Last modified: 12/10/2015 02:03 PM
INVESTMENT CHALLENGE 2017
23 SYAWAL 1438 CORRESPONDING TO 18 JULY 2017
1. Autoriti Monetari Brunei Darussalam (AMBD) hosted a prize-giving ceremony for the winners of the Investment Challenge 2017 on Thursday, 13 July 2017. The competition, co-organised by AMBD and Brunei Darussalam Capital Market Association (BCMA), started on 25 May 2017, and was opened to undergraduates of local higher learning institutions in Brunei Darussalam. The objectives of this competition are to cultivate awareness on financial investment, introduce asset allocation concepts, and to generate interest in financial investment and capital markets.
2. Seven teams, each comprising of four members participated in the competition. The four participating higher learning institutions were Universiti Teknologi Brunei (UTB), Sultan Sharif Ali Islamic University (UNISSA), Kolej International Graduate Studies (IGS), and Politeknik Brunei.
3. The competition, which ran for four weeks from 26 May 2017 to 23 June 2017, kicked off with a training session for all participating teams, conducted by UOB Asset Management (B) Sdn. Bhd. During the competition, four panel judges were appointed to evaluate the performances of the teams based on several criteria including quantitative returns on investment, qualitative aspect such as portfolio diversification, and analysis of their investment strategy.
4. The prizes were presented to the winners by YM Awang Yusof bin Haji Abd Rahman, Managing Director of AMBD. The first-place winner of the competition was UNISSA LANS, winning the top prize of a 5-day fully sponsored attachment program with Lion Global Investors Limited in Singapore, trophies and accompanying prizes. Second-place was from UTB, with prizes including a 3-month attachment program at Baiduri Capital and BIBD Securities, trophies and accompanying prizes. The third place team was UNISSA Year 3. The prizes were sponsored by AMBD, Lion Global Investors Limited, UOB Asset Management, Baiduri Capital, and BIBD Securities.
Autoriti Monetari Brunei Darussalam
Date: 23 Syawal 1438 / 18 July 2017
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MAJLIS RAMAH MESRA
BERSAMA DULI YANG TERAMAT MULIA
PADUKA SERI PENGIRAN MUDA MAHKOTA
SEMPENA HARI RAYA AIDILFITRI 1438H/2017M
PRIME MINISTER'S OFFICE (PMO)
BANDAR SERI BEGAWAN, NEGARA BRUNEI DARUSSALAM
THURSDAY, 18 SYAWAL 1438 CORRESPONDING TO 13 JULY 2017
1. His Royal Highness Prince Haji Al-Muhtadee Billah ibni His Majesty Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah, The Crown Prince and Senior Minister at the Prime Minister's Office, as Chairman of Autoriti Monetari Brunei Darussalam's (AMBD) Board of Directors, consented to attend Majlis Ramah Mesra Aidilfitri AMBD on Thursday 18 Syawal 1438 corresponding to 13 July 2017, which took place at the Banquet Hall, Prime Minister's Office.
2. His Royal Highness, upon arrival, was greeted by Yang Berhormat Pehin Orang Kaya Seri Kerna Dato Seri Setia (Dr.) Haji Awang Abu Bakar bin Haji Apong, Minister of Home Affairs as Deputy Chairman of AMBD's Board of Directors, Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman bin Hj Ibrahim, Minister at the Prime Minister's Office & Minister of Finance II, Yang Berhormat Pehin Datu Singamanteri Colonel (Rtd.) Dato Seri Setia (Dr.) Awang Haji Mohammad Yasmin bin Haji Umar, Minister of Energy and Industry at The Prime Minister's Office, other members of AMBD's Board of Directors, Senior Management of AMBD as well as its officers and staff.
3. The event was held in conjunction with the ongoing Hari Raya festivities and aimed at strengthening the bond amongst AMBD personnel and to foster a harmonious work culture and environment as well as to build comradeship.
4. His Royal Highness also consented to present tokens and certificates of appreciation to AMBD officers and staff who had retired between 2011 and 2017.
5. Before leaving the event, His Royal Highness consented to junjung ziarah by the Board of Directors of AMBD, Senior Management of AMBD and its employees. Autoriti Monetari Brunei Darussalam Date: 18 Syawal 1438 / 13 July 2017
Ref No: AMBD/COMMS/3/2017
SUCCESSFUL ISSUANCES OF BRUNEI DARUSSALAM GOVERNMENT SHORT-TERM
SUKUK AL-IJARAH SECURITIES
Bandar Seri Begawan, Brunei Darussalam (July 2017) - The Autoriti Monetari Brunei Darussalam (AMBD), agent to the Government of His Majesty The Sultan and Yang Di-Pertuan of Brunei Darussalam in managing and administering Sukuk Al-Ijarah issuances, is pleased to announce the successful pricing of its 147th issuance of short-term Sukuk Al-Ijarah securities.
The total of the sukuk issuance was B$ 100 million with following details:
With this issuance, the Brunei Government has thus issued over B$11.0782 billion worth of short-term Sukuk Al-Ijarah securities since the maiden offering on 6th April 2006 and the total holdings of the Brunei Government Sukuk outstanding until 6th July 2017 stood at BND 493.2 million.
