Brunei Digital Economy Forum 2024: The Future of Digital Trade in Brunei
Wednesday, 25th September 2024 (11.00 AM)
Digital Brunei - Building Brunei’s Digital Future
Permanent Secretary
Ministry of Transport and Infocommunications
Bismillahir Rahmanir Rahim
Alhamdullilahi Rabbil `Alameen Wasaalatu Wassalaamu `Ala Asyrafil Ambiae Walmursaleen, Saidina Muhammadin Wa'alaa Aalihiee Wasahbihee
Ajama'een Assalamu’alaikum warahmatullahi wabarakatuh, and a very good morning.
Distinguished Guests, esteemed colleagues, Ladies and Gentlemen,
1. First of all, I would like to congratulate The ASEAN and APEC Business Advisory Councils of Brunei in collaboration with the Ministry of Finance and Economy to present the Brunei Digital Economy Forum 2024.
2. This year's forum focusing on the National Digital Payment Network and its potential impact on Brunei's economy. This will create platform for businesses, government officials, and other stakeholders to explore the opportunities presented by the National Digital Payment Hub and how best to prepare and work with the digital ecosystem that is being invested in by government. The transformative impact of a national digital payment network is undeniable hence it is one of the three key flagship projects, together with National Information Hub and Digital Identity were identified at the onset of the formulation of the Digital Economic Masterplan 2025.
3. At this early juncture, I like to take this opportunity to call on everyone here even more so the private sector and businesses to support these flagship initiatives. Please take the opportunities and utilize, use these platforms laid out.
4. This morning, I will also take this opportunity to share the latest updates on our journey towards a digital nation, where are we in the implementation of the Digital Economy Masterplan 2025. My apologies if, as I am sure many of you are more tech savvy and knowledgeable than me in these areas, if some of what I will share you have known. At the same time I will focus on what’s ahead and how we all can work together.
Digital Economy Masterplan 2025 - Background
Ladies and Gentlemen,
5. Digital Technologies continues to be a driving force of change and transformation for the global economy and everyday lives. As a recap, In June 2020 under the Digital Economy Council, Brunei Darussalam launched its Digital Economy Masterplan 2025 with a vision of turning the country into a “Smart Nation Through Digital Transformation”. Key words “Digital Transformation”
6. The Masterplan aims to drive and enhance Brunei Darussalam’s socioeconomic growth through Digital Transformation, in realization towards the desired strategic outcomes focusing on,
o Vibrant and Sustainable Digital Economy - create vibrant businesses that will foster entrepreneurial culture, increase innovation, generate job opportunities and importantly enhance national competitiveness. This will touch base on contribution to our GDP from the ICT Sectors as well as contribution of digital transformation towards other industries.
o Digitally Conducive Ecosystem - a digitally conducive ecosystem enables efficient transactions and processes to be conducted in line with the ever-growing need for privacy, security and data governance. This include measuring Brunei’s performance under the United Nation E-Government Index (UNEGDI) and Consumer’s Trust.
o Digital and Future Ready Society - digital and future ready society reflects the readiness of the society to embrace digital transformation and new technological innovations. This will lead to effective participation in the Digital Economy and eventually increasing the quality of lives.
7. Outlining the four Strategic Thrusts under the Masterplan:-
o Industry Digitalisation - Digitalisation will create opportunities for innovation, and to chart key efforts, a digital transformation plan will need to be developed for each industry sector.
o Government Digitalisation - The Government plays a critical role in facilitating economic development.
o Thriving Digital Industry - ICT Sector needs to look towards the application of technologies to nurture and sustain growth for the improvement of the digital sector, and other specific sectors.
o Manpower and Talent Development - Brunei’s future workforce needs to be digitally capable, equipped with the right skills to adapt to the rapid developments in technology.
