| Achong Tanjong |
BRUNEI Darussalam became a graduated developing member country of the Asian Development Bank (ADB) yesterday with the signing of a landmark Memorandum of Understanding (MoU) between the Sultanate and the Manila-based lender.
“The MoU paves the way for Brunei’s classification as a graduated developing member country. It identifies new areas of ADB support for the government’s strategic development plan, Vision 2035,” said Takehiko Nakao, President of the ADB, who is currently on a visit to Brunei.
Under the accord, ADB will assist Brunei in knowledge creation and capacity development to enhance education quality, empower institutions, boost private sector development, diversify exports, improve the investment climate, strengthen environmental protection, and support regional economic cooperation, he added.
Signing the MoU at the Ministry of Finance building on behalf of Brunei Darussalam was Haji Nazmi bin Haji Mohamad, Permanent Secretary (Management and International) at the Ministry of Finance while ADB was represented by James Nugent, Director General of the Southeast Asia Department, ADB.
The ceremony was witnessed by Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman bin Haji Ibrahim, Minister at the Prime Minister’s Office and Minister of Finance II and the President of ADB.
“I commend the Government of Brunei Darussalam for its openness to economic cooperation in Southeast Asia and beyond and its promotion of private sector development, including financial services and small and medium-sized enterprises,” said Nakao.
During his visit to the Sultanate, the President of ADB paid a courtesy call to 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 to discuss ADB’s support for Brunei Government’s efforts to diversify the economy and implement key structural reforms.
During the signing ceremony. – PHOTOS: KHAIRUL HASSAN
Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman bin Haji Ibrahim, Minister at the Prime Minister’s Office and Minister of Finance II (2nd Left); Takehiko Nakao, President of the Asian Development Bank (ADB); Haji Nazmi bin Haji Mohamad, Permanent Secretary (Management and International) at the Ministry of Finance; and James Nugent, Director General of the Southeast Asia Department, ADB in a group photo
He also met with Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman, Governor of ADB. He thanked Brunei for contributing actively as a member of ADB, including as a donor to the ADB-administered Asean Infrastructure Fund and the Asian Development Fund, ADB’s concessional assistance window for low-income countries.
During his visit Nakao also delivered a lecture on Asia’s economic prospects at the Ministry of Finance for its staff and invited officials from selected ministries and agencies.
Following three years of recession, ADB expects Brunei’s gross domestic product to increase by one per cent this year and accelerate to 2.5 per cent in 2017 should global oil and gas demand and prices start to recover. Private consumption grew solidly in 2015 at 5.2 per cent and is expected to expand further as economic growth picks up.
In its flagship Asian Development Outlook 2016 report, the bank said declining oil and gas prices have impacted government revenue with limited spending on public services and smaller capital projects. However, Brunei has prioritised spending on initiatives that will boost the economy through foreign investment in export-oriented ventures, it added.
Brunei Darussalam became the 65th member of the ADB in April 2006. In March 2013, the Board of Directors of the ADB approved the classification of Brunei Darussalam as a graduated developing member country, effective upon the signing of a partnership memorandum of understanding, which was held yesterday.
ADB provided Brunei Darussalam its first reimbursable technical assistance in 2008. This assistance supported the development of the capital market and a modernised payment and settlement system, which was satisfactorily completed in 2009.
As a member of the Asean Economic Community and the Brunei Darussalam-Indonesia-Malaysia-Philippines-East Asean Growth Area (BIMP-EAGA) sub-regional cooperation programme, Brunei is committed to increasing regional trade and cooperation.
Since its formation in 1994, BIMP-EAGA has helped its members to facilitate the free movement of people, goods and services and make better use of common infrastructure and natural resources. ADB provides advisory support to the BIMP-EAGA.
Brunei Darussalam has an active role in the BIMP-EAGA and has made a significant contribution to trade facilitation in the sub-region. Brunei was chair of Asean in 2013 and contributed $10 million to the Asean Infrastructure Fund.
ADB, based in Manila, is dedicated to reducing poverty in Asia and Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members – 48 from the region. In 2015, ADB’s assistance totalled $27.2 billion, including co-financing of $10.7 billion.
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