COMMEMORATIVE NOTES IN CONJUNCTION WITH
50TH ANNIVERSARY OF THE CURRENCY INTERCHANGEABILITY AGREEMENT
BETWEEN BRUNEI DARUSSALAM AND SINGAPORE
Wednesday, 12 Syawal 1438 corresponding to 5 July 2017
1. His Majesty Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar 'Ali Saifuddien Sa'adul Khairi Waddien, The Sultan and Yang Di-Pertuan of Brunei Darussalam, and His Excellency Mr. Lee Hsien Loong, Prime Minister of Singapore jointly launched new $50 notes in conjunction with the 50th Anniversary of the Currency Interchangeability Agreement between Brunei Darussalam and Singapore today, 12 Syawal 1438 corresponding to 5 July 2017, in a ceremony held at the Istana, Singapore.
2. The limited edition $50 polymer notes with the theme "Flourishing Growth" are issued by both Autoriti Monetari Brunei Darussalam (AMBD) and Monetary Authority of Singapore (MAS).
3. The Brunei Darussalam and Singapore $50 commemorative notes feature the same design elements and layout and is predominantly gold in colour to signify the golden jubilee. The 50th Anniversary logo of the Currency Interchangeability Agreement is a key feature on the front of the note. It shows a unifying flower motif comprising of a prominent flower found in Brunei Darussalam and Singapore's national flower, the Simpur and the Vanda Miss Joaquim respectively, in full bloom. This and the radiating flower petals symbolises the flourishing growth friendship between the two nations.
4. A unique element in the note is the see-through, colour-shifting window security feature that depicts Brunei Darussalam's Istana Nurul Iman and Singapore's Istana. A portrait of His Majesty Sultan and Yang Di-Pertuan of Brunei Darussalam is shown on the Brunei Darussalam note, while the Singapore note features a portrait of Singapore's first President, Mr Yusof bin Ishak.
5. The back design of the note portrays the close collaboration between Brunei Darussalam and Singapore in the areas of defence, education and tourism. The bilateral defence cooperation is depicted by military personnel from the Royal Brunei Armed Forces and the Singapore Armed Forces in their ceremonial uniforms. Collaboration in education is represented by students from both countries engaging in cross-cultural learning and exchange of ideas. Brunei Darussalam's Ulu Temburong National Park, the "Green Jewel of Brunei" and the Singapore Botanic Gardens, a UNESCO World Heritage site, are also featured, signifying the importance of the Agreement in facilitating tourism between the two countries.
6. There will be five types of limited edition numismatic sets sold by AMBD in conjunction with the celebration:(i) Identical Numbered Notes Set
This set contains one $50 Brunei and one $50 Singapore commemorative notes, sharing the same serial number with the CIA prefix. This set will be sold at B$300 each.
(ii) 3-in-1 Uncut Sheet
This set contains one uncut sheet of three $50 Brunei commemorative notes. This set will be sold at B$400 each.
(iii) 8-in-1 Uncut Sheet
This set contains one uncut sheet of eight $50 Brunei commemorative notes. This set will be sold at B$1,000 each.
(iv) 40-in-1 Uncut Sheet
This set contains one uncut sheet of forty $50 Brunei commemorative notes. This set will be sold at B$4,500 each.
(v) Coffee Table Book with a set of B$50 and S$50 commemorative notes
This limited edition coffee table book highlights elaborate descriptions of the commemorative notes' designs elements and contains a set of B$50 and S$50 commemorative notes. The coffee table book will be sold at B$138 each.
7. The general public can start purchasing these sets from 2pm on Wednesday, 5 July 2017, while the coffee table book will be available on Friday, 7th July 2017, on a "first-come-first served" basis for as long as stock lasts at AMBD Currency Gallery Gift Shop, BCMB Building, MOF Complex, Commonwealth Drive, Jalan Kebangsaan.
8. AMBD and MAS will also be issuing commemorative notes, in which the general public can exchange for both the Brunei $50 and Singapore $50 notes. Each set will be accompanied by a complimentary folder to commemorate the occasion, and is available from branches of Baiduri Bank, Bank of China, Hong Kong (BOCHK), BIBD, Maybank, RHB Bank, Standard Chartered Bank, UOB, and Perbadanan TAIB from Friday, 7 July 2017 onwards.
Date : 12 Syawal 1438 / 5 July 2017
Ref : AMBD/COMMS/1
Joint Press Release by
Autoriti Monetari Brunei Darussalam and Monetary Authority of Singapore
12 Syawal 1438H corresponding to 5 July 2017M
1. 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 and His Excellency Mr. Lee Hsien Loong, Prime Minister of Singapore jointly launched the new $50 commemorative notes issued by the two countries in a ceremony held today at the Istana, Singapore, to mark the 50th Anniversary of the Currency Interchangeability Agreement between Brunei Darussalam and Singapore.
