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Brunei: Business trends, developments discussed during DPPMB power lunch
THE Brunei Malay Chamber of Commerce and Industry (DPPMB), hosted a Power Lunch event yesterday at the Radisson Hotel.
The event was attended by members of DPPMB, leading businesspersons in the country, members of the diplomatic corps and other distinguished guests.
Among the notable guests were Motohiko Kato, the Ambassador of Japan to Brunei Darussalam, Adinin Group of Companies Managing Director Haji Musa bin Haji Adnin, and Soffian Umar of L’Etoille Management Services.
The event began with a welcoming speech by Dr Haji Kamaruddin bin Dato Seri Paduka Haji Talib, President of the National Chamber of Commerce and Industry and DPPMB, in which he highlighted the DDPMB’s objectives as well as its history that has spanned for around 50 years.
He explained that DPPMB represents the interests of the Malay businesses in general, and the power lunch reception was held to gather business leaders and game changers across different sectors and industries across the country to share investment opportunities and trends in the Brunei economy with foreign firms.
It also serves as a platform to discuss and deliberate policy frameworks and mechanisms, explore significant opportunities and trends, and share information and insights that can affect businesses in the country.
“The advent of the Asean Economic Community (AEC) creates new opportunities and challenges for Brunei and the region, and brings unprecedented levels of competition among local businesses and foreign companies investing in the country,” he said.
“Companies that continue to operate their businesses as [normal] and fail to adapt to the changing times and demands of the market forces may find themselves no longer relevant and sustainable, [and begin to] lag behind.” He explained that one of the main goals of the AEC Blueprint is the Single Market and Production Base determined by the free flow of goods, services, investments, capital and skilled labour. The DDPMB president said that it is significant to note that AEC will expose local businesses to global competition, and if they are not prepared to adapt to upcoming changes, they are bound to lose market share to these foreign competitors.
“However, if local businesses upgrade their levels of competency and conform to globally accepted business standards and practices, and consequently produce excellent products and provide exemplary services, then they stand a chance to retain or increase their share of the local market,” he explained.
Up next at the podium was Motohiko Kato, where he delivered a keynote speech highlighting the Japanese perspective on the global economy and its impact on Japan’s economic development, among other issues.
According to the ambassador, most Japanese companies are looking at global opportunities to expand their business operations, explaining that their aggressive approach to mergers and acquisitions is a result of this drive. “[Due to this], the Japanese Government attaches great importance to Free Trade Agreements (FTAs),” he said.
He added that Japan and the European Union (EU) recently agreed to conclude an important Japan-EU FTA, and even though the US has withdrawn from the Trans Pacific Partnership (TPP), the Japanese Government has continued to work hard to ensure solidarity among the pact’s 11 remaining members.
“Japan strongly believes that the TPP 11 will take effect next year and has introduced the highest standards of trade and investment regulations in the Asia-Pacific region and on this issue, Brunei has fully supported Japan’s position,” he continued, adding that his country views the Japan–Asean economic relationship as crucially important.
Kato elaborated that the solid relationship between Brunei and Japan is underpinned by the strong trading partnership that exists between both countries in the liquefied natural gas (LNG) trade. Japan purchases up to 70 per cent of the LNG produced by Brunei LNG Sdn Bhd, which is 25 per cent owned by Mitsubishi Corporation.
“Japan is very grateful to Brunei for playing such an important role in strengthening her energy security over the past 40 years,” said the ambassador. “Brunei also has important economic ties with Japanese companies that are investing in the country and generating employment, and contributing to the diversification of the Brunei economy.”
He cited examples such as the Brunei Methanol Company, which was established in 2006 and produces methanol in Brunei for international export; VAM Brunei Company, one of the largest foreign direct investment (FDI) projects in Brunei, which was launched in 2016 and operates an oil pipeline threading and maintenance plant, and plays a vital role supporting BSP’s operations; MC Biotech, a Japanese joint venture biotechnology firm specialising in the production of the highly antioxidant microalgae astaxanthin, a key ingredient in health supplements and cosmetic products; and Yamako Pacific – a major food company with primary investments in the fisheries industry – which catches and processes skipjack and yellowfin tuna in Brunei, selling them in the Brunei market while exporting large volumes to Japan and China.
On future Japanese investments in the country, the ambassador mentioned a major hydrogen plant that will begin construction in April 2018. He explained that the project will provide Japan and Brunei a great opportunity to better understand how to fully utilise green energies.
“Another future project involves a joint study between the Brunei Energy Research Institute and ERIA – a Japanese think tank – which will investigate the feasibility and development of new energy-saving technologies and an eco-town in Temburong,” Kato added. He also noted that Japan has an advanced public transportation system and possesses the expertise to assist Brunei in its plans to develop its public transportation system into one where there will be a reduced dependency on carbon fuels – a reality by exacerbated by Brunei’s reliance on cars for transport.
“As for tourism, [this represents] another strong opportunity and the Japanese Embassy will continue to work hard at growing the number of [tourist arrivals] from Japan [to Brunei],” explained the ambassador.
“The Japanese Embassy is also working hard with Brunei’s Ministry of Foreign Affairs and Trade to conclude the signing of a Technical Assistance Agreement,” he added.
“The negotiations are in the final stages, and when concluded, experts from Japan’s International Cooperation Agency (JICA) will come to Brunei to draw up a specific blueprint to support technological advancement in Brunei in many areas.” Kato expressed his confidence that the blueprint will open many new business opportunities from Japan in Brunei.
Two local business figures, Haji Musa of the Adinin Group of Companies, and Soffian Umar of L’Etoille Management Services, also gave speeches during the ‘Our Story’ segment, speaking on their experiences.
Source: http://borneobulletin.com.bn/business-trends-developments-discussed-during-dppmb-power-lunch/