Private sector to get its act together
By Bakar Jair

The paradox in Brunei's private sector was recently revealed at a meeting amongst prominent members of the business community.

The discussions and debate exposed wide gaps between the government's optimism in their declared plans and policies against what appears to be a lack of common shared visions with the private sector.

There is a divergence of expectations, attitudes and opinions. The private sector allegedly has a lack of will, and there has been an erosion in business confidence.

The confidence gap is like an open wound. "Unless it is treated, it could become a serious problem," said one member at the meeting.

"Confidence" or the lack thereof was the main issue openly discussed in a closed meeting convened by the Malay Chambers of Commerce and Industry. Its background paper was reports of the Brunei Economic Development Board presented by the Monitor Group in July 2003.

"We should plant this confidence and promote the positive side of our country for doing business in Brunei," asserted Sheikh Abas, the Deputy President of the Malay Chamber of Commerce and Industry.

This positive sentiment expressed by the local Brunei businessman is in contradiction to the discouraging survey reports presented by the Monitor Group.

The "opinion" survey carried out by the Monitor Group on the investment competitiveness index, places the business climate in Brunei to be among the underdeveloped, backward and socially inequitable economies of Bangladesh and Nigeria.

This survey compiled opinions from samples of people in Brunei's business community. "We are not trying to pick holes in the report or blame and criticise the consultants. We are not killing the messenger for bringing bad news but listening to the message itself.

"We are very concerned with the underlying messages resulting from the opinion survey. It indicated that in spite of a decade of resolute pronouncements and assertions by government to cut down red tape, improve incentives and review outdated rules and procedures, the private sector collectively through the opinion survey has not appreciated or noticed any improvements in the investment climate.

"The local private sector has low opinions of the business climate in Brunei as to be clustered among the underdeveloped, unstable social and unpredictable business environment," asserted a member of the meeting.

"I am very concerned with the continuity and sustainability of my business which I have built up over 20 years. With the small market, I am losing my business to new entrants and new players, who are unscrupulously undercutting prices," commented one of the members.

"I have been offered to build and operate one public facility on a five-year lease. I cannot do it because the duration is far too short for reasonable return on investment, continuity and meaningful business," said another.

The meeting recognised the dilemma in the fairness of sustaining existing business and opening opportunities for entrepreneurs and new entrants.

There were no easy answers put forward in the meeting but all agreed that constant consultations between policy makers, licensing authorities and franchise regulators and the interested players should be instituted so that transparency and trust can be built in getting fair and good business dealings for all.

But what was commonly agreed by all is that the duration of term contracts, the lease periods of the facilities and the validity period of the franchise should be sensible as a continuing business and reasonable from perspectives of investment.

The meeting scanned through the summarised report of Monitor Group. They all accepted the prioritisation of the four clusters that included the financial services, the hospitality and tourism, business services and the transportation and logistics.

The general comment was that these are not new areas but identified by previous studies and recommendations. What was lacking was the implementation.

Hj Mohammad Said expressed optimism that this time round it could be better if the programme and plans set clearer selection criteria for investor partners and a more tangible and deliverable measures of progress and development.

Hj Rezali Johari, President of the Malay Chambers of Commerce and Industry, concluded the meeting by announcing that this is the start of many more discussions, forum and symposiums which will be organised and coordinated by the MCCI.

"We have to get our acts together in the private sector so that we can have converging views and a more coherent plan of actions to promote our businesses, attract investors and generate confidence in the economy.

"We can begin to develop a meaningful partnership with the public sector through constant dialogue and consultations. We will be proactive in seeking and sharing information. We will be more forthcoming with our inputs and recommendations for improvements and reforms."

Courtesy of Borneo Bulletin