FILE PHOTO: Brunei's oil and gas (O&G) sector recorded modest growth of 0.6 per cent, supported by stabilising production. - BB/ANN
BANDAR SERI BEGAWAN: Brunei Darussalam Central Bank (BDCB) has expressed cautious optimism for the economy, projecting steadier growth in 2025 as oil and gas production stabilises and major development projects gain momentum.
In its second semi-annual Policy Statement for 2025, released Tuesday (Dec 30), BDCB noted that Brunei’s economy contracted 0.7 per cent year-on-year over the first three quarters of the year.
The oil and gas (O&G) sector recorded modest growth of 0.6 per cent, supported by stabilising production, while the non-O&G sector declined 1.9 per cent, weighed down by weaker performance in manufacturing and financial services.
Despite the contraction, BDCB said the growth outlook is expected to improve as upstream and downstream oil and gas activities stabilise toward year-end.
Additional support is anticipated from progress in key foreign direct investment projects and the rollout of strategic initiatives under the 12th National Development Plan (RKN12).
Globally, the International Monetary Fund has revised its growth forecast upwards to 3.2 per cent for 2025 and 3.1 per cent for 2026, reflecting improved economic momentum.
Inflation in Brunei Darussalam remained subdued, averaging minus 0.3 per cent year-on-year between January and November 2025, in line with global disinflation trends.
BDCB attributed the stable price environment to government subsidies, price controls and the Brunei dollar’s parity with the Singapore dollar.
Inflation for 2025 is forecast to remain within a range of minus 0.6 per cent to 0.4 per cent.
Meanwhile, the domestic financial sector continued to show resilience.
As of the third quarter of 2025, total financial sector assets grew 5.5 per cent to BND25.6 billion (US$19.91 billion), with the Islamic finance sector accounting for BND14.8 billion and the conventional sector BND10.9 billion.
Deposit-taking institutions comprised 91.5 per cent of total assets.
Although profitability eased slightly, the banking sector maintained strong capital positions, with the Capital Adequacy Ratio standing at 18.7 per cent in Q3 2025.
Among key developments in the second half of the year was the launch of the Brunei Darussalam Sustainable Finance Roadmap in November, aimed at promoting a climate-resilient financial sector. Brunei also ranked 13th out of 140 countries in the Islamic Finance Development Report 2025, recording its strongest improvement in awareness.
BDCB is also preparing a Digital Payment Roadmap 2026-2030 to enhance secure and consumer-focused payment systems.
The full version of BDCB Policy Statement 2/2025 can be found on BDCB’s website at www.bdcb.gov.bn - Borneo Bulletin/ANN
