"Brunei Darussalam needs to provide special funding to create an
environment where technology-based business ideas can flourish.
Technopreneurs said that it is difficult for them to expand as fast as they
wanted to due to lack of funding. They added that in Brunei if one does not have
the money to do it, then there is little chance of succeeding.
In the words of Tengku Farith Rithauddeen, the Group CEO and Co-Founder
of SKALI, "There should not be any fear of failing if we want to create
innovative products or services."
For the full news, click here. Meanwhile,
"Dato Paduka Timothy Ong also quoted His Royal Highness as saying in the same
interview that diversifying the economy is a lot more than making
announcements". (Click here)
And for the above reason, I pray with all my heart that THIS is not another announcement.
Salaam.
5 comments:
What I fail to understand is why SQW as MIPR's consultants? Haven't we had enough of BEDB's ex-CEO John Perry and Halcrow the SLOW?!
Why not just commission the likes of Rogue Economist to do the Master Planning? There are tens, if not hundreds already, of young Bruneian professionals out there somewhere, only eager-beaver to contribute to nation building, what have you... If only His Majesty's Government could pool all the local talents and brains, who needs foreign consultants?!
Look, our own 'thoroughbreds' could do the consultancy thingy and MIPR does not even have to pay each consultant what? BND500 per day or 300 pound sterling by the hour or USD15k per month whatever!
I fear it may be just another 'announcement' unless the financial institutions realize they themselves have to take a risk & experiment with relatively different financing modes than what we normally use in Brunei, i.e. loans. Venture capital financing is one serious avenue to look into.
'No risk, no returns'. It works both ways, not just for entrepreneurs but financiers as well.
I can see why funding is required for new projects and ideas - but I think the banks are right to be careful about handing out funding to potential "entrepreneurs". Development loans have been available in the past, and (in my experience) the first thing that happens is that the "entrepreneur" buys a pair of big SUVs or Mercs...you know...company cars :). Plus expensive lunches for friends, trips etc but no money to pay for the office stationary, rent or the poor Bangladesi guy who cuts the grass. Funding should be available, but discipline and personal sacrifice are also required.
Eek that should be "stationEry" or course..not stationAry.
Katie-ella, I understand your point and to some extent, the lack of discipline can be mitigated in venture capital financing.
The financiers would monitor the progress of the entrepreneur & include clauses in the contract for non-compliance or conflict of interest e.g. Instead of using the money to buy the intended machinery & the entrepreneur bought a BMW instead equals to penalties or other negative reinforcements etc.
This form of financing would surely change the way bankers do their business in Brunei (work process, a more collaborative mindset, additional costs etc) but it is worth venturing as loans can only do so much, as far as collateral & discipline is concerned. This is especially so for Islamic banks which needs to consider less controversial concepts.
'Nothing venture, nothing gained'
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