2. The Currency Interchangeability Agreement took effect on 12 June 1967 between Brunei Darussalam and Singapore to facilitate improved economic and trade relations between the parties, and is a key economic cooperation between Brunei Darussalam and Singapore. It was signed by the then Chairman of the Brunei Currency Board (now known as Autoriti Monetari Brunei Darussalam) and the Chairman of the Board of Commissioners Currency, Singapore (which merged with the Monetary Authority of Singapore in 2002).
3. Under the Agreement, AMBD and MAS will accept the currency issued by the other, and to exchange it at par and without charge, into their own currency. Banks in both countries will accept for deposit from the general public and businesses, currency issued by the other country at par.
4. Through the years, the Agreement has brought about economic benefits and strengthened the financial links between Brunei Darussalam and Singapore. Today's joint launch of the new $50 commemorative notes reaffirms to the public, retailers and financial institutions in both countries that Brunei Darussalam and Singapore currency notes are still interchangeable at par.
5. The commemorative notes will be made available to the general public both in Brunei Darussalam and Singapore from 2pm today, 5th July 2017, while the circulation notes will be available from 2pm Friday, 7th July 2017 across all banks and their branches in both countries.
6. For more information on the 50th Anniversary of the Currency Interchangeability Agreement between Brunei Darussalam and Singapore, please visit AMBD's website at www.ambd.gov.bn or download the AMBD App through the Appstore or Google Playstore.
SIGNING CEREMONY FOR THE MEMORANDUM OF UNDERSTANDING BETWEEN AUTORITI MONETARI BRUNEI DARUSSALAM (AMBD) AND PROGRESIF CELLULAR SENDIRIAN BERHAD (PCSB)
BANDAR SERI BEGAWAN, BRUNEI DARUSSALAM
10 Ramadhan 1438 corresponding to 5 June 2017
1. The signing ceremony for the Memorandum of Understanding (MoU) between Autoriti Monetari Brunei Darussalam (AMBD) and Progresif Cellular Sendirian Berhad (PCSB) was held on Monday, 5th June 2017 at PCSB Headquarters, Unit 1-5, Block A & B, Simpang 137-65 Kampong Kiarong, Jalan Pasar Baharu, Gadong, Bandar Seri Begawan BE1318, Brunei Darussalam.
2. Signing on behalf of AMBD was Awang Haji Adi Marhain bin Haji Leman, Acting Deputy Managing Director, while PCSB was represented by Mr. Paul Taylor, Chief Executive Officer. Witnessing the signing ceremony was Awang Mohammed Roaizan bin Haji Johari, Acting Assistant Executive Director (Credit Bureau) of AMBD, and Mr. Roger Plahay, Chief Financial Officer of PCSB. The signing ceremony was attended by senior officials from both AMBD and PCSB.
3. The objective of the MoU is to set a foundation of cooperation and collaboration for both signatories in relation to the submission of customers' credit information to the Credit Bureau of AMBD. The initiative of this information sharing is aimed to further enhance the lender's credit risk management by equipping them with utility data as an alternative form of credit information sourced from the providers of "credit-like" services, such as telecom. The onboarding of PCSB, as an additional data provider of the Credit Bureau, symbolizes another milestone for the Credit Bureau as it will now have a full coverage of all telecommunication companies in Brunei Darussalam.
4. The inclusion of utility data in the credit report will further enable customers to establish their "reputational collateral" by demonstrating their willingness and ability to repay multiple and regular interval payments, particularly as utility customers are typically billed monthly, resembling the typical loan repayment cycles. The reporting of both positive (such as timely payment) and negative (such as missed payment) information would encourage customers to establish and maintain good credit or payment history that will ultimately enable them to gain greater access to credit.
5. In a separate statement made by Roger Plahay, Chief Finance Officer of PSCB, "We are pleased to partner with AMBD where this will enable us to provide full customer payment data, much broader than that are gathered by the Credit Bureau to date. This will help establish a more reliable formal source for customer credit information in Brunei. This agreement offers the opportunity to enhance credit risk management and help the development of a more sophisticated financial sector for the nation. In the future, businesses may potentially benefit from using the information gathered by the Credit Bureau to assess a customer's ability-to-pay, that not only helps protect businesses from the risk of payment default, but also allows responsible businesses to protect their customers from over-committing themselves and falling into unnecessary financial hardship. This is a great initiative that has the potential to provide Bruneian consumers with faster and easier (low-risk) access to finance, yet at the same time reduce the risk of default - it benefits both businesses and the people of Brunei."
6. In conjunction with the signing ceremony, officers and staff of PCSB also listened to a briefing on the function and role of the Credit Bureau, which was delivered by an officer of AMBD. On the same occasion, the Credit Bureau set up a temporary Self-Inquiry service counter to give opportunities to any officers or staff of PCSB to obtain their own individual credit report. The credit report or also known as the Self-Inquiry Report (SIR) contains detailed information of the individual's credits that he/she has taken up, such as a credit card, personal financing or motor vehicle financing. The information contained in the credit report is as what has been reported to the Credit Bureau by various lending institutions. Any individuals or companies can obtain their own credit report from the Credit Bureau for the purpose of self-checking to ensure the information reported in their credit report is accurate and updated.
