National Development Plan (Brunei)

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Type of projectDevelopment planning
Launched1953; 73 years ago (1953)
National Development Plan
Rancangan Kemajuan Negara
رانچڠن كماجوان نڬارا
Type of projectDevelopment planning
FounderSultan Omar Ali Saifuddien III
CountryBrunei Darussalam
Launched1953; 73 years ago (1953)
BudgetIncrease$6.25 billion BND (2024)[1]
StatusOngoing
Websitedeps.mofe.gov.bn

The National Development Plan (NDP) or natively known as Rancangan Kemajuan Negara (RKN), is the name assigned by the government of Brunei to a plan designed to carry out Wawasan Brunei 2035 and diversify the economy by putting projects, programs, and initiatives into action.[2] The RKN and planning were carried out under the direction of the Department of Economic Planning and Statistics (DEPS).[3]

In 17 National Housing Scheme (RPN) zones covering a total area of 794 hectares (1,960 acres), 30,296 homes were built under the Landless Indigenous Citizens' Housing Scheme (STKRJ) and the Land Scheme since the scheme's introduction in 1984. Under the two housing schemes, it has used land lots comprising 5,525 hectares (13,650 acres) hectares across four districts have been awarded since the program's inception in 1984. This information was disclosed on 9 February 2023.[4] The program is administered and maintained nationally by the Housing Development Department (JKP).[5]

In the 16th century the Brunei empire was a prosperous and well-managed maritime power. But by the late 19th century, internal conflicts and abuses by foreign and local actors led to its decline, with Brunei approaching collapse by 1904. Widespread corruption, abuses of power, and a poorly planned system contributed to its deterioration, demonstrating how inadequate preparation and unclear future planning can severely undermine a state's stability.[6]

During the British Residence period (1906–1959), Brunei experienced significant administrative and economic changes. With a population of around 20,000 between 1906 and 1941, it wasn't until the 1960s that Brunei's demographic size began to approach the approximately 25,000 people from the mid-1850s. The first British resident, Malcolm McArthur, played a crucial role in stabilising the country's governance and geographical order by implementing key reforms. He established police stations, civil and criminal courts, mail services, customs offices, and wharves. These foundational developments set the stage for Brunei's economic recovery and growth, even before the commercial exploitation of its oil resources. Subsequent British Residents observed rapid trade growth and the country's transition towards true prosperity following years of decline.[7]

Brunei Town being attacked by a RAAF Bristol Beaufighter in 1945

The discovery and commercialisation of oil marked the beginning of a transformative period for Brunei. Among the top oil producing nations in the world by the 1930s was Brunei, particularly inside the British Commonwealth. Due to its economic growth, Brunei was able to shift from "rags to riches." But this progress was halted due to World War II. The Japanese occupation and subsequent Allied bombing strikes completely devastated Brunei. Seria's oil wells were set on fire, and Brunei Town was severely damaged, with just a Chinese temple still standing. With the sultanate in ashes, the war's devastation halted Brunei's economic growth.[7]

Following the Second World War the government gave food distribution and the restoration of basic necessities first priority. Reconstruction of about 200 business houses and new government offices handled much of the war damage by early 1953 as rehabilitation activities got underway swiftly.[8] During Sultan Omar Ali Saifuddien III's reign, Brunei saw substantial advancements in its political system and infrastructure. His assistance was essential in bringing Brunei from under British protectorate to full independence. The 1959 Constitution of Brunei, which abolished the British Resident's power and installed a British High Commissioner in its place, was one of his greatest accomplishments. By doing this, the Sultan was given his internal sovereignty back and became the ultimate executive head of government. The five-year national development plans were introduced by the Sultan to support Brunei's post-war reconstruction and modernisation.[9]

RKN in the 20th century

RKN 1 (1953–1958)

Brunei Town in the 1950s
The newly built Omar Ali Saifuddien Mosque in 1958

Initiated in 1953 and spanning from 1953 to 1958, the first national development plan (RKN 1) played a crucial role in the transformation of Brunei. Prior to its establishment, Brunei was seen as a less developed and economically deprived country. The strategy signaled a paradigm change that helped Brunei become a nation with high GDP per person and a high standard of living. A "bloodless revolution" was how observers characterised the advancement because of the extent of the improvements made, which was especially remarkable considering Brunei's tiny population at the time. the nation's first 5-Year Development Plan was started when the State Council authorised $100 million for the five-year term, because of Sultan Omar Ali Saifuddin III's leadership. The principal objectives were to improve living conditions, modernise the nation while maintaining the framework of the Melayu Islam Beraja, raise Brunei's standing in Southeast Asia, and expand the non-oil and gas sector. To monitor the plan's execution, E. R. Bevington, a British expatriate from the Colonial Office in Fiji, was named Commissioner of Development.[10][11]

