Standard Chartered Brunei’s CEO, Aki Ibrahim, discusses the progress Brunei has made in its economic diversification efforts while recognising there is still a lot left to do to streamline business processes and retain foreign investors.

Taking on the bank’s top job in Brunei in 2019, Mr Ibrahim saw major shifts in the country’s economy following a prolonged economic downturn, and the exit of other international banks such as HSBC and Citi. Here, he tells fDi about the challenges ahead for a country largely dependent on oil and gas amid a global push for sustainability. 

Q: What is your take on Brunei's current investment landscape?

A: There has been a lot of impressive progress so far, especially in the oil value chain and downstream industries. While it came at a slightly slower pace than we would have liked, many of us here are enthusiastic and would like to see this momentum continue at an accelerated pace for in the near future.

We are excited to see even more oil derivatives emerging from Brunei’s current manufacturing plants such as those at the Brunei Methanol Company as well as from the fertiliser industries and oil refineries.

There is still potential and business opportunities for foreign direct investment (FDI) in Brunei.

Q: Why do you think progress has been slower than expected?

A: The Association of Southeast Asian Nations is very competitive as every market is aggressively promoting FDI. For Brunei, the streamlining of business processes could be one of the improvements to make it easier to obtain approval for land, utilities and business licences.

A few years ago, we had a discussion with the government where we can see some improvement has been made. With the upcoming introduction of a national digital ID and a single sign-on platform for public services in 2025, this will help develop the economy further.

Q: Brunei has largely been dependent on oil and gas but is now trying to diversify its economy. What challenges does the country face in doing so?

A: There is no doubt that oil and gas is the main driver of our economy and that it will always play a key role. At the same time, we are excited to continue diversifying into other sectors such as food, technology and tourism.

A lot of downstream activities are gaining momentum. So, after the success of the Brunei Methanol Company, we’ve also seen Chinese investments into the oil refinery and logistics industries. This model isn’t new — we’ve seen other countries, especially in the Middle East, go through the same process.

However, sustainability has been a key global agenda and this an issue the country has to look into, which includes exploring even more business opportunities into the green agenda. In October, we held an economic sustainability forum where we discussed sustainability initiatives such as promoting the circular economy, which is one of the considerations Brunei will make when trying to attract FDI. 

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This article first appeared in the December 2024/January 2025 print edition of fDi Intelligence