Saturday November 22, 2008

NDPs spur growth in Brunei's economy


How we were then: The photographs were taken in 1955. Bandar Seri Begawan (Top) and Kuala Belait (Bottom) were in the reconstruction stages following the First National Development Plan after the end of World War II. The First National Development Plan was orchestrated by Sultan Omar Ali Saifudien III, also known as the Architect of modern Brunei. Picture: Rozan Yunos

Sunday, June 15, 2008

ON 4th June 1950, Sultan Ahmad Tajuddin passed away in Singapore due to a haemorrhage. His brother, Pengiran Bendahara Omar Ali ascended to the throne two days later.

The ascension of Sultan Omar Ali Saifuddien III (SOAS III) as Brunei's 28th Sultan can be considered as one of the most significant milestones in Brunei's history. It marked the beginning of the modern Brunei as we know it today. It was His Majesty's contribution that led to the political and infrastructure development of modern Brunei.

Under the guidance of His Majesty, Brunei's status as a British Protectorate was changed to self rule with the British Resident replaced by a British High Commissioner. His Majesty reinstated the Sultan's internal sovereignty making him the supreme executive head of the Brunei's government.

He introduced the 1959 Constitution ending the British Resident's authority in Brunei. It is now Bruneians that rule the country even though its external affairs and defence was conducted by the British.

Permission was granted to build mosques and suraus throughout the country as part of his efforts to expand and strengthen Islam in Brunei. The most significant landmark was the Sultan Omar Ali Saifuddien III Mosque which was opened in 1958.

However, one of his most important contributions was the introduction of the five-year National Development Plans (NDPs). Until World War II, Brunei has made steady economic progress. This would have continued had it not been for the war and the dastardly deeds of both Japan and the Allied Forces.

The Japanese bombed and razed Brunei Town and Seria to the ground. Then the British and the Allied Forces bombed the Japanese installations as well as destroyed the remains of Brunei Town.

When Australian troops moved in, in 1945, the only building left standing in Brunei Town was a Chinese temple. Everything else was ruined. Seria Town was sent ablaze as the oil wells were engulfed with fire.

After the war, the first duty of the government was to feed and restore the bare necessities of the people. Rehabilitation of Brunei Town began. In the period after the war, nearly 200 shop houses were rebuilt as well as new government offices. By early 1953, Brunei showed few signs of the war. However, the government felt that a long term development structure was needed. Thus a five-year national development plan was conceived.

The First NDP was launched in 1953 and covered the period from 1953 to 1958. The main objectives of the plan were to bring Brunei out of its lowly status in Southeast Asia; to modernise Brunei within the Malay Islamic Monarchy framework; to improve the living standards of Bruneians, and to develop non-oil and gas industries.

A British expatriate by the name of ER Bevington was appointed as the Commissioner of Development. He was then working in the Colonial Office in Fiji. As Commissioner, it was his responsibility to carry out the new plan worth $100 million with the funding voted by the State Legislative Council.

What was that $100 million suppose to do?

The First NDP gave special emphasis on the expansion of education and medical services; the implementation of resettlement schemes; the provision of water supplies; the improvement of agricultural methods and fisheries; the extension of roads and communications; the construction of bridges, buildings and electrical stations; and the installation of broadcasting and telephone systems.

More than 59.78 per cent of the budget goes to infrastructure development with Health, Education and Welfare allocated 21.77 per cent of the funding.

The plan also identified that Brunei should start diversifying its economy and not be solely dependent on the oil industry. The plan identified several schemes including better use of waste gas; improving agricultural methods; the replanting of rubber and more focus on the fishing industry.

Unfortunately, most of the plans to diversify the economy did not work. The waste gas was supposed to help start an aluminium industry and the manufacture of cement and nitrogen fertiliser, but the projects did not materialise. Rubber prices fell drastically after the Korean War and the plan to replant rubber immediately failed.

Still, most importantly, the plan also focused on improving the social welfare of Bruneians. The living standards of Bruneians improved tremendously. A pension scheme was granted under the plan to persons over 60 and the disabled. The pension scheme is still in place and enjoyed by many Bruneians despite not having to contribute anything to the scheme. The scheme which originally pays $20 per month in 1957 now pays $250 a month to any Bruneians who have reached the age of 60 and to those who are disabled.

Many of Brunei's important buildings and infrastructure were conceived and built during the First NDP. This included the trunk road from Brunei to Tutong to Belait with all its bridges. The new wharves at Brunei Town and Kuala Belait were built. Muara was also studied as a future potential port. The first airport at Old Airport was conceived. Automatic telephone exchanges were built in Brunei and Kuala Belait. More than 30 new schools and a new hospital at Kuala Belait were also built during these times.

The Second NDP for 1962 - 1966 succeeded the first one with the aims to develop the economy and improve social conditions. The first two NDPs did not immediately follow each other. It was not until the Third NDP that the five-year plans followed immediately after the last one ended.

The Third NDP began in 1975 and ended in 1979 and this was followed by the Fourth (1980 - 1984), the Fifth (1986 - 1990); the Sixth (1991 - 1995); the Seventh (1996 - 2000) and the Eighth (2001 - 2005). Last year, Sultan Haji Hassanal Bolkiah, the 29th sultan, had set up the Long-term National Development Planning Board. Its role is to provide a framework and development plan for a period of 30 years beginning with the 2006 financial year. At the same time, the Ninth NDP for 2007-2011 was presented at a meeting of the Long-term National Development Planning Board. This time, the Government allocated a total of $7.3 billion for the Plan and placed emphasis on the diversification of the national economy especially in the non-oil sector.

The Government's NDPs are now widely anticipated by economic observers and investors. The writer runs a website on Brunei at bruneiresources.com.

The Brunei Times