The $100 million was distributed across a number of important projects:[8]

  • Increasing access to healthcare and education
  • Putting relocation plans into action
  • Water supply
  • Enhancing fishing practices and agricultural practices
  • Extending communication networks and highways
  • Building structures such as bridges and power plants
  • Installing phone and television networks

Under RKN 1, infrastructure development received nearly 59% of the budget, with 21.77% going to welfare, health, and education. The plan gave increasing social welfare a lot of attention, which raised Bruneians' standard of life significantly. A pension plan for the disabled and those over 60 was one of the major social welfare projects implemented; it began in 1957 and paid $20 per month. Due to the plan's sustained emphasis on social welfare, qualified Bruneians now receive $250 each month, a testament to the program's enduring success. Important projects completed during this time were the building of new wharves at Brunei Town and Kuala Belait, the construction of the main road connecting Brunei to Tutong and Belait, and the preliminary design for a future port at Muara.[12] In Brunei Town and Kuala Belait, automatic phone exchanges were installed, along with the Old Airport. In addition, a hospital and more than thirty new schools were constructed in Kuala Belait. The plan also highlighted the need for economic diversification away from the oil sector, putting out plans for things like improved waste gas use, improved agricultural practices, rubber replanting, and a sharper emphasis on the fishing sector.[13][14]

More than 59.78% of the funding for the first national development plan was earmarked for building infrastructure, with 21.77% going toward welfare, health, and education. It acknowledged that Brunei's economy needed to be more diversified than only the oil sector. Initiatives including better using waste gas, enhancing agricultural practices, planting rubber again, and highlighting the fishing industry were all part of the plan. Despite this, the majority of attempts for economic diversity failed. The waste gas schemes for the production of cement, nitrogen fertiliser, aluminum, and other materials never came to be. After the Korean War, rubber prices fell, making replanting unsuccessful.[14][13]

The concept also called for the construction of a deepwater Muara Port. The necessary power was obtained, and research was done to provide electricity to remote regions.[15] Under the strategy, efforts were undertaken to eradicate malaria with the assistance of the World Health Organization. Malaria cases decreased from 300 in 1953 to just 66 in 1959 as a result of effective efforts. Additionally, from 20 deaths per thousand in 1947 to 11.3 deaths per thousand in 1953, the death rate was reduced. This has been linked to improvements in drainage, public cleanliness, and the availability of piped fresh water for the populace.[16] The entire amount spent on education by 1958 was $4 million.[17] With the development of new roads and the 1954 completion of Old Airport renovation, communications were also enhanced. Under the plan, a $14 million gas industrial facility was constructed.[18]

By authorising the construction of mosques and suraus across Brunei, the Sultan also significantly contributed to the country's Islamic revival. His efforts were most notable for the 1958 opening of the Omar Ali Saifuddien Mosque, representing the Islamic tradition of Brunei. Brunei witnessed a transition under his direction that set the stage for its current identity and system of government.[9]

Other than that, the government started relocating Kampong Ayer's population to the land in the 1950s with the goal of granting them the ability to own property and raise crops to support themselves. The first relocation plan was implemented in 1952 when Kampong Bunut Perpindahan was established. A second migration that resulted in the creation of Kampong Burong Pingai Berakas and Kampong Pancha Delima in 1953 came after this. The development of Kampong Pengiran Siraja Muda Delima Satu, Kampong Anggerek Desa, and Kampong Orang Kaya Besar Imas in 1954 marked the beginning of larger relocation efforts. With the founding of Kampong Jaya Setia and Kampong Jaya Bakti in 1960, Kampong Ayer underwent its third relocation plan.[19]

RKN 2 (1962–1966)

Following the first plan, the second national development plan for 1962–1966 sought to advance social conditions and the economy. But prior to the start of RKN 3 in 1975, there existed a space.[13] With a budget of $543 million, the RKN 2 seeks to advance and enhance Bruneians' social, cultural, and economic spheres of existence. The plan consists of fourteen clearly defined goals, such as:[11][20]

