Businesses in Brunei feel the pinch amid Covid-19 outbreak

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BANDAR SERI BEGAWAN (Borneo Bulletin/Asia News Network): As Brunei Darussalam approaches the second month of partial lockdown due to the Covid-19 outbreak, local businesses are feeling the pinch.

Interim measures were rolled out by the Ministry of Finance and Economy to support certain private companies in addressing the challenges. However, some are lamenting the decline in business activities.

Sarah, an entrepreneur, said, “With no business running these days, it is a daunting task to pay utility bills, building rentals, car hire purchase and wages of my workers.

“Is there any way I could get out of this?” she asked.

A shop vendor in Serusop said his cash register hardly serves any customers these days as the area, which is usually bustling with people, is experiencing very low foot traffic.

A local woman, who is in the catering business, is also facing similar issues, having not received any catering orders for September yet. She has to pay for hire purchase and other instalments.

“To engage in home-based business is also not worth,” she added.

The interim measures by the government took effect on Aug 1 and will be in place until Dec 31, which includes the deferment of the five-per-cent Employees Trust Fund (TAP) and 3.5-per-cent Supplemental Contributory Pension (SCP) for local workers earning BND1,500 and below a month in affected sectors under the micro, small and medium enterprises (MSMEs) category with less than 100 workers.

A 25-per-cent subsidy provision for workers’ salary payment is also implemented for local MSMEs with employees not exceeding 100 people from Aug 1 to Dec 31.

The government also funds SCP contributions to the self-employed for the same period.

Provision of at least 30 per cent discount on government building rental rates to MSMEs according to the affected enterprises is also given to help reduce the operating costs to the intended operators, as well as a 50-per-cent tax discount on the corporate income tax for the 2022 assessment to the affected sectors.