AGP Executive Report

Digital Economy: South-east Asia’s digital economy is forecast to grow 17% to US$368 billion in 2026, with Brunei among the 10 markets covered. MSME Development: Brunei is hosting ASEAN meetings through Oct. 23 on helping smaller businesses digitise, adopt sustainable practices and reach new markets. Skills and Industry: Education Minister Romaizah urged TVET graduates to use AI to meet industry needs while building, not replacing, their own skills. Petrochemicals: Honeywell will supply process technology and engineering for Phase II of Hengyi Industries’ Pulau Muara Besar project, which is expected to lift annual crude-processing capacity to about 20 million tonnes. Hengyi is targeting a workforce that is 50% Bruneian for the expansion. Banking: Baiduri Bank has priced its first overseas bond, marking a step into international debt markets. Economic Diversification: Brunei’s non-oil and gas sector now contributes 55% of GDP, up over the past decade, according to the economy minister.

Digital Economy: South-east Asia’s digital economy is forecast to grow 17% to US$368 billion in 2026, with AI supporting expansion across e-commerce, travel and online services; Brunei is among the 10 markets covered. MSME Development: Brunei is hosting ASEAN meetings through Oct. 23 on helping small businesses digitise, adopt sustainable practices and reach new markets. Skills and Industry: Brunei’s education minister urged TVET graduates to use AI to improve workplace efficiency while strengthening their own skills. Banking: Baiduri Bank has priced its first overseas bond, marking a step into international debt markets. Hengyi Expansion: Honeywell will supply technology and engineering for Phase II of Hengyi’s Pulau Muara Besar complex, which is expected to lift annual crude-processing capacity to about 20 million tonnes and expand higher-value petrochemicals production. Hengyi is targeting a 50% local workforce for the expansion. Energy Trade: Refineries in Brunei, India and Türkiye shipped €1 billion in oil products to countries sanctioning Russia in September, up 43% from August, according to CREA.

Digital Economy: Southeast Asia’s digital economy is forecast to grow 17% to US$368 billion in 2026, with Brunei among the 10 markets covered and AI helping drive expansion. Digital Safety: A two-year BGA–UNDP programme will build cybersecurity skills and support safer digital services, including in Brunei. Skills and MSMEs: Brunei’s education minister urged TVET graduates to use AI to meet industry needs, while the country hosts ASEAN meetings on helping small businesses digitalise, adopt sustainable practices and reach new markets. Petrochemicals: Honeywell will supply technology and engineering services for Hengyi Industries’ Phase II expansion at Pulau Muara Besar, planned to lift capacity to about 20 million tonnes of crude a year; Hengyi aims for a 50% local workforce. Finance and Trade: Baiduri Bank has priced its first overseas bond, while Brunei and India are seeking to expand bilateral trade and economic cooperation.

Petrochemicals: Honeywell will supply technologies and engineering for Hengyi Industries’ US$5 billion Phase II expansion at Pulau Muara Besar, lifting annual crude-processing capacity from 8 million to 20 million tonnes. Hengyi is targeting a 50% Bruneian workforce when the project is operating. Economic Diversification: Brunei’s non-oil and gas sectors accounted for 55% of GDP in 2025, up from 46% a decade earlier, while non-oil and gas goods reached 60% of exports. MSMEs: Brunei is hosting ASEAN meetings on digitalisation, sustainable practices and helping smaller firms reach new markets and regional supply chains. Workforce Skills: Education Minister Romaizah Haji Mohd Salleh urged technical graduates to use AI to build their skills and meet industry needs. Business Finance: Baiduri Bank has priced its first overseas bond, broadening its access to international funding.

MSME Development: Brunei is hosting ASEAN meetings through Oct. 23 on helping small businesses digitise, adopt sustainable practices and reach new markets. Skills for Industry: Education Minister Romaizah Haji Mohd Salleh urged technical graduates to use AI to improve their skills and workplace efficiency, not replace them. Hengyi Expansion: Honeywell will provide process technology and engineering support for Phase II of Hengyi’s Pulau Muara Besar project. The US$5 billion expansion is expected to lift annual crude-processing capacity from 8 million to 20 million tonnes, with Hengyi targeting a workforce that is 50% Bruneian. Economic Diversification: Brunei’s non-oil and gas sector grew to 55% of GDP in 2025, from 46% in 2015; non-oil exports rose to 60% of exports from 7%, driven largely by downstream petroleum and chemicals. Trade Links: Brunei and India reviewed ways to grow trade and cooperation in food, pharmaceuticals, healthcare and energy.

