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Diversification in the context of Brunei Darussalam? Definition of Diversification The production of goods and services (by firm or in a region) which are related on slightly or not all to the goods and services already produced. Firms usually diversify either because of poor prospect of growth and profitability in existing markets or reduce the risk that is inherent in supplying a few markets. Diversification is designed to reduce risk by purchasing assets which behave differently from each other, especially with regard to changes in price. In the context of Brunei Darussalam, Diversification means Brunei needs to move away from depending or relying too much on the oil and gas export productions as a source of income in the country. She needs to diversify her economy by producing more active industries in the country because of the nature of hydrocarbon as a nonrenewable resource. There are several ways on how to diversify Bruneis economy 1. By attracting foreign Direct Investment

By attracting the FDI into the country it literally provide and creating more manufacturing industries in the country. If there are a lot of industries existing in Brunei, means there are more jobs provision for the local and generating income into the country through its process of import and export product. Apart from that, by the FDI inflows, it provides revenues into the country through tax revenues from the manufacturing companies such as land taxation, premises, facilities etc. FDI are able to finance domestic investment through joint-venture with the foreign investors FDI can also stimulate the foreign requirements of Brunei through the importation of foreign capital into the country by investors, which in the end will also improve the balance payments of the country. Such investments in Brunei will account for a transfer of technology in the numerous jobs opportunity that will be created as well as management and entrepreneurial skills. This is because foreign direct investment not only brought in capital but also technology

FDI inflows will surely help diversify the economy and therefore reduce the dependency on hydrocarbon resource with the result that there will be a increases in the number of non-oil export consequently an increase in the economic growth.

2. Tourism Brunei should open itself immense potential in tourism with the view to attracting millions of tourists in the new millennium. Tourism is seen as one of the sectors that will help Brunei in diversifying its economy, This involve an enhancement of the present traditional attractions associated with the water village, the royal regalia, mosques, Brunei museum, game fishing, river cruises and a walk through the jungle should be attractive to tourists. The development of luxury hotels will further attract tourist especially Japanese tourists whose investments would enhance the government policy of modernization. This effort of privatization should be seen as a major boost for the commitment of Brunei in becoming a service of hub for trade and tourism..

3. By providing better services and linkages in our import and export duties Through developing and deepening the countrys port at Muara and expansion in its international capacity. It will eventually create jobs for the local and by doing so it will bring about economic diversification and sustainable development.

**Cari lagi extra points how to diversify our eco..One of it through OVOP and SME Why diversification fails Ameer Ali punya article banyak point (Ani aku ambil dari Geoffry C.Gunn)

Because of Bruneis population size is very small; it is hard to fill in manufacturing massive industries with the local participation alone. This is equal to the labour market size and quality that is rather limited. Insufficient number of professionals and semi-skilled workers, mismatch educations with jobs provision and trainings, and government dependency of job provision mentality among the local

causing difficulties of enhancing the process of diversifying the national economy. Local mentality that only rely on government for jobs causing lack of interests among the people to participate in private sector. Because government sector, provides generous allowance, loan provisions and other incentives. Unlike, the private sector which provides low income, no allowances provided nor incentives and people have to work long hours sometimes without overtime payment. They have to obeying strict rules and risk taking job. Hence, people who with private sector will be looked as low class standard unlike those who work with the government, people who with the government are more indulge with gifts than those who work with the private sector.