Innovative, collaborative gov't key to economic diversification

THE Brunei government has a very important role in facilitating the country's transition from its present state as a production-based economy to the preferred knowledge-based economy, a foreign consultant said yesterday.

Coining the three-step transition as a "revolution", Director of SGS Economics and Planning Sasha Lennon stressed the need for an innovative and collaborative government to move the country away from a production-based economy, to one that was services based, and eventually a knowledge economy.

Lennon was speaking in a presentation following a contract signing ceremony between Brunei's Centre for Strategic and Policy Studies (CSPS) and SGS, an Australian consultancy firm hired to plan the Sultanate's future commercial and industrial landscape.

The director said optimal land use was a "critical component" of that transition.

"We should not just think of businesses when we think about innovation and commercialisation. We should think of government looking at new ways of doing things.

"I think we are at a point now in Brunei where that's starting to get realised," Lennon said.

"There's a collective understanding that we need to start thinking of new ways of doing things if we are going to build on all the good work that is being undertaken and be successful in diversifying the economy in Brunei," he added.

He explained that a knowledge economy was one which was directly based on the production, distribution and use of knowledge and information. He said that "knowledge" was not a separate sector, but one that was "embedded" in all industries.

In realising a knowledge economy, Lennon advised the government to focus on the key attributes of a knowledgeable and skilled workforce, "smart"' infrastructure and technology, strong industry base, and appropriately zoned, located, serviced and administered land, which is among the focus of the study SGS has been tasked to carry out.

"All these things combined can help facilitate the development of an export-focused economy," he said. The SGS director also pointed out that other industries should not be left out in the development towards a knowledge-based economy.

"We may be focusing on some particular knowledge-based industries that we want to encourage but we should be disadvantaging other industries," he said.

Lennon stressed the need to "close the gaps in the innovation framework" by providing infrastructure and support to facilitate investment and innovations. This is again where land optimisation is critical, he added.

"Government must demonstrate leadership in this regard by addressing issues around what I call the three C's: consensus, collaboration and coordination.

"It must also delegate authority effectively and ensure accountability, because without accountability, nothing will be done," he said, adding that the government must also engage with industry because industry is the real driver of economic development.

Lennon predicted that Brunei's economy will still have a "very large and prosperous oil and gas sector" but other sectors will contribute significantly to Brunei's economic growth and development.

This may include a "vibrant, export-oriented education sector, a finance sector, an aviation sector and creative industries". The SGS director said all this "required, and will in fact fail without, an innovative and collaborative government".The Brunei Times