  • Diversification of the economy
  • Increasing productivity to raise per capita income
  • Preserving a high degree of employment and a comparatively steady level of prices
  • Establishing a sufficient and all-encompassing national education system
  • Constructing a thorough national health system
  • Supplying sufficient infrastructure for public services
  • Encouraging and facilitating the private sector's involvement

A Planning Committee with representatives from several ministries was entrusted with creating their own plans for this plan, which was introduced four years after the first. The plan's formulation also involved input from eight advisory groups. Diversification and the reduction of regional growth inequalities were the main economic goals of NDP 2, with a sustained increase in per capita GDP being given top priority. A national health care, a comprehensive education system, and increased income distribution equity were among the other main objectives. With an emphasis on enhancing fisheries and forest productivity, as well as raising agricultural output through pilot projects for both new and current crops including coffee, groundnuts, and maize, the main objective was to provide necessary economic and social infrastructure.[21]

As with RKN 1, transportation, communications, and infrastructure received around 54% of the entire budget, with housing and education receiving the greatest shares. NDP 2 had a B$492 million overall budget, but like the first plan, it had poor budget management, which led to significant spending increases, especially in education, where spending more than doubled between 1966 and 1968. The plan's timeline was greatly expanded; some of its actions persisted until the end of 1972.[21]

RKN 2 primarily aims to further accelerate Brunei's social and economic advancement. The area devoted to commercial rice growing, which would strengthen the country's agricultural sector and reduce the need to import rice from outside, was one clear sign of economic progress. People can also learn how to cultivate other crops, such as wheat, peanuts, bananas, coffee, and others, for their own knowledge and as a consequence of exporting commodities abroad.[22] Egg and meat output increased as part of the strategy. Throughout the strategy, the fishing sector boosted its productivity by 25%.[15]

RKN 3 (1975–1979)

Serasa Bay and Muara in 1970

A total budget of $500 million was allotted to the third national development plan. The plan was developed and designed in accordance with the RKN 2 objectives in strengthening, improving, and further developing the economic, social, and cultural life of the people of Brunei. Preference was provided to the following goals:[11][23]

  • Maintain a high level of employment
  • Diversify the economy through accelerated development of agriculture and industry

The plan was created between 1973 and 1975, a time when government revenues more than quadrupled. Consequently, the Economic Planning Unit was created in 1973 with the express intent of adopting measures for more stringent financial management as well as coordinating and overseeing development plans. The plan placed a strong emphasis on diversification as a means of resolving the structural imbalance in the economy, which was recognized as a crucial concern. This includes encouraging expansion in industries seen to be critical to the long-term viability of the economy, such as manufacturing, forestry, fisheries, and agriculture. Over the course of its execution, the plan sought to generate 10,000 new employment and a 6% annual GDP growth rate.[24]

In order to draw in both international and domestic investment in industrial endeavors, the Economic Development Board was also established, based on Singapore's model, mainly by providing tax breaks and other advantages. Nevertheless, only a tiny percentage of financing went toward forestry, fishery, agricultural, and industrial initiatives, despite the intention of diversifying Brunei's economy. Instead, the majority of the funds were used to improve infrastructure, including roads, water supplies, telecommunications, healthcare, and education. Consequently, the GDP contribution of the non-oil sector stayed constant at about 20%, while the contributions of non-oil industry and agriculture actually decreased. A pulp mill, an ammonia-urea plant, and a glass manufacturing business were among the significant industrial undertakings that failed. The proposal had a total budget of B$533,554,000.[24]

The Department of Relocation was established in 1970, and in 1976 it conducted a survey to determine the housing needs under the RPN, which was executed nationwide through the Department of Relocation.[19] The concurrent reorganisation of agriculture and industry has been viewed in all development plans as the best way to address the imbalances in the economy. However, such language frequently conflicts with the real financial commitments made to support such a strategy. As a result, in RKN 3, real development spending allocated to the industry accounted for just 0.1% of the total ($760,000), as opposed to 1.8% ($9 million) that was anticipated.[25]

RKN 4 (1980–1984)

Perpindahan Lambak Kanan Mosque

The fourth national development plan, which has a $2.2 billion budget, has a strong emphasis on advancing and promoting the people's social, cultural, and economic well-being. There are four key components to this plan:[11][23]

