Journal Articles by Giuseppe Rizzo
CSPS Strategy and Policy Journal, 2019
Over the past decade, following the global financial crisis, there has been growing interest in m... more Over the past decade, following the global financial crisis, there has been growing interest in measuring financial literacy and understanding the causes of it. The issue of financial literacy emerged as a key policy theme also in Brunei Darussalam. Several financial education programmes have been implemented by the Government through its Ministries and Departments with the purpose of improving financial knowledge and behaviour among the public. In 2015, CSPS conducted the first Financial Literacy Survey to support the formulation of the National Strategy for Financial Literacy, for AMBD. The purpose of this paper is to illustrate the main findings of the survey and to identify the key background characteristics correlating with financial literacy and its key components. Our findings suggest that a significant proportion of the population, between 30 and 40%, have inadequate financial literacy and behaviours, and that age, income, education, employment status, and, to a lesser extent, ethnicity can be used to identify six at-risk groups comprising three-quarters of the financially illiterate population.
CSPS Strategy and Policy Journal, 2016
In recent years the issue of unemployment among university graduates in Brunei Darussalam has att... more In recent years the issue of unemployment among university graduates in Brunei Darussalam has attracted considerable attention. Acknowledging the lack of research on employment and unemployment issues among university graduates, in 2012 CSPS conducted a national survey of university graduates. The purpose of this working paper is to illustrate the main findings of the survey, with specific attention to unemployment issues. The paper estimates a logit model to identify the main factors affecting the probability of unemployment. Our findings suggest that several characteristics have an impact on the probability of unemployment, acting both through the individual labour supply and preferences – shifting the reservation wage – and through the signals sent to the employers – shifting the distribution of the potential wage offers.
"This paper presents a theoretical model to investigate the incentive of private producer and pol... more "This paper presents a theoretical model to investigate the incentive of private producer and policy-maker to reduce seasonality in a given market, where consumers derive different utilities from the consumption of the good in different seasons.
The (seasonal) product differentiation is modeled along the lines of the contributions of Gabszewicz and Thisse (1979) and Shaked and Sutton (1982). We take into consideration that investments are possible to reduce the degree of seasonality. We show that, for a wide set of parameter configuration, the policy maker finds it optimal to make more effort to reduce seasonality as compared to private producers.
The theoretical conclusion is consistent with empirical and anecdotical evidence."
Papers by Giuseppe Rizzo
To better understand the current state of the ICT industry in Brunei, a survey was designed which... more To better understand the current state of the ICT industry in Brunei, a survey was designed which was implemented by the CSPS in February 2021. The purpose of the survey is to better understand 1) the demand for digital applications among MSMEs in Brunei; and 2) the digital capabilities of ICT firms in Brunei in meeting this demand. In addition to the survey of MSMEs, CSPS also surveyed the ICT firms in Brunei to determine what digital solutions they already offer in the market, gauge their capacities in meeting increased demand for digital applications domestically, the challenges to digital transformation they see and the potential solutions. A total of 494 firms participated in the survey, of which 42 firms were ICT firms and 452 were firms belonging to different industry sectors. A workshop among MSMEs and ICT firms was also held to get more qualitative feedback from the participants as well as to present the initial results of the two surveys.
The purpose of this paper is to develop a quantitative model to make long-term skills and qualifi... more The purpose of this paper is to develop a quantitative model to make long-term skills and qualification projections and analyse potential imbalances between supply and demand. The aim is not to make precise manpower predictions, but to provide a systematic and quantitative labour market evaluation based on different scenarios of the future.
In recent years the issue of unemployment among university graduates in Brunei Darussalam has att... more In recent years the issue of unemployment among university graduates in Brunei Darussalam has attracted considerable attention. Acknowledging the lack of research on employment and unemployment issues among university graduates, in 2012 CSPS conducted a national survey of university graduates. The purpose of this working paper is to illustrate the main findings of the survey, with specific attention to unemployment issues. The paper estimates a logit model to identify the main factors affecting the probability of unemployment. Our findings suggest that several characteristics have an impact on the probability of unemployment, acting both through the individual labour supply and preferences – shifting the reservation wage – and through the signals sent to the employers – shifting the distribution of the potential wage offers.
