Laporan Doing Business 2017

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Doing Business 2017 Report“Equal Opportunity for All”

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Doing Business 2017 Report

#4Position in ASEAN

#13Position in Asia

Pacific region; ahead

of China and India

#1The most improved

country in the world

In Doing Business 2017 Report, Brunei Darussalam has achieved the most improved

country in the world; 4th in ASEAN and 13th out of 29 countries in Asia Pacific

3

2015 Report

2016 Report

97

2017 Report

72

Distance to Frontier: 58.02

Indicatorsimproved in ranking: • Dealing with

Construction Permits• Trading Across

Borders

Distance to Frontier:60.28

Indicators improved in ranking: • Starting a Business• Getting Credit• Paying Taxes• Resolving Insolvency

Distance to Frontier: 65.51

Indicators improved in ranking: • Getting Electricity• Getting Credit• Protecting Minority

Investors• Paying Taxes• Enforcing Contracts• Resolving Insolvency• Registering Property• Trading Across Borders

105

Brunei has continuously improved since 2015; jumping a further 25 places in

Doing Business 2017 Report

4

IndicatorBrunei Rank (DB 2016)

Brunei Rank(DB 2017)

Change in Ranks

Overall (out of 189) *97 72 +25

Starting a Business 75 84 4

Dealing with Construction Permits 33 37 4

Getting Electricity 76 21 55

Registering Property 135 134 1

Getting Credit 78 62 16

Protecting Minority Investors 118 102 16

Paying Taxes 96 89 7

Trading Across Borders 143 142 1

Enforcing Contracts 115 93 22

Resolving Insolvency 997 57 40

Source: World Bank Doing Business Report 2017

8 out of 10 indicators have improved in rankings and 2 indicators have fallen by 4

places

55

71.8

41.1

50.0

45.0

53.5

70.7

56.8

50.7

86.8

76.5

87.6

55.1

60.0

51.7

57.3

72.4

57.7

50.7

86.7

76.1

GettingElectricity

ResolvingInsolvency

GettingCredit

ProtectingMinority

Investors

EnforcingContracts

PayingTaxes

TradingAcrossBorders

RegisteringProperty

Starting aBusiness

Dealing withConstruction

Permits

DTF 2016 DTF 2017

+15.8

+10

+14.1 +6.7

+3.7

-0.1

-0.4

+0.9

+1.7

Change in Distance to Frontier (DTF) Score from 2016 to 2017

Out of 10 indicators, 4 have shown significant improvements and 4 slight

improvements based from the DTF score analysis against the best in the world

6

Indicator Reforms completed What’s next to do for next year

Starting a Business

• Elimination Business License for majority types of businesses;

• Automatic registration to Tax and Employee’s Provident Fund’s systems

• Merging of name reservation and incorporation by December 2016.

• Eliminate the requirement of certifying Memorandum of Association and stamping of share certificates

Dealing with Construction Permit

• Streamline process from 17 steps to 5 steps and from 119 days to 37 days;

• Implementation of Building Control Order• Risk-based Assessments of Applications• Streamlining of approval of permits for

commencing construction works• Introduction of OneBiz online system for

applications

• To review and reduce number of procedures based on Building Control Order.

• To continue monitoring performance to obtain construction permits.

GettingElectricity

• Upgrading of network infrastructure and reliability projects

• Reduction of procedures to get electricity from 5 steps to 3 steps for new warehouse that requires new infrastructure

• Reduction of time from 56 days to 17 days• Implementation of SCADA system• Compensation for power outages via credit

scheme

• Electricity Order to be gazetted by December 2016 that will make EIDPMO as a regulator to Department of Electrical Services.

In order to reach Top 20 target, government agencies and private sector need to

maintain focus and drive more progress with pace and urgency

7

Indicator Reforms completed What’s next to do for next year

Paying Taxes

• Tax refund policy of 30 days• Increase in Capital Allowance rates for Industrial

Building• Employee tax made easier via E-Amanah online

system

• To improve time taken for post-filing processes in particular Tax Audit, Tax Refund and Tax Appeal

Registering Property

• Reduction of procedures from 7 to 4 steps;• Internal process improvement for Memorandum of

Transfer approval; and• Implementation of online system for land

applications known as LARIS.

