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

2. 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

3. 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

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

5. 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

6. 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

7. 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

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

9. 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

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

11. 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

12. 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

13. 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

14. PRIVATISATION
REALIZATION OF SHuTT
11/14/2018