Local entrepreneur disputes finding: 'Govt has right to scrutinise applicants'

STATE control over a whopping 95.4 per cent of Brunei's land is among the causes for the slow economic diversification, according to Singapore consultancy Centennial Asia Advisers, which was commissioned to review efforts to wean the economy's dependence on the oil and gas sector.

"Besides access to capital, another key factor of production is land. Part of the corporate sector weakness, we feel, is related to excessive government control over land," said Manu Bhaskaran of Centennial Asia Advisers during a recent roundtable on Brunei's diversification organised by private think tank Centre of Strategic and Policy Studies and the Asia Inc Forum.

According to Bhaskaran, 95.4 per cent of Brunei's real estate is owned by the state, 2.37 per cent by Bumiputeras (Bruneian Malays), 0.11 per cent by non-Bumiputeras, while the remaining 2.12 per cent has unclear status.

In an interview with The Brunei Times, a local economist, who asked not to be named, said the government does try to encourage land development for business activities.

At the same time, he said, the private sector also has a role in meeting the requirements. In order to acquire land, he said, businesses should submit feasible proposals. "The proposal has to be carefully thought through, feasible and meets the requirements set," he said.

"The government gives incentives for land to be developed for industrial use," he said, noting initiatives by the Brunei Economic Development Board. He cited the Sungai Liang Industrial Park and Pulau Muara Besar, major industrial projects key to government's diversification plan. "Obviously, the two projects will then enable some businesses to operate on the land.

"The government, to me, has no problem giving access to land for business purposes," he said.

He said government also offers incentives to businesses venturing into agriculture and fisheries, which also require access to property.

Shaikh Khalid Sh Ahmad, chief executive officer at the Serikandi Group, told The Brunei Times that he acquired land from the government last year without problems.

"They approved my land lease, where I have been given ownership for 20 years. I have to pay $6,000 a year for lease and income tax. I have no problem," he said.

The process, he said, went "smoothly", noting the government has every right to scrutinise land applicants.

"As long as you meet the requirements, (you can get access to land), but they would scrutinise you, your details such as debts and past financial records," he said.

He said the government is looking for liquidity from businesses wanting to acquire a piece of property.

"I don't have any concerns. My case is over and I am happy with the result. They would not want to give you a 20-year land lease without money," he said.

Now, he said, his business is no longer considered as a small enterprise, but a medium enterprise.

But it's a different story for Nor Hasnul Hamdani, assistant general manager at Rakan Tiga Media. He said that he had once wanted to apply for two hectares of land to be developed for sporting activities.

"I wanted to develop it as a sport business, but it was not easy. Even the Brunei Darussalam Industrial Development Authority did not make it easy. They said 'look for the land first and then come to us'," he said.

The Brunei Times