BANDAR SERI BEGAWAN - BRUNEI continued to introduce initiatives throughout 2013 to grow the manufacturing sector by both enhancing the capacity of local players and bringing in well-established firms from around the region to create new industries here. This has been a part of its drive to move away from heavy reliance on oil and gas and to diversify the economy.
Cottage industries
The Ministry of Industry and Primary Resources (MIPR) has been constantly implementing programmes to spur the growth of businesses in the cottage industries including traditional cloth-weaving.
MIPR has established the Cottage Industry and Handicraft Centre to promote the traditional cottage industry of kain tenunan fabric making, or traditional cloth-weaving.
Speaking at the opening of the two-day Kain Tenunan: Budaya dan Ekonomi (Woven Fabric: Culture and Economy) Exhibition, MIPR Minister Yang Berhormat Pehin Orang Kaya Seri Utama Dato Seri Setia Hj Yahya Begawan Mudim Dato Paduka Hj Bakar said society as a whole needed to support the revival of the traditional style of making fabric.
“Private enterprises involved in the cottage industry face many challenges as it brings little income and is seasonal,” said the minister.
He added that kain tenunan had been categorised as part of a socio-economy cluster that would contribute towards the aspirations of the government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam and boost prosperity in the country.
The ministry in July this year opened the Small Enterprise Food Incubator (IMPK) located at the Agricultural Research Centre.
Part of the Department of Agriculture and Agrifood’s strategic plan, the Incubator facilities provide assistance and support to local agri-food entrepreneurs in producing high quality, safe and clean products that meet international standards.
IMPK provides facilities and premises of high-tech agri-food processing and infrastructure that meet the basic requirements of good manufacturing practices specifically for bakery products.
Agri-food commodities have been identified as one of the sectors that can contribute to the national economy, said Permanent Secretary of MIPR Hjh Normah Suria Hayati Pehin Jawatan Dalam Seri Maharaja Dato Seri Utama (Dr) Hj Mohd Jamil Al-Sufri who officiated at the opening of the facility. Biscuit and bakery products, based on agri-food statistics, play a big role in this.
Speaking to The Brunei Times, Hjh Normah said that processing facilities are available and these are intended to help established small and medium enterprises (SMEs) in the agri-food sector to continue improving their business.
Meanwhile, efforts by the Brunei Economic and Development Board (BEDB) in collaboration with ministries, including the Energy Ministry at the Prime Minister’s Office, to lure investors to Brunei are also bearing fruits. These have attracted the likes of Canadian pharmaceutical giant Viva Pharmaceutical Inc, Japanese steel companies Nippon Steel and Sumitomo Metal Corporation and Sumitomo Corporation as well as Australian research and development (R&D) firm Neptune Bio-innovations (NBI).
Pharmaceuticals
Brunei’s first pharmaceutical manufacturing plant was set to be operational by end-2013 once it has acquired the necessary halal certifications from the government, The Brunei Times reported in October.
A joint investment between Canadian firm Viva Pharmaceutical Inc, private equity fund Aureos (Brunei) Capital Sdn Bhd and a group of local investors, the $26 million manufacturing facility, Simpor Pharma, was established to produce Syariah-compliant pharmaceuticals for export to Muslim markets in Asia.
In an earlier interview, Edward Ko, the managing director of Simpor Pharma, said final preparations were under way for the production of halal generic drugs and nutraceuticals at its state-of-the-art facility at the Lambak Kanan (East) Industrial Estate.
He revealed that the company was in the process of acquiring halal certification and conducting machine validation. The company was hoping to initiate production by end-2013.
Simpor Pharma has cited the Middle East as a potential destination for export. It is also looking at exporting to Malaysia and Indonesia.
Oil and gas
A $32-million facility for an integrated Oil Country Tubular Goods (OCTG) supply and threading plant is set for construction in 2014 following an agreement signed by three parties including Brunei Shell Petroleum Company, it was reported this year. It will have a capacity to produce approximately 20,000 tonnes a year.
In an email interview with The Brunei Times, Sumitomo Corporation, one of the parties that signed on to this project, said the semi-finished products will be produced in Wakayama, Japan or Vallourec & Sumitomo Tubos (VSB), Brazil.
Signing the agreement with Brunei Shell Petroleum were Nippon Steel and Sumitomo Metal Corporation (NSSMC) and Sumitomo Corporation in a ceremony held at The Empire Hotel & Country Club, recently.
Fourteen hectares have been allocated at Salambigar Industrial site for the threading plant, said Minister of Energy at the Prime Minister’s Office Yang Berhormat Pehin Datu Singamanteri Col (Rtd) Dato Seri Setia (Dr) Hj Mohammad Yasmin Hj Umar. The said agreement was significant as it would make Brunei the “first country in the region to have the technology”.
Bio-food and pharma technology research
Earlier this month, the Ministry of Industry and Primary Resources (MIPR) signed an agreement with Australian R&D firm Neptune Bio-innovations (NBI) to carry out studies in bio-food and pharmaceutical technology over the next three years. Three R&D projects are to be undertaken following the signing ceremony. Based on the data collected, strategies will be developed for commercial and sustainable production of these plants.
CEO of Neptune Bio-innovations Holdings and Acting CEO of NBI Brunei Sdn Bhd Dr Vijaya Rajendram said the company intends to establish the Sultanate as its regional headquarters to serve the Asian market.
Statistics released by the Department of Economic Planning and Development earlier this month showed that the manufacturing sector grew by 5.6 per cent year on year in the second quarter of this year. With at least three main projects set to be operational soon, it is only a matter of time before we see a significant growth in the manufacturing sector.
The Brunei Times
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