How to enter the Brunei market

Australian exports of goods and services to Brunei remained modest at AUD 727 million (BND 643 million) or 0.11 per cent of Australia’s total exports in 2024-25. Two-way trade in goods and services was cumulatively valued at AUD 4.1 billion (BND 3.6 billion) between both countries in 2024-25. Petroleum products and professional, technical and other business services dominate existing Australian exports to Brunei. Sectors such as food and agribusiness, technology and education offer additional opportunities.

Market entry models for exporting goods and services

Choosing an appropriate market entry model is essential for businesses looking to export to Brunei. Any choice should be informed by factors such as the overarching business strategy, target sector, and business size and maturity. It is important to note that market entry models frequently evolve over time.

A. Direct exporting

In direct exporting, businesses sell directly to a Bruneian customer from Australia. Exporting directly to Brunei requires a significant level of involvement in the export process, including market research, marketing, distribution, sales, product registration and approval, import-export licencing and receivables.

Direct exporting has some advantages, including:

• Greater control of commercial processes, including sales
• Better margins, as middlemen are avoided
• More direct customer relationships

While there are benefits, direct exporting can ultimately involve higher establishment costs in Brunei. It may be necessary to employ dedicated in-house staff and other resources to manage the complexities of exporting and sales. Businesses that use this model may need to consider ways to offset these costs, including employing an agent or distributor to handle local product registrations, while maintaining control over other aspects of the business such as marketing and supply chain management.

A direct export approach should be supported by references, brochures, catalogues and other product and business information. It also requires businesses to engage with customers regularly to build awareness and understanding of the products they are selling on an exporter’s behalf. In return, a retailer’s understanding of Brunei’s market can help with product development, pricing and marketing. Selling directly to local retailers can generally cut commissions, reduce travel costs and create an effective conduit to market.

B. Agents and distributors 

Many Australian firms doing business internationally rely on agents or distributors. The roles of agents and distributors can vary across industry. It is therefore critical that roles and responsibilities are clearly defined early in any agreement.

Agents: Agents act as representatives of suppliers and do not take ownership of the products they sell. They are usually paid on a commission basis, which provides an incentive for them to drive sales. Being based in Brunei, they will often represent several complementary products or services. They can be retained exclusively as the sole agent for a company’s goods or services or as one of several agents for the exporter.

Distributors: Unlike agents, distributors buy the goods from exporters and then resell them to local retailers or direct consumers. In some cases, a distributor may sell to other wholesalers who then on-sell to retailers or consumers. Distributors may carry complementary and competing lines and usually offer after-sales service. They earn money by adding margins to product prices. Distributor margins are generally higher than agent fees because distributors have costs associated with carrying inventory, marketing and extending credit for customers.

Choosing an agent or distributor: Whether a business decides to use an agent or distributor, building a close working relationship is essential. Due diligence when selecting an agent or distributor is important and companies should ask for trade references and seek a credit check through a professional agency. It is best to meet any potential agents or distributors in Brunei, including inspecting their facilities. This will give them an opportunity to demonstrate knowledge of the market and build a business relationship

C. Online Sales

The e-commerce market in Brunei is small but expected to grow 10-15 per cent year on year to reach a volume of AUD 252.5 million (BND 223.23 million) in 2028. Brunei launched its first digital payments hub, allowing users to transfer money instantly between online platforms in 2025.

In 2025, the number of cellular mobile connections in Brunei reached 554,000. The country enjoys a 99 per cent internet penetration rate with over 460,000 internet users. 100 per cent of mobile connections in Brunei are now considered ‘broadband’, which means they connect via 3G, 4G or 5G mobile networks.

Around 76 per cent of the population access e-commerce marketplaces, with international companies leading this space . The strongest platforms for advertising are Facebook, Instagram and Reddit.

Accessing digital consumers: Brunei’s e-commerce market is highly concentrated and dominated by international companies. Key international players in the marketplace include Amazon, eBay and AliExpress. Domestic companies comprise only 18.5 per cent of the market with top local marketplaces such as Bruneida, Shopifull and Go Mamam.

