Why Brunei
Brunei’s political stability, educated workforce and open trade settings make it an attractive destination for investors. Brunei's appeal is supported by competitive tax rates as well as low property, energy and utility costs.
Economy overview
While Brunei is largely dependent on the oil and gas sector, the government is committed to diversifying the economy in priority growth sectors such as food, tourism, information and communications technology, and services. It also aims to become a regional hub for processing and exporting halal food as well as for marine vessel maintenance and decommissioning. Brunei’s aspirations to transform into a globally connected and sustainable economy present investment opportunities for Australian businesses.
Brunei has a population of just 450,000, the smallest in Southeast Asia. The country’s oil and gas wealth has boosted education and income levels, providing its population with the second highest overall income rate in Southeast Asia after Singapore, although income levels are distributed unevenly across the population. Brunei’s population is young, with a median age of 32.5 years and almost 73 per cent of working age. The government aims to make Brunei a sustainable economy with per capita income among the top 10 countries worldwide by 2035.
Owing to its vast oil and natural gas fields, Brunei’s fortunes have historically been tightly linked to developments in global energy markets. However, due to sustained diversification efforts in downstream oil and gas activities, the non-oil and gas sector now accounts for over 50 per cent of the economy. Real GDP growth is forecast to increase from 1.8 per cent in 2025 to 2.6 per cent in 2027.
Brunei’s proximity to neighbouring Malaysian states Sabah and Sarawak as well as Indonesia’s Kalimantan provinces are a source of growing economic potential.
Brunei’s proximity to neighbouring Malaysian states Sabah and Sarawak as well as Indonesia’s Kalimantan provinces are a source of growing economic potential. Sabah’s green energy efforts are gaining momentum. In 2024, the state government approved 15 solar plant projects, totalling 200MW in capacity. By 2026, Sabah aims to achieve 350MW of solar capacity while Sarawak is noted as a potential green hydrogen leader. Brunei and Malaysia are strengthening their cooperation in the energy sector, providing opportunities for investors and clean energy developers. Brunei aims to position itself as a gateway for businesses with an interest in supporting the development of Indonesia’s planned new capital city Nusantara on Borneo approximately 700km from Brunei.
Brunei has been a member of the Association of Southeast Asian Nations (ASEAN) since 1984 and has cooperative relationships with its neighbours. It is also a member of the Asia Pacific Economic Cooperation (APEC) and the World Trade Organization (WTO).
Net Foreign Direct Investment (FDI) flows recovered in 2024 after some volatility, with inflows reaching around BND 34.5 million (AUD 39.5 million)—the first positive net inflow in several years. Despite this improvement, overall inflows remain subdued by historical standards. The government continues to prioritise foreign investment as part of its economic diversification agenda, offering tax incentives and investment facilitation measures to attract international capital.
Brunei and Australia share long-standing political and economic ties. Both countries cooperate on defence and security issues, immigration, environmental issues, health and education. The trade relationship, while modest in terms of trade volume, is mature. Australia was Brunei’s largest export market in 2024-25. The Australian Government’s Southeast Asia Economic Strategy 2040 identifies Brunei as a destination for trade and investment, in particular supplying agricultural commodities for value-added processing before re-exporting from the country.
Brunei’s economy is highly exposed to trade, and like Australia, Brunei supports a free and open trading system. It is a strong supporter of the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) and is ASEAN’s Coordinator for AANZFTA implementation. It is also a party to the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership as well as being a founding member of the Indo-Pacific Economic Framework.
Australia and Brunei share a strong bond in education. For Bruneians, Australia is a popular destination for education. Exchange programs such as the New Colombo Plan and Australia-ASEAN Muslim Exchange Program have strengthened links between communities of both countries.
As a highly oil-dependent economy, rising production costs due to supply chain disruptions are key risks to Brunei’s economy. The government’s economic blueprint, released in 2020, outlines its strategy to diversify the economy by developing sectors such as food, downstream oil and gas processing, tourism, information and communications technology (ICT) and services. This strategy, complemented by policies to encourage foreign investments, present opportunities for Australian businesses.
Comparing key indicators: Brunei and Australia
Figure 1: Real GDP Growth – Brunei and world average (2016-2026f), %
Sectoral snapshots
Brunei’s stability and proximity to other Southeast Asian markets present opportunities for Australian trade and investment in sectors that align with the country’s economic development priorities. This section provides a short overview of prospective sectors.
