The Development of Palm Oil Industry Is an Essential Step to Brunei

The development of palm oil industry is an essential step to Brunei

With the current oil price dropping to $30 per barrel, Brunei is said to have a budget deficit of $2.3 billion for fiscal year 2015/2016. Brunei’s economy is heavily reliant on the exportation of oil and gas but with the oil crisis going on, Brunei has to think of a way of diversifying its economy. There are other ideas or options that are stated below.

Palm OIl

One of the option is developing palm oil plantation in Brunei. Palm oil is a type of edible vegetable oil that is derived from the palm fruit, grown on the African oil palm tree. Oil palms are originally from Western Africa, but can flourish wherever heat and rainfall are abundant. Today, palm oil is grown throughout Africa, Asia, North America, and South America, with 85% of all palm oil globally produced and exported from Indonesia and Malaysia; but most of the time not using sustainable measures.

Palm oil plantation have a huge impacts in terms of environmental ,social ,economic and political.

Environmental Impact:

-Deforestation causes air pollution and loss of habitat for wild animals - Orangutans and the proboscis monkeys are currently endangered in Borneo due to continuation of deforestation

-17% peat would be lost

+Most efficient of all oils

Social Impact:

-Forced migration/ relocation of locals

-Health issues - respiratory problems from air pollution

+Employment, high standard of living

Economic Impact:

-No potential of ecotourism