Brunei Darussalam Central Bank (BDCB) today published Brunei Darussalam's Business Sentiment Index (BSI) for June 2025. The index is based on surveys conducted on more than 500 micro, small, medium, and large businesses from 11 economic sectors across all districts in Brunei Darussalam.

The monthly index is designed to measure the level of business confidence/sentiment in the country, covering various aspects including current and future business conditions, investment, employment of workers, as well as costs of running the business. With its forward-looking approach, the BSI could serve as a leading macroeconomic indicator for the country.         

The BSI and sub-indices can be interpreted as below:

The main headline index, Current Business Conditions sub-index, was at 50.0 in June 2025. The overall results in June pointed to a generally neutral sentiment among businesses, reflecting a balance between positive and negative factors influencing different sectors. Some optimism was driven by the school holiday period in June 2025, which increased demand for leisure and hospitality services. Additionally, the promotional activities during the 31st Consumer Fair and Trade Expo also boosted sales for participating businesses. Some pessimism somewhat offset this optimism due to several factors, such as subdued demand faced by domestic businesses as a result of cross-border shopping by local residents, operational disruptions, and unfavourable weather conditions. The one-month (1M) ahead index rose to 50.4, indicating an overall optimistic outlook with upcoming events such as His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam’s birthday celebration, along with new projects from awarded tenders and contracts.

The Investment sub-index stood at 50.4 for the current month and one month (1M) ahead, and 50.1 for three months (3M) ahead. In June 2025, businesses reported increased investment levels, primarily consisting of equipment upgrades for ongoing projects, facility expansions, and infrastructure development. For the following month, businesses across several sectors also reported an increase in investment as they anticipate renovations, new projects, and inventory purchases. Looking ahead, investment sentiment for the next few months remains optimistic yet cautious. While optimism persists with some anticipating higher investment in machinery and technology upgrades, other businesses are adopting a wait-and-see approach due to market uncertainties or project dependencies. 

The Employment sub-index stood at 50.2 for both the current month and one month (1M) ahead. In June 2025, businesses were moderately optimistic about their employment situation, with several companies across sectors reporting the hiring of new employees for project-based needs and to fill vacancies due to past resignations and retirements. For the following month, some sectors are cautiously optimistic, with hiring intentions tied to upcoming projects, though constrained by external factors such as labour processes and economic conditions. 

The Costs sub-index was 49.9 for the current month and 50.3 for one month ahead. Although survey results showed that companies largely expected stable operating expenses for June 2025, several businesses across all sizes brought down the sub-index to slightly below the neutral threshold, with expectations of lower operating costs. These businesses cited factors relating to lower activity arising from the completion of major projects and maintenance works that peaked in the earlier months. Meanwhile, others attributed the lower costs to slower operations and lower production during the school holidays, with some companies also reporting workforce reductions, including those taking unpaid leave, staff resignations, and planned cost-cutting measures. For the month ahead, the outlook on cost is generally higher, mainly due to higher overall labour costs from increased employment, new project-related expenses, and increased business activity related to celebratory events.

Note: 1M – one month, 3M – three months

In terms of economic sectors:

In terms of business size:

The time-series charts for the BSI and its sub-indices since August 2020 can be found in ANNEX 1. For more information on the BSI, members of the public can refer to the technical notes on the methodology and statistics on the BDCB website at www.bdcb.gov.bn and follow updates on the BSI through future press releases and BDCB’s Instagram account @centralbank.brunei.

Business Sentiment Index (BSI) for Brunei Darussalam for June 2025

Business Sentiment Index (BSI) for Brunei Darussalam for June 2025 (MY)