A broad political economics literature explains the introduction and expansion of pension systems... more A broad political economics literature explains the introduction and expansion of pension systems, but the effects caused by the endogenous reduction of fertility are typically disregarded, as the fertility choice is usually considered exogenous. This paper suggests a political model that takes into account these effects and analyzes the net effect of the reduction of fertility costs on the dimension of pension systems. Some stylized facts support an inverted-U development pattern: a continuous and progressive increase of the fertility cost, after inducing the introduction of pension systems, tends to reduce, ceteris paribus, their political support.
Research Reports by Giuseppe Rizzo
The objectives of the research project are: (i) to gauge the state of Bruneians and their opinion... more The objectives of the research project are: (i) to gauge the state of Bruneians and their opinions and expectations, (ii) to support various Government agencies’ efforts to measure progress toward Brunei Vision 2035 goals, (iii) to disseminate the information gathered through the national barometer survey both at the national and international level, and (iii) to produce actionable policy recommendations.
This Report presents the analysis of the various indicators included in the survey questionnaire, and the main correlations between the indicators and the socio-demographic characteristics of the individuals. The analysis also includes an international comparison of some of the indicators, where appropriate.
The objectives of the project are: (i) to complement national data collection and identify gaps w... more The objectives of the project are: (i) to complement national data collection and identify gaps with international data submissions, (ii) to identify current, prevalent challenges and opportunities for women in Brunei Darussalam and to further their development, and (iii) to formulate general policies or programs in support of the development of a National Plan of Action on Women towards greater equity for women in Brunei Darussalam. The final report presents the findings of the national survey.
The report covers findings of the industry survey and its analysis, recommendations on what sub-s... more The report covers findings of the industry survey and its analysis, recommendations on what sub-sectors to prioritise and why, an outline and justification of the business case, description of outcomes and benefits, key-performance indicators and strategies to achieve them. It also includes detailed actionable strategic or flagship programmes consisting of programme level objective, description, stakeholder’s involvement, output, outcomes, benefits, dependencies, risks and mitigation, estimated budget, milestones and estimated timeline. The report and recommendations are the result of a series of consultations with AITI and industry stakeholders as well as review of experience and lessons from other countries.
In 2015, CSPS conducted relevant studies in order to formulate a White Paper on the topic of conc... more In 2015, CSPS conducted relevant studies in order to formulate a White Paper on the topic of concern, as requested by AMBD. This report summarises the findings of a follow-up study about the implementation progress of the four strategic initiatives.
The objectives of the project are: (a) to measure the level of financial literacy in the three ke... more The objectives of the project are: (a) to measure the level of financial literacy in the three key areas of knowledge, attitude, and behaviour, (b) to compare the findings with the Financial Literacy Survey 2015.
As commissioned by PMO, this research is to gather preliminary information to guide the initial s... more As commissioned by PMO, this research is to gather preliminary information to guide the initial stages of clusters development initiatives. The first stage of this process was initiated by CSPS, in collaboration with PMO, with the identification of 10 clusters that were seen as relevant to Brunei Darussalam’s economic development and were feasible to become regionally or globally competitive. The 10 clusters are as follows: (1) Energy; (2) Agrifood; (3) Tourism; (4) Education; (5) Health Services; (6) Halal; (7) Financial Services; (8) Business Services; (9) Logistics & Transportation; and (10) Digital Economy.
CSPS has conducted several cluster specific workshops for Logistics, Education, Health Services, Halal, Digital Economy, and Business Services up to now and specific policy briefs for each cluster have been submitted to PMO for their further actions. Workshops for the more established clusters that already have a strategic direction to move towards have not been organized (i.e. Finance, Energy, Agrifood, and Tourism).
The workshops mainly focused on acquiring inputs from the private sector but Government representatives were invited to attend as well. The workshops were usually made up of 20 to 30 participants.