7. The Credit Bureau is a unit under the Regulatory and Supervision Department of AMBD, and has been operational since 10th September 2012. The main function of the Credit Bureau is to collect, compile, consolidate and disseminate factual information in relation to the creditworthiness, or the ability to meet debt obligations of individuals or commercial entities.
8. For further information on the Credit Bureau of AMBD, please visit http://www.ambd.gov.bn/birokredit or follow the Instagram account @birokredit.Autoriti Monetari Brunei DarussalamDate: 10 Ramadhan 1438 / 5 June 2017Reference:
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Bandar Seri Begawan, Brunei Darussalam (June 2017) - The Autoriti Monetari Brunei Darussalam (AMBD), agent to the Government of His Majesty The Sultan and Yang Di-Pertuan of Brunei Darussalam in managing and administering Sukuk Al-Ijarah issuances, is pleased to announce the successful pricing of its 146th issuance of short-term Sukuk Al-Ijarah securities.
With this issuance, the Brunei Government has thus issued over B$10.9782 billion worth of short-term Sukuk Al-Ijarah securities since the maiden offering on 6th April 2006 and the total holdings of the Brunei Government Sukuk outstanding until 14th September 2017 stood at BND 393.2 million.
FOR AL-MARHUM SULTAN HAJI OMAR 'ALI SAIFUDDIEN SA'ADUL KHAIRI WADDIEN IBNI
AL-MARHUM SULTAN MUHAMMAD JAMALUL ALAM
AND AL-MARHUMAH DULI RAJA ISTERI PENGIRAN ANAK DAMIT BINTI
AL-MARHUM PENGIRAN BENDAHARA PENGIRAN ANAK ABDUL RAHMAN.
ROYAL MAUSOLEUM, JALAN TUTONG
TUESDAY, 10 RAMADHAN 1438 CORRESPONDING TO 5 JUNE 2017
1. Autoriti Monetari Brunei Darussalam (AMBD), today, held a Tahlil Ceremony for Al-Marhum Sultan Haji Omar 'Ali Saifuddien Sa'adul Khairi Waddien ibni Al-Marhum Sultan Muhammad Jamalul Alam and Al-Marhumah Duli Raja Isteri Pengiran Anak Damit binti Al-Marhum Pengiran Bendahara Pengiran Anak Abdul Rahman in conjunction with the month of Ramadhan 1438H/2017M at the Royal Mausoleum, Jalan Tutong.
2. Present at this ceremony were Yang Berhormat Yang Berhormat Pehin Orang Kaya Seri Kerna Dato Seri Setia (Dr.) Haji Awang Abu Bakar bin Haji Apong, Minister of Home Affairs in his capacity as Deputy Chairman of AMBD; Yang Mulia Dato Paduka Awang Haji Mohd Roselan bin Haji Mohd Daud, Acting Minister at the Prime Minister's Office; Yang Mulia Dato Paduka Awang Haji Hisham bin Haji Mohd Hanifah, Acting Minister of Finance II; other members of AMBD's Board of Directors; Managing Director of AMBD as well as male officers and staff of AMBD.
3. The ceremony began with the recital of Surah Yassin followed by mass Tahlil, led by Yang Yang Mulia Hj Azrol Alim Hj Zaini, Mosque Affairs Officer, Ministry of Religious Affairs.
Autoriti Monetari Brunei Darussalam
Date: 10 Ramadhan 1438 / 5 Jun 2016
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AMBD LAUNCHES CENTRALISED STATISTICAL SYSTEM
1. Autoriti Monetari Brunei Darussalam (AMBD) launched the Centralised Statistical System on Friday, 15 Syaaban 1438 corresponding to 12 May 2017. The system provides a single online portal to collect data from all relevant stakeholders, including financial institutions regulated by AMBD, such as banks, finance companies, insurance and takaful companies, Capital Markets Services Licence (CMSL) holders, money changers, money remittances, and pawn brokers.
2. The collected data stored in Centralised Statistical System can be analysed and then used to produce insightful and detailed reports within AMBD. The data quality and collection lifecycle can be significantly improved through automatic validation checks by the system. The system will streamline AMBD's internal and external data collection processes as well as safeguarding the quality, consistency and integrity of the data. The automation of these processes will also help in reducing the turnaround time for data retrieval, collation, analysis and dissemination.
3. In line with the goals of AMBD's Financial Sector Blueprint 2016-2025 (FSBP) which among others are to sustain monetary and financial stability; and to develop robust and modern infrastructure, the CSS will enhance the monitoring and supervision function through effectively identifying inherent risks as a next-generation platform. By utilising this technology, all stakeholders will be able to carry out their duties more efficiently and spend their time in analysing data more productively.
4. AMBD has chosen Vizor Limited, a well-recognised company that has vast experience as a solution provider for financial data collection and regulation technology, to develop this system. The company has provided solutions to the central banks and financial regulators in more than 30 countries. Their list of clientele includes the Bank of England, Bank of Canada, and Saudi Arabian Monetary Authority. For Vizor Limited, working with AMBD marked as their first presence in the South-East Asian region since their establishment in 2000.