Food and agribusiness
Although Brunei is a small export market, targeted opportunities for Australian businesses are emerging in some sectors. Brunei relies mainly on imports to meet its food requirements. Australia’s meat and fresh produce play a vital role in maintaining the country’s food security. High-growth categories include infant food, chilled and fresh prawns, cheese and palm oil. The country’s 78 per cent Muslim population is a strong market for halal products, and Australian businesses exporting halal products to markets such as Malaysia and Saudi Arabia can consider exporting to Brunei. Brunei also aspires to become a hub for exporting halal goods to other markets.
This may provide opportunities for Australian businesses to invest in halal-certified food manufacturing facilities in Brunei. Austrade has identified packaged foods and seafood as market opportunities.
Aquaculture
With rich marine biodiversity and species suitable for aquaculture production, Brunei’s aquaculture sector is growing significantly. The 2024 fisheries sector output showed a 2.8 per cent growth year-on-year. Capture fisheries (fish caught in the wild) output increased to AUD 204 million in 2024, accounting for 82 per cent of the sector’s total contribution. The seafood processing industry’s production output reached 2,617 metric tonnes in 2024, fuelled by the availability of raw materials from capture fisheries and aquaculture. There are opportunities for Australian companies seeking to enter the aquaculture supply chain, leveraging Brunei’s strategic location in Asia and strong trade connections to Southeast Asia, China and East Asia, and the Middle East.
Marine maintenance and decommissioning
Brunei is developing a marine maintenance and decommissioning shipyard to provide repair, overhaul, decommissioning, and restoration services. As an initiative of the Brunei Darussalam Maritime Cluster, the government’s roadmap toward becoming a regional trading and logistics hub, the shipyard will also provide international connectivity to facilitate growth in the wider economy. This development presents opportunities for Australian companies in the marine decommissioning and repair service value chain.
Technology
Brunei’s Digital Economy Masterplan 2025 promotes digitalisation with a focus on artificial intelligence, blockchain and cyber services including digital identity systems to enhance public services. The country has delivered higher broadband speeds at a minimum of 100Mbps and up to 500Mbps for all subscribers, creating new opportunities in the digital economy. Collaborations between industry and universities are generating demand for ICT talent development in Brunei. Australian companies may identify opportunities to provide ICT training programs and in deploying modern technologies. Austrade has identified key market opportunities in the technology sector including critical technology, fintech and cybersecurity for Brunei.
Green economy
Brunei’s heavy reliance on its oil and gas sector leaves it exposed to energy price fluctuations and energy transition risks. The government is focused on making a green transition by decarbonising its downstream oil and gas sector and diversifying its economy. Brunei’s green economy transition presents opportunities in carbon capture storage services, clean hydrogen, waste recycling and renewable sources of energy for Australian businesses. Brunei aims to move away from using gas for domestic electricity production by increasing the share of energy generated from renewable sources by 30 per cent in 2035. This could open opportunities for Australian solar energy developers and investors. Brunei’s aspirations to achieve Net Zero by 2050 offer opportunities for Australian investors to collaborate across the value chain in the country’s energy transition.
Health and medical
Brunei’s healthcare industry is small but growing. The global halal economy is projected to reach AUD11.1 trillion (BND 9.8 trillion) by 2030. Demand for halal-certified vitamins and supplements in Brunei present opportunities for Australian businesses to export halal-certified food, ingredients and nutraceuticals. Moreover, Australian businesses can tap into Southeast Asia’s growing preference for health and medical products by setting Brunei as its base.
Oil and gas
In 2024, 46.7 per cent of Brunei’s GDP came from the oil and gas sector. For Australian businesses, Brunei’s upstream oil and gas sector presents an opportunity to provide equipment and services. Australian businesses with expertise in low-emissions LNG extraction and transport can tap into Brunei’s ambition to reduce emissions in its hydrocarbons sector. Brunei is also home to Southeast Asia’s largest fertiliser manufacturer, Brunei Fertiliser Industries (BFI). BFI is seeking to reduce emissions from its fertiliser production and transportation, presenting opportunities for Australian businesses with capabilities in the development of fertilisers sourced from clean energy.