Rise in economic growth must exceed increase in population
Dato Paduka Timothy Ong: BEDB chief.Picture: BT file
Monday, June 30, 2008
Ong: Strategies to raise productivity needed to increase per capita income
BRUNEI'S economic growth must exceed its population growth for it to increase its per capita income, Brunei Economic Development Board (BEDB) acting chairman Dato Paduka Timothy Ong said yesterday.
"When population growth outstrips economic growth, the country's per capita income will decrease," Dato Timothy told Radio Television Brunei last night, pressing the need for the sultanate to carry out economic strategies to accelerate its economic growth in order to sustain the quality of life Bruneians currently enjoy.
A decade ago, Brunei's average economic growth stood at 1.6 per cent, a stark contrast to the six per cent attained by other Asean nations. At the time the sultanate's average population growth stood at 2.7 per cent.
Brunei has recently been facing inflation rates that are becoming more challenging, despite the sultanate's low figures in comparison to other countries, Dato Timothy said during an interview to Radio Television Brunei's 'Dialogue' talkshow.
"Due to hike in prices of commodities worldwide, our country has been recently experiencing inflation rates that are becoming more challenging. We are fortunate that the government provides us with subsidies for some basic goods, such as rice, sugar and petrol," said Dato Timothy.
"But we have to remember, that such subsidies are not sustainable in the long term."
The BEDB acting chairman called for the creation of a more conducive business environment for local entrepreneurs and foreign investors, pointing out Brunei's ranking of 78 out of 178 countries in the World Bank's recent "Ease of Doing Business" report, which lags far behind Singapore, Malaysia, Oman or Kuwait.
"We must also diversify our economy by creating new industries," he said. "When new industries are created, the burden placed on the government in providing jobs will be lessened," said Dato Timothy, exemplifying the methanol plant currently undergoing construction in Sungai Liang.
To be completed late next year, Dato Timothy said the $600 million plant is expected to create 160 direct jobs for locals, mainly in the engineering and administrative fields. The industry will also create about 200 indirect jobs, according to the acting chairman.
In contrast to Singapore's civil service workforce of six per cent and Malaysia's 11 per cent, some 56 per cent of the local workforce in Brunei is employed by the government. As it reaches its maximum limit for providing job opportunities, the unemployment rate among Brunei's youths will increase if new job opportunities are not created, Dato Timothy warned. The Brunei Times
BRUNEI'S economic growth must exceed its population growth for it to increase its per capita income, Brunei Economic Development Board (BEDB) acting chairman Dato Paduka Timothy Ong said yesterday.
"When population growth outstrips economic growth, the country's per capita income will decrease," Dato Timothy told Radio Television Brunei last night, pressing the need for the sultanate to carry out economic strategies to accelerate its economic growth in order to sustain the quality of life Bruneians currently enjoy.
A decade ago, Brunei's average economic growth stood at 1.6 per cent, a stark contrast to the six per cent attained by other Asean nations. At the time the sultanate's average population growth stood at 2.7 per cent.
Brunei has recently been facing inflation rates that are becoming more challenging, despite the sultanate's low figures in comparison to other countries, Dato Timothy said during an interview to Radio Television Brunei's 'Dialogue' talkshow.
"Due to hike in prices of commodities worldwide, our country has been recently experiencing inflation rates that are becoming more challenging. We are fortunate that the government provides us with subsidies for some basic goods, such as rice, sugar and petrol," said Dato Timothy.
"But we have to remember, that such subsidies are not sustainable in the long term."
The BEDB acting chairman called for the creation of a more conducive business environment for local entrepreneurs and foreign investors, pointing out Brunei's ranking of 78 out of 178 countries in the World Bank's recent "Ease of Doing Business" report, which lags far behind Singapore, Malaysia, Oman or Kuwait.
"We must also diversify our economy by creating new industries," he said. "When new industries are created, the burden placed on the government in providing jobs will be lessened," said Dato Timothy, exemplifying the methanol plant currently undergoing construction in Sungai Liang.
To be completed late next year, Dato Timothy said the $600 million plant is expected to create 160 direct jobs for locals, mainly in the engineering and administrative fields. The industry will also create about 200 indirect jobs, according to the acting chairman.
In contrast to Singapore's civil service workforce of six per cent and Malaysia's 11 per cent, some 56 per cent of the local workforce in Brunei is employed by the government. As it reaches its maximum limit for providing job opportunities, the unemployment rate among Brunei's youths will increase if new job opportunities are not created, Dato Timothy warned. The Brunei Times
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