Brunei Darussalam Digital Landscape
Ladies and Gentlemen,
8. Since the launch of the Digital Economy Masterplan, we have seen Brunei Darussalam’s milestones and achievements reflect the significant progress made in the journey towards a Smart Nation. These demonstrate a commitment to leveraging digital transformation for the betterment of society, economic growth, and global collaboration. To name a few,
o ICT Contribution to GDP: A total of BND 484.8 Million contribution of the ICT sector to the Gross Domestic Product (GDP) reported in 2023. A significant increase of 13.4% from 2019 to 2020. While in 2023, it recorded an increase of 5.0% from the previous year.
o ITU ICT Development Index: The latest report has been received for the ITU ICT Development Index where Brunei Darussalam is ranked 12th out of 169 economic countries involved, and ranked 2nd in the ASEAN region.
o Global Innovation Index (GII): Brunei Darussalam's position on the Global Innovation Index (GII) has increased by 5 steps in 2023.
o Government AI Readiness Index: The country's commitment to AI readiness is also proven, where Brunei Darussalam is ranked 74th out of 190 economic countries involved in the Government AI Readiness Index 2023. Based on the report, the country's focus is on the development of data and infrastructure as well as efforts in improving the technology sector, showing the country's approach in integrating the AI framework towards the development of society and its economy.
9. Meanwhile, our highest achievements that reflect the significant progress hinges on a robust infrastructure and supporting strategic enablers:-
Robust Infrastructure
o With the establishment of UNN on 4th December 2018, serving Brunei’s digital telecommunication, offering wholesale telecommunication services to both national and international clients show the transformative journey to enhance Brunei’s telecommunications infrastructure.
o Nationwide connectivity – Expanding high-speed broadband access to urban and rural areas ensures that all citizens and businesses can participate in the digital economy. Significant cuts in wholesale tariffs to make retail prices more affordable and extending our services to previously underserved rural areas using sustainable solar and hybrid technologies
o 5G Implementation - building new data centers, modernized over 800 base stations, and rolled out nationwide 5G with C-Band and Dynamic Spectrum Sharing.
Policies Regulatory and Governance Framework
o The preparation of Cybersecurity Act (CSA) which was enforced in May 2023, which aims to ensure the measures (measures) set to prevent, manage in dealing with cyber security threats and incidents. Cyber Security Brunei (CSB) is currently running an awareness program for Government and non-Government agencies.
o Preparation of the main legal framework Personal Data Protection Order (PDPO) which aims to protect the use, collection and disclosure of personal data by the private sector. Several public consultation sessions have already been conducted by AITI, and currently the PDPO is in the final stages of preparation and is targeted to be introduced this year.
o The preparation of the Data Sharing Guideline which has been enforced in May 2023, specifically for the use of Government sector agencies involved in sharing personal data with other Government agencies, organizations and data processors.
Flagship projects
o National Information Hub - This platform has started to be used in June 2021, facilitates secure data sharing (which comprises of People Hub, Land Hub, Business Hub) and utilization across government agencies. This project is pivotal in enhancing inter-agency collaboration and ensuring data-driven decision-making. To date, a total of 10 Data Providers and 15 Data Users consisting of interested Government agencies have used the platform. A total of 21 integrations from a total of 15 Data Users have been implemented. How will NIH benefits us? Data Consistency and Accuracy, Improved Data Accessibility, Enhanced Data Security, Cost Efficiency, Faster Decision Making, Easier Data Governance and Compliance, Better Data Quality and Integrity, Scalability, Simplified Analytics and Reporting, Reduced Data Duplication amongst others. We can be a more data driven policy making entity.