Date : 15 Syaaban 1438 /12 May 2017
Ref : AMBD/COMMS/3
AMBD LAUNCHES THE CENTRAL SECURITIES DEPOSITORY
1. Autoriti Monetari Brunei Darussalam (AMBD) has implemented the Central Securities Depository (CSD) on Friday, 15th Sya'ban 1438 corresponding to 12th May 2017. This is the next phase of the National Payment and Settlement Systems Project, following the implementation of the Real Time Gross Settlement (RTGS) system for high-valued electronic transfers between banks in November 2014, Automated Clearing House (ACH) system for automated cheque processing in May 2016 and the introduction of the Direct Credit in the ACH system which allows electronic transfer of multiple low value payments.
2. The CSD system is an electronic platform used to register and maintain records of debt securities holdings for the participating banks replacing the manual book entry processes. Currently, the CSD participants consists of only the banks in the country. CSD participants can now view their accounts online and are able to transfer securities through the CSD system rather than manual transfer of physical instructions. At a later stage, the CSD system will be expanded to enable auction of new securities and provide a trading platform to facilitate a secondary market among the CSD participants.
3. Currently, the CSD system provides depository services for the Sukuk Al-Ijarah programme. AMBD, as an agent for the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam pertaining to the issuance and the administration of sukuk, will introduce other suitable forms of sukuk including longer term sukuk for the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam.
4. The CSD system is a vital component of the payment and settlement system and will become a cornerstone for the development of the capital market in Brunei Darussalam, including the establishment of the Brunei Stock Exchange. In-line with the objectives set in AMBD's Financial Sector Blueprint, the CSD system will help the country by supporting the expansion of the domestic sukuk programme and providing an electronic platform to channel sukuk into the local market. With the CSD system, AMBD will bring the management of local sukuk issuances under domestic control and will ease sukuk secondary market trading in Brunei Darussalam.
Date : 14 Syaaban 1438 / 12 May 2017
PRESS RELEASE OPERATING HOURS FOR AUTORITI MONETARI BRUNEI DARUSSALAM DURING THE MONTH OF RAMADHAN 1437H
1. Autoriti Monetari Brunei Darussalam (AMBD) would like to inform the public that AMBD's Office will be closed on Monday, 2/3 Ramadhan 1438 corresponding to 29th May 2017. AMBD's Office will reopen on Tuesday, 30th June 2017. This includes the Currency Gallery, Credit Bureau Customer Service Counter and other AMBD Counter Services. 2. Additionally, the operations of AMBD's Real Time Gross Settlement (RTGS) System, Automated Clearing House (ACH) System and Central Securities Depository System (CSD) will be as follows:
3. Following that, we would like to inform our operating hours for the month of Ramadhan:
4. AMBD would like to apologize for any inconvenience caused and wish all Muslims Ramadhan Mubarak.
Date: 29 Sya'ban 1438/ 26 May 2017 Reference: AMBD/COMMS/3
NATIONAL SAVINGS DAY 2017 CEREMONY
THE MALL, GADONG
28 Sya'ban 1438 corresponding to 25 May 2017
1. Autoriti Monetari Brunei Darussalam (AMBD), today Thursday, 28 Sya'ban 1438 corresponding to 25th May 2017, held a National Savings Day 2017 Ceremony and a Financial Showcase at The Mall, Gadong.
2. The Guest of Honour for the event was Yang Mulia Dato Paduka Awang Haji Mohd Roselan bin Haji Mohd Daud, Acting Minister of Energy and Industry at the Prime Minister's Office, as a member of AMBD's Board of Directors. Also present at the ceremony were members of AMBD Board of Directors; Foreign Envoys to Brunei Darussalam; members of the Legislative Council; Permanent Secretaries; Deputy Permanent Secretaries; Senior Government Officers as well as Chief Executives of Financial Institutions in Brunei Darussalam.
3. The event started with the recital of the Surah Al-Fatihah and Doa Selamat by Yang Mulia Hj Azrol Alim Hj Zaini, Mosque Affairs Officer, Ministry of Religious Affairs.
4. This was followed by a Welcoming Address by Yang Mulia Awang Yusof bin Hj Abd Rahman, Managing Director of AMBD and Opening Remarks by Yang Mulia Dato Paduka Awang Haji Mohd Roselan bin Haji Mohd Daud, who also officiated the establishment of The Brunei Capital Market Association (BCMA).
5. Yang Mulia Dato Paduka Awang Haji Mohd Roselan bin Haji Mohd Daud also presented prizes to winners of the Radio Promo Competition, which was opened to Government and secondary school students, and the Video Promo Competition, which was opened to the general public. These competitions were held in conjunction with National Savings Day 2017.
6. Yang Mulia Dato then proceeded to tour the Financial Showcase, an exhibition showcasing financial management products and services. Among the institutions taking part at the showcase were AMBD, Tabung Amanah Pekerja (TAP), Baiduri Bank Berhad, Bank Islam Brunei Darussalam (BIBD), Standard Chartered Bank, AIA Co Ltd, Great Eastern Life Assurance and Takaful Brunei Keluarga Sdn Bhd (TBK).