Petrochemicals: Honeywell will provide process technology and engineering for Hengyi’s Phase II expansion at Pulau Muara Besar. The project aims to lift annual crude-processing capacity to about 20 million tonnes, up from 8 million, and expand production of higher-value chemicals. Local Jobs: Hengyi is targeting a 50% Bruneian workforce for the expansion, backed by a US$5 billion investment. Economic Diversification: The non-oil and gas sector’s share of GDP rose to 55% in 2025 from 46% in 2015, while non-oil exports climbed to 60% from 7%; downstream petroleum and chemicals drove much of the growth. Trade Links: Brunei and India discussed expanding trade and business ties, with agriculture, pharmaceuticals, healthcare, energy, manufacturing and infrastructure among areas for cooperation. Singapore and Brunei also signed agreements on halal-certificate recognition and essential-goods supply resilience.

Petrochemicals: Honeywell will supply process technology and engineering for Hengyi Industries’ Phase II expansion at Pulau Muara Besar, which is expected to lift annual crude-processing capacity to about 20 million tonnes. Hengyi says the US$5 billion project aims for a workforce that is 50% Bruneian once operational. Economic Diversification: Brunei’s non-oil and gas sector grew to 55% of GDP in 2025, while non-oil and gas products reached 60% of exports; the minister credited much of the gains to downstream petroleum and chemicals. Trade Links: Brunei and India discussed expanding trade and business exchanges, including agricultural exports, healthcare, pharmaceuticals and energy cooperation. Oil Exports: A CREA report says refineries in Brunei, India and Türkiye collectively shipped €1 billion in oil products to countries sanctioning Russia in September, up 43% from August; it did not specify Brunei’s individual share.

Refinery Expansion: Hengyi plans to invest US$5 billion to lift Pulau Muara Besar’s annual processing capacity from 8 million to 20 million tonnes, targeting a 50% Bruneian workforce. Honeywell will supply process technology and support for the project. Economic Diversification: Brunei’s non-oil and gas sectors rose to 55% of GDP in 2025, from 46% in 2015, while their share of exports climbed to 60%; downstream petroleum and chemicals drove much of the growth. Energy Trade: A CREA report says refineries in Brunei, India and Türkiye shipped €1 billion in oil products to countries sanctioning Russia in September, up 43% from August. It estimates €295 million of the exports came from Russian crude, but gives no Brunei-specific figures. Trade Links: Brunei and India discussed expanding trade in food, pharmaceuticals, healthcare and energy, while Singapore and Brunei agreed to strengthen essential-goods supply chain resilience.

Hengyi Expansion: Hengyi is targeting a 50% Bruneian workforce for its $5 billion Phase II refinery project at Pulau Muara Besar. The expansion, supported by new Honeywell process technology, is expected to lift annual capacity from 8 million to 20 million tonnes and broaden refined-product output. Economic Diversification: Brunei’s non-oil and gas sector rose to 55% of GDP in 2025, from 46% in 2015, while non-oil and gas products grew to 60% of exports, up from 7%. The government credits much of the shift to downstream petroleum and chemicals. Trade Links: Brunei and India are pursuing wider trade, including agricultural and animal-product exports, with pharmaceuticals, healthcare and energy also on the agenda. Singapore and Brunei have separately agreed to recognise each other’s halal certificates, aiming to ease trade and build consumer confidence. Refinery Trade: A CREA report covering Brunei, India and Türkiye says the three countries’ oil-product exports to sanctioning markets rose 43% in September to €1 billion; it estimates €295 million of the total was refined from Russian crude, without specifying Brunei’s share.

Hengyi Expansion: Hengyi Industries is targeting a 50% Bruneian workforce for Phase II of its US$5 billion refinery expansion at Pulau Muara Besar. The project is expected to lift annual processing capacity from 8 million to 20 million tonnes. Honeywell will supply process technologies and engineering support for the upgrade. Economic Diversification: Brunei’s non-oil and gas sectors grew from 46% of GDP in 2015 to 55% in 2025, while non-oil and gas goods rose from 7% to 60% of exports. Downstream petroleum and chemicals drove much of the change. Trade Links: Brunei and India agreed to pursue stronger trade and business ties, including agricultural and animal-product exports, and cooperation in pharmaceuticals, healthcare and energy. Halal Trade: Singapore and Brunei signed an agreement recognising each other’s halal certificates, aiming to reduce duplicate certification and make cross-border trade easier. Regional Logistics: A proposed Trans-Borneo Railway route would link Sarawak’s industrial centres and ports with Brunei, though funding and project arrangements remain under review.

Economic Diversification: Brunei’s non-oil and gas sector grew from 46% of GDP in 2015 to 55% in 2025, while non-oil and gas commodities rose to 60% of exports. Downstream petroleum and chemicals drove much of the change, and the government says diversification remains central to building a resilient economy. Trade and Investment: Brunei and India agreed to pursue more trade in agricultural goods and pharmaceuticals, with energy, healthcare and manufacturing also on the agenda. Petrochemicals: Hengyi Industries has selected Honeywell technologies for Phase II of its Pulau Muara Besar complex expansion, which aims to lift crude-processing capacity to about 20 million tonnes a year from 8–9 million. Supply Chains and Halal Trade: Singapore and Brunei signed agreements to strengthen essential-goods supply resilience and recognise each other’s halal certificates, easing trade and reducing duplicate certification. Regional Connectivity: A proposed Trans-Borneo Railway could link Brunei with Sarawak’s population centres, industrial zones and ports, though funding and implementation plans are still under review.

