period of not more than six years," said Siti Mas Haji Matasim, a personal banker from HSBC.
She added that the capping directive limited the amount of the loans applied did affect the number of applications.
"Now we get only about two to three loan applications per month," she said.
However, she added that there is no specific age group that applies for loans more than others.
"There will always be people applying for loans, from different generations, you have the fresh graduates, newlyweds, and for the older generation, they would apply for a personal loan for maybe their children's studies, and so on," she said.
"We do not ask them specifically what they apply the loan for, as it is not necessary," she went on to explain.
Baiduri Bank's personal financial planner, Norasfarina Kamarudin said that from Baiduri Bank, there are more locals that apply for personal loans than foreigners.
She added that the criteria for foreigners and locals are different where the foreigners are offered to loan up to four times their salary as compared to locals, who can loan up to 12 times their salary.
When asked whether the personal loans are used for business purposes or to help finance their consumption activities, she replied that there were a number of personal reasons that people took personal loans for.
"Some use it pay off their credit cards, some of the use it for weddings, home renovations, but most of it are more for consumption activities," she said.
She added that some customers have applied for loans from other banks as well.
"One of the criteria from the new directive is that the customer's salary has to be banked into the bank that he or she is applying a personal loan from, but some people move their salary to other banks to apply for loans there as well," she said.
Both personal bankers added that whether it is credit cards or home loans or personal loans, most of the banking clients are still in debt to the bank.
The Brunei Times
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