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40 Bandar Sri Begawan

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“And he shall be like a tree planted by the rivers of water, that bringeth forth his fruit in his season; his leaf also shall not wither; and whatsoever he doeth shall prosper.”

Psalm 1:3 (KJV)

“At the peak of the Bruneian Empire, Sultan (reigned 1485–1528) is claimed to have had control over most regions of Borneo, including modern-day Sarawak and Sabah, as well as the Sulu Archipelago off the northeast tip of Borneo, and the islands off the northwest tip of Borneo.” 

Source: https://en.wikipedia.org/wiki/Brunei 2021

Brunei 1400

Source: Wikipedia. Night Lantern 2017

Bandar Sri Begawan – Capital City of Brunei

Source:  https://www.pacificholidaysinc.com/assets/images/Destinations/Asia/Brucei/cities/Bandar-Aerial-03.jpg

1.0 Geographical Overview

Location:

Bandar Seri Begawan, the vibrant capital of Brunei, spans across a city area of 100 km2, making it just a tad larger than Zurich City. Nestled on the North West of Borneo Island, it shares its borders with Sarawak and enjoys a captivating view of the South China Sea.

Population Dynamics:

As of 2020, Brunei boasted a population of 0.46 million, with the urban heart, Bandar Sri Begawan, housing 0.32 million residents. Projections hint at a significant surge, foreseeing the urban population to soar to 1.2 million by the year 2050.

Connectivity:

The city’s strategic placement on Borneo Island not only establishes its significance but also places it in proximity to the South China Sea, contributing to both its charm and connectivity.

Distance from Bandar Seri Begawan to other major cities in Borneo

CityDistance (km)
Balikpapan712
Banjarmasin912
Kota Kinabalu176
Kuching629
Pontianak825
Samarinda648

Distance from Bandar Seri Begawan to other major cities in Asia Pacific

CityDistance (km)
Hong Kong1,824
Shanghai3,006
Singapore1,292
Sydney5,751
Taipei2,344
Tokyo4,265

Tropical Climate:

The city is positioned at 4.9° north of the equator, experiencing a tropical rainforest climate characterized by an annual rainfall of 2,913 mm and an average temperature of 27 °C. Warm and humid weather prevails throughout the year, with the northeast monsoon occurring from December to March and the southeast monsoon blowing from June to October.

Notable Attributes:

Bandar Seri Begawan boasts several distinctive features:

  • Economic Prosperity: Brunei ranks as the fifth-richest country globally in terms of gross domestic product (GDP) per capita, a status achieved in 2017.
  • Tax-Free Benefits: Bruneian citizens enjoy the perk of a tax-free income, coupled with government-provided free medical services and education.
  • Venice of the East: Earned the moniker due to the widespread use of water taxis, adding a unique charm to the city.
  • Quality of Life: The city ranks in the top 10% for quality of life, achieving a notable score of 183.85 among 250 evaluated cities.
  • Magnificent Palace: The Istana Nurul Iman palace stands as the world’s largest residential palace, boasting over 1,700 rooms and a grand 5,000-guest banquet hall.

Unique Attributes:

  • Affluence with a Small Population: Despite its prosperity, the city maintains a relatively small population.
  • Tourist Hub: A prominent tourist destination, serving as the gateway to Brunei’s cultural and natural wonders.
  • Rich Historical Heritage: Boasts a rich history of Sultanate rule over Borneo Island.
  • Strategic Location: Centrally positioned within the Asia Pacific region, contributing to its significance and influence.

2.0 History

Historical Milestones:

PeriodKey Events
Bruneian Empire7th-18th century: Flourishing era of Bruneian dominance over Borneo Island.
British Settlement19th Century: British establishment in Brunei.
Attainment of Municipality Status1935: Recognition as a municipality.
Previous DesignationBandar Brunei: Original name before transformations.
Renaming Ceremony1970: Redesignated as Bandar Sri Begawan, a tribute to the late Sultan.
Independence Achieved1984: Brunei gains independence from British governance.

Brief History:

In the 1400s, Brunei ruled Borneo, peaking from the 15th to 17th century. The empire traded with China and hosted Spain’s Magellan Expedition in 1521.