Regional Trade: India and Brunei agreed to pursue more trade, including Indian agricultural and animal exports, with pharmaceuticals, healthcare and energy also flagged for cooperation. Their next Joint Trade Committee meeting will be held in Brunei. Downstream Energy: Hengyi Industries has selected Honeywell technologies for Phase II of its Pulau Muara Besar expansion, which aims to lift crude-processing capacity to about 20 million tonnes a year and grow higher-value petrochemical output. Halal Trade: Singapore and Brunei will recognise each other’s halal certificates, easing certification and supporting cross-border sales. Supply Resilience: The two countries’ pact covers food, crude oil, fuel and medical supplies, with practical implementation key to keeping goods moving during disruptions. Connectivity: A proposed Trans-Borneo Railway could link Brunei with Sarawak’s population centres, industrial areas and ports, but funding and implementation arrangements remain under review. Operating Risks: Indonesian fires are sending unhealthy haze across Brunei and neighbouring countries, raising health concerns and prompting calls for stronger regional action.

Downstream Investment: Hengyi Industries has awarded Honeywell a contract for technologies and services for Phase II of its Pulau Muara Besar complex. The planned expansion could lift crude-processing capacity to about 20 million tonnes a year, from current throughput of 8–9 million. Trade Links: Brunei and India discussed wider trade and investment, including Indian agricultural and animal-product exports to support food security, plus cooperation in pharmaceuticals, healthcare, energy and manufacturing. Supply Resilience: Singapore and Brunei have agreed to strengthen the flow of essential goods during disruptions, covering food, crude oil, fuel products and medical supplies. Halal Trade: The two countries also signed an agreement recognising each other’s halal certificates, intended to ease certification for businesses and build consumer confidence. Regional Connectivity: A proposed Trans-Borneo railway route would connect Sarawak’s industrial centres and ports through Brunei, though funding, governance and implementation plans remain under review.

India–Brunei Trade: The two countries’ third Joint Trade Committee meeting focused on market access and new business opportunities, including Indian agricultural and animal-product exports, pharmaceuticals, healthcare, energy and investment. Petrochemicals: Honeywell will supply technology and engineering support for Hengyi Industries’ Phase II expansion at Pulau Muara Besar, which is expected to raise crude-processing capacity to about 20 million tonnes a year. Economic Resilience: The IMF says Brunei is benefiting from energy shocks as an energy exporter, while stressing the importance of fiscal discipline and price stability. Supply Chains and Halal Trade: Singapore and Brunei have agreed to cooperate on keeping essential goods flowing during disruptions, including food, fuel and medical supplies; a separate halal-certification pact aims to ease trade and reduce duplicated checks. Regional Infrastructure: A proposed Trans-Borneo Railway route would connect industrial centres and ports across Sarawak, Sabah, Brunei and Kalimantan, though funding and implementation plans remain under review.

Trade and Investment: Brunei and Thailand are exploring closer investment and Islamic finance ties, alongside cooperation on agricultural and food trade. India and Brunei also agreed to expand commerce, with agricultural goods and pharmaceuticals among the export priorities and healthcare and energy flagged for further cooperation. Supply Chains and Halal Trade: Singapore and Brunei signed agreements to support essential-goods flows during disruptions, covering food, fuel, crude oil and medical supplies. They also agreed to recognise each other’s halal certificates, reducing duplicate checks and supporting halal trade. Export Access: The UK has added Brunei to a general export licence for certain controlled dual-use technologies, including specified aviation, maritime, IT, semiconductor and quantum-related items; exporters still need to check whether individual products qualify. Regional Connectivity: A proposed Trans-Borneo Railway could link Sarawak’s population centres, industrial zones and ports with Brunei and other parts of Borneo, though funding, governance and land requirements remain under review.

Trade: India and Brunei agreed to expand bilateral commerce, with talks covering agricultural and animal-product exports, pharmaceuticals, healthcare and energy, alongside improved market access and business links. Transport: A proposed Trans-Borneo Railway route would connect Sarawak’s population centres, industrial zones and ports, pass through Brunei, then re-enter Sarawak at Limbang. The project is still under review, including its funding and governance. Supply Chains: Singapore and Brunei signed a pact to support the flow of food, oil, fuel, medical supplies and other essential goods during disruptions. Industry–Research Links: Universiti Brunei Darussalam and AmiproSimpor will explore joint research, innovation and commercialisation, as well as training and industrial placements.