| Azlan Othman |
THE government’s economic diversification initiatives and cost-saving measures have started bearing fruit.
The trend is encouraging, although major results could only be felt in the medium to long term, the Minister at the Prime Minister’s Office and Minister of Finance II said.
In his concluding speech on the final day of the 12th Legislative Council session yesterday, YB Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman bin Haji Ibrahim, said the diversification initiatives are preliminary steps to make the nation a competitive and attractive business destination.
The government will continue to introduce changes that could assist in enhancing our competitiveness and uphold the peace and stability of the nation, he added.
“Fiscal sustainability and consolidation have been practised continuously under the wise leadership of His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam, and this has enabled the nation to continue its development programmes, albeit in moderation and in low budget.
“Such prudent steps need to be strengthened amid the current economic challenges faced by the global economy and the nation. The expenditure pattern and priorities must be balanced to allow programmes to diversify economic resources and widen the basis of the country’s resources, not jeopardising the welfare services to the people,” the minister said.
Financial year 2016-2017 is a very challenging period in terms of management of our country’s financial resources. Fiscal expenditure continues to experience deficit and to tackle it effectively, the government continues to practise a sustainabile fiscal policy by planning and implementing fiscal measures in the best possible way to ensure that welfare and economic prosperity of the nation continue to be maintained, not only for the present but also the future generations, he noted.
“In this context, we continue to monitor the global oil price which has drastically dropped since mid 2014 and is still low and unpredictably volatile.”
As a cautionary measure, the government will take further steps in ensuring that its expenditure is in accordance with its ability to spend and sustainable in the long-term for the people, especially the low income earners, the minister assured.
The focus is to widen the investment and business sector so that private sector becomes the engine of economic growth, which in turn will enhance capital formation and generate more quality jobs for locals, which at present is shouldered by government expenditure. Hence, efforts will continue to build on the economic fundamentals of the nation that are sustainable and consolidated and do not rely heavily on oil and gas sector and government expenditure, he explained.
To achieve this aspiration, the government will continue to provide a more conducive business environment through PENGGERAK ( a unit at the Prime Minister’s Office that focuses on achieving national goals through effective programme delivery) and the Vision 2035 led by His Royal Highness Prince Haji Al-Muhtadee Billah ibni His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah, the Crown Prince and Senior Minister at the Prime Minister’s Office. This organisation (PENGGERAK) is working closely with other government agencies to facilitate economic activities through improving the ease of doing business so that the country becomes pro-growth, pro-business and pro-investment, the minister said.
“Various reforms to strengthen the private sector, especially micro Small Medium Enterprises (SMEs), have been made. Efforts to attract foreign direct investment (FDI) into the country, which is a core strategy of the government to build a strong, competitive and sustainable economy, will continue.
“FDI is expected to boost contribution to the gross domestic product and creates spin offs that could support economic diversification and create more quality job opportunities, enhance exchange of technology and skills, open up businesses to micro SMEs, boost local demand, increase the country’s export, introduce innovations that could be commercialised and so on. This also fills gap arising due to controls on government expenditure through enhancement of private sector capital investment.”
The recipe of success needs the people to unite, work hard and stand firm to support the government’s policy under the wise leadership of His Majesty in any situation if we want to see these economic reformations to be successful. Contribution from the people, however small it is, is highly valuable for the nation to face today’s challenges, the minister said.
“I am proud that many youths nowadays are able to answer these challenges and engage in business without relying on government support. These brave youths can become a catalyst for others to enroll in business and take advantage of the government initiatives by grabbing opportunities to enhance their economic activities to boost employment and explore innovative technology to penetrate overseas markets in order to strengthen the nation’s economic fundamentals and widen the revenue base,” he added.
The post Diversification efforts start paying rewards appeared first on Borneo Bulletin Online.