Growth Of SMEs Crucial To Brunei’s Development Says Ministry

Bandar Seri Begawan - The small and medium sized enterprises (SMES) have proven to be resistant and less vulnerable to the shocks of the economic and financial crisis.

However, most of the SMES lack entrepreneurship in various fields.

In this respect, the Ministry of Industry and Primary Resources in collaboration with the Non Aligned Movement (NAM), Center for South-South Technical Cooperation (CSSTC) is hosting a two-day seminar on "Increasing prospects for rapid and sustainable socio-economic development through business incubators and entrepreneurship."

The Director of Promotion and Entrepreneurial Development at the Ministry of Industry and Primary Resources, in his remarks at the opening of the seminar yesterday morning, said that in Brunei the growth of the SMES is crucial in our economic development objective.

Haji Abdul Rahman Haji Chuchu, went on to say, that various policies and support programmes have been established and implemented to develop the SMES. But, the fact remains that SMES are facing various challenges to survive, let alone, grow.

SMES of the NAM countries contribute as much as 75% of their country's economy. Many still face difficulties such as lack of access to credit, limited, knowledge of more or advanced technologies and administrative and technical skills.

These problems were identified and ear-marked in a previous workshops held in Brunei. In this third such meeting in the country, it is hoped that the participants from 25 countries are able to share their experiences in implementing business incubators or entrepreneurship development programme.

Among the topics discussed are capacity building and training programme to enhance competitiveness of SMES and fostering SMES sustainable integration into global markets.

Meanwhile, the seminar continued in the afternoon with presentation of several working papers. The director of promotion and entrepreneurial development, Ministry of Industry and Primary Resources when presenting his paper - institutional support for the development of non-aligned movement's Small and Medium Enterprise said statistically, SMES account for almost 98% of the estimated 6,000 business establishments that are currently active in Brunei.

Awang Haji Abdul Rahman, stressed about 59% of them is involved in the services sector, including 27% that are in trading and wholesale activities. Around 33% are involved in manufacturing and construction sector and the rest are in primary resources sectors.

SMES development is an important part of government socio-economic policy. The Ministry of Industry and Primary Resources, particularly the promotion and entrepreneurial development division has been mandated to act as the focal point for SMES development.

Learning from the experiences of other countries, the Ministry of Industry and Primary Resources sees the need for an integrated approach in developing SMES. Haji abdul Rahman continue to note that its mission is to create self reliant and competitive entrepreneurs and facilitate the development of high quality marketable products that can contribute to the nation's goal of economic diversification.

The objectives are to identify potential entrepreneurs and support their development to become enterprising and socially responsible business owners and managers of enterprises engaged in the primary resources and industry sectors. -- Courtesy of Radio Television Brunei 

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