MINISTRY OF COMMUNICATIONS PRIVATISATION ? MINISTRY OF COMMUNICATIONS BRUNEI DARUSSALAM 11/14/2018

Titah ........Through the Ministry of Communications, the Government is also implementing its plan to develop the country to become the centre of services, trade and tourism before the year 2003. Titah on the occasion of His Majesty’s 50th Birthday Celebration on 15th July, 1999 11/14/2018

WHAT IS SHuTT ? Promotes Import and Export Through Brunei Darussalam Travel To and Through Brunei Darussalam Business In and Through Brunei Darussalam Communication From and Through Brunei Darussalam 11/14/2018

THE STRATEGIES IN REALISING SHuTT Infrastructure Development Providing Competitive Services Privatisation and Liberalisation Safety and Environmental Care International Relation and Cooperation 11/14/2018

THE ACTIVITIES AND FUNCTIONS HAVE BEEN TRADITIONALLY VESTED DEFINITION TRANSFER TO THE PRIVATE SECTOR THE ACTIVITIES AND FUNCTIONS WHICH HAVE BEEN TRADITIONALLY VESTED IN THE GOVERNMENT 11/14/2018

OBJECTIVES OF PRIVATISATION Privatisation is the Engine for Growth Relieve Financial and Administrative Burden for the Government Improve Efficiency and Productivity Development of Private Sector Product and Technical Innovation 11/14/2018

WISH LISTS ... “… as a mechanism for promoting efficient allocation of resources, innovation, and flexible adjustment to changing technology, costs and demand in both national and international markets ….” “… as a means to revamp, revitalise and recapitalise the economy and enabling private enterprises to operate more purposefully, contribute to the national budget and also generate employment ….” “… limited financial resources of the state, constraining Government’s ability to reinvest, the capital structures of enterprises are seriously eroded and their plants and equipment are outmoded and needing replacements ….” “… should show positive financial results improvements – in operating efficiency, in the quality of its products and services, in its responsiveness to market needs, in organisational morale, and in entrepreneurship ….” “… the ideological reasons such as, widening the opportunities for individual initiative and enterprise; widening shre ownership among the population and fiscal considerations ….” 11/14/2018

METHODS OF PRIVATISATION Sale of Equity Sale of Assets Lease of Assets Management Contract Build, Operate & Transfer Revenue Sharing Scheme 11/14/2018

EXPERIENCES SO FAR… Public Transportation Ports Operations Lease of Container Yard Lease of Facilities (Marine Passenger Terminal) Sale of Assets (DST) Build, Operate & Transfer Trunk radio VOIP 11/14/2018

ISSUES Management Methods Mind Set Change Monopoly - Liberalisation Government - Business Facility - Customer Cash - Accrual Mind Set Change Monopoly - Liberalisation Provider - Regulator 11/14/2018

ISSUES (cont’d)… Transfer of Assets Regulatory / Policy Setting Service Quality & Provision Customer Safeguards Monopoly Behaviour Pricing Mechanisms Transfer of Assets Book Value Discounted Cash Flow Potential Earnings 11/14/2018

Competitive Environment ISSUES (cont’d)… Transfer of Staff Government Terms & Conditions Not ‘worse-off’ Monetary Non tangible Sense of Security Competitive Environment Brunei Context Government Sector Private Sector 46% 54% Local – 94% Local – 22% Non-local – 6% Non-local – 78% 11/14/2018

NEXT STEPS… Political Will Implementation Review Industry Study Regulatory Setting Incorporatisation and Law Asset Valuation Setting the Financial Targets and Performance Review 11/14/2018

PRIVATISATION REALIZATION OF SHuTT 11/14/2018