This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 7/12/2019

Overview

The joint project between China’s Hengyi Industries and Darussalam Assets represents one of the largest direct foreign investments in Brunei to date, with investment estimated at US $15 billion. 

In January 2016, the Temburong mega bridge construction project was launched. The Temburong mega bridge project has been divided into six contracts: the first contract, CC2, was awarded to a Brunei-Korea joint venture for US $417 million, while the other five contracts will be announced at a later stage.  Post is not aware of any U.S. firms involved in bidding for the Temburong mega bridge project. The bridge is expected to be completed by the end of 2019.

Large construction contracts come mainly from the Brunei government and Brunei Shell Petroleum Co. Brunei follows a policy of awarding construction contracts wherever possible to local firms.  Foreign firms may have to form joint ventures with, or subcontract to, a local firm in order to participate in infrastructure projects.

Table 4: Brunei Construction Production (USD/Thousand)
No data available.

The construction industry, with about 793 registered enterprises in 2015, ranks second in the number of enterprises among Brunei’s industrial sectors and employs some 27,810 workers (2015). The vast majority of these workers are non-local laborers. The Construction industry is the largest employer of non-local laborers. Small enterprises (one to nine employees) account for 43% of construction enterprises, medium enterprises (10 to 99 employees) account for 51% of construction enterprises, and large enterprises (100 or more employees) account for 6% of construction enterprises. In 2017, the Authority for Building Control and Construction Industry under the Ministry of Development launched its “12:2017 Building Guidelines and Requirements under the Building Control Order 2014”, focusing on safety and health of the public through the control of development.

Leading Sub-Sectors

  • Concrete product (e.g., structural precast, structural prestressed) installation

  • Rebar contractors

  • Erecting structural steel

  • Reinforcing steel contractors

  • Placing and tying reinforcing rod at a construction site

  • Structural steel contractors

  • Precast concrete panel, slab, or form installation

Opportunities

The proposed government-funded mega bridge linking the districts of Muara and Temburong is being built by Korean and Chinese construction companies in partnership with local companies. Once the bridge is completed, there may be construction and infrastructure related opportunities for U.S. firms to develop the currently low-population density and undeveloped Temburong District. The Brunei government seeks to increase development in the currently relatively isolated Temburong region which contains Borneo’s most pristine forests and natural resources. Construction of the bridge will pass through environmentally sensitive mangrove areas.

Brunei is proud of its natural environment and will seek to minimize adverse impact upon natural areas along the bridge’s proposed route and in water ways along the bridge’s path. U.S. firms that have expertise in sustainable and environmentally-conscious construction procedures and have a proven track-record of sound environmental stewardship have an advantage in obtaining contracts and should leverage this credential in their efforts. Partnerships between firms which have expertise in advanced and environmentally-sound construction techniques and local firms will be welcome, particularly if U.S. firms can offer training opportunities for Bruneians.

U.S. firms entering the construction industry in Brunei will find that Brunei faces a shortage of skilled laborers. Building materials must be largely imported, increasing construction costs. Due to the tropical climate, construction materials and methods differ substantially from those of temperate climates. Set concrete construction with reinforcing steel (rebar) is the norm for housing.  Wood frame construction is not common. High annual rainfall and humidity mean that concrete setting takes longer than in temperate climates, often reducing the speed at which structures can be completed. Despite these challenges, there are a range of construction opportunities in Brunei both from government contracts and private firms.

Web Resources

Brunei Association of Surveyors, Engineers and Architects
Ministry of Development – Public Works Department
Ministry of Energy and Industry



 

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