  • Political component that contributed to Brunei's independence in 1983 and was crucial to preserving the country's peace, security, and prosperity
  • Growing awareness of the need to preserve energy supplies as a result of the ongoing rise in oil prices
  • Shifting geopolitical conditions in the surrounding nations
  • Growing challenges in sourcing inexpensive immigrant labour from surrounding nations

NDP 4 was developed by taking into account the state's developments as well as the advantages and disadvantages of previous plans. In order to achieve an annual GDP growth rate of at least 6% and a yearly rise in per capita income of 4%, it implemented a number of fiscal and development initiatives. High employment rates, economic diversification through non-oil industries and agriculture, inflation management, income inequality reduction, education expansion, and the construction of rural clinics were among the goals of the plan. NDP 4's overall budget was B$1.75 billion, three times as much as NDP 3, while less was spent on forestry, industry, agriculture, and fisheries. The allocations for social services, health care, and education stayed the same, while almost 31% of the total was allocated to public building and security. Notwithstanding these initiatives, a downturn in oil output and prices caused the GDP to fall by more than 4%, although employment growth surpassed forecasts, increasing by almost 4.5 percent.[26]

The plan was used by the government to launch the first RPN in the 1980s. Kampong Ayer's relocation plan was established in 1983 with the creation of RPN Serasa and Kampong Perpindahan Mata-Mata. The first pilot program for RPN Lambak Kanan was established in 1984.[19]

RKN 5 (1986–1990)

Kampong Ayer and Omar Ali Saifuddien Mosque in 1985

With a budget of $3.7 billion, the fifth national development plan seeks to further the nation's social and economic advancement by offering a range of services and amenities that raised people's standards of living. The following strategies were established in the plan:[11][23]

  • Maximising the nation's economic use of its natural resources
  • Increasing funding for the productive sectors
  • Quickening the development of human resources
  • Enhancing facilities for industrial development.

This plan, introduced after independence, had broader goals than its predecessors, emphasising economic diversification, human resource development, and fostering Bruneian entrepreneurship. With a budget of B$2,610,000, it allocated 10 percent to industrial development, aiming for a 10 percent annual increase in non-oil investments. To support this, institutions such as the Development Bank and programs like a National Training Scheme and an expanded Institute of Technology were planned, along with a National Pension Scheme. The plan achieved some success, with private sector employment rising from 29,973 in 1986 to 53,613 in 1990, and GDP increasing from B$22,963 to B$29,404. Two textile factories were also established, although the non-oil sector's contribution to GDP fell from 66.4 percent to 53.0 percent between 1986 and 1990. However, the National Pension Scheme and Development Bank did not materialise as intended.[27]

The RKN 5 listed many areas where action was required and touched on some of the challenges faced by the industrial sector. A review of the land code, initiatives to support a class of Malay entrepreneurs (modeled after Malaysian New Economic Policy), the creation of a development bank, the establishment of a national employee provident fund or pension plan, and the rollout of a national training program were among them. Some other ideas that were put out were the privatization of some public services, the creation of public firms through direct involvement or joint ventures, and the offering of various incentives for the development of the private sector. It has been stated that the government will aggressively invest in high-risk areas, without naming specific businesses.[25]

RKN 6 (1991–1995)

With a budget of $5.5 billion, the sixth national development plan seeks to address the demands of the nation, particularly with regard to raising the standard of living and enhancing the quality of life for its citizens while also bolstering the country's economy. The following goals were stressed in this RKN:[11][28]

  • Enhance the development of human resources
  • Broaden the economic base and foster an environment that was conducive to industry
  • Maximising public sector spending
  • Maintaining the growth of the oil and gas industry
  • Promoting the creation of a robust private sector
  • Keeping the environment clean and healthful

Approximately 2,000 job-creation initiatives totaling B$5.5 billion were included in this plan with the goal of creating 40,000 job opportunities in the manufacturing, finance, and service sectors in order to create a sustainable and varied economic basis. As with earlier programs, encouraging the growth of the non-oil industry and lowering dependency on the government sector continued to be top priority. Along with building 11,000 new homes, the plan also called for enhancing water and electricity supplies, telecommunications, and electricity generating. To draw in more industrial investment, organisational modifications were implemented, such as the creation of a Trade and Industry Council in January 1992. In that year, Brunei dispatched a mission to Hanoi to examine bilateral economic cooperation, namely in Vietnam's growing offshore petroleum industry, which Brunei was interested in participating in, while trade delegations from Taiwan and Japan traveled to Brunei to look into investment potential.[29]

