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Research on- MDO Inc’s Expansion in Brunei

BUS251 Section: 11

Submitted by:

Name ID

Sumaiya Basher 1721115030

Md. Zubayer Faiaz 2011074030

Rahim Jahan Chowdhury 2012471630

Shithi Rose Gomes 2014038030

Hubert Glen Sarker 2031389630

Submitted to:

Tanya Ahmed
Lecturer
Department of Management

North South University

Phone: +880-2-55668200 Ext: 1781

Email: tanya.ahmed@northsouth.edu
Office: NAC 978, North South University

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 The Purpose Statement

The purpose of this group project study was to identify the possibilities of starting a pharmaceutical
company in Brunei, which is going to be an expansion of one of the well-established, largely
known and financially stable pharmaceutical firm based in Grand Rapids, Michigan is MDO Inc.
run by Mr. Mark Orr as the CEO. We analyzed the existing market of the pharmaceutical industry
in Brunei, we analyzed the existing products in the industry and identified our target customers,
determined the important factors which needs to keep in mind while we start the business. We got
all the information of this research project through secondary data. I would like to highlight the
parts our group members covered. Sumaiya Basher covered history, geography, people and
stuffing. Zubayer Faiyaz covered currency, population, customs and available labors part. Rahim
Jahan Chowdhury covered climate, economy, existing industry and legal structure parts. Hubert
Glen Sarkar Tirtha covered cultural difference and market competition part and Shithi Rose Gomes
covered products, cultural trend, advertising, market penetration and natural resources part. We
covered and highlighted almost all the important factors in this project.

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 Letter of transmittal

12th December 2022

Tanya Ahmed
Course Instructor
North South University

Subject: Submission of a report on the business expansion in Brunei

Dear Ma’am,
We feel immensely honored to accomplish the Project Work of BUS251 course. We are
submitting the report with your authorization. We have selected the halal pharmaceutical
products for the MDO Inc. business expansion in Brunei.

In writing this report, we have followed the guidelines that you have mentioned in the class. We
have also applied the relevant concepts that we have learned throughout the entire semester in
this course. This report was a great learning experience for us.

Thank you.

Yours Sincerely-
1. Sumaiya Basher ID- 1721115030
2. Md. Zubayer Faiaz ID- 2011074030
3. Rahim Jahan Chowdhury ID- 2012471630
4. Shithi Rose Gomes ID- 2014038030
5. Hubert Glen Sarkar Tirtha ID- 2031389630

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 Acknowledgment

We are really grateful to our regarded faculty and course teacher Ms. Tanya Ahmed, for giving us
this brilliant chance to expand our business in Brunei. We pulled off this project work with our
unified exertion and furthermore for her direction, supported intrigue, steady consolation and her
trust in our capacity to carry out the responsibility lastly spurring motivation, sort of headings,
significant proposals and recommendations. It should likewise reference that all our gathering
individuals have worked proficiently, viably, and have given their most extreme truthfulness
towards this gathering work to bring it into an effective endeavor. Our slides canvassed in the class
were additionally useful in reviewing the ideas we secured up until this point. We are appreciative
for all the assistance, which made this report worth assessing. We truly wish to offer our thanks to
our folks, companions, and well-wishers for helping us in making this paper a terrific achievement.