o Meanwhile the Digital Payment Hub, which is expected to be launched by end of this year is a platform to facilitate seamless and instant transactions among consumers, driving financial inclusion and economic efficiency. By embracing digital payments, we are taking a significant step towards a cashless society, enhancing convenience and security for all. This platform will also enable our economy to be better connected globally. What do we hope to achieve? Ideally, Increased Financial Inclusion, Faster and More Efficient Transactions, Expansion of E-Commerce and Gig Economy, Reduced Transaction Costs, Enhanced Security and Fraud Prevention, Cross-Border and International Payments, Data-Driven Insights and Personalization, Reduced Reliance on Cash, Emergence of Super Apps, Transformation of Retail and Consumer Experience, Microtransactions and Subscription Models Digital Payments in the Public Sectoramongst others. In summary, digital payments are transforming the economy by fostering greater financial inclusion, increasing transaction efficiency, driving new business models, and reshaping both retail and global finance. These changes are ushering in a more interconnected, data-driven, and cashless economy, with significant implications for individuals, businesses, and governments alike. One caveat to achieve all these, all of us must work together to make it a success as I am sure all of us want it to be.
o In our journey towards a digital nation, the Digital Identity is a critical milestone. Set to be soft launched by the end of this year, this initiative will provide a verifiable government issued credential as well as secure single sign-on function for all government services. This project will not only streamline service delivery but also bolster our efforts towards a more inclusive digital society. Again what do we hope to achieve? Amongst others, Improved Access to Services, Efficiency and Convenience, Enhanced Security and Fraud Prevention, Cost Reduction for Businesses and Governments, Better Personalization and User Experience, Support for Digital Payments and Fintech, Boosting E-Government Services, Data Privacy and Compliance, Seamless and Frictionless Authentication Across Platforms. In summary, digital identity has the potential to transform access to services, improve efficiency, enhance security, and foster economic growth.
Government Digitalisation & Industry Digitalisation
Ladies and Gentlemen,
10. Digital transformation is being driven by both industry and government efforts, each playing a crucial role in this evolution. The collaboration between industry and government is essential for a successful digital transformation, as it ensures that technological advancements are inclusive, secure, and beneficial for society as a whole.
11. Brunei Darussalam has actively pursued digitization across various industries to increase productivity, efficiency and economic growth. Some of the main efforts and initiatives that have been and are being implemented in supporting the digitization of the industrial sector are,
Payment Schemes and Programs
o The PENJANA scheme was first introduced on 17 Feb 2022. The scheme offers up to 70% subscription fee subsidy and more than 15 pre-approved digital solutions. This program is also to encourage Micro, Small and Medium Enterprises (SMEs) to adopt digital solutions in increasing productivity, reducing operating costs and improving overall efficiency.
o MSME Tech Clinic Program is a consultation program that brings ICT technical experts to assess and advise MSME digitization needs. The program was launched in March 2023. As of June 2024, a total of 43 SMEs has utilized the services.
o Digital Solutions is a program that provides various technological solutions (digital solutions) consisting of E-commerce, HR, Supply Chain Management, Project Management, Cloud Computing and many more.
Initiatives towards Digital-Payment
o Digital payments in the country have grown rapidly, with significant progress in recent years. This growth is driven by public and private sector efforts to improve financial services and encourage cashless transactions.
o In addition, various mobile payment solutions (mobile payment solutions) such as Quick Pay, Progresif Pay and Pocket, Ding, and Olive have also started to be used to enable businesses and consumers to easily make cashless transactions.
This initiative is part of Brunei Darussalam's wider strategy to leverage technology for socio-economic growth and as a leader in digital innovation in the region.
Ladies and Gentlemen,
12. In realizing the need for digital transformation for public services, Government services need to be more accessible, transparent and efficient. Here are some initiatives towards the Government's digitization efforts:
o Digital Transformation Plans - Coordination efforts on the digital transformation projects have also been carried out together with the Ministry and Institutions of Higher Education to ensure that the impact of the project is in line with the actual needs of the country towards contributing to efficiency, productivity and avoiding waste by applying Whole -of-Nation approach.
o Streamlining Governance – Streamlining governance structure and administration of the Digital Economy Council (DEC) and also the CIO Forum with the absorption of the scope of the Smart City Steering Committee to the Digital Economy Council (DEC) and also the CIO Forum, hence the implementation of digital strategies in the Government sector; Industry; and Society will be focused on realizing the vision of a Smart Nation.
o Project Management Framework - In further strengthening the implementation of the projects under each Ministry, several coordination efforts have been carried out to ensure that the impact of the project is in line with the actual needs of the country. The Project Management Framework has been introduced and mandated to be used in further strengthening the management of digital transformation projects. Again here, our message to all stakeholders including all present here, please take time to have understanding and clarity on this PMF to ensure smooth implementation.
