Introduction

It has been a great privilege to have been entrusted by His Majesty to chair the Brunei Darussalam Economic Council since its formation in September 1998. The Council was initially convened when the whole of our region was going through a difficult period economically. Its work has therefore been a considerable challenge.

The Council was asked to examine the economic situation of the country and to recommend short and long term measures designed to revitalise the economy.

In approaching its various tasks, the Council formed five working committees to assist it:

a.      The Committee on Review of the Current Economic Conditions;

b.      The Committee on Diversifying of the Oil and Gas Industry;

c.      The Committee on Facilitation of Economic Policies,

Infrastructure, Finance, Credit, Commerce, Labor etc;

d.      The Committee on Finance and Banking; and

e.      The Committee on Promotion of Manufacturing and Services.

After over a year of extremely challenging work, this far-reaching Report has been presented.

The main finding of the Council is that the national economic situation existing at the time of its formation was unsustainable. Rising unemployment, a continuing budget deficit since 1994 and a weak private sector were evidence of this. In response, the Council has recommended two strategies:

In the short term, it proposes several measures to provide a quick stimulus to the economy. These include the introduction of a fast-track payment system, the boosting of spending in select strategic areas and the setting up of an appropriate mechanism for their implementation.

The long term measures are aimed at attaining sustainable growth for the economy and at the same time help the national private sector.

These basic findings have been approved in principle by His Majesty and the Cabinet.

I wish to express my great appreciation to the Members of the Council and the respective committees and to all those who have contributed to the successful completion of the work of the Council.