The economy of Brunei, a small and wealthy country, is a mixture of foreign and domestic entrepreneurship, government regulation and welfare measures, and village traditions.
It is almost entirely supported by exports of crude oil and natural gas, with revenues from the petroleum sector accounting for over half of GDP.
The government has[citation needed] shown progress in its basic policy of diversifying the economy away from oil and gas.
Brunei's leaders are concerned that steadily increased integration in the world economy will undermine internal social cohesion although it has taken steps to become a more prominent player by serving as chairman for the 2000 APEC (Asia-Pacific Economic Cooperation) forum.
[10] In the 1970s, Brunei invested sharply increasing revenues from petroleum exports and maintained government spending at a low and constant rate.
Brunei's gross domestic product (GDP) soared with the petroleum price increases of the 1970s to a peak of $5.7 billion in 1980.
This drop was caused by a combination of sharply lower petroleum prices in world markets and voluntary production cuts in Brunei.
The Asian financial crisis in 1997 and 1998, coupled with fluctuations in the price of oil have created uncertainty and instability in Brunei's economy.
In addition, the 1998 collapse of Amedeo Development Corporation, Brunei's largest construction firm whose projects helped fuel the domestic economy, caused the country to slip into a mild recession.
This is a chart of trend of gross domestic product of Brunei Darussalam at market prices estimated[11] by the International Monetary Fund with figures in millions of Bruneian dollars.
As in many other countries, Japanese products dominate local markets for motor vehicles, construction equipment, electronic goods, and household appliances.
BIA's guiding principle is to increase the real value of Brunei's foreign reserves while pursuing a diverse investment strategy, with holdings in the United States, Japan, western Europe, and the Association of South East Asian Nations (ASEAN) countries.
New enterprises that meet certain criteria can receive pioneer status, exempting profits from income tax for up to 5 years, depending on the amount of capital invested.
One of the government's most important priorities is to encourage the development of Brunei Malays as leaders of industry and commerce.
There are no specific restrictions of foreign equity ownership, but local participation, both shared capital and management, is encouraged.
Agriculture and fisheries are among the industrial sectors that the government has selected for highest priority in its efforts to diversify the economy.
Its affiliate Elf Petroleum Asia BV has discovered commercially exploitable quantities of oil and gas in three of the four wells drilled since 1987, including a particularly promising discovery announced in early 1990.
[22] It is advised for Brunei to diversify the economy away from the use of fossil fuels and focus more on renewable energy as part of climate change mitigation measures.
[citation needed] As envisioned by the Sultanate, the use of the Brunei Halal brand would signify to Muslim consumers the manufacturers' strict compliance with laws relating to Islamic teachings.
Brunei also aims to build confidence in the brand through strategies that will both ensure the halal integrity of the products and unfaltering compliance with set rules governing the sourcing of raw materials, manufacturing process, logistics and distribution.
Wafirah has entered into a joint venture with Brunei Global Islamic Investment and Hong Kong-based logistics firm Kerry FSDA Limited to form Ghanim International Food Corporation Sdn Bhd.