Entrepreneurs in the Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA), particularly those running technological start-ups, will soon have an alternative way of raising funds through a crowd funding platform, instead of waiting for banks to fund them.

The Chairman of BIMP-EAGA Business Council Brunei Darussalam, Pengiran Haji Yura Kesteria bin Pengiran Setia Negara Pengiran Dr. Haji Mohd Yusof, told the media representatives that crowd funding is a very good platform not only for the ICT sector but also businesses as a whole.

He said this during a sideline interview at the 4th BIMP-EAGA ICT Infrastructure Cluster Meeting yesterday at The Airport Mall in Berakas, attended by information and communications technology (ICT) leaders.

A forum called the ICT CEO Forum is also being held in tandem with the above mentioned meeting for three days.

"Traditionally, when we want to get funds to start a business, for instance from the bank, it is normally difficult as it requires collateral.

"For crowd funding, due diligence is examined. If the business is good and worth funding, we can raise funds from various sources like from individuals or organisations. Interested investors will invest in particular businesses which are doing well," he said.

"Crowd funding is a very welcome platform especially for BIMP-EAGA as there are many projects that could be done like ICT, and gives opportunities to cooperatives or the public to invest in that do not necessarily need to be in Brunei, but outside the country," he added.

Pengiran Haji Yura Kestria added that there are challenges for crowd funding as it is a new thing. "We need to educate the public on the good and bad of crowd funding. It must be regulated by government authorities as it involves many financial procedures. Investors' interest must be protected which is most crucial, as this could lure more foreign direct investments (FDIs) to Brunei Darussalam.

"By facilitating the raising of funds through crowd funding, our rank in the World Bank's Ease of Doing Business would also improve. Crowd funding is easily accessible to people as it does not involve typical bank procedures. Once a project is announced, the lead crowd funding company will evaluate the firm whether it can handle the project or to what extent it can expand," he added.

Meanwhile, Awang Haji Mahmud bin Haji Mohd Daud, a member of BIMP-EAGA Business Council Brunei Darussalam, also told the Bulletin that financing is important in Brunei, especially when it comes to the small and medium enterprises.

"But people have to be literate on this. We don't want to take the risk. We need to get it clear on the rules of the governance and structure.

"Crowd funding is an alternative source of gathering funds for financing, besides going to the bank. Businesses don't have to wait for the government to fund their activities and it may take years to get approval from the bank. Businesses can't wait and that is why crowd funding is getting so popular," he said.

Source:
@BRUDIRECT.COM

by BruDirect.com

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