Thriving Digital Industry & Manpower and Talent Development
Ladies and Gentlemen,
13. Digital transformation is a significant driver in the ICT industry and has profound impacts on manpower. It is more about changing how organizations operate and how people work. It’s a continuous process that requires leadership, capability building, and a focus on empowering workers.
14. The ICT sector needs to look towards the application of technology to foster and sustain growth for the betterment of the digital sector, and other specialized sectors. Several achievements have been seen in the ICT sector including:
o APICTA & BICTA - Through this BICTA & APICTA platform can promote technological innovation and encourage the development of local ICT solutions to the international market.
o Brunei Innovation Lab - The establishment of BIL as a national innovation platform for technology entrepreneurs to encourage the growth of the local innovation ecosystem, inspire the community and foster technology entrepreneurs to lead a vibrant and sustainable economy in Brunei Darussalam. Among activities that have been carried out over the past two years to drive the innovation ecosystem in Brunei Darussalam including the 101 & 102 Workshops, Innovation Challenges and Innovate Accelerator, and Startup673 Programme.
15. Digital transformation also offers significant benefits, such as improved efficiency and innovation. However, it also presents challenges including the development of new skills as well as reskilling. Several programs are already in place to prepare skills towards technology development as well as skills development programs for the public and also at the school level,
o Digital For All – digital literacy training for the elderly, welfare communities, village councils. A total of 244 participants have been trained since 2022.
o Digital Citizenship - the launch of the Digital Citizenship Framework and Handbook by the Ministry of Education aims to equip stakeholders with comprehensive knowledge, relevant skills, attitudes, and core values as responsible users in the digital world.
o Digital Upskilling - which aims to provide training for certified ICT professionals with funding for course fees. To date, 25 Job Seekers out of 39 have received professional certification & 17 local workforce out of 33 have obtained professional certification.
o BIICF - In terms of preparing employment opportunities for the future, the Ministry through AITI in collaboration with MPEC (Manpower Planning & Employment Council), the Prime Minister's Department has prepared the Brunei ICT Industry Competency Framework (BIICF) which was launched on August 2022.
16. In addition to that, Digital Brunei is one of the outreach initiatives under the Digital Economy Council in supporting efforts towards achieving aspirations in making this country a Smart Nation. Some of the programs that will be implemented this year include the Digital Brunei Stakeholder Townhall which will bring together the Government sector and also the industry sector to discuss opportunities for more cohesive cooperation in both increasing awareness and the use of digital platforms to enable community involvement in activities this growing digital economy.
17. Meanwhile, Brunei Content Festival is an annual event hosted by the AITI that celebrates and promotes the creation and development of local content producers in the broadcasting industry. This platform will support to raise awareness and promote local digital media content, to generate high-quality local content and to create opportunities for collaboration. Through this Brunei Content Festival platform, the content industry will continue to progress and evolve with the use of the latest technology, new ideas that have a positive impact, and able to cooperate with various interested parties to produce more local content that is able to meet the highest international standards as well as interest regional and globally.
Conclusion – Way Forward
Ladies and Gentlemen,
18. The emergence of Artificial Intelligence (AI) technology at the global level, has a great impact and develops opportunities in various fields such as potentially increasing economic growth and the development of new job opportunities.AI is poised to significantly transform the digital economy across multiple sectors by driving efficiency, innovation, and new business models. Here are some key ways AI will impact the digital economy: Automation and Productivity Boosts, Personalization at Scale, Creation of New Markets and Business Models, Data as a Key Economic Asset, Enhanced Decision-Making and Predictive Capabilities, Labor Market Transformation, Financial Innovation and Digital Payments, Supply Chain Optimization, Cybersecurity and Fraud Prevention, Ethics, Regulation, and Governance. The rapid integration of AI into the economy will raise questions about ethics, privacy, and governance. Policymakers will need to create frameworks for AI regulation, ensuring responsible use of the technology while fostering innovation. Issues such as data privacy, bias in AI algorithms, and the ethical implications of automation will be central to future debates.
