BANDAR SERI BEGAWAN, Feb. 21 (Xinhua) -- The Brunei government abolished the existing cement import quota policy effective from January 1, 2017.
Cement prices in the sultanate are set to fall with the government decision, a local cement distributor told Xinhua on Tuesday after Brunei's Energy and Industry Department at the Prime Minister's Office (EIDPMO) issued a press release late Monday regarding the abolishment.
"Brunei had maintained the cement import quota policy for many years in the name of protecting local manufacturer", he said on condition of anonymity.
"This new policy is expected to open up the market for all types of cement, boosting construction activities in the country at a time when the country is striving to diversify its economy away from oil and gas".
Brunei's cement market was previously regulated under an import quota system where the quantity of imported cement was controlled and limited. A World Trade Organization trade policy review on Brunei issued in May 2001 stated that "there also appears to be a 'temporary' ban on imports of cement to protect local producers".
"The new policy will provide more opportunities in the construction and other sectors, create more spin-offs for our local micro, small and medium enterprises and benefit the people as a whole because an open market will result in competition which in turn will reduce prices of cement and the cost of construction," EIDPMO said in the press release.
"This will also ensure that there will be sufficient cement supply. The cheaper price will also promote export opportunities for local producers."
"A Committee for Registration of Cement Importers has been set up to oversee and implement the new policy. It will work to protect the interests of the consumers by establishing standards of cement quality and endeavouring to maintain adequate supplies of cement," the EIDPMO statement added.
