Low global oil, gas prices seriously affect Brunei's economy

The current uncertain and ever challenging world economic condition especially for oil producing countries has negatively affected Brunei, a senior government official said on Wednesday.

In a speech at the launching of the Enterprise Open Day, Second Finance Minister YB Pehin Dato Haji Abdul Rahman, who is also minister at the Prime Minister's Office, said the drastic fall of the global oil and gas prices has seriously affected the revenue of all oil producing countries which overall have borne huge financial deficits.

Brunei's government earnings have dropped about 70 percent compared to the revenue it received in the 2012/2013 fiscal year.

According to the financial official, In the 2014/2015 Financial Year, for example, the government experienced a budget deficit of 2.3 billion Brunei dollars (about 1.60 billion U.S. dollars).

He called on the government to intensify efforts to diversify the country's economy in the wake of weak global oil prices.

According to the Brunei Times, dramatic measures, among others, will be taken to deal with the situation. This includes steps to reduce the subsidy rate for essential goods such as petroleum products and electric power supply. Endit