• To ensure time taken to register property will be streamlined to be at Top 20 benchmark

Getting Credit

• The gazettement of the Secured Transaction Order 2016

• Expanded the scope of its data coverage i.e. Collects credit information from major utility provider (DST, DES and TelBru)

• Implementation of Collateral Registry System that will enable Moveable Property to be made as Collateral

ProtectingMinority Investors

• Amendments to Companies Act for Personal Remedies in cases of Oppression and Injustice

• Mandatory compliance to the Code of Corporate Governance for Public Companies

• To bring in World Bank expert to understand the methodology on PMI

• Task force comprised of AMBD and the MoF to look into existing Companies Act and listing rules for Brunei Stock Exchange



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Indicator Reforms completed and in Progress What’s next to do for next year

TradingAcross Borders

• Exports and Imports made easier with a Brunei Darussalam National Single Window for permits via Royal Customs and Excise Department for major imports/exports with improvements in procedure and time

• Introduction of auto approval for majority non-controlled goods

• Revised Port Clearance Process for Methanol Exportation

• Improve system: Automating duty calculation

through BDNSW or implementing alternative way to

collect sales tax

• Improve the infrastructure and processes:

Implementation of plan to improve Ports efficiency,

including internal processes within Muara Port in the

short term; Investment and rollout of new quay

crane and forklift with the privatization of Muara

Port in the long term

• Transparency: Publishing performance of

forwarders to increase productivity

EnforcingContracts

• Establishment of a dedicated Commercial Court

• Establishment of Arbitration Centre as alternative dispute mechanism

• Implementation of Judiciary Case Management System with online E-filing and E-payment

To reduce time to resolve commercial dispute by implementing auto-discontinuance of cases that has made no progress for more than a year by end of 2016

To improve quality of judicial processes index by:• Increase accessibility for publication of judgement

and search of judgement within Judicial Case Management System

• Increasing awareness on Commercial Court

Resolving Insolvency

• Commencement of the Insolvency Order 2016 • To implement actions that will improve recovery rate by:

• Encouraging companies to exercise the new Insolvency Order

• Strengthening enforcement



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DATA MONITORED UNDER

EASE OF DOING BUSINESS

10

GETTING ELECTRCITY

11

64

42

2723

1927

46

2011

2 1 2 3

29

34

49

14

4723

36

28

24

24

5 3

23

1

2 1

1

1

1

1

2

2

2

1 3

4

0

10

20

30

40

50

60

70

80

90

100

Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16

Av

era

ge N

um

ber

of

Days

Step 3: Supply connection charges & completed application (2 days)Step 2: DCS.09 (8 days)Step 1: Approval Survey, SLD, PTD, Prepaid Meter (7 days)

Average Number of Days in Getting Electricity in Bandar Seri Begawan by Months

Source: Department of Electrical Services, Brunei (Week 39: 22 – 29 September 2016), Note: Total may not add up due to rounding error

17 days TPOR

On average, we see a positive trend in the reduction in average time taken for

getting Electricity in Bandar Seri Begawan each month from Sep 15 to Sep 16

12

TRADING ACROSS BORDERS

13

Time Taken to Import for Documentary Compliance (Approving Declarations)

(For declaration applications submitted in August 2016)

Source: RCED, Brunei (August 2016)

For Documentary Compliance, only 54% of Non-Controlled Goods and 41% of

Controlled Goods were given approval for import declarations within 2 hours target

% o

f a

pp

lica

tion

s

23%

31%

41%

40%

51%

6% 8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Non-Controlled GoodsDeclared

Controlled Goods Declared

More than 24hrs

More than 2hrs to 24 hrs

More than0.01 hrs to 2hrs

Auto-Approved

Exclude time

to obtain

import permit

15

22%(867)

51%(2,032)

27%(1,092)

Overall

Morethan100hrs

More than32 hrs to100 hrs

32 hrs andless

34%(672)

10% (195)

48%(936)

54%(1,096)

18%(358) 36%

(734)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FCL LCL

% o

f a

pp

lica

tio

ns

# applications

Time Taken To Import For Border Compliance (From Vessel Arrival To Clearance)

(Data for August 2016)

Source: RCED, Brunei (September 2016), Note: Total may not add up due to rounding error

On Border Compliance; only 34% of Full-Container Loads and 10% of Loose-Cargo

Loads are cleared from Muara Port within the 32 hours target

Target for March 2017 is to reduce time

to under 32 hours

1,966 2,025 3,991

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ENFORCING CONTRACTS

17

Overall Progress for Commercial Cases since February 2016 by Stages

(As of 6 October 2016)

Source: Supreme Court, Brunei (6 October 2016), Note: 1) Total may not add up due to rounding error; 2) Cases that are still in progress for less than the benchmark (days) are not included in the analysis; 3)

The number of days indicated by ‘Benchmark' is the number of days that the World Bank has recorded for Brunei’s Stage 1, Stage 2 and Stage 3; 4) Cases where judgment has been entered in Stage 1 will not

proceed to Stage 2. Only 26 out of 75 Cases (35%) that have completed Stage 1 is still active. Data on Stage 2 is still pending.

