Introduction
Your Excellency, distinguished guests.
It is a great pleasure for me to be here today at the launch of the Brunei Darussalam Australia Business Council
- a private sector initiative which the Australian Government wholeheartedly welcomes.
My special thanks to my colleague, Pehin Rahman, for his generosity in hosting this important occasion.
And a warm welcome to the business delegates from Brunei and Australia
- including those delegates who travelled from Australia to take part in this launch and associated activities.
The establishment of this Business Council underlines the importance both governments and business sectors attach to the further development of our bilateral commercial relations.
As many of you are aware, Pehin Rahman and I launched the Australia Brunei Darussalam Business Council last year in Adelaide
- that Council now has branches in Adelaide, Sydney, Melbourne Perth, Brisbane and Darwin.
The establishment of this Council completes that initiative by completing the cycle
- with the setting up of the all-important counterpart Council in Brunei.
. This Council comes at an exciting time for both Australia and Brunei
- both economies have undergone considerable change in recent years in response to developments taking place in the international trading environment.
. Australia is at the forefront of those nations which are adapting successfully to the new international environment, and shaping it.
. We have undertaken a thorough-going program of economic reforms
- which have made our industries more competitive
- and have enhanced our reputation as a sophisticated exporter of an expanding range of services and manufactured goods
: particularly in the Asia-Pacific region, which now accounts for around 60 per cent of our trade.
Australia and Brunei work closely on international economic issues
- I have just attended a meeting of ASEAN and Australian and New Zealand Ministers that discussed closer cooperation between the two groups
- Australia and Brunei have worked well together in APEC
- Australia's Northern Territory, in particular, is developing close relations with Brunei, Indonesia, Malaysia, the Philippines and the East ASEAN Growth Area
: so I look forward to Pehin Rahman coming to Darwin in November to sign a Memorandum of Understanding between the Northern Territory and Brunei in relation to the growth area.
Roles of both Business Councils
I am confident that the Brunei Australia Business Council, and its members, will play a key role in expanding bilateral trade and investment links between our two countries
- just as its counterpart Council, the Australia Brunei Business Council, is making a significant contribution to the bilateral relationship.
I see both Councils complementing the work of our two Governments.
The Australian Government is actively encouraging Australian trade and investment interest in Brunei
- our High Commission in Brunei places considerable importance on assisting companies to find new commercial opportunities
: and in this context employs a local Marketing Manager
- Brunei also has a very active and efficient High Commission in Canberra which is always on the lookout for commercial opportunities.
While two-way trade between the two countries is still modest, valued at around A$54 million in 1994
- Australian exports to Brunei last year were valued at A$53.8†million, up from A$31.3 million in 1993
: in addition, this figure does not reflect the fact that a very substantial volume of Australian products are in fact re-exported from Singapore to Brunei and therefore do not appear in the trade figures.
Australia's proximity and the products and services we can offer provide considerable scope for expanding our share of direct exports to Brunei
- under the Brunei-Australia Air Services Agreement signed in Canberra in May 1992, the national carrier, Royal Brunei Airlines, operates two services a week to Darwin and Perth, and in May 1994 extended the Darwin service to Brisbane
: the expansion of transport links will facilitate a greater airfreight capacity for a greater range of Australian products, including fresh fruit, vegetables and other perishable commodities.
An important agreement was reached in January 1995 for a Brunei-Australia joint venture that will provide halal meat to the Bruneian market, and eventually perhaps to other markets.
The halal beef will be processed at Tenarra's abattoir in the Northern Territory under direct Bruneian supervision
- with a plan to station three Bruneian slaughtermen and one Iman at the plant, changing them over at three months intervals
- they will oversee key stages of the slaughter and preparation of the meat, and apply official Bruneian certification to packages before they leave the plant.
Australia is also well-placed to assist Brunei with its defence needs
- Australia has a well-developed industry to meet our own defence requirements and our capability can be easily applied to meet Brunei's needs
- a particular advantage is that Australia is located in this region, and can therefore ensure efficient servicing and through-life maintenance support
: there is also a close relationship between our two armed forces, which could be further enhanced by cooperation on defence purchases.
On a more general level, there are good prospects for increased trade
- Australian companies have become more aware of the commercial opportunities in Brunei
: particularly in the construction sector, and in the provision of engineering, technical, education and training services
- our educational services are in increasing demand, as the advantages of cost, proximity and the quality of our educational institutions become more widely known
- no doubt, the 460 Brunei students estimated to be studying in Australia will, upon their return home, contribute positively to education services in Brunei.
Both Business Councils have an important role in identifying and promoting these type of activities.
I would like to see them work closely together to take full advantage of the growing commercial links between our two countries
- and evolve into forums for companies operating in each country to exchange information and views
- as well as provide bases of mutual support and advice for new enterprises seeking commercial opportunities in both Brunei and Australia.
Investment in Australia and Brunei
Let me conclude with some remarks about investment opportunities for Australian and Bruneian business people
As many of you are no doubt aware, economic conditions in Australia are encouraging
- the latest official forecast for GDP growth is 3.5 per cent and is one of the highest in the OECD
- our recent trade and inflation performances provide the basis for a sustained improvement in economic activity
: our export volumes grew by over 9 per cent in 1992-93, outstripping increases in world trade
- these factors make Australia an attractive destination for investment
: and we would welcome increased investment from Brunei, particularly in the manufacturing and high technology-sectors.
I understand the Brunei government is also in the process of implementing measures to diversify the country's economy by encouraging private sector involvement in economic growth
- under the Sixth National Development Plan.
Australian companies are well placed to take up opportunities presented by Brunei's diversification and development effort
- they have shown that they are reliable, sophisticated and competitive suppliers of resources and technology, particularly in the construction sector
- and in the provision of engineering, technical, education and training services
: in this context, I would like to encourage the Government of Brunei to consider the benefits of using Australian companies to assist with the implementation of its plans for economic diversification
: I would also like to see both Business Councils play an active role in assisting and supporting Australian and Bruneian firms in their efforts to secure tender contracts in both countries.
I look forward to maintaining close contact with business representatives from both Councils and to hearing of new developments in our commercial relations.
I wish you every success in your endeavours.