Brunei is diversifying its economy by expanding the agri-food sector, focusing on high-value niche products to strengthen food security and economic development, while addressing structural challenges.
Pursuing Economic Diversification Through Agri-Food
Brunei Darussalam is embarking on a strategic initiative to diversify its economy beyond its traditional reliance on oil and gas. Central to this effort is the development of the agri-food sector, one of five priority sectors identified for expansion. Although currently small, this sector holds significant potential to enhance food security and stimulate broader economic growth. Success in this venture hinges on addressing existing structural constraints and targeting high-value niche markets. By expanding into these specialized areas, the agri-food sector can play a pivotal role in economic diversification and contribute to Brunei’s long-term economic stability. A comprehensive strategy that tackles these challenges will be crucial for its success.
Current State and Challenges in Agri-Food
Brunei has made commendable strides in enhancing its agri-food sector, achieving self-sufficiency in poultry and eggs through government initiatives and private investments. Nonetheless, challenges persist in various subsectors like vegetables, rice, and livestock, leading to a heavy reliance on imported goods, which poses risks during global supply disruptions. In 2025, the agri-food sector constituted only about 1.3% of the GDP, reflecting its nascent stage in domestic consumption needs. The COVID-19 pandemic underscored the importance of building local resilience against external shocks. Overcoming these challenges will involve resolving land scarcity, improving infrastructure, addressing labor and skills shortages, and enhancing technology adoption.
Unlocking Potential Through Niche Markets
To unlock the full potential of the agri-food sector, Brunei must adopt coordinated policy measures aimed at technology adoption, infrastructure development, skill enhancement, and increased financial access. Strengthening ties between agricultural producers and supporting industries, especially in food processing, will maximize the economic benefits of this sector. By following examples like Lao PDR, which successfully ventured into specialty coffee, Brunei could focus on developing high-value, niche agri-products such as premium halal-certified foods and specialty aquaculture items. Leveraging its robust halal-certification framework could drive domestic and international market growth, ultimately fostering an agri-food sector that concurrently advances food security and economic diversification.
Source: Beyond Food Security: Unlocking Brunei’s Agri-Food Potential – ASEAN+3 Macroeconomic Research Office
