M'sian Market As Gateway For Local Companies
By CT Hj Mahmod & Maya Salleh

Bandar Seri Begawan - A partnership between Malaysia and Brunei was mooted for a quick solution towards the development of Brunei's capital market.

Capital market, according to Chief Executive of Commerce International Merchant Bankers Berhad (CIMB), Dato’ Nazir Tun Razak, is an important source of economic activity, which acts as a catalyst for economic growth.

With Brunei lacking in real expertise and infrastructure for a capital market, Dato' Nazir, who is an expert on KLSE (Kuala Lumpur Stock Exchange), shed his wisdom from a Malaysian perspective, with Brunei's senior government officials and leading business figures at a luncheon hosted by Asia Inc during the Asia Inc Forum Roundtable, on the importance in the development of Brunei's capital market.

"Financial expertise is critical towards Brunei's long term security in terms of capability of managing reserves. And attracting global funds obviously would need taxation, legislation, infrastructure, and assured fast management," Dato' Nazir added.

By partnering with Malaysia's developed market, it would be the gateway for Brunei companies to have access to all investors who are currently investing in Malaysia, provided that these companies are classified under KLSE, he added.

He believed the "economy of intermediating the entire Malaysian capital market would spur the development of Brunei's capital market".

And partnership between both countries could be the quick solution to providing quick access to Brunei's companies, providing capital financing for some of the projects that Brunei has been planning to implement.

Despite Brunei's lack of infrastructure, he said Brunei's advantages are huge, like a large pool of domestic savings, and encouraged Brunei companies to have access to capital markets.

Dato' Nazir, also known as the `Face of CIMB'. and whose company is listed on the KLSE with its share value having shot up by over 2 1/2 times., also advised, "Brunei should consider becoming a niche player in the international capital market."

Meanwhile, a discussion was held earlier with Mr. Timothy Ong, Roundtable Convener, presenting ‘A snapshot of the business outlook in Brunei and the region'.

He said. "Brunei much depended on the government's ability to implement its projects on time particularly in the area of e-government and the ability to attract serious foreign direct investments."

Another topic that was discussed was `The promise of e-government: Issues, Challenges and Opportunities' led by Mohammad Mahdi Abdul Rahman, Head of Policy Planning & Development Division, Prime Minister's Office; Pg. Kasmirhan Tahir, Head of International Law Division, Attorney General's Chambers; and Dr. Hj. Sablee bin Hj. Aspar, Director of Healthcare Technology Department, Ministry of Health. The discussion was moderated by Dr. C.T. Yong, Director of ICT Centre, Universiti Brunei Darussalam.

The discussions were followed by a Roundtable Dialogue led by industry leaders and moderated by Mr. Timothy Ong. The dialogue targeted issues that questioned the outlook for the oil and gas industry and implications for business in Brunei, the prospects for new downstream industries and issues in terms of the availability and pricing of gas.

It was followed by the question of expectations in terms of major foreign direct investments in 2004 and whether Brunei is on the right track.

The dialogue was wrapped up the final issue, which queried on the direction of Brunei's property market, emphasising on the continuing fall in prices and rentals in the country. -- Courtesy of Borneo Bulletin

Related Storiy: Brunei Econ Outlook Discussed

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