10th May - Entrepreneurs in Limbo - by Jasbir Singh

Bandar Seri Begawan, Tues. The implementation of the national economic recovery plan that has been drawn up by the Brunei Darussalam National Economic Council "should be hastened to ensure Brunei's timely recovery from the economic crisis".

Observing this, the secretary general of the general of the Federation of Brunei Malay Entrepreneurs Pengiran Shahminan bin Pengiran Haji Ismail said here that any delay in the implementation of the plan would just prolong the downturn and hurt the economy even more. He said other countries in the region were already showing signs of improvement and Brunei could also do the same. Speaking in an interview with the News Express, Pengiran Shahminan said several months have passed since the government announced that it would implement the plan but progress, if any, had been limited. "The Malay entrepreneurs, who have traditionally held a small share in the company, are among the worst hit and further delays may put a number of them out of business. "Many are hanging on tether's end and may be forced out of business in the short-term," he said. He said many of the Malay entrepreneurs have either moved into other businesses or closed down their operations.

Pengiran Shahminan said the $200 million for SMEs which His Majesty announced in February remained to be distributed. "There are between 20 to 30 companies which have projects at hand but cannot carry them out because they cannot get funding for their project." "Even government projects are not funded by the banks, who instead ask for the collateral before providing the funds". He said the Development Bank of Brunei, which is supposed to have been giving up the loans had informs successful applicants of loans that it had not received any money yet to distribute to SMEs. "These entrepreneurs who already have the projects and the loans from the bank are now in a state of limbo as although their loans has been approved, they still haven not received the money." "Even the government agencies are waiting for fresh funds to implement the projects they have planned. Pengiran Shahminan said the since the Government was the main driver of the economy through its development and procurement programmes, efforts should be made to at least make money available for the Government projects. "This should at least give these businesses some breathing space", he said.

Pengiran Shahminan said the slow payment by the Government was also a contributing factor to the reluctance of the banking community to give out loans for Government projects. He said that the Bank knew that there was a risk of the payments being made late. "This shows the lack of confidence that these banks have in the Government's ability to pay". Pengiran Shahminan said the delays in funding are also preventing some Small and Medium businesses from taking up the opportunities offered by the Apec 2000 meeting and the Visit Brunei Year 2001. "There are a number of opportunities available that Bruneian businesses can take up in conjunction with the two events. "There is more that we need to do in conjunction with these two events, undoubtedly the biggest events in Brunei". "Brunei is not just about Kuala Belalong, we also need to create other attractions in Brunei as well and these attractions will have to be created and maintained by the private sector," he said. "Ultimately, it is theprivate sector that will lead the way to a growth in the country's economy and that sector for now needs the assistance from the Government before they can do that." Pengiran Shahminan said another crucial move which the Government needs to make is ensuring that its projects are split up to the maximum number of local companies as possible. "We cannot allow huge monopolies to take over the biggest and most profitable projects anymore - there has to be greater participations of the smaller companies." He said giving the projects to local companies will ensure that the profits remain and are invested in Brunei. "It will also promote the growth of local companies and develop the local business environment."