Brunei's monarch warns against relying too much on oil

Brunei's absolute ruler has warned that his tiny country cannot depend on oil and gas to sustain its economy, but should tap into traditionally less lucrative sectors such as agriculture.

Photo: Brunei's monarch warns against relying too much on oil

Brunei's monarch warns against relying too much on oil

Sultan Hassanal Bolkiah said Bruneians "should not be complacent" about their vast but dwindling oil reserves, which were discovered more than a century ago and became a major export before World War II.

Oil and natural gas account for nearly half of the nation's gross domestic product. But some experts say its proven oil reserves could run dry in around a decade.

"Efforts toward diversifying the country's economy are very crucial in the wake of global uncertainties," Hassanal said in a speech Wednesday while opening a state legislative meeting that will discuss budget expenditures.

"Besides oil and gas, we should explore other resources such as agriculture," Hassanal said. "We should not forever be dependent on outsiders. It is a big mistake when we take into account the unforeseen political and natural factors."

In recent years, Hassanal has tried to lure more foreign investment to the sultanate on Borneo island and lessen its reliance on its petroleum and natural gas fields, the source of one of the highest per capita gross domestic products among developing countries, reports the AP.

I.L.