7. In conjunction with National Savings Day 2017, AMBD, in collaboration with the Ministry of Education (MOE), Ministry of Religious Affairs (MORA), Radio Television Brunei (RTB), the Employee Trust Fund (TAP), as well as related agencies and financial institutions organized roadshows across the four districts in Brunei Darussalam and also organized a Financial Fun Fair at Jerudong Park Colonnade. Autoriti Monetari Brunei DarussalamDate: 28 Sya'ban 1438/25 May 2017
PROTECTING MINORITY INVESTOR'S REFORM
Bandar Seri Begawan, Brunei Darussalam
1. Autoriti Monetari Brunei Darussalam (AMBD), today, 28 Sya'ban 1436H corresponding to 25 Mei 2017M held a press conference on Protecting Minority Investor's Reform.
2. AMBD, represented by its Managing Director, Awang Yusof bin Haji Abd Rahman, announced that AMBD, in collaboration with the Registrar of Companies and Business Names (ROCBN), Ministry of Finance, has introduced a corporate governance reform which includes amendments to the Companies Act, and mandatory corporate governance, primarily to increase the level of protection available to minority investors.
3. Protecting Minority Investors (PMI) is one of the indicators under the World Bank's Ease of Doing Business that measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse.
4. AMBD and ROCBN worked closely with Darussalam Assets Sdn. Bhd., and representatives from the Brunei Law Society in reviewing and analysing relevant issues, including the Brunei Companies Act, with a focus on enhancing the protection afforded to minority shareholders. Based on this analysis, the following areas have been undertaken into the reform;
5. As part of this reform's socialisation programme, AMBD recently held a workshop to introduce and explain the reform to its relevant stakeholder,. The workshop was attended by representatives from ROCBN, Attorney General's Chambers (AGC), law firms and other companies.
6. This initiative is part of a series of reform measures which is hoped to improve Brunei Darussalam's position in the World Bank Ease of Doing Business Ranking, supported by the PENGGERAK, Prime Minister's Office, and the 'Ease of Doing Business' (EODB) Steering Committee. Brunei Darussalam is currently ranked 102nd among 190 economies in the PMI Indicators of the Ease of Doing Business World Bank ranking, an improvement by 16 ranks from last year's report.
7. For further information on the Protecting Minority Investors' Reform, the general public can download 'AMBD App' on both the App Store and Google Playstore; or visit AMBD's website at http://www.ambd.gov.bn
Date: 28 Sya'ban 1438H / 25 May 2017M
AMBD HOSTS BRITISH TRADE DELEGATION
1. Autoriti Monetari Brunei Darussalam (AMBD) hosted a British trade delegation recently as a follow-up from the first UK-Brunei Darussalam Financial Services Forum, held in the United Kingdom in January this year.
2. The trade delegation, who was in Brunei Darussalam on 22nd and 23rd May 2017, discussed with AMBD and exchanged experiences in developing the Capital Market in Brunei Darussalam and the United Kingdom, including in the area of Islamic Finance. This is part of AMBD's efforts in realizing its strategic plan as laid out in the recently launched Financial Sector Blueprint.
3. Part of the discussion also focused on the experiences and opportunities in the UK Islamic Financial Sector looking at the UK's Islamic financial architecture and the regulatory and legislative developments.
4. The British trade delegation was led by Ms Stella Cox, Chair of the Islamic Finance Market Advisory Group in TheCityUK, a financial services professional body that champions UK-based financial and related professional services.
Date: 27 Sya'ban 1438/24 May 2017
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AMENDMENTS TO NOTICE NO.1/2013 ON THE REGULATION
OF INTEREST/PROFIT RATES AND DEPOSIT RATES
1. Autoriti Monetari Brunei Darussalam (AMBD), on Friday, 15th Sya'ban 2017 corresponding to 12th May 2017, issued amendments to the Notice on Regulation of Interest/Profit rates to all banks and Perbadanan Tabung Amanah Islam Brunei (TAIB).
2. The amendments allow banks to price their lending/financing rates based on their internal risk appetites and the borrower's credit worthiness. Additionally, a number of deposit rates have been deregulated to allow banks to price their deposit rates according to their funding needs.
3. The amendments will also empower customers to compare lending/ financing and deposit rates across different banks, thus enhancing competition. This is in line with Pillar 2 of the Brunei Darussalam Financial Sector Blueprint (2016-2025) - towards a more competitive and innovative financial institutions and services.
4. In addition, the amendments will enhance efficiency in financial intermediation that can further support the growth of the financial sector in the long term and in so doing increases the sector's contribution to the country's Gross Domestic Product (GDP).
5. The amendments together with other enhancements to Brunei Darussalam's financial infrastructures such as the establishment of the Credit Bureau in 2012, and the Collateral Registry System in December 2016, have helped financial institutions to make more informed decisions in assessing the borrowers' credit worthiness. AMBD's enhancement is set to continue with plans to expand the Credit Bureau's services to include credit scoring and rating services.
