Brunei Darussalam welcomes foreign investment. Foreign investors are invited to actively participate in the current economic diversification programme of the country. The programme hinges on the development of the private sector. The Brunei Economic Development Board was formed on 26 November 2001 and its main objectives are to stimulate the growth, expansion and development of the economy by promoting Brunei Darussalam as an investment destination .

Competitive investment incentives are ready and available for investors throughout the business cycle of start up, growth, maturity and expansion. The Investment Incentive Act which was enacted in 1975 provides tax advantages at start up and ongoing incentives throughout growth and expansion that are comparable if not better than those offered by other countries in the region.

Industrial activities are classified into four categories:

• Industries related to national food security

• Industries for local market

• Industries based on local resources

• Industries for export market

facilities remain open and flexible for all categories of industrial activities. Brunei Darussalam maintains a realistic approach where a variety of arrangements are feasible. Policies relating to ownership allow for full foreign ownership, majority foreign ownership and minority foreign ownership, as per the type of industry and situation.

Only activities relating to national food security and those based on local resources require some level of local participation. Industries for the local market not related to national food security and industries for total export can be totally foreign owned. Overall, in Brunei Darussalam, any industrial enterprise will be considered.

Supportive Environment

Brunei Darussalam offers vast land and a variety of facilities throughout all four districts of the country. The majority of the 12 industrial sites presently developed are ready and available for occupation. Large expanses for agro-forestry and aquaculture are also available. Rental terms and tenancy agreements are competitive and the sites offer a range of facilities, infrastructure and resources. Brunei Darussalam gives priority to ensuring the stability of the natural environment.

As such, all sites are free from pollution and are ecologically well balanced. The Government philosophy is for sustainable development. Therefore, all polluting industries are banned and one of the continuing criteria for engaging any industry's participation is the impact on the environment.