Risk Rating: Brunei 3rd Best In Region
By Khairunnisa Ibrahim

Bandar Seri Begawan - Brunei Darussalam is the third least risky place to conduct business in the Asean region, according to a recent report by Singapore's Enterprise One, a multiagency body set up to cater to the business community there.

The 2006 Enterprise Insights publication stated that according to the risk ratings set by the World Market Research Centre (WMRC), Brunei has the lowest business risk in Asean after Singapore and Malaysia.

Brunei was found to be "politically stable ... (with) a generally good environment to operate a business, as the legal system is well developed and the country offers a generous tax regime".

However, while the government regards foreign investment favourably, it "needs to improve the country's infrastructure and cut bureaucracy".

On a wider scale, a WMRC global survey of 202 countries found Brunei to be the 64th least risky place for business, while Singapore and Malaysia came in at second and 51st positions respectively.

Each country was rated based on six factors - political, economic, legal, tax, operational and security risk.

In the Asean region, Singapore was found to have negligible risk, while Brunei joins Malaysia and Thailand in the moderate risk category. Philippines are found to be of medium risk and significant risk is found in Vietnam, Laos, Indonesia and Cambodia. The riskiest place in the region to conduct business is Myanmar, which was ranked 185 in the worldwide ratings.

Singapore, which shares the second-lowest risk ranking with Canada and Switzerland, is found to be politically stable and investor friendly, with well established tax and legal systems and excellent infrastructure.

In addition, it has highly capable intelligence and surveillance authorities, who are able to mitigate any security risks of terror attacks.

Meanwhile, Philippines were found to be of medium risk because of its poor infrastructure, extensive bureaucracy, corruption and complicated tax system.

Its security risk received a high rating, as crime is a serious problem in the country and there is known, active terror groups operating there.

Additionally, Vietnam, Laos and Indonesia were seen as politically stable in the short-term, but their respective long-term outlooks remain uncertain.

Bureaucracy and corruption are common themes in Vietnam and Indonesia.

As for Myanmar, its political environment was found to be highly risk-prone. Despite vast natural resources and strategic location on the borders of India, China and Southeast Asia, the country lacks a strong legal framework and tax systems. Its infrastructure was also assessed to be weak.  -- Courtesy of The Brunei Times

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