58% of Cases in Stage 1 were completed within World Bank’s benchmark of 50

days

58%(60)

42%(44)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Stage 1(Filing & Service)

Stage 2(Trial & Judgement)

Stage 3(Enforcement of

Judgement)

% C

ase

s

% Completed formore thanBenchmark & CasesIn Progress

% Completed withinBenchmark

Benchmark

(days)50 90 50

Pendin

g d

ata

on C

ases

No

Ca

se

s

104 Cases

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DEALING WITH

CONSTRUCTION PERMITS

19

11

14 14

11

9

4

1 1 1 1 1

0

5

10

15

Q1- 2015 Q2-2015 Q3-2015 Q4-2015 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16

Ave

rag

e D

ays

Ap

pro

ve

d

2724

21

16

119 8

16

9 8 9

57

0

10

20

30


Avera

ge D

ays

Appro

ved

21

17

1214

17

8

1 1 1 1 1 1 1

0

5

10

15

20

25


Avera

ge D

ays

Appro

ved

32 32

1922

2523

10 108

10 11

2 2

0

10

20

30

40


Avera

ge D

ays

Appro

ved

86

8 7 68

9 9

6

1110 9

8

0

5

10

15

20


Avera

ge D

ays

Appro

vedSTEP 1

Planning Permission

STEP 2Development

Approval

STEP 3Permit to

Commence

Development

STEP 5Water Connection

14days

14days

STEP 4Occupation Permit

7days

1day

1day

5 Steps’ Performance

Dealing with Construction Permits

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STARTING A BUSINESS

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Realising TPOR of 24 hours for Starting A Business (Reservation & Incorporation) as of 8 Oct ‘16

(for companies that have been incorporated since 1 Jan ‘16)

Source: Revenue Division, Ministry of Finance, Brunei (8 October 2016), Note: 1) Total may not add up due to rounding error; 2) The above dataset only contains companies that have been incorporated

since 1 January 2016; 3) Total number of companies incorporated since 1 January 2016 is 556 companies; 4) Time taken is total time taken for both reservation and incorporation of companies; 5) Data for

Jan to Jul 2016 includes weekend days while data for Aug to Oct 2016 excludes weekend days

Since September 2016, companies are able to register within 24 hours

8.3 7.412.9 14.2

10.8 11.016.2

10.46.5 5.0

14.213.5

16.0

24.5

15.1

27.9

25.3

15.8

13.9

6.4

22.520.9

28.9

38.7

26.0

38.841.4

26.2

20.3

11.4

0

5

10

15

20

25

30

35

40

45

Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16

Ave

rage

Tim

e T

ake

n (

in h

ou

rs)

Reservation Incorporation

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HALAL CERTIFICATION

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Average Time Taken of Obtaining Halal Certificate as of October 2016

(For New Applications (Lancar) since 1 January 2016)

Source: BKMH (Sept 2016) and MUIB Data (8 Oct 2016). Note: 1) Total may not add up due to rounding error; 2) The ‘month’ represents the month where the applicant submitted the application to BKMH; 3)

Total new applications since 1 January 2016 is 49; 4) TPOR for BKMH is 35 calendar days and TPOR for MUIB is 10 calendar days

Since July 2016,businesses are able to obtain Halal Certificate within 45 days

33.0

14.0

54.0 51.0

24.028.0

20.0

10.3

14.0

9.511.5

10.0

12.0

9.0

43.3

28.0

63.5 62.5

34.0

40.0

29.0

0

10

20

30

40

50

60

70

Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16

Ave

rage

Tim

e T

ake

n (

in d

ays)

BKMH MUIB

No application

recorded

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FOREIGN DIRECT INVESTMENT

IN BRUNEI

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In creating a sustainable & dynamic economy, Brunei Darussalam

proactively seeks FDI projects in these 5 priority clusters.