In the cluster specific workshops, participants were asked to craft a vision for their respective cluster. They would then conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis and a gap analysis in relation to their chosen vision. Lastly, they would be asked to outline a few strategic initiatives that would help the cluster achieve the vision.
Participants of the workshops have been supportive of the concept of clustering and have requested to be included in any clustering initiatives initiated by the Government.
One of the key issues faced so far is collecting data on specific clusters as they don’t fall into the conventional industrial classification used by JPKE.
CSPS Report, 2016
The Autoriti Monetari Brunei Darussalam (AMBD) commissioned the Centre for Strategic and Policy S... more The Autoriti Monetari Brunei Darussalam (AMBD) commissioned the Centre for Strategic and Policy Studies to embark on the Financial Literacy Survey and National Strategy Project on 28th January 2015. AMBD, as a driver of the development of the financial services sector, recognizes financial literacy as an underlying factor in realizing this agenda. As such, the Project is important in better understanding Brunei Darussalam’s position in terms of financial literacy, and how to move forward from thereon.
The objectives of the Project are firstly, to measure the level of financial literacy. This is done primarily with the use of a specially designed national survey of the adult population (the Financial Literacy Survey). The data analysis addresses the relationship between the demographic characteristics and the level of financial knowledge, attitudes, and behaviour. Furthermore, the analysis evaluates the links between financial knowledge and behaviour. In order to obtain internationally comparable results, the measurement process adopts the most generally accepted approaches.
The second objective is to provide policy recommendations, best practices and a national strategy for promoting financial literacy. The financial literacy strategy will contain major policy recommendations to promote financial literacy specifically designed to address the needs of the Bruneian population, with special attention to the target groups identified during the analysis.
Following the presentation of the findings contained in the Interim Report, CSPS held a forum with the major stakeholders, consisting of (1) Bank and Insurance Representatives, (2) Policy-makers from the finance, education, and social services sectors, and (3) Community leaders and representatives. These groups assisted in identifying specific financial literacy projects and programs to be implemented.
The final deliverable of the project is this Final Report, which includes the major findings from the Financial Literacy Survey, Policy Recommendations, Best Practices, and a National Strategy for promoting financial literacy, fulfilling the second objective of the project.
The improvement of financial literacy is in line with the three main objectives of Wawasan 2035. The financial literacy strategy will assist in realising the goals of:
1. Achieving a well-educated and highly skilled population, able to make informed judgments and to take effective decisions regarding the use and management of money;
2. Enhancing the quality of life of the households, in particular of those with less financial resources, improving the accessibility of the financial market to those Bruneians who are currently excluded; and
3. Attaining a dynamic and sustainable economy, creating new economic opportunities and improving the business skills and entrepreneurship of the general public.
Financial well-being is an important component of the overall quality of life. It affects the resources available to people to achieve their personal goals and face lifetime challenges. Furthermore it is strongly related to the overall emotional and physical wellbeing, having an impact on personal security.
We propose the following high-level financial literacy vision:
“All Bruneians are able to achieve the highest financial well-being, given their resources and burdens, through the access to well-suited financial products as well as through credible and independent information and advice”
The proposed National Strategy recommends a broad set of policies aimed at changing the socio-economic and financial environment where people live, in order to positively influence the key components of Financial Literacy and facilitate behavioural change.
The recommended roadmap is classified into the following four strategic themes:
-Financial Education. Financial Education aims at facilitating behavioural change, acting on knowledge, attitudes, and motivations. Policies under this theme focus on providing lifelong learning opportunities to improve skills, knowledge, awareness, attitudes, and motivations required to achieve behavioural change. Policy interventions comprise the inclusion of financial education in the national curriculum, improving the provision of targeted workplace training, providing community learning opportunities, and achieving a critical mass of educators, who can effectively deliver financial education in the whole country.
-Financial Information and Advice. These initiatives aim at providing free, credible and independent information and advice, in order to improve accessibility, transparency and provide support and motivation. Policies under this theme will also aim at keeping people engaged in the learning and behavioural change process through regular targeted awareness campaigns.