The marketplace is easily accessible to foreign sellers. Business-to-consumer platforms allow open registration for trading directly although trading fees and commission on sales can be imposed on sellers. Top e-commerce product categories include electronics, fashion, hobby and leisure, as well as furniture, homewares and care products.

Figure 2: Share of online spending by product category (2026)

Search engines: Google is the dominant search engine in Brunei followed by Bing.

Online sellers and marketplaces: Brunei has a high-density online marketplace with a large volume of selling platforms targeting its small population. Amazon, eBay and AliExpress account for a significant share of the market. The country has an active population on social media and businesses regularly promote their offerings through Facebook, Instagram and WhatsApp. Instagram is widely used with one in seven users in Brunei relying on the app for product discovery.

*by site traffic

Social media: There were 300,000 social media users in Brunei, accounting for 64.1 per cent of the population in 2025. Facebook is the most popular platform with ads reaching 64.1 per cent of users . The government’s ambition to create a connected economy by strengthening digital frameworks will drive additional social media usage in the country. Social media platforms such as Instagram are often used for dissemination of information.

Investment environment

Brunei has a relatively stable investment environment. The government’s aim to maintain a free and open trading system supported by a favourable tax structure is attractive to foreign investors. Additionally, there are no formal restrictions on foreign ownership of companies in Brunei, although in practice it can be challenging for foreign companies to succeed without local shareholders.

Brunei again recorded higher FDI outflows in 2025 resulting in a 2.6 per cent decline in the country’s overall FDI stock to AUD 10.2 billion (BND 8.71 billion.) Foreign companies increased debt repayments to parent companies outside Brunei, negating the otherwise positive impact of reinvestment. Yet, FDI has the potential to play a transformative role in the country’s economic diversification, specifically in Brunei’s technological and economic development.

The Brunei Economic Development Board (BEDB) in the Ministry of Finance seeks to encourage investment with a range of incentives and initiatives. The BEDB promotes the country as an investment hub and works with investors to create new opportunities.

Potential sectors for investment include information and communication technology, downstream oil and gas, tourism, manufacturing and other services. The agricultural sector also offers opportunities in fishing, aquaculture, food imports and production, in particular halal foods bound for export markets.

Further sectors with promising commercial opportunities include aviation, medical equipment, defence equipment, and food and beverages. Brunei aims to become a marine maintenance and decommissioning hub, which may also entail investment and contracting opportunities for Australian businesses.

The Brunei Government offers a range of business incentives to encourage foreign investment.

• Corporate Income Tax (CIT): The CIT rate was reduced from 20 to 18.5 per cent in 2015. Moreover, individuals are not required to pay capital gains tax in Brunei.
• Tax exemptions: Companies considered pioneer industries may be exempt from paying taxes and import duties on machinery and raw materials for a period of 11 years. Tax relief has also been granted for a period of eight years for non-pioneer industries. Companies are also exempt from paying sales tax, payroll tax, export tax, manufacturing tax and capital gains tax.
• Expansion of established enterprise: Companies incurring qualifying new capital expenditure to expand manufacturing may receive tax relief for 3 to 5 years, depending on the level of new capital expenditure, with possible extensions up to a maximum total relief period of 15 years. Qualifying new capital expenditure must exceed AUD 1,131,075 (BND 1 million), or be more than AUD.

Investment rules and regulations

Brunei has a largely liberal company ownership regime. There is no restriction on foreign ownership of shares in Brunei-based companies. FDI rules are set out in the Income Tax Act and The Investment Incentives Order and the Companies Act. Investments are screened to ensure that the foreign investments do not negatively impact the country’s development and national interests. There are no restrictions imposed on sending money overseas. But transfers from Brunei over BND 15,000 (AUD 19,966) require a declaration be made to the Financial Intelligence Unit of the Brunei Darussalam Central Bank.

