Oil-rich Brunei to broaden economic base<\/p>\n
KUALA LUMPUR (AP): After more than four decades of petrodollar
\nprosperity under the rule of one of the world's richest men,
\nBrunei has admitted that its economy is unsustainable and over-
\ndependent on crude oil exports.<\/p>\n
The Southeast Asian sultanate is facing rising unemployment
\nand a chronic budget deficit, Yahya Abu Bakar, permanent
\nsecretary in the prime minister office, said Monday.<\/p>\n
In an interview with state television on Monday, Yahya, who is
\none the country's top bureaucrats, said the government would
\ninvest heavily in the downstream oil and gas sector to broaden
\nits economy.<\/p>\n
The Brunei government released the text of the interview.<\/p>\n
Brunei each day pumps about 200,000 barrels of oil and
\ngenerates an equivalent amount of natural gas to support its
\n320,000 people and one of the world's richest monarchies.<\/p>\n
The exports have made Brunei - once a backwater trading
\nentrepot - a paradise of tax-free wages, free education and
\nhealth care, subsidized housing and wide boulevards with the
\nlatest Mercedes and BMW sedans.<\/p>\n
Almost everyone is rich by the region's standards. Even after
\nAsia's recent economic slowdown, Brunei's gross domestic product
\nis about 7 billion Brunei dollars (US$4 billion).<\/p>\n
But now, Brunei has to look for other sources of income and
\ninvestment, Yahya said in his interview.<\/p>\n
He said a government masterplan had identified oil refining,
\npetrochemicals and energy intensive industries like aluminum
\nsmelting as the most promising options. A detailed study is
\nunderway and a decision is expected in two months, he said.<\/p>\n
\"We hope the industries identified by this study will help to
\ncreate more jobs, more spin-offs in terms of creating more
\nindustries downstream and also perhaps get rid of some of the
\nbudget deficit,\" he said.<\/p>\n
Ian Williams, an Australian consultant who is the architect of
\nthe new plan, said among the challenges to identify new
\nindustries was accepting that a refinery based on imported crude
\nwas more profitable than refining the country's own oil. His
\nremarks were part of the government statement.<\/p>\n
Studies have showed that local crude fetched premium prices
\ndue to their low sulfur content.<\/p>\n
The reclusive sultanate on Borneo island hopes that
\nestablishing links with big world players like the United States
\nand Japan will provide added momentum to its plans when it plays
\nhost to the 21 leaders from the nations of the Asia-Pacific
\nEconomic Cooperation forum in November.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/oil-rich-brunei-to-broaden-economic-base-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}