A complete guide to developing the Brunei market: starting from scratch and tapping into Southeast Asia's "happy country"!

Brunei, located on the north coast of Borneo, may be a tiny nation with a population of less than 500,000, but its abundant oil and gas resources have resulted in a remarkable per capita GDP— expected to reach $35,000 in 2024. This wealthy and enigmatic Southeast Asian sultanate is becoming a hotbed for Chinese foreign trade professionals.

1. Overview of Brunei

Brunei Darussalam is located in Southeast Asia, in the northwest of Kalimantan Island. It borders the South China Sea to the north and the Malaysian state of Sarawak to the east, west and east.

Brunei has an area of ​​5,765 square kilometers (slightly smaller than Shanghai) and a population of approximately 460,000 . Islam is the state religion of Brunei, Malay is the official language, and English is widely spoken.

The capital, Bandar Seri Begawan, is the political, economic and cultural center of Brunei.

Brunei's economy is highly dependent on the oil and gas industry , which contributes approximately 50% to GDP. Large amounts of income from overseas investment supplement domestic oil and gas production revenue.

Crude oil and natural gas production account for about 65% of Brunei's GDP and 95% of its exports, but the government is actively promoting economic diversification away from its dependence on oil products and toward sectors such as information and communications technology and halal food manufacturing, which is permitted under Islamic law.

Brunei boasts abundant oil and natural gas resources. In 2021, it processed 8.83 million tons of crude oil and auxiliary materials, generating sales of US$5.3 billion, representing 7.5% of Brunei's GDP.

Non-oil and gas industries are underdeveloped, and industrial equipment, agricultural products, and daily necessities rely primarily on imports. Agriculture, forestry, and fisheries contribute only a limited 1.4% of GDP.

The service sector accounts for 35.8% of Brunei's economy, with retail and catering being key components. In the second quarter of 2025, despite a 6.2% year-on-year decrease in total retail sales, revenue from the catering services sector increased by 2.3% year-on-year.

Tourism is one of the industries that Brunei has actively developed in recent years. The unique culture and water villages are the highlights that attract tourists.

In terms of foreign trade, Brunei mainly exports oil, petroleum products, and liquefied natural gas, and imports machinery and transportation equipment, industrial products, food, and medicine. China is one of its major sources of commodity imports .

Brunei is a member of ASEAN and has signed free trade agreements with Australia, China, India, Japan, South Korea, and other countries. Its low tax system and political stability make Brunei's business environment popular among potential investors.

According to Chinese Customs statistics, China-China bilateral trade volume reached US$1.91 billion in 2020, a year-on-year increase of 72.5%. Among them, China's exports amounted to US$470 million, while imports amounted to US$1.44 billion, a year-on-year increase of 217.4%.

2. Brunei’s annual festivals and customs

Major public holidays

• New Year's Day : January 1

• National Day : February 23

• Eid al-Fitr : 1st of the tenth month of the Islamic calendar (date changes every year)

• Eid al-Adha : 10th day of the 12th month in the Islamic calendar (date changes every year)

• Hijri New Year : 1st of the Islamic calendar

• Prophet Muhammad's birthday : March 12th in the Islamic calendar

• Chinese New Year : The first day of the first lunar month (celebrated by Chinese in Brunei)

• Royal Brunei Armed Forces Day : May 31

• Sultan's Birthday : July 15

• Christmas Day : December 25

customs and taboos

Brunei is a Muslim country , and its culture and etiquette are deeply influenced by Islamic teachings:

• The left hand is considered unclean , so the right hand should be used when receiving or delivering items. When hailing people or taxis, the index finger should not be used, but the entire palm should be waved.

• Bruneians do not drink alcohol . There is not a single bar or place selling alcohol in the whole of Brunei.

• Gifts and souvenirs given to Bruneians should not have human or animal designs .

• When pointing at people or things, do not use your index finger. Instead, put four fingers together and lightly make a fist, with your thumb pressed against your index finger. In formal occasions, do not cross your legs or feet.

• Many Bruneians are reluctant to shake hands with people of the opposite sex, so do not initiate a handshake with them unless they extend their hand first.

• Do not touch other people's heads with your hands, as locals believe that this will bring disaster.

• Malay names usually consist of two parts: the first part is the name of the individual, and the second part is the name of the father, separated by bin (meaning "son of") or binti (meaning "daughter of").

3. Analysis of Brunei’s market development potential and prospects

Although Brunei's GDP (at constant prices) in the second quarter of 2025 was 4.63 billion Brunei riyals, a year-on-year decrease of 0.3%, it still contains abundant business opportunities.