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 Executive Summary

One of the well-established, largely known and financially stable pharmaceutical firm based in
Grand Rapids, Michigan is MDO Inc. run by Mr. Mark Orr as the CEO.
• The growing competition, restraints in the local market and the latent potential and a
scope for outstanding growth abroad made it inevitable for the company to go global for
exponential ROI. The team took on the task to research and recommend a country that is
non-European and non-native English speaking. It found out a suitable country that has
quite the potential for the company and itself is just starting its industry. The report looks
at the thorough research that's been done on the country of Brunei Darussalam. As per the
team's research, Brunei Darussalam has only 4 major companies leading in its
pharmaceutical industry. On the technical analyses the team researched on its market
competition, advertising, staffing, natural resources, available labor, existing industries,
legal structures, cultural differences and cultural trends. According to Business Monitor
International, the industry of pharmaceutical was valued at US$100 million in 2013 at a
compound annual growth rate of 9 from 2013 to 2018, reaching a value of US$150
million. In addition, the country is also tapping into the growing halal market.
• Company profile (with relevant history)
Brunei gained independence on January 1,1984. Since the independence Brunei has
followed the national philosophy of the Malay Islamic Monarchy. The growth of the halal
medicinal products in the Brunei market is accelerated by factors such as aging
population, increase of terminal diseases burden and less access to advanced medicinal
products. Brunei is a non-European country located on the north coast of the island of
Borneo in Southeast Asia. The land area is about around 5765 square kilometers with
over 161 kilometers of coastline along the South China Sea. Majority of the people live in
the capital city Bandar Seri Begawan. According to 2021 census, the population was
445,373. The average life expectancy is 77.7 years.70% of the people are from the ethnic
group of Malays. Rest of the people are from other countries such as Malaysia, Indonesia,
China and India etc. The religion of 80% Malays in Brunei is predominantly Islam.
According to the most recent statistics, Brunei's population was 0.4 million in December
2021. The labor participation rate was 63.6% which dropped from 63.8%.
• The Sultanate of Brunei has used the Brunei dollar as its official currency since 1967.The
Authority Monetary Brunei Darussalam is responsible for issuing the Brunei dollar.
During 2016 to 2022, the value of 1 BND changed from USD 0.70 to USD 0.74.
According to World meter’s elaboration of the most recent United Nations data as of
Thursday, December 8, 2022, Negara Brunei Darussalam's population is 447,648. The
population of Brunei Darussalam is equal to 0.01% of the entire world's population. In
Brunei Islam is the primary religion in the Malay Archipelago, it has a rich heritage of

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 traditions, rituals, behavioral norms, and modes of address. One of Islam's wonders is
Brunei's enormous royal mosque, the Jame Asr Hassanil Bolkiah.The term “baju
Melayu” is used to refer generally to the traditional Malay clothing worn by men, and it
is believed to have been popular since the 15th century. In actuality, it goes by the names
of the Baju Kurung Teluk Belanga and the Baju Kurung Cekak Musang.
Brunei is known for its oppressive tropical climate, yearly with hot temperature and high
humidity.

• Occasional showers may pour heavily but are usually short-lived.The country of Brunei
is digging into the emerging halal market The Ministry of Religious affairs prepared the
state by setting out guidelines for manufacturing and handling medicinal products in
2010, which in turn made Brunei the attraction for halal medicine export, Cher Boon
Piang, analyst of BMI Asia says. The Supreme Court consists of the High Court and the
Court of Appeals, on the other hand the Subordinate Court comprises of the Magistrate's
Courts.A Shariah Court is also conjoined with the Supreme Court and which accounts for
Islamic laws.
Our company’s target market is patients and healthcare professionals (HCPs). We would
be engaging with both audiences to build brand awareness, establish a reputation of trust
and reliability.The nation is situated in a biodiverse area, providing a fantastic base for
the exploitation of medicinal plants. Despite the fact that this has drawn the interest of
scientists from around the world, Jason Paul Bin Rumpun, key accounts manager of
Simpor Pharma, says that more efforts will need to be made to entice experts to the
nation.
• Brunei's culture is largely Malay, with strong Islamic influences. Hari Raya Aidilfitri is
one of their most important festivals. Traditional foods include Kuih Kering (dry cakes)
and Kuih Basah (wet cakes) Gasing, simban, guli, and kikik are some of their traditional
games.In Brunei, they do marketing in various ways. Industry events, trade shows, and
product expos are also common and provide good opportunities to reach customers and
potential business partners. Bruneian customers flock to coupons, VIP discount cards,
and special deals.Brunei Darussalam is one of the wealthiest countries in the world, not
just in Southeast Asia.Brunei is among the top Asian countries in terms of quality of life
due to its oil and gas riches.
Brunei has a lot of promise in the growing pharmaceutical sector, but it must not get
complacent and must take steps to manage and grow the sector effectively. While foreign
investors may find Brunei attractive, the government of Brunei still needs to go above
and beyond to persuade them to invest.

