THIS week, Brunei was abuzz with activity with the Asean Tourism Forum. I am certain international visitors were impressed with Brunei’s beauty and uniqueness just as I was when I first arrived in Brunei.
As I’ve often said in previous columns, Brunei is blessed with a natural beauty second to none, and eco-tourism continues to be a draw in this country. Last weekend, I took my children to spend the day at Tutong beach (Pantai Seri Kenangan). Whether fishing, jet skiing, renting All Terrain Vehicles (ATV), or just enjoying some of the local cuisine available at the `gerai’/food stalls; there really is something for everyone.
My children and I most enjoyed riding the ATVs and racing on the beach. Even by Western standards, the cost for these activities is quite reasonable and worth checking out.
I again received some interesting questions this week revolving around some recent regulations affecting people in the financial realm, but before I begin discussing them, as always, I encourage you all to continue submitting your questions to ask_usambassador@yahoo.com.
Q: Ambassador, can you please share your views on two things new to Brunei this year – the new credit card regulations in Brunei and the Supplemental Contributory Plan scheme. Can you tell us about any similar such regulations in the US system?
As we welcome the New Year with hopes of better future, health and personal goals, I believe we are also seeing some significant positive changes in the Global Financial Markets including here in Brunei.
First, the new credit card regulations. As with anything new, these regulations are definitely something that will take time to come to terms with for one’s personal financial management.
However, as I read comments and opinions by the general public, I feel it’s important to understand that this is something very good and will make the average citizen much better off in the long term.
I discussed these changes with my local staff, and although I understand the initial anxiety, I urged them not to see it as a negative but rather a long-term solution. It may be a slightly bitter pill to swallow initially but ultimately everyone will benefit.
Overall, I believe this is a commendable effort by the Government of Brunei to curb the ever-increasing personal debt affecting many Bruneians.
Five years from now, I am confident we will see a majority of the Brunei population with significantly reduced personal debt and in a position to better manage their personal finances.
Brunei was very fortunate to escape much of the overall impact of the recent global financial crisis. Having said that, the timing of these changes is crucial to ensuring such debt is resolved before becoming overwhelming in nature.
Being a finance person by trade, with a CPA, (America’s version of a Chartered Accountant) and spending many years balancing my own family’s budget; I learned early on it’s important to consistently review our financial commitments (ie savings and loans).
The first axiom about managing your debt is that your total personal debt (all loans, credit cards, bank notes, mortgages etc) should not exceed 28-33 per cent of your monthly take home pay. Ever!
The second axiom is that you should always have in the bank at least three months worth of your pay in case of emergencies, job loss or sickness where you cannot work etc. Thirdly, every month when you get paid, pay yourself first (put money in a savings account).
And lastly, good saving habits means realising that it’s not about what you make in salary, but what you spend that affects your saving ability.
As we have seen in the US and Europe, banks are having one of the most profitable years in history. One lesson learned recently in the US is that we need better and stronger banking regulations and need to make the banks part of the solution, not part of the problem.
I think the efforts underway here in Brunei to create a more transparent and regulated banking environment that lowers fees and interest rates is good for everyone.
To answer the second part of your question, the new retirement scheme, which came into force this year, is another admirable effort by the Government to ensure Bruneians will be secure and financially taken care of after retirement.
As I understand, the scheme is designed to complement the existing Employee Trust Fund, locally referred to as TAR I was also impressed to learn that the Brunei Government is contributing to the scheme in the form of “catch-up” funds for existing TAP members.
This plan was implemented after several years of careful research and I think this is a strong testament to the Government’s long-term commitment for the welfare of the Brunei people.
The US equivalent of the SCP is probably best compared with our Social Security system, which is mandatory as well. It also is paid out incrementally, much like the SCP, and can only be accessed after our retirement age of 65.
I think Brunei has started the year 2010 with some exciting new changes and without a doubt; these are changes that are going to make a real positive difference for the future of all Bruneians.
Lastly, I wanted to share with you some developments about our new embassy building, which is expected to be completed sometime in September. The physical structure of the building is now evident and the contractors are progressing right on schedule.
Ifall goes as planned, we hope to move in to the new embassy by October this year. Each time I go over to the compound for a site visit, I am impressed with the quality and efficiency of the work that is being carried out by both the US and local contractors.
I know the Embassy staff are looking forward to moving into the new building later this year. In preparation of our move to the new embassy, I’d like to announce a contest.
I would like to invite you to submit digital images of Brunei; the category is general so it could be anything from people, religion, culture or anything related to the cultural sights and attractions of Brunei. There will be prizes for the best three images, which will be announced once we move to the new embassy.
The winning images will even be used to decorate the walls of the new chancery. So, here’s your chance to be a part of the US Embassy! We will post more detailed information about this contest on our website at http://brunei.usembassy.gov so please visit the page. Finally, have a great weekend!
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