Dependence on the oil and gas sector, which accounts for most of Brunei Darussalam’s GDP, exports and government revenues, has allowed the country to reach the high-income level but leaves it highly vulnerable to energy price fluctuations.
The challenging business environment may discourage investment in non-energy sectors. For example, starting and running businesses, registering property, inadequate physical infrastructure and weak intellectual property protection pose difficulties. New measures are underway to attract investment by promoting R&D and ICT use. The Brunei Research Incentive Scheme (BRISc) is a cost-sharing grant program where 70% of R&D funding can be obtained from the government. The government has also upgraded ICT infrastructure with fiber-to-the-home (FTTH) broadband services.