19. In line with ASEAN's collective efforts, an AI Governance and Ethics Guideline for Brunei Darussalam has been prepared by the AITI that fully supports the ASEAN Guide on AI Governance and Ethics, which emphasizes several key principles including transparency, fairness, security and privacy. AITI has also established an AI Governance and Ethics Working Group (WGAIGE) consisting of the Government, Industry and Academia sectors as a working collaboration in developing the guidelines.
20. Brunei Darussalam sees the potential and transformative abilities of Artificial Intelligence (AI) as one of the emerging technologies used globally today. In this regard, the Ministry is collaborating with stakeholders in aligning its national strategy with regional initiatives in ensuring responsible AI development and governance, through the planning of the AI Strategy for Brunei Darussalam while emphasizing the values of Malay Islamic Monarchy (MIB), and to ensure information protection regulations and the implementation of strict monitoring to protect the strategic interests of the country and individual rights. This is equally important for planning the provision of sufficient professional manpower in AI technology skills through the provision of education programs and related skills training.
21. When we look towards the future, it is clear that the journey towards making this country a Smart Nation must be guided by a strategic and visionary master plan. Improvements to the Master Plan should consider addressing the challenges and also looking at the opportunities that exist.
22. Digital Transformation implemented properly will bring Improved Efficiency, Better Customer Experiences, Greater Agility, Increased Innovation, Cost Savings, Enhanced Competitive Advantage amongst others.
23. At the same time we have challenges such as Legacy Systems, Cultural Resistance, Cybersecurity Risks, Skill Gaps, Cost of Implementation. We need to manage these through change management. Equally important is we are not adopting technology for the sake of being seen the first one to adopt, technology adoption is where we can see the ‘business case’ and social and economic benefits.
24. One cornerstone mandated by the Digital Economy Masterplan are the Digital Transformation Plans or DTPs prepared by each ministry for themselves and the sectors under them. In total 17 DTPs were prepared. As a next step, the Ministry through the Digital Economy Council (DEC - Digital Economy Council) is also preparing a Single Digital Transformation Plan framework which takes into account these DTPs and identified actions for the implementation of projects to towards realizing the vision of a Smart Nation. By leveraging digital transformation to enhance quality of life, drive sustainable development, and ensure that every citizen benefit from technological progress. The development of projects, initiatives, and programs are designed to align with the strategic pillars, addressing key areas of Governance, Infrastructure, Education, Innovation and Citizen Engagement. These will be the preliminary guiding objectives in the next phase of our smart nation journey. Please see these as ‘opportunities’.
25. Brunei's digital transformation infrastructure is crucial for building a resilient, inclusive, and innovative digital economy. By focusing on these key areas, we can pave the way for a prosperous future that benefits all Bruneians. Together, let’s embrace this transformation and harness the power of technology to drive our nation forward. All of us play critical roles. Equally important, if not more so, is the private sector. You are the driver and lead in innovation. Please continue to support, collaborate and utilize the foundation, platform and initiatives some of which are shared here. Be our partner.
26. By implementing these efforts, we can advance towards a more connected, inclusive, and resilient Smart Nation, leaving no one behind. Your engagement and collaboration are vital as we work together to harness the power of technology for the betterment of Brunei.
27. Thank you all for your insights, contributions, and enthusiasm throughout this event. Together, let’s embrace this exciting future with confidence and a commitment to making it a better place for all.
28. Once again thank you to The ASEAN and APEC Business Advisory Councils of Brunei and all involved in hosting the Brunei Digital Economy Forum 2024 and also to the participants who have joined in today.
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