주브루나이 대한민국 대사관

(Borneo Bulletin)


The Minister of Foreign Affairs and Trade II YB Pehin Orang Kaya Pekerma Dewa Dato Seri Setia Awang Lim Jock Seng yesterday underscored the importance of bilateral and multilateral free trade agreements for Brunei Darussalam.

Responding to a query raised during yesterday's Legislative Council meeting on Brunei's participation in such agreements, the Minister said it would greatly benefit consumers, open the country to larger world markets, make local products more competitive while attracting foreign investors to the country.

He said to date, Brunei has been involved in several free trade arrangements including those with Asean, Japan and the Trans Pacific Partnership (TPP), Multilateral Trade Agreements called P4 that includes Chile, New Zealand, Singapore and Brunei, with Asean dialogue partners like China, Japan and Korea and as well as with Peru, Vietnam, Malaysia, Australia and the United States.

The free trade agreements with Asean with a population of over 500 million people and with China of more than 1.8 billion people give bigger market access.

Removing trade barriers provide benefits in that the price of local products to be exported would become more competitive. Local entrepreneurs export their products to China, Korea, India and Asean. The rise in trade could be seen before and after the FTAs are enforced.

Brunei exports include timber, methanol and fizzy drinks. FTAs also facilitate trade especially in customs standards and procedures.

These also give more choices and competitiveness for consumers of car tyres, electric cables, car spare parts and electronics. All these would also attract more investment from foreign investors and contribute to economic diversification. Promotional programmes to enhance awareness to businesses will continue to be made.

The Minister was responding to YB Dato Paduka Awang Hj Idris bin Hj Abas who raised bilateral free trade and multilateral trade arrangements issue and how these have been utilised by the local entrepreneurs and steps taken by MOFAT to assist local SMEs to penetrate the foreign markets and how many of them have been involved.

Meanwhile YB Awang Hj Mohd Shafiee bin Ahmad asked on the efforts undertaken by MOFAT and other Ministries to protect the interest of local SMEs as the FTAs bring impact to local SMEs as they have to compete with experienced foreign entrepreneurs with far cheaper overhead cost which poses challenges to local SMEs.

Responding to YB Awang Hj Mohd Shafiee's query, YB Pehin Dato Lim Jock Seng said with the cooperation of the Ministry of Industry and Primary Resources and Brunei Economic Development Board, his Ministry is trying to increase the ability of the SMEs to compete at the international market.

MOFAT also has its Promotion for External Trade Division that works with the Ministry of Industry and Primary Resources. It promotes expos and holds seminars and workshops at Embassies and High Commissions.

YB Pehin Dato Lim Jock Seng also highlighted on product development in the aspect of enhancing the quality of local products and packaging. Efforts have been made with Japan and Korea recently. We always review and give assistance to local SME's to compete in overseas markets, he said.

Meanwhile YB Awang Hj Sulaiman bin Hj Ahai also asked as to why import duties of some products from Country of Origin (COO) from China are still imposed as well as from other Asean countries like Singapore, Thailand, Vietnam and Malaysia. He asked whether there is any specific reason for such import duty not to be eliminated.

YB Pehin Dato Lim Jock Seng in his reply said after the implementation of FTAs, the tax is reduced in principle. He said if he has the details, it could be discussed with the relevant Ministries.

Meanwhile YB Awang Hj Bakar bin Mansor thanked MOFAT for its effort to evacuate the students in Egypt during the recent uprising.

On construction projects of Brunei Missions overseas query as raised by YB Dato Paduka Awang Hj Idris, YB Pehin Dato Lim Jock Seng also said that the tender is made openly where competitive prices are taken. "We do not give a contract just like that," he said. "Local Brunei consultants and contractors have also been encouraged to bid for the tender and many have been involved," he added.

On the construction of a bridge connecting Pendaruan river linking Temburong and Limbang as raised by the YB Awang Hj Sulaiman bin Hj Ahad of Temburong who highlighted the recent floods which affected the ferry service and caused up to four hours of queues, YB Pehin Dato Lim Jock Seng in his response revealed that in the exchange of letters on March 16, 2009, both parties have agreed in that the demarcation of land be solved based on the five agreements and watershed principles.

A Technical Committee has been established to fine-tune terms of reference to allow the two countries, Brunei and Malaysia to start the demarcation works. And on February 24-25, 2011, the technical committee met in Brunei and the process to solve this issue has begun, he said.

On bridge construction, the matter has been discussed with Malaysia and agreed in principal for private sectors to construct the bridge. I believe this would be discussed with other agencies, he added.

Meanwhile the Minister of Communications, YB Pehin Orang Kaya Hamzah Pahlawan Dato Seri Setia Awang Hj Abdullah bin Begawan Mudim Dato Paduka Hj Bakar said a committee has been established in the Brunei government on guidelines to construct the bridge through Private Public sector Partnership (PPP) which is needed to build such a bridge.