Overcome red tape to be more productive
Thursday, July 26, 2007
b>UBD lecturer says private sector can hasten economic growth with more effective bureaucracy
SPEEDY approvals of work processes from the relevant authorities are needed for the private sector to operate in a conducive business environment that generates greater revenue for Brunei's economy.
A Universiti Brunei Darussalam lecturer has said that the private sector needs to overcome the barrier of slow processing within the government if it is to play a more significant role in accelerating Brunei's economic growth. The progress of small and medium enterprises (SMEs) have been hampered by the issue of bureaucracy within the government, said the lecturer, who requested not to be named.
He said that the private sector needs a helping hand from the government to make it more convenient for the companies to conduct businesses in the country, subsequently contributing to the nation's economic growth.
Improving the private sector is an important step in trying to diversify the economy outside the oil and gas industry, he added.
He cited bureaucracy, human capital, source of funding and cost structure as the main challenges facing the private sector.
"I feel that private companies have the potential to break into the international market," he said.
However, he continued, stiff competition from other developing countries like China and India can dampen the progress of Brunei's industries, which are still in the infancy stage.
The economics lecturer added that the tourism industry will help in further developing the country's economy as it is the only non-depletable industry with potential to contribute to economic growth.
Brunei should not compromise its culture and standards to attract more tourists, however. While many have argued for the legalisation of alcohol, he pointed to other features in the sultanate that can attract more tourists, such as proper living environment and infrastructure and cultural entertainment.He also said that more attractions and activities should be developed to cater to the tourists, noting that the town centre becomes "dead" by 7 or 8pm, due to lack of night entertainment.
Lisa Dato Ibrahim, president of Young Entrepreneurs Association, said that a favourable business environment would mean easy approvals for business licenses.
Small and medium enterprises need access to financing from banks and proper IT and financial training, she said.
She said that once private companies are strong enough to compete in the national level, "the next logical step is to go abroad" for a business venture in the regional or international level.
In addition, Brunei's services sector would have the highest potential in developing the economy, because there are highly educated and skilled human resources in this area.
She said that for Brunei to fully tap the potential of its tourism industry, this would include restaurants, hotels and travel agencies to play a role in developing this industry.
"This would only succeed if more tourists come into the country," she added.
Data from the Economic Planning and Development Department stated that the private sector contributed 28 per cent of Brunei's total economic growth between 2000 to 2005.
The Brunei Times
SPEEDY approvals of work processes from the relevant authorities are needed for the private sector to operate in a conducive business environment that generates greater revenue for Brunei's economy.
A Universiti Brunei Darussalam lecturer has said that the private sector needs to overcome the barrier of slow processing within the government if it is to play a more significant role in accelerating Brunei's economic growth. The progress of small and medium enterprises (SMEs) have been hampered by the issue of bureaucracy within the government, said the lecturer, who requested not to be named.
He said that the private sector needs a helping hand from the government to make it more convenient for the companies to conduct businesses in the country, subsequently contributing to the nation's economic growth.
Improving the private sector is an important step in trying to diversify the economy outside the oil and gas industry, he added.
He cited bureaucracy, human capital, source of funding and cost structure as the main challenges facing the private sector.
"I feel that private companies have the potential to break into the international market," he said.
However, he continued, stiff competition from other developing countries like China and India can dampen the progress of Brunei's industries, which are still in the infancy stage.
The economics lecturer added that the tourism industry will help in further developing the country's economy as it is the only non-depletable industry with potential to contribute to economic growth.
Brunei should not compromise its culture and standards to attract more tourists, however. While many have argued for the legalisation of alcohol, he pointed to other features in the sultanate that can attract more tourists, such as proper living environment and infrastructure and cultural entertainment.He also said that more attractions and activities should be developed to cater to the tourists, noting that the town centre becomes "dead" by 7 or 8pm, due to lack of night entertainment.
Lisa Dato Ibrahim, president of Young Entrepreneurs Association, said that a favourable business environment would mean easy approvals for business licenses.
Small and medium enterprises need access to financing from banks and proper IT and financial training, she said.
She said that once private companies are strong enough to compete in the national level, "the next logical step is to go abroad" for a business venture in the regional or international level.
In addition, Brunei's services sector would have the highest potential in developing the economy, because there are highly educated and skilled human resources in this area.
She said that for Brunei to fully tap the potential of its tourism industry, this would include restaurants, hotels and travel agencies to play a role in developing this industry.
"This would only succeed if more tourists come into the country," she added.
Data from the Economic Planning and Development Department stated that the private sector contributed 28 per cent of Brunei's total economic growth between 2000 to 2005.
The Brunei Times
Business Besides Oil