-Institutional Design. These initiatives aim at improving the environment within which consumers and SMEs take financial decisions, facilitating positive behavioural change. Policies under this theme include the use of regulatory strategies and behavioural incentives to improve financial behaviours, facilitate market innovation, and promote financial well-being.
-Governance and Evaluation. Dedicated governance should be established to monitor and evaluate the implementation of the strategy, and to coordinate the efforts. These initiatives highlight the importance of stakeholder networking, research-based interventions, and continuous monitoring of the implementation efforts to achieve the ultimate goal of promoting behavioural change.
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Journal Articles by Giuseppe Rizzo
The (seasonal) product differentiation is modeled along the lines of the contributions of Gabszewicz and Thisse (1979) and Shaked and Sutton (1982). We take into consideration that investments are possible to reduce the degree of seasonality. We show that, for a wide set of parameter configuration, the policy maker finds it optimal to make more effort to reduce seasonality as compared to private producers.
The theoretical conclusion is consistent with empirical and anecdotical evidence."
Papers by Giuseppe Rizzo
Research Reports by Giuseppe Rizzo
This Report presents the analysis of the various indicators included in the survey questionnaire, and the main correlations between the indicators and the socio-demographic characteristics of the individuals. The analysis also includes an international comparison of some of the indicators, where appropriate.
CSPS has conducted several cluster specific workshops for Logistics, Education, Health Services, Halal, Digital Economy, and Business Services up to now and specific policy briefs for each cluster have been submitted to PMO for their further actions. Workshops for the more established clusters that already have a strategic direction to move towards have not been organized (i.e. Finance, Energy, Agrifood, and Tourism).
The workshops mainly focused on acquiring inputs from the private sector but Government representatives were invited to attend as well. The workshops were usually made up of 20 to 30 participants.
In the cluster specific workshops, participants were asked to craft a vision for their respective cluster. They would then conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis and a gap analysis in relation to their chosen vision. Lastly, they would be asked to outline a few strategic initiatives that would help the cluster achieve the vision.
Participants of the workshops have been supportive of the concept of clustering and have requested to be included in any clustering initiatives initiated by the Government.
One of the key issues faced so far is collecting data on specific clusters as they don’t fall into the conventional industrial classification used by JPKE.
The objectives of the Project are firstly, to measure the level of financial literacy. This is done primarily with the use of a specially designed national survey of the adult population (the Financial Literacy Survey). The data analysis addresses the relationship between the demographic characteristics and the level of financial knowledge, attitudes, and behaviour. Furthermore, the analysis evaluates the links between financial knowledge and behaviour. In order to obtain internationally comparable results, the measurement process adopts the most generally accepted approaches.
The second objective is to provide policy recommendations, best practices and a national strategy for promoting financial literacy. The financial literacy strategy will contain major policy recommendations to promote financial literacy specifically designed to address the needs of the Bruneian population, with special attention to the target groups identified during the analysis.
Following the presentation of the findings contained in the Interim Report, CSPS held a forum with the major stakeholders, consisting of (1) Bank and Insurance Representatives, (2) Policy-makers from the finance, education, and social services sectors, and (3) Community leaders and representatives. These groups assisted in identifying specific financial literacy projects and programs to be implemented.
The final deliverable of the project is this Final Report, which includes the major findings from the Financial Literacy Survey, Policy Recommendations, Best Practices, and a National Strategy for promoting financial literacy, fulfilling the second objective of the project.
The improvement of financial literacy is in line with the three main objectives of Wawasan 2035. The financial literacy strategy will assist in realising the goals of:
1. Achieving a well-educated and highly skilled population, able to make informed judgments and to take effective decisions regarding the use and management of money;
2. Enhancing the quality of life of the households, in particular of those with less financial resources, improving the accessibility of the financial market to those Bruneians who are currently excluded; and
3. Attaining a dynamic and sustainable economy, creating new economic opportunities and improving the business skills and entrepreneurship of the general public.
