Brunei businesses showed cautious optimism in October 2024, with the Business Sentiment Index (BSI) headline figure standing at 50.3, reflecting improved business conditions compared to the previous month.
According to a press release from the Brunei Darussalam Central Bank (BDCB), the positive outlook was driven by increased domestic spending during the school examination season, events like the Sabre Brunei Travel Fair and BINA Brunei Expo, and October’s slightly longer duration. Businesses anticipated growth in production, sales, and projects, despite challenges such as poor weather, subdued demand, and delayed payments.
Key findings
The one-month-ahead sub-index recorded 50.1, indicating businesses expect steady improvements towards the year-end, supported by promotional efforts and increased activity.
The Investment sub-index remained stable at 50.0 for October and November but rose slightly to 50.1 for three months ahead, anticipating heightened demand during festivities like Chinese New Year, Ramadhan, and Hari Raya Aidilfitri.
The Employment sub-index stood at 50.2, reflecting ongoing recruitment trends, while the Costs sub-index was at 49.9, signaling lower operational costs due to reduced wages, maintenance expenses, and raw material spending.
Sectoral performance
The Transport & Communication sector led optimism at 50.7, buoyed by higher sales, shipments, and project tenders, followed by the Oil & Gas sector at 50.4, driven by improved market conditions. Conversely, the Wholesale & Retail Trade and Construction sectors reported pessimism due to reduced consumer spending and delayed projects.
Business size sentiment
Large businesses were the most optimistic (50.3), citing increased sales, marketing activities, and new product launches, while small businesses (49.5) faced challenges such as fewer orders and payment delays. Micro and medium-sized businesses reported steady conditions (50.0).
The BSI, derived from over 500 surveyed businesses across 11 economic sectors, serves as a key indicator of economic confidence in Brunei. It enables policymakers and businesses to assess trends and plan strategically.
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