Brunai Darussalam

Economic Profile of Brunei Darussalam

Brunei Darussalam is a small and wealthy nation located in the northwestern part of Borneo Island. Despite its small population of approximately 440,000, it is a high-income country boasting the highest per capita gross domestic product (GDP) in Southeast Asia, thanks to abundant reserves of oil and gas. With an economic size of approximately $20 billion, the oil and gas industry accounts for approximately 60% of GDP, with liquefied natural gas (LNG) serving as a major export product. Economic diversification is recognized as a key challenge due to excessive dependence on the oil industry.

Recent economic trends are characterized by significant impacts from fluctuations in international oil and gas prices. During the COVID-19 pandemic in 2020, the economy experienced downward adjustments including contraction in the tourism industry, but subsequently recovered on the back of rising commodity prices. Between 2022 and 2023, surging energy prices increased fiscal revenues and accelerated economic growth. The country is strengthening economic relationships with China and ASEAN regions, with regional integration progressing particularly through participation in the Silk Road economic initiative.

A notable point is the necessity of economic structural transformation. In preparation for depletion of oil and gas resources, the government is promoting a diversification strategy called "Brunei Vision 2035." Efforts are focused on developing financial services, tourism, and the halal industry, with the aim of establishing Brunei's position as an Islamic financial center. With high educational standards and a stable political system in the background, it possesses potential as a regional economic and financial hub.