James Kon

Minister of Development Dato Seri Setia Ir Awang Haji Suhaimi bin Haji Gafar yesterday reminded owners of local companies in the construction industry to be fully engaged to take full advantage of the development projects and not use their names only for company registration.

The minister was speaking at the launch of the Ministry of Development’s Local Business Development (LBD) Circular at a ceremony at Atria Simpur Hall, Public Works Department Headquarters in Old Airport, Berakas.

The Ministry of Development’s LBD Circular focusses on three strategic areas – Local Ownership, Local Content and Local Employment.

The minister said, “The Ministry of Development for a long time has been hoping that local entrepreneurs would lead the construction industry, including overseas, and could compete regionally and internationally.”

He said, “The Ministry of Development also takes note that there are a number of companies owned by successful locals and could contribute to the country’s development. However, there are still several companies managed by foreigners while local owners use their names only for registration. This is very costly because each year the government provides a huge budget to finance development projects in the country. A local owner should grab this opportunity with total involvement.”

“The ministry feels that this can help the country by providing employment to locals.”

On ensuring local company owners’ involvement, Dato Seri Setia Ir Awang Haji Suhaimi said, “The ministry has begun to interview company owners of Class I and II. The interview is a pre-requirement for registration of a new company in Class I and II. The ministry will continue to reassess registration when the company needs to renew the company registration certificate. If a company owner does not achieve the set score, the contractor’s registration certificate will not be renewed and will only be given the contractor license.”

On local content, the minister highlighted, “It is known that our country depends a lot on using material and products from overseas. The construction companies in the country should give priority to using local material and products. This can support the local manufacturing and suppliers industry and indirectly benefit many parties.”

Touching on local employment, he said, “The construction industry is still controlled by foreign workers and this includes positions that can be held by locals like managers, engineers, drivers and others. We understand that employment in the industry is very challenging and high competition for locals. We still believe that there are positions that should be held by locals.

“Jobseekers must also not let go of the opportunities because the construction industry is the third largest industry that provides employment for locals.

“A number of targets have been set for each strategic area. A company wishing to participate and execute the government’s procurement in the construction industry under the Ministry of Development needs to achieve these targets.”

The minister said the LBD circular, for use within the ministry, was introduced in line with the Government of His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam’s objective to ensure sustainable development of capacity, capability, competency and competitiveness of local companies as well as to realise the strategic planning of the Ministry of Development to support local business development as a pillar for growth in the construction industry.

He said in leading the development of physical and social infrastructure, the ministry is also aware of the importance of focussing on the development of local businesses to achieve a balance between these two interests.

The minister explained that the Ministry of Development’s LBD circular focusses on three main strategic areas.

First, ownership and development of local companies (local ownership). Second, use of local goods and services (local content). Third, employment opportunities for locals (local employment).

In ensuring that the LBD implementation is effective and progressive, Dato Seri Setia Ir Awang Haji Suhaimi said the ministry would establish a special unit under the Authority for Building Control and Construction Industry (ABCi).

The LBD Unit will be responsible for the coordination, implementation, monitoring and enhancement of LBD under the Ministry of Development. The unit will ensure that the LBD progress is planned by the departments/divisions in accordance with the circular and to monitor the increase of local recruitment in the construction industry.

The minister underscored that the implementation of the LBD programme is in line with the fifth strategy of Vision 2035, on the development of local business.

Permanent Secretary (Infrastructure, Housing and Professional) at the Ministry of Development Ir Haji Amer Hishamuddin bin Pehin Orang Kaya Amar Pahlawan Dato Seri Setia Haji Zakaria said companies participating in government projects should meet local business development requirements in the circular.

Relevant divisions and departments under the Ministry of Development are required to identify and implement LBD initiatives throughout the project implementation stages. The implementing departments must also identify the criteria and scope of the project so as to include company engagement, local products and services as well as promoting local employment as much as possible in a project.

The permanent secretary said to achieve targets in the Circular progressively by December 2023, ABCi will conduct socialising programmes and discussions with the implementing departments to ensure the effective implementation of the initiative.