Although the investment environment is largely open, restrictions exist in specific industries. The Ministry of Development requires certain types of licenses in the building and construction industry to be owned locally. Restrictions on ownership of capital by foreign companies may be imposed depending on the value of a contract or project. The government imposes certain restrictions on foreign ownership in Brunei’s oil and gas industry.

Market entry models for investing

Choosing an appropriate market entry model is essential for businesses looking to invest in Brunei. A business’ size, sector and growth strategy will help determine which market entry model fits best. Investment models frequently evolve over time as businesses enter and expand in a market.

A. Sole proprietorship

Setting up a sole proprietorship is an easy, costeffective and quick way to establish a business in Brunei for permanent residents. A sole proprietorship is a company owned by a single person and is liable for its business operations. The sole proprietor has unlimited liability towards the business and is not subject to corporate tax. The company must be registered with the Registry of Companies and Business Name (ROCBN) and Ministry of Finance.

B. Partnership

Partnerships are another method to commence business in a quick and cost-effective manner. Minimal administrative work is required with a registration fee of AUD 47 (BND 40.6). A partnership may be formed with a maximum of 20 persons including at least one Bruneian or permanent resident. Partnerships may also be formed among local companies or branches of foreign companies. Partners are liable for debts and losses incurred by the business or any other partner. Partners are not permitted ownership of property in the firm’s name. Partnerships are not subject to income tax. Under special circumstances, foreign individuals may be permitted to form a partnership subject to approval by the Registrar.

Establishing a partnership in Brunei

C. Private company

A private company incorporated in Brunei is governed by the Companies Act. The registration fee to setup a company is AUD 458 (BND 404.9). Businesses operating as a company are required to file annual returns with statutory requirement for directors, allotment of shares and to conduct general meetings. Companies in Brunei are classified into four types: unlimited companies, companies limited by shares, companies limited by guarantee and companies limited by shares and guarantee.

In a private company, at least half of the directors must be permanent residents or Brunei citizens. Subsidiary companies are permitted to hold shares in a parent company. Accounts maintained by the company must be audited by auditors and disclosed to shareholders. Companies are required to file annual returns with the Registrar of Companies and submit annual tax returns with the Collector of Income Tax (CIT) at the Ministry of Finance.

Establishing a private company in Brunei

D. Public company

A public company incorporated in Brunei is governed by the Companies Act. Companies must register their incorporation, memorandum and articles of association and registration fees are based on share capital of the company. Public companies are required to maintain minute books of meetings, a register of charges, a register of directors, managers and members. Companies are required to submit their accounts for audit, publish directors’ report and file annual returns with the ROCBN. Additionally, accounts of public companies must be submitted annually to the Economic and Development Department of the Prime Minister’s Office.

Establishing a public company in Brunei

E. Branch of foreign company

Foreign entities that do not incorporate as a local company are registered as a branch of the foreign company in Brunei. Branches are required to have a registered office in Brunei, to appoint a local agent and to file annual accounts with the Register of Companies. Branches are subject to an 18.5 per cent tax on gross yearly profits.

Establishing a branch office in Brunei

F. Joint venture

Joint ventures in Brunei can be either a corporation or partnership. Owners of a corporate joint venture have limited liability while those in a partnership joint venture have unlimited liability. Liability is limited to participating corporations in case of a joint venture between corporations.

Establishing a joint venture in Brunei

G. Public-Private Partnership

In Brunei, public-private partnerships (PPPs) can be established to improve the quality of the country’s economic and social infrastructure, often in education, health and industry development. A PPP is a long-term contract between the Brunei government and the private sector. The private entity jointly manages and bears a significant risk during the project lifespan. Under such a partnership, remuneration is strongly linked to the demand or use of the asset or service provided.

Establishing a public-private partnership in Brunei

Success in Brunei requires businesses to tailor their product or service to the market. This should be based on detailed analysis of consumer trends, price consciousness, branding, marketing and advertising, and payment methods.

