Posts Tagged ‘Economic’

Model for Political, Economic, and Social Development for The Country

Monday, January 18th, 2010

The philosophy of the MIB concept has somewhat become a model for political, economic, and social development for the country, as all projects and developments are planned and implemented according to Islamic teachings. In some respects, the ideology and visible symbolism of the state seem to reflect a balancing act between Western and Islamic pressure (Cleary and Wong 1994).

The state aims to preserve the customs and traditions of the Malay culture, emphasize teachings of the Islamic faith, and administer the monarchical system. Strict Islamic teachings have been incorporated into educational and social policies around the country. This does not mean that the MIB philosophy stifles the practice of other religions; it aims to act as a vehicle to develop the country with guidance from Islamic teachings, and to enhance racial harmony and mutual respect among the peoples.

Brunei’s legal system, similar to the legal systems of Singapore and Malaysia, is based primarily on English Common Law. The English judiciary system with an independent judiciary was retained after Brunei gained independence in 1984. The Ministry of Law is responsible for the legal system in Brunei, while the attorney general is the chief advisor on constitutional and legal matters (Borneo Bulletin 2000). The Supreme Court, the Intermediate Court, and the Subordinate Court hold the judiciary power in the country. The Supreme Court consists of the High Court and the Court of Appeal, and the Subordinate Courts comprise the Magistrate Courts. Syariah (Islamic) Courts exist side by side with the Supreme Court and deal with Islamic laws. In 1991, Intermediate Courts were established with civil and criminal jurisdiction, but these courts have no jurisdiction over capital cases.

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The Economic and Sociocultural Policies

Tuesday, January 5th, 2010

Brunei Darussalam is one of Asia’s wealthiest nations, with very high per capita income derived from its abundant oil and gas reserves. However, its gross domestic product (GDP) per capita has followed a downward trend in the past decade due to fluctuations in the world oil and gas industry, the effects of the 1997 Asian financial crisis, and the collapse of a huge local construction conglomerate in 1998.

The Bruneian market is unique, very small but wealthy, with consumers of high-spending character. Nearly all products in the country are imported from abroad. It is therefore interesting to look in depth into the nature and patterns of consumer behavior in Brunei before analyzing the marketing practices in the country. The first section in this chapter focuses on the macroenvironmental factors, the importance of the natural resources of the country, which essentially shape its economic and social development programs, its demographic characteristics, the institutional aspects of the monarchical system and the national philosophy, and also, the economic and sociocultural policies of the government.

The second part of the discussion turns to the relatively price-insensitive and high-spending consumers who reside primarily in the urban areas. As will be explained later, consumption patterns in Brunei are highly influenced or governed by the state philosophy: Brunei is a Malay Islamic Monarchy. Following an understanding of the patterns of consumer behavior and the marketing practices in Brunei, discussions eventually lead to the final section, which emphasizes the importance of relationship marketing and customer retention in the marketplace.

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