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 Table of Contents

Description Page No.

Introduction 10

History 11

Geography 11-12

Climate 12

13-14
Staffing

Currency 14-15

Population 15-16

Culture & Customs 17

Notable Customs 18-20

Economy 20

Existing Pharmaceutical Industry 21

Legal Structure of Brunei 21

Cultural difference 21

Market Competition 22-23

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Cultural trend 24

Advertising 25

26
Market Penetration

26
Natural resources

27-28
Recommendation

28-29
Conclusion

30-31
Reference

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 Introduction

MDO Inc. run by Mr. Mark Orr as the CEO is a largely known, well established and financially
stable pharmaceutical firm based in Grand Rapids, Michigan. The growing competition, restraints
in the local market and the latent potential and a scope for outstanding growth abroad made it
inevitable for the company to go global for exponential ROI.

The team took on the task to research and recommend a country that is non-European and non-
native English speaking. It found out a suitable country that has quite the potential for the company
and itself is just starting its industry. The report looks at the thorough research that’s been done on
the country of Brunei Darussalam.

As per the team’s research, Brunei Darussalam has only 4 major companies leading in its
pharmaceutical industry. Penetrating the market should be easier also because of its lenient tax
structure contributing to less cost.

The report analyzed the country in a general view through history, geography, people, currency,
population, customs, climate and economy. On the technical analyses the team researched on its
market competition, advertising, staffing, natural resources, available labor, existing industries,
legal structures, cultural differences and cultural trends.

According to Business Monitor International (BMI), the industry of pharmaceutical was valued at
US$100 million in 2013 at a compound annual growth rate (CAGR) of 9 from 2013 to 2018,
reaching a value of US$150 million. In addition, the country is also tapping into the growing halal
market. In 2010, the Ministry of Religious Affairs issued the Guidelines for the Production and
Handling of Halal Medicines, paving the way for the establishment of Halal Pharmaceutical
Companies in the country and Brunei as an export hub for Halal Pharmaceuticals, Cher Boon Piang
said who is an Analyst at BMI Asia.

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 History

Brunei gained independence on January 1,1984. Since the independence Brunei has followed the
national philosophy of the Malay Islamic Monarchy. The growth of the halal medicinal products
in the Brunei market is accelerated by factors such as aging population, increase of terminal
diseases burden and less access to advanced medicinal products. The healthcare system is
regulated by the Brunei Ministry of Health. The corporate income tax including the sale and
manufacturing taxes rate has been reduced from 22% to 30% in 2008. Besides, Germany is looking
for opportunity in the country to develop pharmaceutical products and China is also looking
forward to supplying the raw ingredients for Chinese traditional medicines in Brunei. As the
country is striving to grow their pharmaceutical business, it is the recommended to expand the
business of MDO Inc. company in the halal market of Brunei.

Geography

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Brunei is a non-European country located on the north coast of the island of Borneo in Southeast
Asia. The land area is about around 5765 square kilometers with over 161 kilometers of coastline
along the South China Sea. It is only the sovereign state entirely on Borneo. Majority of the people
live in the capital city Bandar Seri Begawan. Brunei being on island, the pharmacy products can
be supplied through air or sea routes only. A local manufacturing plant for pharmaceutical products
will reduce the main cost of the pharmaceutical business which is pharmacy products supply.
Brunei is a place for low-cost raw materials and cheap labor. It is the most feasible geographic
location for the establishment of the pharmaceutical business.

Climate
Brunei is known for its oppressive tropical climate, yearly with hot temperature and high humidity.
The region of Brunei has two monsoon seasons that last from October to February and from May
to June. Occasional showers may pour heavily but are usually short-lived. (Brunei)
Rain usually doesn’t fall in March and April, that’s when droughts can be observed in coastal
areas. Temperatures can get extremely high and sometimes hard to tolerate. From September to
January the weather can get especially hot and humid and very uncomfortable. Factually Brunei
Darussalam is observed to have an equatorial climate affected by the monsoon systems named
northeast monsoon and southwest monsoon. The average daily temperature is 28.04°C, with
maximum average of 32.4°C and minimum average of 23.7°C (Brunei Darussalam)