Brunei’s economy grew by 1.8 per cent in 2025, with projections for 2026 at 2.4 per cent. The reopening of the global economy boosted private consumption and the services sector in Brunei.

Despite its improving economic performance, retail sales remain sluggish in Brunei, although spending on food and beverages has grown rapidly. High global interest rates are impacting consumption levels as consumers look to save rather than spend. Overall consumption and investment remain stable in Brunei with relatively low consumer price inflation.

Understanding the characteristics, aspirations and spending habits of Brunei’s small but relatively wealthy group of consumers is crucial for businesses looking to tap into the segment.

Consumer trends in 2025

Price consciousness

Price consciousness for consumers remains high in Brunei. Consumers often use social media to spot deals and specials while purchasing online and in the market. Businesses in Brunei may assess competitor prices, factor in price consciousness and develop pricing strategies suited for the price-sensitive consumers.

Advertising and media

Brunei’s population is highly active on social media. Facebook has a high ad reach with over 60 per cent of people discovering ads on the platform.

Advertising in traditional media can also be effective in Brunei. Local newspapers with wide circulations include Borneo Bulletin, The Scoop and Media Permata. In addition, daily newspapers from neighbouring countries are also consumed by Bruneians.

Businesses also promote their products on government-controlled broadcast media including the Radio Television Brunei network, Kristal FM and the British Forces Broadcast Service. Local advertising companies and promotional service agencies are available to help businesses promote their products and services in Brunei.

Instagram is the biggest referrer of web traffic in Brunei, followed by Facebook, Pinterest, X and YouTube. In terms of highest volume of users, Facebook recorded 495,200 Bruneian users in May 2024, followed by Facebook Messenger with 320,500 and Instagram with 305,700.

Figure 3: Digital advertising audiences in Brunei (2026)

Digital payments

Initiatives to increase digitalisation have boosted fintech adoption in Brunei. Mobile payments, digital insurance and cashless transactions are on the rise. Digital payment transactions grew by 87.8 per cent over the last five years. Consumers have moved beyond cards to cashless payments such as Quickpay, Pocket and Progressif Pay.

The country’s banks are collaborating to increase digital mobile wallets and QR code-based payment solutions. Bank Islam Brunei Darussalam is undertaking measures to conduct operations digitally and aims to transition to a fully digital banking system.

Digital payments can make financial transactions safe, cheaper and more convenient. As digital payment options continue to expand and evolve in the Brunei market, businesses should consider integrating them into their business model.

A well-considered market entry strategy should take a systematic approach that supports long-term success. This section summarises the factors businesses should consider when formulating an approach to the Brunei market into a series of key questions.

Asialink Business provides advisory services and capability training programs to help organisations understand and access opportunities in Asian markets. For any questions about any aspect of a Brunei market entry strategy, please contact us. The Australian High Commission in Brunei and Austrade’s Malaysia office also provides services and support to Australian businesses with an interest in Brunei (details can be found in Section 5.2).

Calibrating Ambition

• What is your company’s aspiration for the market?
• What are the challenges and risks you will need to mitigate?

Consumers

• What is the current or potential demand for your product or service in Brunei?
• Who are the primary customers / consumers for your product or service in the market?
• How will you tailor your product or service to local preferences?

Competitors

• Who are your competitors in the market, and what is their offering?
• How does your product or service compare to competitors on price?

Sales, Brand and Marketing

• What is your unique value proposition for the market?
• What is the ideal mix of marketing and sales channels to reach your target customers?
• Is your marketing strategy aligned with your identified consumer base and value proposition?

Mode of Entry

• What is the right market entry model for your business?
• What are the specific geographies you should target?

Delivery Partners

• Does your team have the right mix of skills and expertise to support your market entry?
• What partnerships will contribute to your business’ success in the market?
• What external advice do you need to commission?

Operating Model

• What changes do you need to make to your business across areas such as operations, HR, finance and IT?

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