6. In summary, the maximum lending/financing rates and minimum deposit rates which have been deregulated, with effect from 12th May 2017, are as follows: -
(a) Consumer and Corporate Loans/Financing –
i. Credit facilities fully secured by:
ii. Credit facilities to the following sectors:
(b) Minimum Deposit Rates for Brunei Dollar Deposits -
7. Under this notice, the Effective Interest Rates (EIR)/ Annualised Profit Rates (APR) charged by the banks to customers shall not be excessive and shall reflect a reasonable risk premium over their cost of funds. All banks are also required to publish the EIR/APR and deposit rates applicable on a quarterly basis on the banks' websites and at their respective branches.
8. To ensure a healthy competitive market, AMBD will closely monitor the rates offered in the market and reserves the right to intervene from time to time.
9. Members of the public are also advised to be financially smart by reviewing the lending/ financing and deposit rates offered before acquiring a financing facility or making a deposit respectively.
10. For more information or enquiries, members of the public can visit AMBD's website at www.ambd.gov.bn; download AMBD App from the App Store or Google Playstore; or follow AMBD on Instagram at @autoriti_monetari.
Date : 21 Sya'ban 1438/ 18 May 2017
Ref : AMBD/COMMS/3
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AMBD'S RESPONSE TO CONCERNS ON TDSR
1. Autoriti Monetari Brunei Darussalam (AMBD) would like to thank Azlan Othman for his article in Borneo Bulletin titled 'Call to review TDSR limit' published on Friday, 5 May 2017 and Concerned's Letter to Editor on Opinion page titled 'Total Debt Service Ratio, an unrealistic measure' published on Wednesday, 10 May 2017.
2. AMBD would like to share the main objective of introducing the Total Debt Service Ratio (TDSR) among others, is to reduce household debt. Excessive household debt is a source of vulnerability to the social economy of the country. The TDSR policy helps to promote responsible lending by the banks and finance companies and responsible borrowing behaviour of the public. This will foster a healthy and sustainable credit market which in turn contributes to economic and financial stability.
3. TDSR is commonly implemented at a similar or lower ceiling in other jurisdictions by the Financial Supervisory Authorities and Central Banks to address specific issues. The Monetary Authority of Singapore explained their TDSR framework in a joint press release dated 10 March 2017 as follows:
"The TDSR framework aims to encourage prudent borrowing by households and strengthen credit underwriting standards by financial institutions. Under this framework, property loans extended by a financial institution should not exceed a TDSR threshold of 60%".
In Oman, the TDSR for personal loans (including credit cards and motor vehicle financing) is set at 50% rising to 60% if residential mortgage loans are included. In a circular to the banks dated 23 May 2012, the Central Bank of Oman stated the reason for this is to address the rising level of personal indebtedness in housing loans and other personal loans.
4. AMBD would like to elaborate further on the current TDSR policy:-
i. AMBD does not impose the TDSR on borrowers with Net Monthly Income below BND1,750. However, to ensure that they have access to credit/financing, banks and finance companies are given discretion to provide lending based on their current internal credit policy on TDSR;
ii. Rental income are included as part of the borrower's Gross Monthly Income subject to certain conditions as stipulated by AMBD; and
iii. Any car rental facilities with fixed periodic repayment obligations, offered by entities (directly or indirectly) under the purview of AMBD are subject to the TDSR policy.
AMBD will continue to monitor the conditions in the domestic credit market and will review the TDSR policy from time to time in line with one of its objectives - to maintain financial stability.
5. Since the introduction of the TDSR policy in June 2015, and taking into account other enhancements to the financial infrastructure, such as the establishment of the Credit Bureau in 2012, AMBD has observed several positive outcomes as follows: -
i. The household indebtedness as measured by Personal loans (including credit cards), has declined by 28.6% from BND2.3 billion in 2010 to BND1.6 billion in 2016. Prior to the introduction of TDSR in 2015, there were instances where loans were given to customers who had no ability to repay. Household indebtedness also reached a worrying level where 30% of loan applicants earning Net Monthly Income above BND1,750 had TDSR above 70%. This indicated households were heavily in debt prior to the TDSR policy.
As an example, a customer with Net Monthly Income of BND2,000 with TDSR of 90% would only have BND200 as take-home pay which is equivalent to BND6 a day. The TDSR is therefore intended to help households to have enough disposable income for necessities such as food, clothes, education, savings, insurance, emergencies, and other expenses. Since the introduction of TDSR, the number of loan applicants who are heavily in debt have declined to 6% as of March 2017;
ii. Based on the data submitted by finance companies, the number of repossessed motor vehicles has shown a decline of 39% from 2,879 in 2014 to 1,764 in 2016. The decline in repossessions indicates that the customers have significantly improved their repayment capability to meet their debt obligations. This also shows that finance companies have reduced their risk of customers' default effectively with the TDSR policy, as evident from the declining net non-performing loan ratio from 0.6% in 2014 to 0.5% in 2016; and
iii. AMBD has observed an increase in preference of owning residential properties rather than taking a loan for an additional car for example, where residential mortgage loan/financing has increased by 52% from BND0.9 billion in 2010 to BND1.4 billion in 2016.
