BANDAR SERI BEGAWAN (Borneo Bulletin/ANN): Brunei Darussalam Central Bank (BDCB) reported a slight dip in business confidence for September 2025, with the national Business Sentiment Index (BSI) registering 49.9—indicating marginally pessimistic conditions compared to August.
The monthly index is derived from surveys involving around 500 businesses across 11 economic sectors nationwide.
According to BDCB, the softer sentiment was largely driven by weak customer demand and slower market activity, as firms cited quieter sales and the completion of earlier projects without immediate replacements.
Despite the overall dip, the survey noted stabilising factors, including increased domestic spending expected from the end of school holidays and the start of examination periods, along with improved walk-in traffic and successful promotional campaigns. The one-month-ahead outlook also remained slightly pessimistic at 49.9, reflecting concerns over subdued consumer spending and expiring contracts.
Investment sentiment, however, was more positive. The Investment sub-index rose to 50.4 for the current month, with expectations of further increases in the coming months as firms prepare for year-end activities, infrastructure upgrades, and festive demand. Businesses cited planned expansions, machinery purchases, inventory restocking, and renovation projects as key drivers.
Employment levels stayed largely stable, with the Employment sub-index at 49.9 for both the current month and one month ahead. Firms reported that reductions were mostly tied to non-renewal of contracts, completion of short-term projects, and cost-cutting measures. A cautious hiring outlook persists amid uncertain demand.
Operational costs continued to trend upward, with the Costs sub-index at 50.1 in September and 50.3 for the month ahead. Companies highlighted salary adjustments, overtime, maintenance, insurance, and increased activity in construction and manufacturing as contributors to rising expenses.
Across economic sectors, Health & Education (50.5), Agriculture (50.5), Construction (50.2), Hotels & Restaurants (50.1), and Finance & Insurance (50.1) were among the most optimistic, supported by higher demand, new projects, and strong promotional efforts. Conversely, Wholesale & Retail (49.9), Oil & Gas-related (49.8), and Transport & Communication (49.1) recorded weaker sentiment due to competition, softer margins, seasonal slowdowns, and contract expiries.
By business size, medium enterprises were the most optimistic at 50.1, buoyed by new projects and marketing successes. Micro and small firms reported neutral conditions, while large firms (49.9) were weighed down by contract expiries and weaker spending.
BDCB said the BSI continues to serve as a forward-looking indicator of domestic economic confidence. -- Borneo Bulletin/Asia News Network