People

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The people of Brunei are known as Bruneian. According to 2021 census, the population was
445,373. The average life expectancy is 77.7 years. 70% of the people are from the ethnic group
of Malays. 10% of the people are Chinese. Rest of the people are from other countries such as
Malaysia, Indonesia, China and India etc. The religion of 80% Malays in Brunei is predominantly
Islam. So, the official religion of Brunei is Islam. Other religions are also practiced in the country
including Christianity and Buddhism. So, the main target audience for the business will Muslim.
The MDO Inc. company will also target non-Muslim consumers as the medicines will be halal for
everyone.

Staffing for Business Operations

The government of Brunei is also interested in working on pharmaceutical projects with overseas
investors to support their healthcare system. Therefore, it is the best strategic location to expand
the pharmacy business of MDO Inc. company which is already established in Michigan, United
States. So, Brunei being an Islamic country, it has a lot of potential in the promising halal
pharmaceutical industry. The company will produce and sell halal medicinal products. As a result,
Mr. Mark Orr’s company will gain strong acceptance in the halal pharmaceutical industry of
Brunei. The staffing process of the company for the global operations in Brunei is described below:
• Employment laws:
The establishment of the business will abide by the Code of Ethics followed under the Brunei
Darussalam Pharmacy Board. Recruitment will be considered according to the rules and
regulations of the employment laws in Brunei. All the employees are entitled to all the facilities
mandated according to the labor law by the Employment Order of 2009 in Brunei.
• Polycentric approach:
The national language of Brunei is Malay. English is the second most spoken language in Brunei.
People will be recruited who have both standard Malay and English language proficiency, so that
there is no risk of having communication issues due to language barrier. Mostly local people will

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be hired for business operations. First and foremost, local managers will be hired who has good
insight into what customers in Brunei want.
• Ethnocentric approach:
Few employees from the home country U.S.A will be transferred to Brunei for the business
expansion operations. Employee diversity will introduce new ideas that will assist the company to
approach various types of the customers. Despite the diversification, the employees will remain
unified as working for the same organization.
• Training:
Local employees will be provided training to adapt with the work culture maintained in the
company of the United States. Transferred employees will be also trained to adapt with culture in
Brunei. All the employees should maintain high level of professionalism. Initial training will be
to educate employees about the internal and external business operations of the organization.
Employees should be motivated to work as a team. Employees should understand the value of
effective business communication. Performance of the employees should be evaluated to avoid
sub-standard work. Training and development opportunities should be ensured to all employees
to create effective new employment opportunities.
Subsequently, The company will expand the pharmaceutical business according to the needs,
preferences, priorities and practices of the targeted customers in the market. Thus, MDO inc.
company will excel in the halal pharma sector of Brunei successfully.

Currency

The Sultanate of Brunei has used the Brunei dollar as its official currency since 1967. In order to
distinguish it from other currencies denominated in dollars, it is typically abbreviated with the
dollar symbol $ or, alternatively, B$. It is split into 100 sen, or cents. The Autoriti Monetari Brunei
Darussalam is responsible for issuing the Brunei dollar.

The Malaya and British Borneo dollars were in use in Brunei Darussalam, Malaysia, and Singapore
prior to the creation of the Brunei Currency Board. The three territories started issuing their own
currencies, the Brunei dollar (BND), Singapore dollar (SGD), and Malaysian dollar (MYR),
through the Brunei Currency Board (BCB), the Board of Commissioners of Currency, Singapore
(BCCS), and Bank Negara Malaysia (BNM), respectively, on June 12, 1967, when the Board of

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Commissioners of Currency of Malaya and British Borneo transferred its authority to issue
currency.

A paper note series in five denominations (BND 1, BND 5, BND 10, BND 50, and BND 100) and
a coin series in five denominations (BND 1, BND 5, BND 10, BND 20 and BND 50) made up the
currency supply in 1967. The 28th Sultan of Brunei Darussalam, Al-Marhum Sultan Haji Omar
Ali Saifuddien Sa'adul Khairi Waddien ibni Sultan Muhammad Jamalul Alam II, was depicted in
both.