Economic diversification policies create new opportunities . The Brunei government is taking measures to diversify its economy away from its dependence on oil products and towards industries such as information and communications technology and halal food manufacturing, which is permitted by Islamic law. These policies provide foreign investors with diverse investment opportunities.

High per capita GDP guarantees consumption capacity . In 2024, Brunei's per capita GDP will reach 45,300 Brunei dollars (about 35,400 US dollars), ranking second among Southeast Asian countries, second only to Singapore. Brunei citizens do not have to pay personal income tax, and the government provides free medical services and free education up to university level, which means that people generally have a high disposable income .

Brunei has a superior geographical location . Located in the heart of Southeast Asia, it is a key node connecting East Asia and Southeast Asia, making it an ideal hub for regional trade.

Brunei is also actively promoting the development of the digital economy . In 2018, the Brunei Islamic Bank launched a mobile payment platform called NEXGEN, and it is expected that mobile payment channels will achieve an annual transaction volume of 3 billion Brunei dollars (about US$2.2 billion) in the future.

Infrastructure and the business environment are constantly improving . Brunei boasts a large and well-educated population of English speakers and first-class infrastructure. Brunei has streamlined its business registration process and shortened registration times by amending legislation.

4. Characteristics and needs of Brunei customers

Customer Characteristics

• The credibility is average, so you need to be vigilant : Overall, the credibility of Brunei customers is average. When dealing with Brunei customers, you need to be vigilant at all times, remember to do a good job of risk management, and not give the other party any loopholes to exploit.

• Emphasis on etiquette and relationships : Bruneians value etiquette and interpersonal relationships, and building trust and respect in business dealings is crucial.

• Preference for high-quality products : Due to the country's wealthy population, Brunei consumers have higher requirements for product quality and brand.

• The decision-making process may be lengthy : Brunei’s business culture may be conservative, and the decision-making process may be lengthy.

Customer needs

• Dependence on imports : Brunei's non-oil and gas industries are underdeveloped, and industrial equipment, agricultural products and daily necessities mainly rely on imports .

• Demand for halal products : As a Muslim country, Brunei has strict requirements and a large demand for halal food and supplies .

• High-quality consumer goods : As the nation becomes more affluent, there is a continued demand for high-quality consumer goods, luxury goods, and specialty products.

• Construction materials and equipment : Brunei's infrastructure construction continues to develop, and there is a demand for imports of construction materials and related equipment.

5. Popular products in the Brunei market

Based on Brunei's market characteristics and import demand, the following product categories have good market prospects:

1. Halal food : Food that complies with Islamic teachings, specifically halal-certified meats, processed foods, and ingredients.

2. Daily necessities and household products : Brunei relies heavily on imports for daily necessities, including cleaning products, furniture and household appliances.

3. Electronic products and home appliances : Brunei's imports of electronic products mainly include machinery and transportation equipment, especially energy-efficient home appliances.

4. Building materials : Brunei imports building materials, including hardware, paint and glass products.

5. Clothing and Textiles : Textiles, clothing and footwear are an important part of Brunei's retail market.

6. Medical and Health Products : Brunei imports pharmaceutical products, especially those that meet Islamic requirements.

7. Machinery and Transport Equipment : Brunei imports a large amount of machinery and transport equipment, especially equipment related to the oil and gas industry.

8. Green and environmentally friendly products : Brunei attaches great importance to environmental protection, and related environmental protection technologies and products have market potential.

6. Common payment methods used by Brunei customers

When dealing with Brunei customers, the following payment methods are mainly used:

1. Letter of Credit (L/C) : A settlement method in which a bank pays the exporter on behalf of the importer, subject to document compliance. Its greatest advantage is that payment is guaranteed by the bank's credit. When using L/Cs, be aware of any soft clauses to avoid collection risks.

2. Telegraphic Transfer (T/T) : This is a more traditional transaction method, where the customer remits the payment to a designated foreign exchange bank account. It is divided into two types: pre-TT and post-TT. The former involves direct payment of the entire payment to the bank account before delivery; the latter involves loading the goods first and then receiving the full payment upon receipt of the faxed bill of lading. This is suitable for large payments.

3. Mobile payment : Brunei is also gradually promoting mobile payment, such as the NEXGEN e-wallet launched by Brunei Islamic Bank, but its popularity may still be limited.

When choosing a payment method, it is recommended to give priority to T/T for new customers or small transactions, use letter of credit for large transactions or customers with good reputation, and consider T/T for old customers with good reputation. At the same time, always be vigilant about payment risks.

7. A Complete Guide to Market Development in Brunei

B2B Website

1. Official website of the Brunei Economic Development Board (BEDB) : The official agency of the Brunei government responsible for attracting investment.

