The Economy

The Brunei market is characterized as a consumer market in which almost all commodities are imported from abroad. Brunei’s world merchandise trade in 1999 was negligible in both the Asian and world markets. However, per capita merchandise trade of Brunei at about US$13,500 is high compared to its Asian counterparts, lagging only behind Singapore and Hong Kong (World Trade Organization 2000). The market is definitely small, with 0.34 million consumers, yet it is relatively wealthy.

Per-unit costs of the products and services available in the market are generally more expensive compared to those of its neighboring countries due to retailers’ markups and the additional costs involved in delivering the final product or service. Furthermore, the domestic market is constrained by the products and services found in the markets of its main importing countries—Singapore and Malaysia.

With increased standards of living and better bargaining power, the Brunei consumers are becoming increasingly sophisticated and have greater empowerment in the marketplace. The variety of goods in the domestic market may be limited or not available, but Bruneians can still make purchases abroad, especially in the neighboring ASEAN countries. Consumers in the Brunei market are protected by the Economic Planning Unit, which monitors the prices of the goods and services, and also by the Religious Affairs authorities who ensure that products or services that are to be consumed by the Muslims abide strictly by Islamic regulations and that non-halal products are not made available to them.