This graph displays the development of the exchange rate from January 2016 to December 2022.
During this time, the value of 1 BND changed from USD 0.70 to USD 0.74. It increased by 6.0
percent over these 84 months.

Population

UN statistics expected Brunei Darussalam's population to reach 437,479 people by the middle of
the year 2022. And according to Worldometer's elaboration of the most recent United Nations data
as of Thursday, December 8, 2022, Negara Brunei Darussalam's population is 447,648. The
population of Brunei Darussalam is equal to 0.01% of the entire world's population. Brunei is

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ranked 175th out of all the countries and dependent territories based on its population. The average
age in Brunei Darussalam is 32.3 years old.

The birthrate in Brunei is 0.001 million according to a 2021 study. That amounts to 17, which is
ranked 179th, every day. A 1000 people, there are 13.74 births on average. In Brunei, there are 0
million fatalities in 2021. That amounts to 6, which is ranked 179th, every day. In 1000 people,
there are 4.77 deaths on average.

In urban regions, there are 0.35 million people, or 78.55% of the total population of Brunei.
Regarding urbanization, Brunei is placed 72nd. There are 83 people per square kilometer in Brunei
Darussalam (215 people per mi2). And 5,270 Km2 of land are covered in total (2,035 sq. miles).
79.5 percent of people live in cities.

In Brunei, there are 107.70 men for every 100 females in 2021. In Brunei, there are 0.21 million
females and 0.23 million males. Males make up 51.85% of the population, while females make up
48.15 percent. There are 16.3 thousand more men than women in Brunei. In terms of the proportion
of female to male, Brunei ranks 188th out of 201 nations and territories.

According to a study conducted in 2014, 65.7% of the population was Malay, 10.3% was Chinese,
3.4% was indigenous, and the remaining 20.6% was made up of smaller ethnicities. There is a
sizable expatriate population. The majority of foreigners reside in nations that are not Muslim,
including Australia, the United Kingdom, South Korea, Japan, The Philippines, Thailand,
Cambodia, Vietnam, and India.

Islam, primarily the Sunni branch of it, is the state religion of Brunei. The bulk of Bruneian Malays
and Kedayans, who make up more than 80% of the population, identify as Muslims. Buddhism
(7%, primarily practiced by Chinese people) and Christianity (7.1%) are two further religions.
Freethinkers make up around 7% of the population, largely Chinese. They choose to identify
themselves as having practiced no religion formally, leading to their designation as atheists in
official censuses, despite the fact that the majority of them practice some sort of religion with
components of Buddhism, Confucianism, and Taoism. About 2% of the population practices an
indigenous religion.

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 Culture & Customs

The Culture:

The history of Brunei Darussalam dates all the way back to the Old Malay World. Because Islam
is the primary religion in the Malay Archipelago, it has a rich heritage of traditions, rituals,
behavioral norms, and modes of address. All Muslims fervently observe religious ceremonies and
rituals in an Islamic monarchy. Non-Muslim residents and visitors are expected to treat everyone
with respect. One of Islam's wonders is Brunei's enormous royal mosque, the Jame Asr Hassanil
Bolkiah.

Its unparalleled beauty is a gift from His Majesty to the country. The Sultan Omar Ali Saifuddien
Mosque, which was constructed in the 1950s by the Sultan's father, is equally spectacular. The two
royal mosques represent the importance of Islam to Bruneian culture and daily life as a whole. In
order to ensure that the legacy is passed down from one generation to the next without losing its
essence through modernization, Brunei places a strong emphasis on maintaining the nation's
heritage, including carvings, titles, and royal regalia.

By upholding this custom, His Majesty, like a pearl cultivated in an oyster of traditions preserved,
presents his kingdom to the world as the oldest Malay state on the island of Borneo. One only
needs to attend a Bruneian wedding ceremony and celebration to witness the intricate customs that
are present during the three or four-day event.

