Brunei MoF Mulls Possibility of Bracing Financial Sector

The Ministry of Finance (MoF) is studying the possibility of further strengthening the regulatory framework for the financial sector, a ranking ministry official yesterday said.

In opening the 16th Asean Federation of Accountants (AFA) Conference, Second Minister of Finance Pehin Orang Kaya Laila Setia Dato Seri Setia Hj Abd Rahman Hj Ibrahim said that there have been efforts by the government, through the Ministry of Finance, to enhance capacity in the financial sector and "strengthening further the regulatory framework for the sector".

"This is with the objectives of promoting quality financial reporting, enhancing local participation, and improving governance. We hope that through better regulation, we will be able to attract top professionals and accountants to join this sector," he said.

These initiatives are concurrent with the regulatory enhancement that was introduced over the last two years, to increase the overall competitiveness of the nation's investment and economic environment, to attract foreign direct investment in the country, especially by multinational corporations, he said.

"To achieve this, several strategies and processes are being adopted. We have provided incentives for investment in various fields, especially pioneer industries, production for export, international trade, warehousing, venture capital and new technologies," he said.

He added that the government is also striving to develop Brunei as a regional hub of financial services.

As everyone looks to the future, they must ensure that they "actively participate in the development of global financial and regulatory mechanisms", he said.

"In the world of accounting and independent accounting standard setting, the task is very challenging. Some of the most difficult accounting and reporting issues emanating from the financial crisis, stem ... from the lack of regulation and proper monitoring, risk management, unsound and lax lending practices, complex investment products and the absence of proper market infrastructures," he said.

"Throughout my own career as a finance person, I always believe in the importance of accounting and good financial and corporate reporting. Thus I think a major lesson ... from the recent crisis is that sound financial reporting is very key to the stable and vitality of capital markets, economy and to the whole society," he said.

Pg Hj Moksin Pg Hj Yusof, president of the Brunei Darussalam Institute of Certified Public Accountants (Bicpa) and partner at accounting and consultancy firm Deloitte, in his welcoming address, said that the conference is significant to Bicpa as an indication and proof that despite Bicpa's small membership and limited resources, it can play a role in the promotion of the accountancy profession in the region. "Today, the accountants of all the 10 Asean countries are here to share their insights and experiences, learn from those who are experts in their field and network as brothers and sisters of Asean," he said.

The AFA was formed in March 1977 to provide an organisation for Asean accountants to further advance the status of the profession in the region. It is also aimed to establish closer relations, regional cooperation and assistance among Asean accountants, to identify and highlight the vital problems affecting the accounting profession in the Asean region and to formulate proposals to solve the problems.

"It reflects the expectations on the accountants to perform above what they normally do during the good times. In the financial storm of today, the accountants played a vital role to ensure that their companies are able to withstand the storm and sail through it," said Pg Hj Moksin.

The conference was held at the Rizqun International Hotel in Gadong.
By Debbie Too
Source: The Brunei Times