Financial well-being is an important component of the overall quality of life. It affects the resources available to people to achieve their personal goals and face lifetime challenges. Furthermore it is strongly related to the overall emotional and physical wellbeing, having an impact on personal security.
We propose the following high-level financial literacy vision:
“All Bruneians are able to achieve the highest financial well-being, given their resources and burdens, through the access to well-suited financial products as well as through credible and independent information and advice”
The proposed National Strategy recommends a broad set of policies aimed at changing the socio-economic and financial environment where people live, in order to positively influence the key components of Financial Literacy and facilitate behavioural change.
The recommended roadmap is classified into the following four strategic themes:
-Financial Education. Financial Education aims at facilitating behavioural change, acting on knowledge, attitudes, and motivations. Policies under this theme focus on providing lifelong learning opportunities to improve skills, knowledge, awareness, attitudes, and motivations required to achieve behavioural change. Policy interventions comprise the inclusion of financial education in the national curriculum, improving the provision of targeted workplace training, providing community learning opportunities, and achieving a critical mass of educators, who can effectively deliver financial education in the whole country.
-Financial Information and Advice. These initiatives aim at providing free, credible and independent information and advice, in order to improve accessibility, transparency and provide support and motivation. Policies under this theme will also aim at keeping people engaged in the learning and behavioural change process through regular targeted awareness campaigns.
-Institutional Design. These initiatives aim at improving the environment within which consumers and SMEs take financial decisions, facilitating positive behavioural change. Policies under this theme include the use of regulatory strategies and behavioural incentives to improve financial behaviours, facilitate market innovation, and promote financial well-being.
-Governance and Evaluation. Dedicated governance should be established to monitor and evaluate the implementation of the strategy, and to coordinate the efforts. These initiatives highlight the importance of stakeholder networking, research-based interventions, and continuous monitoring of the implementation efforts to achieve the ultimate goal of promoting behavioural change.
The (seasonal) product differentiation is modeled along the lines of the contributions of Gabszewicz and Thisse (1979) and Shaked and Sutton (1982). We take into consideration that investments are possible to reduce the degree of seasonality. We show that, for a wide set of parameter configuration, the policy maker finds it optimal to make more effort to reduce seasonality as compared to private producers.
The theoretical conclusion is consistent with empirical and anecdotical evidence."
This Report presents the analysis of the various indicators included in the survey questionnaire, and the main correlations between the indicators and the socio-demographic characteristics of the individuals. The analysis also includes an international comparison of some of the indicators, where appropriate.
CSPS has conducted several cluster specific workshops for Logistics, Education, Health Services, Halal, Digital Economy, and Business Services up to now and specific policy briefs for each cluster have been submitted to PMO for their further actions. Workshops for the more established clusters that already have a strategic direction to move towards have not been organized (i.e. Finance, Energy, Agrifood, and Tourism).
The workshops mainly focused on acquiring inputs from the private sector but Government representatives were invited to attend as well. The workshops were usually made up of 20 to 30 participants.
In the cluster specific workshops, participants were asked to craft a vision for their respective cluster. They would then conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis and a gap analysis in relation to their chosen vision. Lastly, they would be asked to outline a few strategic initiatives that would help the cluster achieve the vision.
Participants of the workshops have been supportive of the concept of clustering and have requested to be included in any clustering initiatives initiated by the Government.
One of the key issues faced so far is collecting data on specific clusters as they don’t fall into the conventional industrial classification used by JPKE.
The objectives of the Project are firstly, to measure the level of financial literacy. This is done primarily with the use of a specially designed national survey of the adult population (the Financial Literacy Survey). The data analysis addresses the relationship between the demographic characteristics and the level of financial knowledge, attitudes, and behaviour. Furthermore, the analysis evaluates the links between financial knowledge and behaviour. In order to obtain internationally comparable results, the measurement process adopts the most generally accepted approaches.