From 1888 to 1984, Brunei was a British protectorate, gaining independence. Now a constitutional monarchy, Sultan Haji Hassanal Bolkiah leads the nation.

Petroleum discovery in 1929 made Brunei a major oil exporter. It became independent in 1984, and the city reflects its British history in town planning and governance.

Unique attributes: 

Former British Protectorate with well-established town planning, government administration and common law legal system.

3.0 Economy

In 2019, Brunei’s exports totalled US$7.25 billion, primarily comprising petroleum gas (44.2%), crude oil (39.4%), refined petroleum oils (7.3%), and nitrated chemicals (2.1%). Notable downstream projects, including the Hengyi refinery and Brunei Fertilizer Industries, promise increased business activities from 2020 onward.

Major Economic Activities:

  1. Tourism: In 2018, Brunei welcomed 278,000 visitors, with attractions like Istana Nural Iman, mosques, museums, water village, waterfront, and nature park. South Korea led robust growth, and in 2019, Malaysia, China, and Indonesia were the top three tourism markets.
  2. Industry: Specialized industrial parks like SPARK, Anggerek Desa Tech Park, and Salambigar Industrial focus on methanol production, technology companies, and light industries. Pulau Muara Besar concentrates on oil and gas downstream.
  3. Airport: Brunei International Airport facilitates flights to major cities globally, with plans to increase passenger capacity to 8 million in the second phase expansion.
  4. Seaport: Muara Port stands as the country’s largest port.
  5. Oil & Gas: Constituting 60% of GDP and 90% of exports, Brunei’s oil and gas sector produces 127,000 barrels of oil per day. The Hengyi Group’s projects on Muara Besar Island, supported by China, include a US$3.4 billion complex and a future US$12 billion expansion.
  6. Agriculture: Agriculture contributes 3% to the GDP, focusing on hybrid rice and tropical fruits.
  7. Halal Industry: Brunei aims to be a hub for premium halal food brands, cosmetics, and pharmaceuticals in global Muslim markets. The Sultan envisions long-term commitment to developing the halal industry across the supply chain.

Unique Attributes:

Brunei’s small population relies heavily on the petroleum industry. Opportunities lie in developing oil and gas downstream industries and positioning the nation as a manufacturing hub for halal products.

4.0 Linguistic Diversity

In Bandar Seri Begawan, Malay, Chinese, and English stand as the major languages.

Unique Feature:

The official language is Malay, the most effective communication in government, business and the local community. English is common in the business sector.

5.0 Investment Opportunities

5.1 New Migration:

Brunei seeks foreign investment and a substantial migrant workforce to invigorate the economy and amplify employment opportunities. The influx of expatriates and labor will propel the population from 0.32 million to a projected 1.2 million by 2050. Foreign investments in agriculture, food processing, halal manufacturing, petrochemical downstream, and industrial Special Economic Zones (SEZ) will spur job creation, offering valuable skills and management experience to Brunei’s youth.

5.2 Airport:

The expanded airport, catering to 8 million passengers annually, aligns with Brunei’s growth strategy. Increased migrants and tourism investments will transform the airport into a Borneo hub, positioning it as a key player in Asia Pacific air travel.

5.3 Education:

While two international schools currently cater to senior secondary levels, the growing expatriate community demands 10 more international schools, accommodating an estimated 12,500 foreign students. Brunei can leverage its current educational excellence and contribute to establishing international schools in other Borneo capitals.

5.4 Tourism:

With 0.28 million tourists in 2018, Brunei aims for 5 million visitors by 2050. Renowned for grand mosques, Islamic architecture, water villages, and lush rainforests, Brunei’s tourism industry requires foreign investment and robust infrastructure. Specialized Islamic Tourism offers a strategic advantage across the Middle East, Southeast Asia, Europe, and North Asia.

5.5 Infrastructure:

Infrastructure development includes new highways connecting Bandar Sri Begawan to key provincial capitals, a Pan Borneo rail system along the coast, and new water treatment plants for the burgeoning 1.2 million population.

5.6 Agriculture and Livestock:

To achieve food security, Brunei targets agricultural development in rice, tropical fruits, and vegetables. Aquaculture and livestock processing, particularly in halal food for global markets, present lucrative investment opportunities. Expansion in livestock processing capacity can meet the increasing demand for halal food globally.

