BANDAR SERI BEGAWAN – The feasibility study for the Brunei Stock Exchange has been completed, and the implementation phase is set to begin this month, the Second Minister of Finance and Economy announced Saturday.
The government will establish a securities exchange, clearing house, and central securities depository, marking a significant milestone in Brunei’s financial development, Dato Dr Hj Mohd Amin Liew Abdullah said during a meeting of the Legislative Council.
Preparations are already underway for the launch of the stock exchange, which includes refining the organisational structure, establishing Syariah governance and sukuk listings, and setting out procedures for companies to apply for licences to operate within the exchange.
In 2020, the government allocated $414 million to establish the stock exchange, with funds distributed over several years to support infrastructure, technology, and socio-economic studies related to its implementation.
The feasibility study focused on formulating a detailed plan for building the market ecosystem, regulatory reforms, Syariah governance, cost-benefit analysis, and revenue projections.
A market outreach plan was also devised to engage key stakeholders, including regulators, market participants, potential issuers, and investors; with the objective of ensuring broad participation and support for the exchange.
Dato Amin said the establishment of the stock exchange would create new jobs and investment opportunities, and hopefully cultivate “a more resilient and diversified economy”.
The Brunei Darussalam Central Bank, in collaboration with the Attorney General’s Office, has already prepared amendments to the Securities Markets Order, which include provisions for creating a Listing Authority and establishing Official Listings for companies.
The legal amendments aim to support market development, protect market integrity, and ensure investor protection, the minister added.
In addition to the legal framework, the central bank has been working on the development of the Listing Rules. Extensive consultations with stakeholders have taken place to ensure the regulations are aligned with Brunei’s current stage of market development. Dato Amin confirmed that drafting of both the legislative amendments and the listing rules are now in the final phase.