Last updated April 8th, 2019.

We usually focus on Asia’s countless opportunities for profit. In general, Asia has a very bright future ahead of itself.

Average growth rates exceed anywhere in the western world. This trend looks to continue for the foreseeable future.

With that said, not all countries in Asia have strong economic prospects. That’s the purpose of this article. Knowing where not to invest is just as important as knowing where you should.

Brunei is one place investors should avoid at all costs. This small, wealthy, oil rich sultanate of 400,000 people is heading in the wrong direction.

Here are several reasons why Brunei is the worst country to invest in Asia… perhaps excluding North Korea.

Brunei’s Nearly Endless Recession

We’re not in 2008 anymore. Yet Brunei suffers from one of Southeast Asia’s worst economies.

Brunei’s weak economy posted only four years of GDP growth over the past decade. Both the IMF and World Bank predict sluggish growth in the immediate future too.

I suppose 2% growth is way better than a recession. But that still makes it among Asia’s worst economies in a region of mostly winners.

Why has Brunei barely escaped recession a decade after the last global financial crisis? Low oil prices are the main contributor.

Vast oil reserves once made Brunei the richest country in Southeast Asia on a per capita basis. The nation barely diversified its economy outside the oil and gas sector though.

That’s contrary to Dubai or neighboring Malaysia, as examples, which used their oil money to become top financial hubs. Brunei suffers from poor long-term planning in comparison.

With crude oil at around 1/3rd of the prices seen in 2014, it’s easy to understand why Brunei is currently going through rough times.

Two additional reasons below certainly don’t help Brunei’s status as the worst country to invest in Asia either.