FEBRUARY 18, 2025
It is important to closely monitor global economic trends and policies that could impact the global, regional and domestic economies, while assessing the potential risks and opportunities. This is because shifting central bank policies and economic fundamentals make the outlook for 2025 even more unpredictable, Brunei Darussalam Central Bank (BDCB) Managing Director Hajah Rashidah binti Haji Sabtu said.
She added that growing geopolitical uncertainties and shifting trade dynamics are reshaping global alliances as traditional partnerships are being tested and new blocs emerge.
Hajah Rashidah also noted how increasing inward-looking economic policies have led to greater fragmentation, adding volatility to financial markets and complicating global cooperation.
She said this during the Economic and Investment Outlook 2025 at the Ministry of Finance and Economy (MoFE) Theatre Hall.
Themed ‘Friends, Foes and Frenemies? Shifting Alliances in a Fragmented World’, the event was attended by over 200 from various organisations, including the Prime Minister’s Office, MoFE, as well as other government agencies, financial institutions and local higher educational institutions.
Deputy Minister of Finance and Economy (Economy) Dato Seri Paduka Haji Khairuddin bin Haji Abdul Hamid attended the talk.
Senior Assistant Professor at the School of Business and Economics, Universiti Brunei Darussalam (UBD) Dr Yong Soo Keong, in his special presentation, highlighted the growing fragmentation over the past decade across geopolitical, economic and technological domains.
He noted how conflicts have strained global cooperation, while tariffs, trade restrictions and rival trade blocs are limiting cross-border activities, fuelling economic instability and inflation. Meanwhile, technological fragmentation, exacerbated by misinformation and regulatory divergence, has led to inefficiencies and economic losses.
Emphasising the vulnerability of small open economies, he raised the importance of policymakers investing in infrastructure, diversifying trade and industries, strengthening regional cooperation, and ensuring transparent policies.
The event proceeded with a panel discussion moderated by Assistant Executive Director (Regulatory 3) at the BDCB Hajah Dayang Maizatul Najibah binti Haji Awang Mohamad. The panellists included CFA, Senior Investment Consultant at the Baiduri Capital Pengiran Abdul Rasyid bin Pengiran Haji Abdul Rajak; Investment Associate at the Brunei Investment Agency (BIA) Syamimi binti Rousali; Senior Researcher at the Centre for Strategic and Policy Studies (CSPS) Professor Alvin Ang; and Senior Economic Officer at the Department of Economic Planning and Statistics (DEPS) Dayangku Norhanidah binti Pengiran Haji Masshor.
The panel explored the wide variety of implications brought about by shifting alliances, including insights from the financial market angle as well as global, regional, and local economic perspectives.
Key issues such as the ongoing trade war between major powers, the current trends of re-shoring and friend-shoring, and the global race to dominate the technology sector, were also addressed.
The discussions not only examined the numerous risks and opportunities for economic players, but also focused on strategies for navigating uncertainty, mitigating economic volatility, and identifying areas for collaboration in an increasingly fragmented world.
https://borneobulletin.com.bn/talk-focuses-on-importance-of-understanding-global-economic-trends-policies/
