Brunei’s $3.1 Billion Deficit, Corruption Crackdown, and Cyber Threats: LegCo Faces Nation’s Biggest Challenges

By Malai Hassan Othman

BANDAR SERI BEGAWAN, MARCH 2025: Brunei’s Legislative Council (LegCo) entered its fourth day of deliberations on March 4 2025, tackling?fiscal sustainability, governance integrity, and national security?concerns.?

$3.1 Billion Budget Deficit Sparks Debate

Brunei’s?BND 6.35 billion budget?remains under scrutiny, with concerns about a?BND 3.1 billion fiscal deficit?raised by legislators.

Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Awang Haji Adnan bin Begawan Pehin Siraja Khatib Dato Seri Setia Haji Md Yusof warned,?"Economic diversification is not progressing fast enough. We must rethink revenue collection and optimise spending."?

Comparing previous years,?Brunei’s deficit has widened significantly from BND 2.4 billion in 2023/24, signalling?a continued reliance on oil and gas revenues.

The government reassured its commitment to?new tax frameworks and foreign direct investment (FDI) incentives?to bridge the revenue gap.

Adding to the concern,?Brunei projects US$1.82 billion in revenue from oil and gas in the new fiscal year, reinforcing fears that diversification efforts remain sluggish.

The Minister of Finance and Economy emphasised that?non-oil and gas revenues are expected to reach US$595.46 million, indicating gradual but insufficient economic transformation.?

Crackdown on Corruption Gains Momentum

Anti-corruption measures took centre stage as the Minister in the Prime Minister’s Office reaffirmed?strict enforcement under the Anti-Corruption Act (Penggal 131).?

"Corruption, whether big or small, erodes national trust and?progress,"?the Minister stated, calling for?internal integrity units?in all ministries.

Since its establishment in 1982,?Brunei’s Anti-Corruption Bureau has investigated 2,469 cases, with 231 convictions.

Additionally,?260 public servants have been dismissed or reprimanded?for exploiting their positions, highlighting a persistent governance challenge.

Legislators urged more transparency in?government procurement, financial reporting, and civil service accountability.

A senior LegCo member added,?“Without strict monitoring, financial mismanagement will continue to burden national resources.”

Cybersecurity and Digital Fraud on the Rise

Brunei’s?cybercrime landscape is evolving, with?82 scam websites and 557 fraudulent numbers blocked in 2024, the Minister of Transport and Infocommunications revealed.

In response, the government announced?SIM card re-registration, stricter cybersecurity regulations, and partnerships with tech giants like?Meta (Facebook, WhatsApp, Instagram).

However, cybercrime remains a major concern, with?BND 5 million lost to online scams in 2024, a?100% increase from the previous year.

Chief Inspector Adinin bin Haji Ahmad from the Cyber Crime Investigation Division warned that scammers are exploiting digital vulnerabilities, making?regulatory adaptation a pressing necessity.

A special task force, including?banks and law enforcement agencies, is being formed to?counter digital financial fraud.

A cybersecurity expert warned,?“Cybercriminals are evolving faster than regulations. Without continuous updates to our cybersecurity policies, financial fraud will rise.”

Border Security and Brunei-Malaysia Land Demarcation

Legislators reviewed?progress on the 528.45km Brunei-Malaysia border, demarcation, with?175.96km completed so far.

The Minister of Foreign Affairs II confirmed a commitment to finalising land boundary agreements with Malaysia?by 2034?to enhance?border security and prevent smuggling.

Historical complexities continue to play a role, with?disputed claims over maritime and land territories?between the two nations.

While agreements such as the?2009 Exchange of Letters?have addressed some issues, others remain unresolved.

Residents near border areas have raised concerns about?illegal crossings affecting local businesses, prompting calls for?increased security patrols and enhanced surveillance infrastructure.?

Brunei’s Sports Industry Push

Brunei is investing in?sports infrastructure?ahead of hosting the?ASEAN School Games (ASG) in November 2025.

Upgrades to?Stadium Negara Hassanal Bolkiah?and plans for?annual international marathon and cycling events?on the?Sultan Haji Omar ‘Ali Saifuddien Bridge?are in motion.

A youth representative from Brunei’s national sports body noted,?“Investing in sports is not just about infrastructure - it’s about creating long-term opportunities for our athletes and boosting tourism.”

What’s Next? A Nation at a Crossroads

Brunei faces?critical choices: reform fiscal policies or risk deeper deficits, enforce governance reforms or lose public trust, accelerate digital security measures or fall prey to cyber threats.

With economic pressures mounting and regional complexities at play, how will policymakers navigate these challenges? The answer will shape Brunei’s future for years to come. (MHO/03/2025)

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