The Customs:

All Bruneian Malays have special rites and practices woven into their culture and way of life to
foster a sense of spiritual and societal belonging. The face and hands are the only body parts that
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Malay women should display, in accordance with the strong tradition of modesty. As a result,
Muslims frequently perceive casual western dress as being unmodest, and exposing apparel is not
appropriate in places of worship. At beaches and swimming pools, shorts are acceptable, but not
in stores, public spaces, or at work. Eating or drinking in public is also considered disrespectful,
with the exception of picnics and festivals. The laws of Islam prevent Muslims from consuming
either pork or alcohol. Muslim consumers must only eat Halal meat.

Notable Customs

Correct Behavior

It is advisable to wait until, and if, the other person extends their hand first because it is not
traditional to shake hands with people of the opposing sex. Nobody's head should ever be touched,
especially that of young children, as this is seen as being extremely disrespectful. Hosting of events
or gatherings should be avoided on Thursday evenings, which is the eve of Friday, the holiest day
of the week, while entertaining Muslim guests.

Attire

The term "baju Melayu" is used to refer generally to the traditional Malay clothing worn by men,
and it is believed to have been popular since the 15th century. In actuality, it goes by the names of
the Baju Kurung Teluk Belanga and the Baju Kurung Cekak Musang. A third style exists
specifically for Brunei traditional clothing; however, it is rarely seen today. Where the buttons are
in the Brunei style, a handkerchief or other piece of fabric is affixed.

Up until Malacca was taken over by the Portuguese in 1511, the Malacca Empire was in its prime
throughout the late 15th and early 16th century. From Sumatra in the south to Thailand in the
north, it was the largest empire in the area at the time. It served as a hub for entreport trade, drawing
merchants from India, China, the Middle East, and Europe to come and conduct business there.
Foreigners arrived in Malacca in large numbers, bringing with them their own fashion trends.
These eventually had an impact on Malay clothing, which merged flowing, loose-fitting fashions

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(robes) from Arabs and Indians, slacks and trousers from the Mongols and Turks, and the
simplicity and elegance of the Europeans. The Malay Baju Melayu was then created.

The basic tunic and pant set known as a baju kurung is worn by men in Brunei in three different
ways: the baju kurung cekak musang, the baju kurung teluk belanga, and a third style unique to
Brunei traditional dress with a handkerchief or piece of cloth attached where the buttons are;
however, this is no longer commonly seen. The baju cara melayu is another costume worn by men
in Brunei that consists of a long-sleeved shirt (baju) and long pants (seluar) made of the same
fabric. The shirt's cekak musang collar, which means "fox's leash," is a raised, stiff collar.

The baju kurung is a part of Bruneian women's traditional attire (a long tunic over a long skirt).
Bruneian women continue to don the baju kurung today, both to work and for formal events. A
headscarf will likely be worn with the costume in accordance with Islamic dress regulations
(tudung).

Food

The wide variety of food Brunei provides, from home-cooked regional specialties to the best of
foreign cuisines, will appeal to gourmets. Due to the diverse nations that have influenced Brunei's
culture, one would discover that Bruneian cuisine typically radiates a special flavour of cultural
fusion. Brunei's cuisine is distinguished by the skillful mix of products and cooking techniques
brought about by Arab, Indian, Chinese, and European traders as well as Malay and indigenous
Bornean peoples.

Available Labor

The labor force participation rate is a measurement of the percentage of the working-age
population of an economy that is engaged in economic activity, that is, either employed or jobless
but actively looking for work. This indicates the proportion of the labor force that is readily
available for the creation of goods and services.

According to the most recent statistics, Brunei's population was 0.4 million in December 2021.
The labor participation rate was 63.6% which dropped from 63.8%.

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Female labor force participation typically lags behind male labor force participation for traditional
reasons. Between 1991 and 2001, there was an increase in the number of women working,
especially among those between the ages of 15 and 54. Due to more opportunities in school and
the labor market, there is an increasing tendency among women joining the labor force that can be
seen in earlier estimations.

Many people in Brunei continue to rely on a robust traditional family support system that goes
beyond the nuclear family, and hiring domestic help is also common. This makes it possible for
more people to enter the workforce. Additionally, the government has increased its support for
working mothers, as evidenced by recent updates to policies governing maternity leave in both the
public and private sectors.

