Country Report: Brunei Darussalam

The nation gained independence in 1984 and is ruled by a sultan who concurrently holds multiple ministerial positions. Brunei Darussalam has one of the most advanced economies in Southeast Asia and is classified as a high-income country, boasting one of the highest gross domestic product (GDP) per capita in the world. However, the economy is over-reliant on the oil and gas industry, which accounts for 95 percent of Brunei's exports and is subject to declining oil prices. Efforts have been made to diversify the economy through growing non-energy sectors and enhancing local capacities across industries, presenting opportunities for social entrepreneurs. The Bruneian government aims to meet the lifelong basic needs of all Bruneians, providing free healthcare, education, low-cost housing, and retirement pensions, as well as exempting citizens from income tax. Despite the overall high standard of living, poverty still exists in Brunei, particularly among women and the elderly. Women living in poverty are marginalized and face a greater threat of poverty later in life due to limited employment experience and lower earnings compared to men. Poverty amongst the elderly is also a concern due to the aging population and weakening support from families. The country faces high levels of unemployment and economic and social exclusion among youths, with an unemployment rate of 6.9 percent in 2014 and a youth unemployment rate of 25.3 percent. Unemployment benefits are nonexistent in Brunei Darussalam. Social enterprises are seen as a viable solution to address these issues, with the Brunei Council on Social Welfare (MKM) aiming to train the poor to start businesses, particularly targeting poor women, divorcees, widows, and individuals with disabilities. The government has acknowledged the potential of social enterprises to reduce public reliance on government funds and encourage more youths to become social entrepreneurs. The social landscape in Brunei Darussalam is largely dominated by the government, which has reaffirmed its commitment to helping marginalized groups under its Vision 2035. The Brunei Council on Social Welfare (MKM) is an active nongovernmental organization that supports the government's efforts on improving social welfare and coordinates NGO activities. MKM also supports marginalized groups through economic empowerment programs, including a social enterprise program that trains individuals to start their own microbusinesses. The current number of social enterprises in Brunei is unknown, but the total number of business establishments was recorded at 9,302 in 2008, with 1,309 microenterprises and SMEs with a community, social, or personal service focus. The Bruneian government has established a thirty-year national development plan to enhance economic growth, which includes a policy framework to support the development of social enterprises. The Young Southeast Asian Leaders Initiative (YSEALI) has held workshops in Brunei Darussalam on eco-entrepreneurship and social entrepreneurship, highlighting the country's efforts to promote social entrepreneurship and innovation. The Annur Harapan Community Service Centre (Ray of Hope Centre) was opened in 2015, claiming to be the first social enterprise in the country, although this may not be accurate given the existing number of businesses with a service focus recorded in 2011.