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Analyze the proposalsMap out the value

proposition,opportunities and

challenges of the projects

Support of ProposalsProjects are then presented

to FDI Committee. Strategic and

Commercial feasibilityof projects discussed

Delivery of ProposalsProjects will receive

guided assistance from account managers up till commercialization phase

Decision

Gate 1

WC

Decision

Gate 2

SC

Investment

Proposals

developed

and

submitted

Execution of

proposals

Projects are channeled and views of relevant stakeholders sought

Gold Coin

Simpor

Pharma

Amann

Shipping

Western Foods & Packaging

Brunei Fertilizers

IndustryHengyi CAE MPTC

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Sector Project Investment

Value (USD

Million)

Year of

Operation

Projected

Employment

Spin off Activities

Downstream oil

and gas

Brunei Methanol Company Sdn Bhd (Methanol

Production)

600 2010 250 1. Legal Services

2. Architects

3. Civil Engineers

4. Building Contractors

5. Accounting Services

6. Bank and Insurance

Services

7. Transportation and

Logistics

8. Logistics for Container &

LCL Services

9. Security Services

10. Maintenance of General

Machinery & Equipment

11. Cleaning & Pest Control

Services

12. Internet and Telephone

13. Audit, Tax Advisory and

Corporate Secretarial

Services

14. IT Services

15. Connectivity & Network

Services

Brunei Fertilizer Industries Sdn Bhd (Ammonia

and Urea Production)

1300 2019 200

Hengyi Industries Sdn Bhd (Integrated

Refinery and Aromatics Cracker)

4000 2019 780

Business Services Amann Shipping Group Sdn Bhd (Container

and Shipping Line)

26 2015 19

HLDS (B) Steel Sdn. Bhd. (Carbon Steel Pipe

Manufacturing)

50 2016 300

SC Tubular Sdn. Bhd. (Oil Country TubularGoods Supply and Services)

50 2016 150

Cameron (B) Sdn Bhd (Wellhead Repair Facility

and Wellhead Repair Training Centre)

19 2017 32

Halal (Food and

Pharmaceuticals)

Simpor Pharma Sdn. Bhd. (Pharmaceutical

Manufacturing)

26 2014 140

Western Foods and Packaging Sdn Bhd

(Margarine Manufacturing)

30 2017 100

Hiseaton Fisheries (B) Sdn Bhd (Integrated

Fisheries)

22.5 2016 125

Technology and

Creative

Industries

CAE Brunei Multipurpose Training Centre Sdn

Bhd [Multipurpose Training Centre)

102 2014 75

Others Gold Coin (B) Sdn. Bhd. [Animal Feedmill] 12 2013 60

MC Biotech Sdn Bhd [ Cultivation of

Microalgae]

15 2016 50

Projects In OperationProjects In Implementation

Growing number of non-oil and gas related investment projects

(B$150 Million) provides spin-off opportunities and employment for locals

…

30

Proposals received from investors is in alignment with our priority sectors

and highest number of proposals received from Korea and China

Source

Country

No of

projects in

the pipeline

No of projects in

operation and

implementation

China 3 3Korea 3

Indonesia 1Japan 1 3

India 1Malaysia 2 1

Poland 1

Singapore 1Taiwan 1Canada 2

Hong kong 1

Turkey 2United

States of America 1TOTAL 14 13

2 23

7

5

3

4

1

BusinessServices

DownstreamOil and Gas

Halal Technologyand creative

Industries

FDI ProjectsProjects in the Pipeline Projects in Operation and in Implementation

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SUCCESS STORY:

MC Biotech Sdn Bhd

Project: Cultivation of Microalgae

MC Biotech Sdn Bhd is a subsidiary of

Mitsubishi Corporation (Japan). In February

2013, Mitsubishi Corporation (MC) along with

their partners, Biogenic Company Limited,

Nippon Suisan Kaisha Limited (Nissui)

established a small scale pilot plant for the

production and extraction of Astaxanthin from

Microalgae (Haematococcus Pluvialis

species).

• This was a pre-commercialization Research

& Development (R&D) project which aimed

to determine the technical and commercial

viability of producing astaxanthin to suit the

local Brunei conditions. The project was

estimated to cost around US$2million and

was fully funded by Mitsubishi Corporation

Following the success of their pilot plant and

R&D, MC Biotech has now established their

commercial facility at the Bioinnovation

Corridor.

Creation of 25 Local

Employment this was largely taken from

Wasan Technical School

$20 M Investment Facility

at Bio- Innovation Corridor

$2 M Research and

Development Project at

Sungai Jambu

Laporan Doing Business 2017

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