2. Darussalam Enterprise (DARe) official website : provides investment information and business support services in Brunei.

3. Alibaba International Station : As a world-renowned B2B platform, Brunei buyers also purchase here.

4. Global Sources : A B2B platform for global buyers, suitable for developing the Brunei market.

5. China-ASEAN Economic and Trade Cooperation Network : provides trade and investment information of ASEAN countries.

Commonly used social media

1. Facebook : Widely used in Brunei, suitable for setting up business pages and promoting products.

2. Instagram : Suitable for product promotion with strong visual display.

3. LinkedIn : widely used in Brunei's business circles and suitable for B2B contacts.

4. Twitter : Used by some companies and institutions in Brunei.

5. WeChat : An effective tool for communicating with Chinese customers in Brunei.

Search Engine

1. Google.com.bn : Brunei's local Google search engine.

2. Bing : An international search engine that also has users in Brunei.

3. Yahoo Search : It also has a certain market share in Brunei.

Yellow Pages/Business Directory

1. Brunei Yellow Pages : Local Business Directory.

2. ASEAN Yellow Pages : Contains regional yellow pages for businesses in Brunei.

3. Brunei Chinese Chamber of Commerce : collects information on Chinese companies operating in Brunei.

customs data

1. Brunei Customs official website : Learn about the latest customs policies and data.

2. General Administration of Customs of China : Provides bilateral trade data between China and Brunei.

3. World Trade Organization Database : Provides trade statistics for Brunei.

4. AB Customs Data : You can query Brunei's local import and export data.

Industry Associations

1. Brunei National Chamber of Commerce : Brunei's main business organization.

2. Brunei Chinese Chamber of Commerce : represents the Chinese business community in Brunei.

3. Brunei Suppliers Association : brings together local suppliers in Brunei.

Exhibition

1. Brunei International Expo : Brunei's largest comprehensive trade fair.

2. China-ASEAN Expo : Held in Nanning, China, Brunei companies regularly participate in the exhibition.

3. Brunei Construction and Infrastructure Exhibition : focuses on the fields of construction and infrastructure.

4. Brunei Halal Products Exhibition : A professional exhibition showcasing halal products and services.

8. Product certification required for export to Brunei

To export products to Brunei, you need to meet local certification requirements:

• Electrical Product Safety Certification : Electrical products must comply with the safety requirements set by the Department of Electrical Services (DES, the Prime Minister's Office) under the DES Electricity Act. They must also comply with IEC standards. Suppliers must complete product registration with the Product Procurement Division.

• Energy efficiency certification : A voluntary energy labelling scheme is adopted for room air conditioners, issuing energy labels in the form of certificates based on a 5-star rating scheme.

• Telecommunications Equipment Certification : All telecommunications, radiocommunications, and satellite equipment must be type-certified by the Authority for Information and Communications Technology Industry (AITI). Type-certification registration must be completed by a local representative holding a valid AITI dealer license.

• Halal Certification : Animal products or by-products intended for consumption require a Halal import permit.

• Other special product certifications : chemicals, herbal medicines or foods, "junk food", mineral water, etc. require permission from the Ministry of Health or the Ministry of Industry and Primary Resources.

As a registered certification body for the ASEAN Electrical and Electronics Mutual Recognition (ASEAN EE MRA) in Brunei, DES accepts the test reports and CoCs issued by TÜV SÜD to complete the relevant registration.

9. Brunei Port/Customs Clearance Requirements

Export Process

1. Prepare necessary documents : including bill of lading, commercial invoice, packing list, import license, customs import declaration, certificate of origin, etc.

2. Arrange transportation : Choose sea or air transportation. Goods can only be unloaded at designated import and export ports and placed where allowed by customs officials.

3. Submit declaration : The captain or shipping officer must provide the export manifest, import manifest, crew list, ship's cargo list, etc. to the customs under his jurisdiction within 24 hours after the shipping vessel arrives.

4. Customs inspection : Goods are inspected after they have been declared and customs duties have been paid.

Customs clearance type

• Ordinary customs clearance : applicable to most commodities.

• Customs clearance for special goods : Special products require government permission to be exported or imported.

Customs clearance procedures and requirements

1. Document preparation : including but not limited to delivery note, original invoice, packing list and all other documents such as certificate of origin, import license, insurance policy, etc.

2. Goods Declaration : The owner, importer or authorized agent can declare the goods. The declarant is responsible for the accuracy of the declaration terms and must pay the import tariff.

3. Goods inspection : The importer or its agent must inspect the goods on normal working days at the designated location.

4. Pay customs duties : The customs duties payable are calculated based on the CIF price of the goods.

5. Release of goods : After inspection and tax payment, customs releases the goods.

Cargo storage time limit :

• Fragile goods must be cleared immediately, otherwise senior customs officials can sell the goods.

