By Ignatius Stephen

Brunei records high revenue

Article from Borneo Bulletin Weekend. Published on Saturday Jul, 31 2010

Happy days are here again for Brunei with money flowing in like honey. So much so, the oil rich sultanate has reaped record total revenue in 2009 and consequently the highest year-end Primary Budget Surplus.

The International Monetary Fund (IMF), the world finance authority, in its last year's Expenditure and Budget Balance figures indicates that Brunei's total revenue was a whopping B$11,378 million in 2009.

Total expenditure was $5,975 million leaving a happy Primary Budget Surplus of $5,403 million.

Brunei's major export remained oil and gas and the main destinations were unchanged with most going to Japan and South Korea as Crude Petroleum and Natural Gas.

IMF says in its annual report that the oil and gas sector continue to dominate Brunei's economy, accounting for about 50 per cent of real GDP, 95 per cent of total exports, and 90 per cent of government revenue.

GDP per capita (US$36,225) remains one of the highest in the world. Oil revenues are saved for future generations through a fund managed by the Brunei Investment Authority (BIA).

Flexible and prudent economic management has mitigated the impact of the global economic downturn, the report adds.

South Korea is emerging as one of Brunei's major trading partners with its import of $1,519 million worth of crude oil in 2008 while Japan's import of $5,975 million Natural Gas is an all time high. In 2002 Japan bought $2,274 million worth of gas that has steadily increased yearly.

Demands from new players like Thailand which imported $877 million in 2002 have now gradually eased.

Bangkok only took $113 million in crude in 2008 while Philippines has emerged with $214 million worth in 2008 while Singapore ($104 million) remained an importer.

The United States a traditional crude oil importer which took in smaller amounts ($655 million in 2006 and $430 million in 2007) did not import any from Brunei in 2008.