SMEs as the engine of growth

Driving the economic diversification process

Small and medium enterprises (SMEs) need to be the next engine of growth for Brunei to reduce its dependence on hydrocarbons, the Centre for Strategic and Policy Studies (CSPS) said.

CSPS executive director Dato Paduka Dr Hj Ismail Hj Duraman, in an interview with The Brunei Times said CSPS' Strategy and Policy Journal Volume I on Economic Diversification, touches on how Brunei can proceed with its economic diversification drive.

"We see how other countries do well (in this regard) and how we can follow suit. We look into countries in Asean especially. The government's contribution to SMEs, will in turn see SMEs contribute to the government in the long run," said Dato Dr Hj Ismail especially with regards to employment creation.

"In many countries, the private sector is the main contributor and big employers in the economy. But in Brunei, it's the opposite. We need to go mainstream. The governments are part of those successful economies, and that is how we should slowly turn around," he explained.

"We need to make sure all the money from oil is converted to a productive source, be it human resources or other form of activities that can contribute to the national gross domestic product," he said.

He believes the government and relevant stakeholders need to expedite the economic diversification process and the CSPS journal along with the centre itself, aims to provide assistance.

"These are all independent studies, and some are written by international authors. Whatever recommended by them should be looked into as there are no bias. Even our editors are international reviewers," he said.

The Strategy and Policy Journal's from CSPS will address four issues: economic diversification, followed by social security, and in the near future, unemployment and education.

"The journal on social security could be out early next year. What's special about the journals, is we ask the writer to provide a meaningful commentary," said Dato Dr Hj Ismail. Dato Dr Hj Ismail said the journal comes with a follow-up study that addresses issues on land, energy, manpower and others.

"These are our own studies there are a lot of information which stakeholders can consider to implement," he said.

The economic diversification issue is "very important", said the executive director. "We are very proud that His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam launched the journal, which adds value to it".

The journals were distributed free to relevant authorities in hopes that it will be widely read by members in the government sector.

The journal contains six articles with the following titles and authors; 'Economic Diversification in Brunei Darussalam' by Manu Bhaskaran; 'An Economist's Perspective on Economic Diversification in Brunei Darussalam' by Roger Neil Lawrey, 'Challenges in Achieving Wawasan Brunei 2035 Goals: Economic Diversification in Perspective' by Abdul Amin Hj Hashim; 'Economic Diversification: Creating a Conducive Environment for Small Medium Enterprises to Flourish in Brunei Darussalam' by Dato Dr Hj Ismail Hj Duraman and Nawin Tharumarajah; 'Trade, Economic Policy and Diversification: The Malaysian Experience' by Shankaran Nambiar and 'Economic Diversification and Environment Security: Key Challenges for Asian Governments' by Euston Quah Teong Ewe.

The centre expects to publish its journal with various themes periodically and are available for sale at $20 or five set of reports for $50.

The Brunei Times