• Today: October 21, 2026

Brunei businesses optimistic as August sentiment index hits 78.1

Businesses in Brunei Darussalam were generally more optimistic about current business conditions in August, with the headline Business Sentiment Index (BSI) reaching 78.1, according to the Brunei Darussalam Central Bank (BDCB).

The index, based on monthly surveys of around 500 businesses across 11 economic sectors in all four districts, indicated improved sentiment compared with July, supported by higher energy production, new project awards in construction and services, promotional activities and school holiday spending.

The oil and gas-related sector recorded the strongest sentiment at 94.0, followed by construction at 64.1, transport and communication at 60.8, and manufacturing at 59.2.

By business size, large businesses recorded an index of 78.5, while medium-sized businesses stood at 66.1. Micro businesses registered 54.6, indicating broadly unchanged sentiment, while small businesses recorded 49.5.

Looking ahead, the one-month-ahead business conditions index stood at 56.5, suggesting businesses expected only a slight improvement in September. Some remained cautious over uncertainties surrounding project awards, customer demand, competition and operational challenges.

FILES – People pay for their grocery shopping at one of the supermarkets in Berakas. PHOTO: BB FILES

Investment sentiment remained positive, with the current investment index at 81.0, the one-month-ahead index at 79.8 and the three-month-ahead index at 81.1. Businesses anticipated spending on machinery, equipment, vehicles, inventory, construction and refurbishment, as well as information technology and production infrastructure.

However, employment sentiment remained broadly stable, with the current employment index at 46.6 and the one-month-ahead index at 47.1. Businesses cited elevated input costs and adequate manpower as reasons for maintaining existing staffing levels, although some recruitment was reported for new projects and expansion.

The current costs index stood at 61.0, reflecting higher operating expenses in August, including spending on materials, utilities, logistics and employee-related costs. Businesses expected costs to remain broadly unchanged in September, with the one-month-ahead index at 49.9.

Among sectors, hotels and restaurants recorded a pessimistic index of 42.3, while agriculture, forestry, fisheries and livestock stood at 34.4. Health and education registered the lowest reading at 18.6, reflecting subdued activity expected during the school holiday period.

BDCB said the BSI methodology had been revised to improve the index’s sensitivity and interpretability. The index now uses the full scale of zero to 100, with readings above 55 indicating expansion or optimism, values between 45 and 55 representing no significant change, and readings below 45 indicating contraction or pessimism.

Historical data have been recalculated under the revised methodology to maintain consistency and comparability over time.

The BSI measures business confidence in areas including current and future business conditions, investment, employment and operating costs, and serves as a forward-looking indicator of economic activity. 

 

SOURCE/AUTHOR : BORNEO BULLETIN

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