Attract FDI through land optimisation

SINCE 2003, Brunei has attracted a total of 30 different foreign direct investments (FDI) taken up by 26 companies, which has produced an average of 144 jobs per project.

Australian consultants, SGS Economics & Planning, commissioned by the Centre for Strategic and Policy Studies (CSPS) for a land optimisation study, said that there is still more potential for Brunei to grow its share of FDI into the region through land optimisation strategies.

SGS in a previous statement said that Brunei can attract and facilitate FDI through provision and promotion of "appropriately zoned and located land and infrastructure for new industry".

Roger Gibbins, a director at SGS, told The Brunei Times that they see great potential for Brunei and the key to achieving a diversified economy in the future, is to grow that share (of FDI's).

"The concern is that it may be difficult to find (enough) amount of land for Brunei. Also, one thing we are looking at is that any recommendations that are going to be successfully implemented, needs an appropriate governance framework in place," said Gibbins.

The director added: "When we talk about FDI, investors look at a whole range of things, but one important thing to have is certain availability of suitable land."

Gibbins explained that it's not just the size and infrastructure that goes with it, but potential investors would be concerned with the security of tenure. "That is the planning system to protect the site for certain years. Investors need that kind of certainty," he said.

Sasha Lennon, also a director of SGS, said in regards to an appropriate framework that a possible recommendation of theirs is some sort of FDI facilitation agency.

"That can be an arm of an existing agency or a totally new one. We're not making a recommendation one way or the other, as we wouldn't want to suggest a duplication of a current existing agency or department. (Dato) Dr Ismail is keen for us to speak with the BEDB (Brunei Economic Development Board) which we have spoken to on numerous occasions," he said, adding that the Ministry of Finance is also a key player to talk about the importance of funding and project development to attract FDIs.

SGS said that the underlying theme of this study is how land use planning can facilitate investment with the focus on FDI into Brunei.

For Brunei, the leading sector of all the FDIs is in financial services, which comprises 30 per cent of all projects, whilst the leading business activity is business services at 37 per cent of total projects.

Ultimately, SGS' Land Optimisation Strategy for Industrial and Commercial Growth in Brunei, will contribute to a more balanced, sustainable and prosperous future for the people of Brunei.

The study comprises three clusters, the first being the provision of a comprehensive study of the existing landscape of the country with special focus upon industrial use and commercial growth.

The second cluster is to identify potential land zones and preferred types of industrial use and commercial activities, whilst the third cluster is to provide a comprehensive strategy for planners to fully convert the identified land zones into the preferred industrial and commercial activity. SGS' study will take 12 months from March this year.The Brunei Times