This chapter provides an overview and analysis of the trade linkages between Brunei Darussalam and its main trading partners. Given its small domestic market, the country has relied heavily on oil and gas exports to promote growth and sustain its high standard of living. At the product level, Brunei is mainly dependent on two products, crude oil and natural gas. Its main export markets have been to neighbouring countries in the Association of Southeast Asian Nations (ASEAN), such as Singapore and Malaysia, while Japan has always been a major export market and in recent years China is becoming a very important partner, especially in terms of imports. ASEAN Plus Three is currently one of the most important trading partners for Brunei but there is still potential to further boost trade and investment opportunities within this bloc. As a resource-based economy, Brunei is mostly involved in interindustry trade (trade in different products), although in recent years there has been a tendency to diversify into exports of methanol. There is also a higher level of intra-industry trade in crude oil, as Brunei has started production of processed petroleum. The higher level of intra-industry trade in these products can be attributed to joint ventures with firms from China and Japan. Recently there has also been an increase in China’s investments into important industries in Brunei. The domestic content of gross exports is very high though it is focused mainly on exports of raw materials.

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Exploring Brunei Darussalam’s Trade Dynamics: Leveraging ASEAN Plus Three and beyond from Its Production Base

  • Pang Wei Loon

摘要

This chapter provides an overview and analysis of the trade linkages between Brunei Darussalam and its main trading partners. Given its small domestic market, the country has relied heavily on oil and gas exports to promote growth and sustain its high standard of living. At the product level, Brunei is mainly dependent on two products, crude oil and natural gas. Its main export markets have been to neighbouring countries in the Association of Southeast Asian Nations (ASEAN), such as Singapore and Malaysia, while Japan has always been a major export market and in recent years China is becoming a very important partner, especially in terms of imports. ASEAN Plus Three is currently one of the most important trading partners for Brunei but there is still potential to further boost trade and investment opportunities within this bloc. As a resource-based economy, Brunei is mostly involved in interindustry trade (trade in different products), although in recent years there has been a tendency to diversify into exports of methanol. There is also a higher level of intra-industry trade in crude oil, as Brunei has started production of processed petroleum. The higher level of intra-industry trade in these products can be attributed to joint ventures with firms from China and Japan. Recently there has also been an increase in China’s investments into important industries in Brunei. The domestic content of gross exports is very high though it is focused mainly on exports of raw materials.