The second objective is to provide policy recommendations, best practices and a national strategy for promoting financial literacy. The financial literacy strategy will contain major policy recommendations to promote financial literacy specifically designed to address the needs of the Bruneian population, with special attention to the target groups identified during the analysis.
Following the presentation of the findings contained in the Interim Report, CSPS held a forum with the major stakeholders, consisting of (1) Bank and Insurance Representatives, (2) Policy-makers from the finance, education, and social services sectors, and (3) Community leaders and representatives. These groups assisted in identifying specific financial literacy projects and programs to be implemented.
The final deliverable of the project is this Final Report, which includes the major findings from the Financial Literacy Survey, Policy Recommendations, Best Practices, and a National Strategy for promoting financial literacy, fulfilling the second objective of the project.
The improvement of financial literacy is in line with the three main objectives of Wawasan 2035. The financial literacy strategy will assist in realising the goals of:
1. Achieving a well-educated and highly skilled population, able to make informed judgments and to take effective decisions regarding the use and management of money;
2. Enhancing the quality of life of the households, in particular of those with less financial resources, improving the accessibility of the financial market to those Bruneians who are currently excluded; and
3. Attaining a dynamic and sustainable economy, creating new economic opportunities and improving the business skills and entrepreneurship of the general public.
Financial well-being is an important component of the overall quality of life. It affects the resources available to people to achieve their personal goals and face lifetime challenges. Furthermore it is strongly related to the overall emotional and physical wellbeing, having an impact on personal security.
We propose the following high-level financial literacy vision:
“All Bruneians are able to achieve the highest financial well-being, given their resources and burdens, through the access to well-suited financial products as well as through credible and independent information and advice”
The proposed National Strategy recommends a broad set of policies aimed at changing the socio-economic and financial environment where people live, in order to positively influence the key components of Financial Literacy and facilitate behavioural change.
The recommended roadmap is classified into the following four strategic themes:
-Financial Education. Financial Education aims at facilitating behavioural change, acting on knowledge, attitudes, and motivations. Policies under this theme focus on providing lifelong learning opportunities to improve skills, knowledge, awareness, attitudes, and motivations required to achieve behavioural change. Policy interventions comprise the inclusion of financial education in the national curriculum, improving the provision of targeted workplace training, providing community learning opportunities, and achieving a critical mass of educators, who can effectively deliver financial education in the whole country.
-Financial Information and Advice. These initiatives aim at providing free, credible and independent information and advice, in order to improve accessibility, transparency and provide support and motivation. Policies under this theme will also aim at keeping people engaged in the learning and behavioural change process through regular targeted awareness campaigns.
-Institutional Design. These initiatives aim at improving the environment within which consumers and SMEs take financial decisions, facilitating positive behavioural change. Policies under this theme include the use of regulatory strategies and behavioural incentives to improve financial behaviours, facilitate market innovation, and promote financial well-being.
-Governance and Evaluation. Dedicated governance should be established to monitor and evaluate the implementation of the strategy, and to coordinate the efforts. These initiatives highlight the importance of stakeholder networking, research-based interventions, and continuous monitoring of the implementation efforts to achieve the ultimate goal of promoting behavioural change.
Prior to the workshop, CSPS identified 10 clusters that were seen as relevant to Brunei Darussalam’s economic development and were feasible to become regionally or globally competitive. The 10 clusters are as follows: (1) Energy; (2) Agrifood; (3) Tourism; (4) Education; (5) Health Services; (6) Halal; (7) Financial Services; (8) Business Services; (9) Logistics & Transportation; and (10) Info-Communication Technologies (ICT).
These initial clusters were identified using two-filters:
•The first filter identifies the clusters that are currently or potentially relevant for the Brunei economy in terms of their contribution to the Gross Domestic Product (GDP);
• The second filter selects those clusters which can be regionally or globally competitive looking at their innovativeness, volume of entrepreneurs, domestic availability of skilled workers, the accessibility of the supply chain, linkages and cooperation within the clusters, the availability of relevant expertise, and the ability of the cluster to develop and diversify Brunei Darussalam’s economy.