• Flammable and dangerous goods must be cleared within 14 days from the date of storage.

• Other goods must be cleared within six months.

10. Brunei Import/Export Ban

Import ban

Brunei has relatively few industries where investment is prohibited. Apart from the following prohibited areas and forestry, which restricts foreign investment, most industries do not prohibit foreign investment or restrict foreign shareholding ratios :

• arms;

• poison;

• Industries that are contrary to Islamic teachings, etc.

In addition, the following products require additional licenses and authorizations from relevant government agencies when imported:

• Animal products or by-products intended for consumption (Halal Import Licensing Committee);

• Broadcasting equipment (Prime Minister's Office);

• Chemicals (Ministry of Health);

• Communications equipment (Information and Communications Technology Industry Administration);

• building materials (Ministry of Industry and Primary Resources);

• Fireworks (Royal Brunei Police Force);

• fish, aquatic life or fishing equipment (fishing sector);

• Herbal medicine or food (Ministry of Health);

• "junk food" (Ministry of Health);

• mineral water (Ministry of Industry and Primary Resources);

• Non-motorized vehicles (Royal Customs);

• tools bearing the government emblem (Adat Istiadat Department);

• plants, live animals or agricultural products (agricultural sector);

• Printed or digital media publications (Royal Brunei Police Force);

• Religious books or goods containing religious imagery (Internal Security Department);

• Second-hand motor vehicles (land transport sector).

11. Brunei’s Tariff Policy

Brunei's tariff policy has the following characteristics:

• Low tariffs : The vast majority of goods imported into Brunei are not subject to tariffs. The few goods that are subject to tariffs are taxed at 5% or 10%.

• Goods subject to a 5% tariff include: petroleum and asphalt oils, cleaning supplies, movie equipment, lamps and wood.

• Goods subject to a 10% tariff include certain fabrics, blankets, curtains and musical instruments.

• No additional taxes : Brunei does not impose other additional taxes on imported products.

• Tariff threshold : low tax: <400 Brunei dollars; high tax cif (value of goods + freight) ≥400 Brunei dollars.

• Free Trade Agreements : Brunei is a partner in the ASEAN Goods Trade Agreement and has reached free trade agreements with Australia, China, India, Japan, South Korea, etc. Brunei also has a separate bilateral free trade agreement with Japan.

For imports and exports from non-ASEAN member countries, Brunei follows the Harmonized Tariff System (HTS). For imports and exports between ASEAN member countries, Brunei follows the ASEAN Harmonized Tariff Network (AHTN).

12. Things to note when developing the Brunei market

When developing the Brunei market, Chinese foreign trade personnel need to pay attention to the following matters:

1. Respect local culture : Brunei's Islamic customs and taboos are strictly observed, especially during Ramadan.

2. Conducting a credit check on the counterparty can effectively mitigate the risk of default. Based on our experience handling over 40 debt collection cases and related consultations in Brunei, we believe that the overall creditworthiness of Brunei clients is generally average.

3. Pay attention to payment security : For new customers, it is recommended to use safer payment methods such as T/T or letter of credit. If you encounter a Brunei customer who defaults on payment, find out the real reason as soon as possible.

4. Ensure that all documents are complete : Exporting to Brunei requires preparing complete customs clearance documents, including bill of lading, commercial invoice, packing list, import license, customs import declaration, certificate of origin, etc.

5. Understand special product requirements : For special products, such as food, chemicals, and communication equipment, you need to obtain permission from relevant government departments in advance.

6. Pay attention to political and economic developments : Pay attention to political and economic changes in Brunei. For example, if the United States announces a 25% tariff on Brunei products in 2025, it may affect Brunei's import and export trade.

7. Choose the right business partner : Consider working with a reputable local agent or distributor who has a better understanding of the Brunei market and regulatory requirements.

8. Participate in local exhibitions : By participating in international exhibitions in Brunei, you can directly contact potential customers and partners and understand market demand.

9. Focus on product quality : Brunei consumers have high requirements for product quality and ensure that products meet international standards and local certification requirements.

10. Flexible response to market changes : Brunei's market size is small and demand may fluctuate. For example, the total retail sales in the second quarter of 2025 decreased by 6.2% year-on-year, requiring flexible adjustment of sales strategies.

While developing the Brunei market presents challenges, the business opportunities inherent in this affluent Southeast Asian nation cannot be ignored. By fully understanding local market characteristics, abiding by local laws and regulations, and respecting local culture, Chinese foreign trade professionals can carve out a niche for themselves in this tranquil and affluent nation.

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