China will help Brunei ease reliance on crude exports
Friday, June 15, 2018
Subject
Brunei's economic diversification.
Significance
Sultan Hassanal Bolkiah, ruler of Brunei for the past 50 years, is turning to Chinese foreign direct investment (FDI) and engineering companies to expand his country’s infrastructure and reduce its dependence on crude oil exports. The first phase of the China-funded Pulau Muara Besar (PMB) oil refinery and petrochemical complex is due to open in early 2019.
Impacts
- A rise in oil prices will drive Brunei’s GDP growth in the short term.
- Reliance on Chinese companies will increase the number of Chinese workers brought to Brunei, limiting opportunities for local labour.
- Within ASEAN, Brunei will support Beijing on South China Sea issues.
Related articles
