| Danial Norjidi |
THE government is continually implementing significant reforms that aim to make the business environment conducive to support local enterprises and transform Brunei into a country of choice for foreign investors, in order to boost the country’s economic production and growth.
In doing so, Brunei Darussalam uses the World Bank’s Doing Business Report ranking as a guide to develop clear strategies and action plans across the government that will enable the country to reach the goal of creating a truly pro-business environment by using benchmarking with the rest of the world.
This was highlighted recently in a press release prepared by the Ease of Doing Business Unit, under the Energy and Industry Department at the Prime Minister’s Office.
In this year’s Doing Business Report, Brunei ranked 72nd out of 190 countries, jumping an impressive 25 places from the previous year and was named as number 1 in the ‘most improved economy in the world’.
In the press release, it is stated, “The government recognises that to achieve a truly conducive business environment, engagement and collaboration with stakeholders through Champion Group is the recipe for success and sustainability over the longer term. This will ensure that reforms and initiatives will respond to the needs and requirements of the businesses and public as the clients of government services.”
To sustain this commitment, the government’s pro-business reforms are driven and monitored regularly through a set of governance via the Ease of Doing Business (EoDB) Steering Committee, consisting of Champion Groups from various Ministries and agencies with Pehin Datu Singamanteri Colonel (Rtd) Dato Seri Setia (Dr) Awang Haji Mohammad Yasmin bin Haji Umar, the Minister of Energy and Industry at the Prime Minister’s Office as the Chairman.
The EoDB Steering Committee meets regularly every month in a set routine to: ensure the reforms towards improving the country’s business climate are effectively implemented in line with international best practices; ensure the reforms implemented by relevant ministries have positive impact by doing monitoring on-the-ground; and drive reforms towards improving Brunei Darussalam’s ranking in the World Bank’s Doing Business indicators as well as addressing other issues that may constrain businesses.
The focus of the Ease of Doing Business is on the end-to-end business life cycle from ‘starting up a business’ to ‘when things go wrong’. To further improve the business environment in Brunei and create a lasting impact that will be felt by businesses, continuous progress in the implementation of reforms and initiatives were agreed upon by the Champion Groups at the 11th EoDB Steering Committee Meeting.
The main theme for this plan will be mainly on generating greater collaboration with the private sector to drive delivery. Amongst the plans that the government will do for 2017 are as follows:
Starting a Business
Champion Group: Ministry of Finance (Registry of Companies and Business Names) and Ministry of Home Affairs.
This indicator looks at the process, time taken and cost to start a business. Among the reforms completed this past year was the elimination of the business licence and automatic registration to TAP (Employees Trust Fund) system. The Champion Group is now working towards merging the procedures for Name Reservation and Incorporation of Company into one step, thus reducing time and number of steps to start a business.
Dealing With Construction Permits
Champion Group: Ministry of Development (Authority for Building Control and Construction Industry).
The objective of the reforms for this indicator is to make obtaining a construction permit easier, faster and cheaper. The past year saw the implementation of Building Control Order that ensure building safety are made priority as well as streamlining process of obtaining occupational permit from the reduction in time from 103 to 75 days. Moving forward, the Champion Group for this indicator is reviewing their processes in order to reduce the number of procedures based on Building Control Order by March 2017 as well as creating an Industrial Construction Guideline specifically to create awareness on both industrial and warehouse scenario procedures by January 2017.
Getting Electricity
Champion Group: Prime Minister’s Office (Department of Electrical Services, Energy and Industry Department at the Prime Minister’s Office).
This indicator looks at the efficiency in obtaining electricity connection and the reliability of electricity supply. The past year saw the implementation of the 1st phase of the SCADA system for the Brunei-Muara District which monitors power supply, the length and frequencies of power outages, with efforts to complete the 1st phase by 2017 and undertake the 2nd phase by 2018. To ensure transparency and consistency of costs for electrical testing and external works, a ceiling price for works related to getting electricity and the permit to dig process will be introduced by early 2017.
Registering Property
Champion Group: Ministry of Development (Land Department).
The objective of the reforms for this indicator is the reduction of time, procedures and cost to register and purchase land. Past reforms include reduction of procedures and the introduction of an online system for land applications known as LARIS (Land Application and Registration Information System).
Getting Credit
Champion Group: Autoriti Monetari Brunei Darussalam (AMBD).
The reforms for this indicator aim at strengthening the credit reporting systems and to enhance effectiveness of collateral and bankruptcy laws in facilitating lending. This year saw the development of the Secured Transaction Order (2016), allowing movable property to become collaterals which will help ease the application of loans. The Secured Transactions Order 2016 as well as the Secured Transactions Regulation 2016 will come into force will by the end of December 2016 with the launching of the Collateral Registry System.
Protecting Minority Investors
Champion Group: Autoriti Monetari Brunei Darussalam (AMBD) and Ministry of Finance (Registry of Companies and Business Names).
This indicator looks at initiatives that protect the interest of minority shareholders in large private companies. The Champion Groups for this indicator are working towards amending the Companies Act that will further gives protection for Minority Shareholder by benchmarking with the best in the world and those that shared similar jurisdiction.
