Minister at the Prime Minister’s Office and Minister of Finance and Economy II Yang Berhormat Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah at the eighth day of the First Meeting of the 22nd Session of the Legislative Council on Thursday provided the latest updates on the setting up of the country’s stock exchange, revealing that it could be launched by the end of the third quarter of 2027, provided that all necessary government processes and the development of the capital market ecosystem are finalised.

“This timelline is subject to the completion of all other related work. Establishing a stock exchange involves support from various institutions, including financial institutions, audit firms, legal and syariah advisors, professional brokers, and other relevant professionals,” the minister explained.

Looking at other countries in ASEAN, Yang Berhormat Dato Seri Setia Dr Awang Haji Mohd Amin Liew said, “Most have their own stock exchanges. However, the objectives of each country are different. For us in Brunei, we must view this in the context of our nation, particularly the benefits that having a stock exchange could bring.

“It’s important for the public to better understand the purpose behind establishing a stock exchange in Brunei, so that they can grasp its objectives and benefits. Looking at countries with stock exchanges, this provides an opportunity for local companies to conduct Initial Public Offerings (IPO), which can help raise funds and support business expansion and others.”

Yang Berhormat Dato Seri Setia Dr Awang Haji Mohd Amin Liew said, “As a small market with a small economoy, there are several financial markets’ structural characteristics that we need to address carefully. Currently, there are a limited number of large companies, a small number of domestic investors, and low transaction volumes.

“For example as we have seen our chasing shares like BIBD where transaction volume is low, and liquidity is also limited. These are issues we need to address to encourage more companies to conduct IPOs and atrract the public to invest in local company shares.”

Looking at other countries such as Laos, Cambodia, and even the Maldives, the minister said they have now established stock exchanges. In term of strategic benefits to Brunei Darussalam, having a stock exchange would support local companies and government-linked companies (GLCs) to list their companies, increasing access to additional funding sources, supporting business operations and growth, and providing opportunities for the public to gain ownership in the country’s strategic assets.

“It would also strengthen public transparency and accountability in company operations, improve corporate governance standards, and enhance financial reporting practices. These are some of the benefits for companies listed on the stock ecchange,” he added.

The minister described, “A stock exchange would also create direct channels sllowing the public to participate in the nation’s economic growth through equity instruments and fixed income securities, including sukuk, listed on the exchange. The public can participate in dividend distributions from productive companies, as well as benefit from capital appreciation over time. It would help build and sustain household success in the long term and improve financial literacy and investment capacity within society.”

“Currently, the investment instruments available at banks in Brunei are typically short-term, usually lasting a year or, at most, three years with investment certificates. For long-term planning, such as saving for children’s education or retirement, there aren’t many long-term options. Once the stock exchange is established, we could list sukuk with longer durations, such as 10 or 15 years. This is another benefit.”

He outlined, “For companies listed on the stock exchange, they must follow strict obligations that will be imposed. So in terms of audit, the financial statements must be audited and also several independent board of directors as well as there must be oversight in business activities and so on.”

“Once established, the stock exchange will also generate more professional jobs, such as research analysts, investment banking professionals, and compliance officers,” the minister shared.

“If the stock exchange is established in Brunei, the public will have the opportunity to invest in local companies. Currently, for Bruneians to invest, they must invest overseas through outflow of fund. Therefore if there are opportunities for the public to invest in companies within the country, we can support the local economy.”

Therefore a stock exchange, would also help companies to improve their discipline, accountability, and transparency. These are some of the benefits of having a stock exchange for Bruneians.

Yang Berhormat Dato Seri Setia Dr Awang Haji Mohd Amin Liew explained, “This is the goal we are working towards. Setting up a stock exchange will not require a lot of government spending to run the stock exchange. If transactions and liquidity increase, the stock exchange could even generate revenue.

“Therefore it may not be a burden on the government but, instead, a positive step forward for advancing the country’s economy and improving the public’s financial literacy.”

(news source: Borneo Bulletin; pic source: Info Foto, Jabatan Penerangan)