Brunei dollar through the peg (with SGD) is overvalued by at least 25%

[zeroo]

Calculations show that if the Brunei dollar, which is pegged to the Singapore dollar, would be de-pegged, inflation in Brunei would skyrocket and the international purchasing power of the Brunei dollar would drop significantly as the country needs to import 60% of its food and almost everything else.
In terms of Real Effective Exchange Rates, a measure by the World Bank to determine the real value of a country’s currency against the basket of its trading partners, the Brunei dollar through the peg is overvalued by at least 25%.

http://www.gulf-times.com/eco.-bus....ei-feels-the-heat-of-prolonged-low-oil-prices

 

[frenchbriefs]

Thats cause the price of oil dropped to 40 dollars I suppose.

 

[syed putra]

Thats cause the price of oil dropped to 40 dollars I suppose.

Plus their oil production dropped below 100k bbls for the first time. Must be she'll not wanting to comply with localization and purposely delay, slow down production.

 

[ChaoPappyPoodle]

I just found out this Muzzi country impose Islamic Law on the country and ban Christmas celebrations. Brunei will soon become a hotbed for Islamic terrorists. Once their oil dries p or demand is reduced from renewable energy then we have to becareful of this terrorist country. They will turn into Afghanistan of South East Asia.

 

[Froggy]

Plus their oil production dropped below 100k bbls for the first time. Must be she'll not wanting to comply with localization and purposely delay, slow down production.

Oil does not fuel their economy, natural gas does.

 

[johnny333]

In Spore foreigners receive free or generous subsidies from the PAP while Sporeans are expected to pay market rate plus, plus ..:rolleyes

A citizens of Brunei receives all kinds of subsidies while a Sporean subsidizes the PAP through all the taxes , hidden & otherwise e.g. multi-million pay, CPF, COE, GST, radio & TV license, water conservation taxes, maid levy, .....

The following are some of the subsidies citizens of Brunei are given, copied from http://bruneiresources.blogspot.sg/2006/07/thankful-to-be-in-brunei-darussalam.html



(a) Subsidy in fuel meaning the fuel that you buy for your cars - diesel carries the higher subsidy and slightly lesser subsidies for the other types of fuel (so everytime you drive your 3000cc+ SUV with its superturbo and using diesel like water, think of how much subsidy is in your car);

(b) Subsidy in LPG - that's the gas that you use for cooking; [(a) and (b) account for the $176 million per year]

(c) Subsidy in electricity - two major forms of subsidies here, one is the cheaper than world price for the gas that is pumped and used by the generating power plant as well as the subsidised electricity rates (unchanged for about 40+ years);

(d) Subsidy in water - same thing as electricity, unchanged for some long period of time as well;

(e) Subsidy in rice - both types of rice (the plain and the fragrant) are subsidised - the government buys the rice from Thailand and sells it to the distributors and retailers at about the same price - as well as lots of subsidies to the rice farmers and other farmers in Brunei through land, fertiliser and other things;

(f) Subsidy in sugar - where the government buys and sells cheaply to the consumers;

(g) Subsidy in education - government provides free education up to university level (about $470+ million per year);

(h) Subsidy in medical and health care - government provides free medical and health care including travelling overseas for treatments if need be (about $500+ million per year);

(i) Subsidy in housing - the housing that the government built for the resettlement and national housing are all subsidised - the house itself is, the infrastructure that goes with it, the land etc;

(j) Subsidy in day to day living - no personal income taxes or any other taxes and charges levied;

(k) Subsidy in pensions - old age pensions received are completely subsidised as the receivers never put anything in the pension fund to begin with;

and the list can go on. There are many things to be thankful for in Brunei Darussalam.