Economic Issues in Brunei Prior to 2014 Oil Crisis

Abstract

The effects of falling oil prices are being felt by oil producing countries including Brunei Darussalam which forced them to take preventive measures. This is another great challenge for Brunei as Brunei is already lacking in diversification, its source of income is highly dependent on oil and gas. Thus, this paper focuses on the economic issues prior to the 2014 oil crisis and suggest recommendations what could have been done to solve the issues. This is important as Brunei is moving towards its national vision – Wawasan Brunei 2035, in formulating policies during the crisis, these problems and recommendations need to be taken into consideration. The methodology of this paper is based on literature reviews from journals, books, annual reports, and newspapers which are related with keywords and research area. Several important policies are believed to be able to help in accelerating the development of the country and the major reforms are identified. Undoubtedly, Brunei has always the potential for development, but it is how Brunei uses the available resources efficiently and effectively with help of a good set of policies and governance.