Economic cluster development in Brunei Darussalam has been the subject of a number of studies in the last 20 years. These studies have identified a number of potential clusters to be developed in order to accelerate the diversification process, and achieve the objectives stated in Wawasan 2035. However, very little has been achieved, as the oil and gas industry continues to account for more than 95% of Brunei’s total export.
The purpose of this policy brief is: first, to summarise some of these studies and the methodologies adopted to identify a list of prioritised clusters, and, secondly, to propose a participatory process aimed at defining, prioritising, and analysing clusters, and ultimately designing and implementing cluster-specific strategies.
Two studies are summarised in this brief: the Monitor Group-BEDB study (2003), whose main purpose was to identify and prioritise cluster with Foreign Direct Investment potential; the SGS-CSPS study (2012), whose main purpose was to formulate a national land optimization strategy, projecting industrial and commercial land use requirements for achieving economic diversification in Brunei. These two studies, as well as the others sponsored by various government departments, have consistently included in some form the following clusters: oil & gas, high technology, tourism, agriculture, transport and logistics, business and financial services, and food processing.
It is our view that a participatory process is necessary to come up with a shared and grounded list of prioritised economic clusters. The involvement, and leadership, of the private sector in such effort is also necessary throughout the design, implementation, and evaluation of the cluster development strategies. To this end, we propose a cluster development process based on research, experience, and best practices adopted by various countries and international organisations.
Four key stages are summarised in this policy brief:
1) Cluster mapping, prioritisation, and engagement. Cluster mapping consists of the identification (and description) of existing clusters of activities in the Brunei. Filtering and prioritisation should take into account current performance (in terms of export contribution and growth), strategic feasibility and economic attractiveness, as well as commitment and enthusiasm form the relevant cluster entities.
2) Cluster analysis and formulation of a strategy. This stage consists of the application of several industrial diagnostic tools aimed at identifying gaps and opportunities. A team of independent facilitators, with industry-specific expertise, should be established to act as catalyst for the cluster development process. Findings from the analysis are then used for the formulation of the cluster development strategy.
3) Implementation of the initiatives. Public-private cooperation and dialogue throughout this stage is a critical success factor. Responsibility over the strategic initiatives should be gradually transitioned to the different stakeholders, through a collaborative effort aimed at addressing policy and institutional bottlenecks.
4) Post-implementation review and initiative sustainability. Although most strategies are time-bound, cluster entities may decide to continue collaboration, especially when this has been proven successful. An ongoing monitoring and evaluation of the achievements is useful not only during the implementation stage itself, but also in order to validate the model adopted for cluster development.
A survey involving 594 groups of people coming back from their trips to Miri, through Sungai Tujoh Immigration Control Post, was conducted on two consecutive weekends from the end of August, 2014 just after payday.
Our survey findings show that Bruneians spend a total of B$ 205.16 per group per trip, which corresponds to a total of B$ 61.3 million a year. This estimated amount represents 1.4% of household final consumption expenditure in 2013. As it is quite a low figure comparatively, we argue that it is not a major policy concern by itself. It would seem that a large number of Bruneians are visiting Miri not just for shopping but as a preferred leisure and entertainment venue. There is a significant element of shopping for necessities in Miri especially amongst low income Bruneians.
The main policy implications of this study include the need to improve the competitiveness of our local retail sector for more variety and price competiveness of goods and services, encourage inward cross border shopping and tourism, improve our own leisure and entertainment provision to encourage Bruneians to spend their leisure time in Brunei itself, increase the liveability of the Belait district, better customs enforcement and a review of fiscal measures for importation of goods. Lastly, but perhaps more importantly, there is a need to revise social policy in Brunei in particular towards improving access to necessities for low income groups. Low income Bruneians are spending their income in Miri because they can buy more necessities, and this is an indication of the existence of poverty within the country. In this context, the increasing numbers of Bruneians going to Miri is often more a symptom of a social problem in Brunei itself, rather than the cause of the policy issue under review.