Hong Kong FDI to help bring down ocean freight cost

National 2 minutes, 15 seconds

BANDAR SERI BEGAWAN

AMANN Shipping Group Sdn Bhd, a $138 million joint-venture investment between Go-Wide Shipping Holding Limited from Hong Kong and the Brunei government, is looking to bring additional vessels to its existing one here as well as explore other container lines in Brunei.

Currently, it has one vessel operating the container line from Singapore and Malaysia to Brunei.

Amann Shipping Group Sdn Bhd Chairman Yang Zhengfu, who is in Brunei for his monthly visit, told The Brunei Times the company was set up here in 2014.

Yang said with the additional conntainer vessels, it can help encourage the development of the Muara Port.

Amann Shipping Group also comprises Amann Shipping Hong Kong which is based there.

“What we do is chartering and dry-bulk carriers. We also have shipping management where we basically do in-house management and manage our own ships. Currently, we have three bulk carriers and one container line in Brunei,” Yang said.

Yang said the purpose of this joint-venture is to diversify Brunei’s economy and to help reduce the ocean freight or logistic costs in Brunei.

“Currently, we have one container line operating from West Malaysia to East Malaysia. The first thing we are going to do is to reduce the ocean freight for our clients, especially for Bruneian entrepreneurs,” he said.

Yang said they have high expectations for Brunei’s future development, and views Brunei as having huge potential to be further developed.

“Now, 90 per cent of the country’s GDP is from oil and gas but this will soon be changed. Diversification has lots of other industries and shipping is the key to bring other investments into Brunei. Without lower logistic costs, it is harder for other investors to come into Brunei,” he said.

The chairman said although the global market is moving at a slow pace, it is the best time for Brunei to bring in other investors due to the low excess value and interests for shipping here.

“Another advantage investing in Brunei is that the government is stable.

“They do not have any social problems and that is very important for investors,” he said.

He told other potential investors that Brunei is a good place to invest in because of the stable government as well as the multiple finance facilities available.

“The people are also very kind. At this time when the country wants to diversify, I think it is a good opportunity to come and invest here,” he added.

According to the Brunei Economic Development Board (BEDB) website, the focus of the national shipping line is to actively address the shipping and logistics challenges faced in Brunei Darussalam and to provide logistics support catering to Brunei Darussalam’s growing industrial development.

The Brunei Times