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|Published Date: 10-10-2025
Business Sentiment Index (BSI) for Brunei Darussalam for August 2025
3 MIN READ
Brunei Darussalam Central Bank (BDCB) today published Brunei Darussalam's Business Sentiment Index (BSI) for August 2025. The index is based on surveys conducted on about 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:
| BSI value | Interpretation |
| Above 50 | Expansion / Optimism compared to the previous month |
| 50 | Similar / No change compared to the previous month |
| Below 50 | Contraction / Less optimism compared to the previous month |
The main headline index, Current Business Conditions sub-index, was at 50.0 in August 2025, indicating overall similar conditions to the previous month. The survey results also showed mixed sentiments across different sizes and sectors. The two weeks of school holidays in August contributed to optimism for travel-related sectors, as well as sectors that would benefit from holiday-related activities, such as staycations. Optimism during the period was also driven by several other factors, including project awards, export opportunities for select businesses, and a few in-country events, such as graduation ceremonies, book fairs, and cultural festivals, which might boost demand for certain products and services. Conversely, the school break led to some pessimism in sectors that anticipated lower demand as more people would be travelling abroad. Other factors include weather-related operational disruptions, limited project availability, cash flow issues, and competitive pressures from overseas markets. The one-month (1M) ahead index also stood at 50.0, indicating that, in general, most businesses projected similar business conditions in September. Nevertheless, some sectors, particularly the Oil & Gas Related, Transport & Communication, Construction, Manufacturing, and Other Private Services sectors, expected pessimism, citing fewer projects and lower consumer demand weighing on performance. In contrast, some sectors anticipated a rebound in demand, driven by planned promotions and activities, and based on the expectation that more consumers will remain in the country in September compared to August.
The Investment sub-index stood at 50.4 for the current month, 50.1 for one month (1M) ahead, and 50.5 for three months (3M) ahead, driven mainly by large companies. Investment activity remained positive in August 2025, supported by ongoing turnaround projects, facility upgrades, inventory restocking, and equipment purchases across multiple sectors. Looking ahead, investments were projected to rise further as new projects commence, including infrastructure upgrades, installation of new machinery, expansion of delivery networks, and major maintenance projects.
The Employment sub-index stood at 49.9 for the current month and one month (1M) ahead, indicating a slightly negative recruitment outlook. Several large companies in certain sectors cited plans to reduce headcount and freeze hiring due to limited new project opportunities. While many businesses planned to maintain their existing headcount, some shared challenges of a slight shortage in manpower due to resignations, the expiration of contracts for experienced foreign workers, and upcoming retirements. Nonetheless, several businesses expressed the need to hire additional staff in the future to support new projects, branch expansions, and ongoing maintenance work.
The Costs sub-index was 50.3 for the current month and 49.6 for one month ahead. Most businesses expected higher operational costs in August 2025 due to several factors, including insurance-related costs, scheduled maintenance work, rising costs of raw materials and ingredients, promotional activities, and increased manpower costs for some businesses. For the month ahead, the sub-index indicated lower operational costs overall, led by large companies in the Transport & Communication, Oil & Gas Related, and Manufacturing sectors. Their operations were anticipated to return to normal levels following the completion of maintenance activities, with no new projects scheduled for September 2025.
BSI August 2025 | |
| Current Business Conditions | 50.0 |
| 1M Ahead Business Conditions | 50.0 |
| Current Investment | 50.4 |
| 1M Ahead Investment | 50.4 |
| 3M Ahead Investment | 50.5 |
| Current Employment | 49.9 |
| 1M Ahead Employment | 49.9 |
| Current Costs | 50.3 |
| 1M Ahead Costs | 49.6 |
Note: 1M – one month, 3M – three months
In terms of economic sectors:
| Sector | Index | Due to |
Optimistic Sentiments | Transport & Communication | 50.7 | Robust sales revenues were expected for the Transport sector, while telecommunications service providers would capitalise on increased data roaming usage by locals travelling abroad. |
| Hotels & Restaurants | 50.3 | Better performance from successful promotional campaigns for some restaurants and hotels, following expectations of an increase in venue bookings for events and higher occupancy for staycations during school holidays. | |
| Oil & Gas Related | 50.1 | Some businesses foresaw improved business performance metrics, while others anticipated lower production and sales volumes, which might hamper business conditions. | |
| Agriculture, Forestry, Fisheries & Livestock | 50.1 | Expectations of improved sales, rising production, and new export prospects fuelled modest optimism despite weather-related setbacks. Diversification into agritourism and higher value-added products was expected to strengthen sector resilience. | |
No Change
| Finance & Insurance | 50.0 | Expectations of broadly steady overall performance, with some loan facility usage and demand for takaful products, which would offset challenges from companies facing competition and lower income due to the lower interest rate environment, as well as increased provisions for loan losses. |
| Wholesale & Retail Trade | 50.0 | School holiday travels would dampen local spending, but export opportunities, promotional events and new product launches might boost sales for some businesses. | |
Pessimistic Sentiments | Real Estate & Ownership of Dwellings | 49.9 | Similar or lower activity levels, with no new projects compared to the previous month. Some businesses expected to sustain their performance through consistent occupancy and cost-cutting measures, while others anticipated an increase in demand for valuation services. |
Manufacturing
| 49.9 | A slowdown during school holidays, combined with cross-border spending and weather-related disruptions, might impact production and demand. | |
| Construction | 49.8 | Most businesses maintaining existing activities and focusing on project completions, with some citing fewer activities than in the previous month and no new projects. Weather-related and budget constraints could also delay some projects. | |
| Other Private Services | 49.7 | Contract non-renewals, ongoing cash flow issues, and overall weak client spending, as well as rising wage costs, are anticipated to continue affecting business performance. Only a handful of businesses expected new projects. | |
| Health & Education | 49.4 | Reduced business activity during the school holidays would likely lower demand for routine medical services. However, seasonal treatments and the opening of new clinics might help bolster demand for some services. |
In terms of business size:
| Size | Index | Due to |
Pessimistic Sentiments | Small | 49.5 | Weather disruptions, cash flow pressures and shifting consumer preferences during the school holidays weighed on business activity in August 2025. |
Medium | 49.9 | ||
No change | Micro | 50.0 | Mixed sentiment with some expressing concerns of lower consumer demand during the school holidays. Some businesses expected to adapt quickly due to low overheads and loyal customers, while others are likely to struggle with limited scale and resources. |
Large | 50.0 | Expectations of stable business conditions due to diverse revenue streams and long-term contracts, which would help manage market shifts and seasonal demand fluctuations. |
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.