5.7 Special Economic Zones (SEZ):

  • Food: Brunei aims to establish Bandar Sri Begawan as the central hub for halal food processing, targeting global Muslim markets.
  • Agriculture: Focused on Kota Belud, this SEZ emphasizes downstream industries in rice, cattle, tropical fruits, aquaculture, and poultry farms for the Asian market.
  • Cold Chain: Bandar Sri Begawan’s strategic location positions it as a cold chain hub for Borneo Island, capitalizing on direct access to the South China Sea.
  • Oil and Gas: As the gateway for oil and gas downstream industries, Brunei envisions joint ventures with Malaysia and Indonesia, positioning Borneo Island as a petrol-chemical processing and manufacturing hub for the Asia Pacific.
  • Industrial: Emphasizing SEZ policies, Brunei plans to develop new SEZ parks, engaging in manufacturing sectors like pharmaceuticals, textiles, plastics, specialty chemicals, aeronautics, shipbuilding, and auto-machinery parts.

Investment in Brunei

  • Brunei Strategic Link. Source: GIS. Prince Michael of Liechtenstein, 2018
  • Industrial Sites. Source: Investment in Brunei 2019
  • Halal Food Industry. Source: Investment in Brunei 2019
  • Oil and Gas Downstream Industry. Source: Investment in Brunei 2019

5.8 Private equity and investment group

Singapore private equity, venture capital, and investment groups (additional stakeholders are listed in other chapters).

Sources: Singapore Venture Capital & Private Equity Association (2023), Investment Management Association of Singapore (2023) and other industry sources.

Hong Kong Investment Funds Association – Full and Overseas Members (2022)

  • abrdn Hong Kong
  • AllianceBernstein Hong Kong
  • Allianz Global Investors Asia Pacific
  • Amundi Hong Kong
  • AXA Investment Managers Asia
  • Baring Asset Management (Asia)
  • BEA Union Investment Management
  • BlackRock Asset Management North Asia
  • BMO Global Asset Management (Asia)
  • BNP Paribas Asset Management Asia
  • BOCHK Asset Management
  • BOCI-Prudential Asset Management
  • Capital Group
  • China International Capital Corporation Hong Kong Asset Management
  • China Universal Asset Management (Hong Kong)
  • CIFM Asset Management (Hong Kong)
  • Citigroup First Investment Management
  • DWS Investment
  • E Fund Management (HK)
  • Eastspring Investments (Hong Kong)
  • FIL Investment Management (Hong Kong)
  • First Sentier Investors (Hong Kong)
  • Franklin Templeton Investments (Asia)
  • GaoTeng Global Asset Management
  • Goldman Sachs Asset Management (Hong Kong)
  • Guotai Junan Assets (Asia)
  • Hang Seng Investment Management
  • Harvest Global Investments
  • HSBC Global Asset Management (Hong Kong)
  • Invesco Hong Kong
  • Janus Henderson Investors Hong Kong
  • JP Morgan Funds (Asia)
  • Jupiter Asset Management (Hong Kong)
  • Man Investments (Hong Kong)
  • Manulife Investment Management (Hong Kong)
  • Matthews Global Investors (Hong Kong)
  • Mirae Asset Global Investments (Hong Kong)
  • MFS International (Hong Kong)
  • Morgan Stanley Asia
  • Neuberger Berman Asia
  • Natixis Investment Managers Hong Kong
  • Ninety One Hong Kong
  • Pictet Asset Management (Hong Kong)
  • PIMCO Asia
  • PineBridge Investments Asia
  • Ping An of China Asset Management (Hong Kong)
  • Principal Asset Management Company (Asia)
  • Robeco Hong Kong
  • Schroder Investment Management (Hong Kong)
  • State Street Global Advisors Asia
  • Taikang Asset Management (Hong Kong)
  • Threadneedle Portfolio Services Hong Kong
  • UBS AG – Global Asset Management
  • Value Partners
  • Zeal Asset Management

Source: Hong Kong Investment Funds Association (2022) Full and Overseas Members

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