Non-Oil And Gas Sector Powers Brunei Economy
By Azlan Othman

Bandar Seri Begawan - Brunei's economy in the second quarter this year had expanded by 1.7 per cent compared to the same quarter last year.

This brought the second quarter GDP to $1,183.7 million, the latest issue of the Brunei Economic Bulletin revealed.

The second quarter growth was driven by the non-oil and gas sector including forestry, fishery, construction, wholesale & retail, restaurants & hotels, transport & communications, banking & finance and insurance sectors.

On a quarter-on-quarter comparison, the seasonally unadjusted Brunei's economy registered a contraction of 2.7 per cent in the second quarter of 2005 compared to the first quarter.

This was attributed to the relative decline in oil and gas, agriculture and ownership sectors, the magazine issued by the Department of Economic Planning and Development stated.

The oil and gas sector contracted by 0.6 per cent in the second quarter of 2005 year-on-year due to a drop in the average weighted oil production by 4.1 per cent to 193,504 barrels per day, against 201,738 barrels per day in the same quarter last year.

The drop in production, however, was offset by a 44.5 per cent increase in the price of crude oil, which averaged at US$55.19 per barrel in the second quarter of 2005 against US$38.20 per barrel in the second quarter of 2004.

Meanwhile, the non-oil and gas sector had expanded by 9.4 per cent in the second quarter of 2005 compared to the same period last year. The quarter-on-quarter comparison showed that this sector had also grown by 4.8 per cent.

The construction sector, for instance, registered a 28.9 per cent growth in the second quarter 2005 year-on-year.

It had also expanded by 28.1 per cent compared to the previous quarter, suggesting some dynamism in construction activities.

The wholesale and retail trade sector posted a 16.1 per cent growth in the second quarter in 2005 compared to the same quarter last year. A survey on selected major wholesale companies showed a 27.4 per cent growth in the value of sales in the second quarter of 2005 year-on-year.

The value of sales also rose by 9.2 per cent quarter-on-quarter basis. Likewise, selected major retail companies registered a 8.5 per cent increase in the value of sales in the second quarter year-on-year.

The restaurant and hotels sector grew by 6.6 per cent in the second quarter compared to the same period last year. Compared with the previous quarter, this sector had also grown by 6.9 per cent.

Hotel occupancy rates went up from 29.4 per cent in the second quarter of 2004 to 40.8 per cent in the second quarter of this year. On a quarter-on-quarter basis, the occupancy rate in the second quarter of 2005 was also higher compared to the first quarter at 36.4 per cent. The value of sales in selected major restaurants in the second quarter of this year increased by 7.1 per cent year-on-year.

Meanwhile the 14 per cent year-on-year growth in the transport and communications sector was driven by the growth in aircraft and airmail movements, volumes of seaborne cargo and the increased number of c-speed and BruNet subscribers.

In the banking and finance sector, the total interest income from loans and advances stood at $108.3 million in the second quarter of 2005 compared to $107 million and $101.1 million in the fourth quarter of 2004 and second quarter of 2005 respectively.

The insurance sector also registered a growth of 1.2 per cent in the second quarter, year-on-year.

However, positive developments were somewhat offset by decline in other sectors such as agriculture, mining, quarrying and manufacturing.  -- Courtesy of Borneo Bulletin

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