6. In reference to the matter of declining car sales, as stated in Azlan Othman's article, AMBD has observed that the decline in car loans have started in 2012, prior to the implementation of the TDSR. Additionally, the car market has become increasingly competitive recently due to a number of factors, including the availability of options for long-term car rentals.
7. AMBD would like to take this opportunity to remind the public on the importance of practicing financial discipline. In this regard, the public is advised to:-
i. Cut down unnecessary credit cards because each card may incur annual fees and can constrain their TDSR limit;
ii. Use debit cards as a form of reducing cash payments to credit cards as it does not involve monthly repayments and is not included in the TDSR computation;
iii. Prioritize your spending according to needs instead of wants;
iv. Prioritize your borrowing needs. For example, you have landed your first job, do you take up a loan for an expensive car or an affordable one? By choosing the affordable car, a bigger share of your TDSR can be used to help finance your first home; and
v. Consider saving the remaining disposable income for bigger purchases instead of acquiring loans. In the example cited by Concerned, a person with an income of BND 20,000 who is left with BND 6,000 after his monthly commitments, would have more room to manage his purchases. For example, if he sets aside BND 2,000 monthly, he will be able to save BND 24,000 in one year to buy a car without taking out a loan.
For more tips and advice on financial management, AMBD publishes awareness articles and advertorials from time to time, as well as organises regular awareness events for the public. Please visit AMBD's website at www.ambd.gov.bn, download our AMBD application for free at Google Playstore or App Store, or follow AMBD's Instagram @autoriti_monetari.
8. The implementation of the TDSR policy continues to foster a healthy and financially-sustainable society which supports the aspiration of the Government of 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 towards Vision 2035.
9. For any enquiries and further information, the public may contact AMBD at 2388388 or email at firstname.lastname@example.org.
Date: 15 Sya'ban 1438H/ 12 May 2017M
Download PDF AMBD Response - Call to review TDSR limit and TDSR An Unrealistic Measure
Bandar Seri Begawan, Brunei Darussalam (May 2017) - The Autoriti Monetari Brunei Darussalam (AMBD), agent to the Government of His Majesty The Sultan and Yang Di-Pertuan of Brunei Darussalam in managing and administering Sukuk Al-Ijarah issuances, is pleased to announce the successful pricing of its 145th issuance of short-term Sukuk Al-Ijarah securities.
With this issuance, the Brunei Government has thus issued over B$10.8782 billion worth of short-term Sukuk Al-Ijarah securities since the maiden offering on 6th April 2006 and the total holdings of the Brunei Government Sukuk outstanding until 4th May 2017 stood at BND 293.2 million.
FINANCIAL FUN FAIR
IN CONJUNCTION WITH NATIONAL SAVINGS DAY 2017
JERUDONG PARK COLONNADE
3 SYAABAN 1438 CORRESPONDING TO 30th APRIL 2017
Bandar Seri Begawan, Brunei Darussalam (April 2017) - The Autoriti Monetari Brunei Darussalam (AMBD), agent to the Government of His Majesty The Sultan and Yang Di-Pertuan of Brunei Darussalam in managing and administering Sukuk Al-Ijarah issuances, is pleased to announce the successful pricing of its 144th issuance of short-term Sukuk Al-Ijarah securities.
The total of the sukuk issuance was B$ 50 million with following details:
With this issuance, the Brunei Government has thus issued over B$10.7782 billion worth of short-term Sukuk Al-Ijarah securities since the maiden offering on 6th April 2006 and the total holdings of the Brunei Government Sukuk outstanding until 13th April 2017 stood at BND 293.2 million.
ISLAMIC DEVELOPMENT BANK (IDB) SUKUK MODEL LAW WORKSHOP
28 Rejab 1438 corresponding to 25 April 2017
1. Autoriti Monetari Brunei Darussalam (AMBD), in collaboration with the Islamic Develoment Bank (IDB), is organizing the Islamic Development Bank (IDB) Sukuk Model Law Workshop today, Tuesday, 25 April 2017 until Wednesday, 26 April 2017 at The Empire and Country Club, Jerudong.
2. The Guest of Honour for the Opening Ceremony was Yang Mulia Dato Paduka Dr Awang Hj Mohd Amin Liew bin Abdullah, the Deputy Minister of Finance.
3. The ceremony began with welcoming remarks by Yang Mulia Awang Yusof bin Hj Abd Rahman, the Managing Director of AMBD, and continued with a keynote address by the Guest of Honour, Yang Mulia Dato Paduka Dr Awang Haji Mohd Amin Liew bin Abdullah.
4. This workshop is an initiative led by IDB and the Islamic Research and Training Institute (IRTI), which aims to provide a platform for subject matter experts related to Sukuk issuances to exchange views that can assist in building a robust and enabling legal framework that supports the issuance, regulation and monitoring of Sukuk.
5. The workshop was attended by over 100 participants from central banks in the region and internationally, and officers from the local financial industry as well as officers from AMBD.
Date: 28 Rejab 1438H / 25 April 2017M
Ref No: AMBD/COMMS/ 3
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