Business Sentiment Index for August 2025 Shows Mixed Outlook for Brunei
Bandar seri begawan: Brunei Darussalam Central Bank (BDCB) has released the Business Sentiment Index (BSI) for August 2025, revealing a stable outlook for current business conditions compared to the previous month. The report highlights that the two weeks of school holidays in August have contributed to a positive sentiment within travel-related sectors, along with project awards, export opportunities, and some in-country events.
According to Radio Television Brunei, the Investment sub-index indicates positive activity, largely driven by large companies. This activity is supported by ongoing turnaround projects, facility upgrades, inventory restocking, and equipment purchases across various sectors. However, the Employment sub-index reflects a slightly negative recruitment outlook, with several large companies in specific sectors planning to reduce headcount and freeze hiring due to limited new project opportunities. Additionally, the Costs sub-index shows that most businesses anticipate higher operational costs, influenced by factors such as insurance-related costs and increasing prices of raw materials and ingredients.
The report also notes robust sales revenue expectations within the Transport sector, and telecommunications service providers are set to benefit from increased data roaming usage by locals traveling abroad. Some restaurants and hotels are expected to perform better due to successful promotional campaigns and a rise in venue bookings and staycations during the school holidays. There is a modest optimism fueled by expectations of improved sales, rising production, and new export prospects, although some businesses face weather-related setbacks.
The overall performance is expected to remain steady, with some reliance on loan facility usage and demand for takaful products, which could help counter challenges from competition and reduced income due to the lower interest rate environment. However, increased provisions for loan losses, contract non-renewals, ongoing cash flow issues, and weak client spending, along with rising wage costs, are anticipated to continue impacting business performance.