Aiming to create 40,000 employment in the manufacturing, finance, and service sectors, B$5.5 billion was allotted to support around 2,000 projects in order to develop a sustainable and varied economic basis. Similar to earlier programs, the goal was to encourage the growth of non-oil sectors and lessen reliance on the government sector. In addition, the plan called for the building of 11,000 dwelling units, improvements to the water and energy delivery infrastructure, and telecommunications. To draw in more industrial investment, organisational modifications were implemented, such as the 1992 creation of a Trade and Industry Council. To look at potential investments, trade delegations from Taiwan and Japan traveled to Brunei in the same year.[29]

RKN 7 (1996–2000)

Part of a 20-year long-term development program that started in 1985, the seventh national development plan had a budget of $7.2 billion. The objective of this plan was to raise the standard of living for Bruneians while highlighting the country's economic successes.[28] With $1,402 million, or 19.5 percent of the overall allocation, the transport and communication sector is the third largest in RKN 7.[30] The following strategies were established in the plan:[11]

  • Balanced socioeconomic development
  • Ongoing environmental protection
  • Effective human resource development
  • Well-planned infrastructure and public facilities
  • Economic diversification
  • Execution of social development projects

"53% were completed, 12% were approaching completion and 12% were being implemented by the end of the plan period, whilst the remainder were either still at preliminary stages, suspended or cancelled for various reasons," according to RKN 7, which included 1,501 development programs and projects approved for implementation within this plan.[31]

The government raised the Information Technology Division to a department in January 1996 and launched the Program Teknologi Maklumat, 'Information Technology Program' (TEMA) for public services in 1995. To make internet access easier, the BruNet service was launched in 1995. Notable IT advancements during RKN 7 included the establishment of official and local organisation websites. In 2000, Brunei became the first country to issue a Smart Identification Card by using biometric technology and a "smart card." In an effort to encourage youngsters to use computers and the internet widely, the government also allotted $13.3 million in 2000 for ICT initiatives, including as improving the BruNet system and adding computers to government schools.[32]

Between June 1996 and June 2000, there was a notable surge in the number of government agencies adopting IT services (from 36 to 40) and the quantity of IT equipment pieces (387,187). Additionally, there were 297 employees in the IT department, up from 201, and there were now one computer for every four users. Due to the dramatic increase in BruNet users from 819 in 1995 to 13,860 in 1999, the Brunei Telecom Department (JTB) partnered with UUNct in the United States in 2000 to improve internet access with increased bandwidth and quality. The 'pre-paid net card' for internet access and 'e-speed' for quicker data transfer were two ways that JTB improved BruNet services in 2000. 'SimpurNet' was introduced by DST, and three other firms (QAF Brunei, Royal Brunei Technical Services, and BIBD) were granted licenses to provide supplementary services during this time of rapidly expanding commercial IT services. The implementation of 'e-government' was started, and the National Information Technology Council (BIT) was formed to supervise IT use across the country.[32]

As of 17 June 2000, of the 42 projects for the RKN 7, 21 projects totalling $201 million had been finished, while 13 projects totalling $567 million were awaiting clearance. A$800 million grant was given to the Department of Electrical Services (DES) to enhance the infrastructure for power production, transmission, and distribution. To solve serious problems, the agency first reinforced the 11,000-volt distribution infrastructure in the Brunei–Muara District. Installing new structures, pipelines, and main stations was one way to upgrade the infrastructure for supplying power. Two Main Electric Stations, 66/11KV Beribi in Kampong Kiarong and Tungku-2 in Kampong Rimba, were inaugurated as part of the project.[33]

Under RKN 7 Brunei significantly increased its broiler production from 4,663 metric tons in 1996 to 12,507 metric tons in 2000, achieving an 86% surplus over local demand. Chicken egg production also exceeded targets, rising to 87 million eggs in 2000 from 82 million in 1999, surpassing the 73 million eggs required for self-sufficiency. This growth led to higher exports than domestic consumption.[34]

During RKN 7, Brunei achieved a near-universal clean water supply, reaching 99.9% of the population. The country had the lowest water tariff rate among ASEAN members, and home water usage was the highest relative to its population of about 300,000. This abundance and low cost of water pose a risk of decreased awareness and economisation in its usage, despite the cheap supply.[35]

RKN in the 21st century

See also

References

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