Paying Taxes
Champion Group: Ministry of Finance (Revenue Division).
This indicator looks at the processes relating to tax audits, tax appeals and tax refunds. The past year saw amendment to the Income Tax Act which reduces the overall corporate tax rate from 20 to 18.5 per cent, a reduced time taken for tax refund from six months to 30 days as well as the increased utilisation of the e-Amanah online system for employee tax contributions. On e-Amanah; more than 88 per cent of all employers are now paying online via eAmanah which ease payment without going to the counter. The Ministry of Finance are currently streamlining processes to reduce time to complete corporate income tax audit from 22 weeks to 14 weeks from January 2017 onwards. The Revenue Division in doing so will conduct Field Audit and Public Ruling on tax by end of this year.
Trading Across Borders
Champion Group: Ministry of Finance (Royal Customs and Excise Department), Ministry of Communications, Ministry of Primary Resources and Tourism and Ministry of Health.
The past year saw some enhancement done to the Brunei Darussalam National Single Window (BDNSW), an online portal to apply permits and declaration submissions. Enhancements include on-boarding of more government agencies into BDNSW for permit application processes, implementing auto-approval and introduction of online payment of duties. In addition, Ports Department have reduced ports charges for laden container by 36 per cent and the Ministry of Health have introduced an online Food Import Registration System. With regards to improving Ports efficiency, investment and procurement of new port equipment will be rolled out with the privatisation of Muara Port in 2017 with a Joint Venture Company under Special Purpose Vehicle that is expected to significantly change the Ports Operations to make it more efficient.
To stimulate growth of local enterprises, the government will also establish the National Food Authority by 2017 that will allow exports from Brunei to international market. The Postal Office has also laid out its plan to improve its service delivery to further facilitate e-Commerce with more door-to-door delivery.
Enforcing Contracts
Champion Group: Prime Minister’s Office (Law and Welfare).
This indicator focus at reducing the time and cost for resolving a commercial dispute. The past year saw the establishment of a dedicated Commercial Court and the Brunei Darussalam Arbitration Centre (BDAC) as an alternative dispute mechanism. Other alternatives to court have also been implemented in order to consolidate the processing of summons through relevant enforcement agencies. In addition, the Judiciary Case Management System (JCMS) with online e-filing and e-payment was also introduced for greater efficiency in management of courts documents electronically. 2017 will see the introduction of new laws that will reduce the time taken for dispose Commercial Cases especially for non-active cases for more than 12 months.
Resolving Insolvency
Champion Group: Prime Minister’s Office (Law and Welfare) and Ministry of Finance.
The reforms of this indicator aim at addressing the procedural and administrative bottlenecks in the insolvency process. Brunei recorded 2.5 years to close insolvency cases. This year’s efforts was focused on the commencement of the Insolvency Order 2016 that helps companies to have a better chance to survive bankruptcy and better protection for all creditors and debtors.
Labour (Non-World Bank indicator)
Champion Group: Ministry of Home Affairs (Labour Department).
This indicator looks at the efficiency of obtaining labour approvals particularly in hiring foreign talent and the costs. This year saw the introduction of a new process for obtaining foreign workers in October 2016. The JobCentre Brunei will also do proactive matching for job vacancies and local job seekers to fill in the vacancy in the private sector. In the event that there is no local available to fill a particular vacancy, the applicants can proceed to Labour where approval for work permit will be given within nine working days.
The government will also introduce pro-business reforms in 2017 where business owners will be given a specific Visa for business purposes that are deemed to benefit Brunei Darussalam including a new system that will replace Labour Control System that are promised to be more efficient and integrated with other government agencies. The government will ensure it has a productive workforce, while also looking to consider introducing reasonable wage for selected sectors with certain local concentration.
Halal (Non-World Bank indicator)
Champion Group: Ministry of Religious Affairs.
This indicator looks at the efficiency in processing halal certification of food and non-food items. The past year, the Ministry of Religious Affairs has streamlined its processes to obtain Halal Certification and Halal Permit to be within 45 days. Amendments to the Halal Label and Certificate Act is also underway and expected to be gazette by December 2016 that will cover Cosmetics and Non-Oral products such as logistics and cosmetics. This is expected to have an impact on attraction of Foreign Direct Investment in the Halal sector. To further assist MSMEs in the country, the government is currently studying the price mechanism for Halal Permit and it is expected to conclude by 2017.
Selling to Government
Champion Group: Ministry of Finance.
This indicator looks at the process of public procurement from bid, payment and incentives to SMEs as well as complaint mechanisms. Ministry of Finance is developing action plans to improve the process vis-à-vis with best benchmark in the region and globally. 2017 will see public procurement portal to be launched where all public tenders will be published on single online platform. Payment process from government projects will also be further improved with internal processes to ensure vendors are paid on time and the government is also exploring Local Business Development Framework that has been practiced in the oil and gas industry to promote local content in public procurement.
The Business Help Desk is contactable through the hotline +6738363442 or by visiting www.business.gov.bn for more information.
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