Brunei Investment Agency

The Brunei Investment Agency (BIA) is a government-owned corporation[2] that reports to the Ministry of Finance of the Government of Brunei. Established in 1983, its offices are located in Bandar Seri Begawan at the Ministry of Finance HQ.[3] Data on the agency's assets are not reported to the public[4] and the Sultan and his assets, to a certain degree, are also incorporated in the agency; however the extent is unknown.

Brunei Investment Agency
BIA
TypeSovereign Wealth Fund
IndustryInvestment
FoundedJuly 1st, 1983
FounderSultan of Brunei
HeadquartersMinistry of Finance Building,
Bandar Seri Begawan
,
Brunei
Area served
Worldwide
Key people
  • Khairuddin Abdul Hamid - Chief Investment Officer
  • Dato Abdul Rahman Karim - Managing Director
Total equityUS$30 billion [1] (2009)
OwnerGovernment of Brunei
ParentMinistry of Finance Brunei
SubsidiariesDorchester Collection
WebsiteBIA Homepage

Prior to Brunei's independence, the country's investment portfolio was administered by the British Crown.[5] The BIA was established under an Act of the Government of Brunei and became functional from 1 July 1983.

The objective defined under the Act is to hold and manage the General Reserve Fund of the Government and all its external assets. The agency manages 40% of Brunei's foreign reserves, remainder being managed by eight foreign organizations.[6]

The Sultan of Brunei and Yang de Pertuan have the authority to specify any other issues that need to be addressed by BIA.

Functions

The agency's principal tasks are to control and manage Brunei's general reserve funds and the growth of external holdings. It manages the country's income from oil exports in the form of foreign reserves.

Its managing director, Dato Abdul Rahman Karim, is also a Permanent Secretary in the Finance Ministry.[6] BIA mostly functions as the central bank in the country and has a strong financial base with funds generated from the country's gas and oil resources, apart from Worker's Provident Fund and other revenues.[7][8]

Investments

Some major foreign assets of BIA include the Dorchester Collection, which is a portfolio of luxury hotels established in 1996; a 10% holding in the Paterson Securities of Australia, and Bahagia Investment Corporation (Malaysia), dealing with real estate.[9]

BIA's investment portfolio, apart from investments within Brunei, covers diverse investments in bonds, equity, currency, gold and real estate. It has substantial investments in the US.[10]

Brunei investors bought The Dorchester on Park Lane in London in 1985 for US$50 million and in 1996 BIA formed the Dorchester Collection, a conglomerate of luxury hotels in UK, United States, France and Italy.[11] BIA also owns The Beverly Hills Hotel in Los Angeles which was bought for US$185 million in 1987 as well as the Grand Hyatt Singapore Hotel.[12] BIA also has a 10% holding in the Paterson Securities of Australia, and Bahagia Investment Corporation of Malaysia, dealing with real estate.[9]

In June 2018 BIA acquired a stake in Draper Esprit for £20 million.[13]

Controversy

On 3 April 2019, the state of Brunei introduced new punishments under an interpretation of strict Sharia law, including punishing homosexual acts with death by stoning.[14] International condemnation and celebrity endorsement led to calls to boycott companies owned by the Brunei Investment Agency.[15]

References
  1. http://www.investopedia.com/terms/b/brunei-investment-agency.asp
  2. Ariff, Mohamed (1998). APEC and Development Co-operation. Institute of Southeast Asian Studies. pp. 39–. ISBN 978-981-230-020-1.
  3. "Brunei Investment Agency". Sovereign Wealth Funds News. Archived from the original on 15 October 2013. Retrieved 15 October 2013.
  4. Singh, Daljit; Freeman, Nick J. (2000). Regional Outlook: Southeast Asia 2000–2001. Institute of Southeast Asian. pp. 50–. ISBN 978-981-230-087-4.
  5. Sidhu, Jatswan S. (22 December 2009). Historical Dictionary of Brunei Darussalam. Scarecrow Press. pp. 87–. ISBN 978-0-8108-7078-9.
  6. Gunn, Geoffrey C. (2000). New World Hegemony in the Malay World. The Red Sea Press. pp. 170–. ISBN 978-1-56902-135-4.
  7. IBP USA (November 2009). Brunei Mineral & Mining Sector Investment and Business Guide. International Business Publications. pp. 124–. ISBN 978-1-4330-0442-1.
  8. IBP USA (March 2010). Brunei Telecom Industry Business and Investment Opportunities Handbook. International Business Publications. pp. 200–. ISBN 978-1-4387-0643-6.
  9. "Brunei Investment Agency". Sovereign Wealth Fund Institute. Retrieved 15 October 2013.
  10. IBP USA (1 May 2000). Brunei Business Intelligence Report: Strategic Information and Opportunities. International Business Publications. pp. 128–. ISBN 978-0-7397-2524-5.
  11. Alex Brummer (26 April 2012). Britain for Sale: British Companies in Foreign Hands – The Hidden Threat to Our Economy. Random House. pp. 123–. ISBN 978-1-4481-3681-0.
  12. Current Biography Yearbook. H. W. Wilson Co. 1990. p. 57.
  13. "The Sultan of Brunei has made the country's first investment in a UK listed company, ploughing £20m into Graze backer Draper Esprit". City A.M. 5 June 2018. Archived from the original on 12 June 2018. Retrieved 8 June 2018.
  14. "Brunei implements stoning to death under anti-LGBT laws". BBC News. 3 April 2019. Retrieved 3 April 2019.
  15. "George Clooney calls for hotel boycott over Brunei LGBT laws". BBC News. 29 March 2019. Retrieved 3 April 2019.
  • Brunei Investment Agency
  • Brunei Investment Agency SWFI Profile
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