A decline was seen in labor force participation for both men and women over 55 between 1991
and 2001. This decline can be largely attributed to prior legislation setting a 55-year-old national
retirement age. Although the reason why men over 55 were more likely to be in the labor force in
1991 is unknown, it should be anticipated that this trend will continue given the recent legislation
change regarding the national retirement age.

Given that the majority of Brunei's unemployed are bachelor degree holders, the pharmaceutical
industry presents an intriguing opportunity. The majority of them would be employed thanks to
Brunei's rapidly growing pharmaceutical industry.

Economy

The country of Brunei is digging into the emerging halal market The Ministry of Religious affairs
prepared the state by setting out guidelines for manufacturing and handling medicinal products in
2010, which in turn made Brunei the attraction for halal medicine export, Cher Boon Piang, analyst
of BMI Asia says. (Wan, 2020)

“Brunei Darussalam’s economic freedom score is 64.8, making its economy the 62nd freest in the
2022 Index. Brunei Darussalam is ranked 9th among 39 countries in the Asia–Pacific region, and
its overall score is above the regional and world averages. Brunei Darussalam has maintained

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positive economic growth over the past five years.” (Brunei Darussalam 2022) Even though the
country’s pharmacy industry is just emerging it has outstanding potential.” According to Business
Monitor International (BMI), the sector is valued at US$100 million in 2013 with a compound
annual growth rate (CAGR) of 9% between 2013 and 2018, reaching a value of US$150 million
by 2018.” (Wan, 2020)

Existing Pharmaceutical Industry

Even though the country’s pharmacy industry is just emerging it has outstanding potential.”
According to Business Monitor International (BMI), the sector is valued at US$100 million in
2013 with a compound annual growth rate (CAGR) of 9% between 2013 and 2018, reaching a
value of US$150 million by 2018.” (Wan, 2020)

Brunei has little to no competition in this sector and its first and only pharmaceutical company
started in 2014.

A joint venture between Canadian firm Viva Pharmaceutical Inc, private equity fund Aureos
(Brunei) Capital Sdn Bhd and an aspiring team of investors, the US$26 million manufacturing
facility Simpor Pharma was established to produce Shariah-compliant pharmaceutical products for
export to Muslim markets in Asia. (Bakar, 2013)

In other words, the country is more than perfect for a tap into its pharmaceutical industry from a
well-established company in the States.

Legal Structure of Brunei

Brunei Darussalam’s legislative system is a different take on English Common Law. The Supreme
Court consists of the High Court and the Court of Appeals, on the other hand the Subordinate
Court comprises of the Magistrate's Courts. A Shariah Court is also conjoined with the Supreme
Court and which accounts for Islamic laws. Muslims often take Shariah law in a higher ground

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rather than the usual civil laws. Except for capital offences the intermediary court rules for
extensive civil cases and criminal laws which was established in 1991.

Cultural difference

Brunei

Brunei is located in Southeastern Asia, bordering the South China Sea and Malaysia. Its climate is
tropical; hot, humid and rainy. Its population is 437,479 (2020). Ethnic Make-up of Brunei: Malay
66.3%, Chinese 11.2%, indigenous 3.4%, other 19.1% (2018 est.). Main religions are- Muslim
(official) 67%, Buddhist 13%, Christian 10%, other (includes indigenous beliefs) 10%. Its
government is a constitutional sultanate.

USA

The USA is located in North America. The climate of the United States is highly diverse, ranging
from tropical conditions in south Florida and Hawaii to arctic and alpine conditions in Alaska and
across the Rocky Mountains. Its population is 331.9 million (2021). There are people of various
ethnicities living in the USA. The Constitution of the United States is the supreme law of the
United States of America.

Market Competition

Our company’s target market is patients and healthcare professionals (HCPs). We would be
engaging with both audiences to build brand awareness, establish a reputation of trust and
reliability.

The competitors in the industry of Brunei would be -

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1. Simpor Pharma Pharmaceutical Company

2. MEDIPHARM SDN BHD

3. Zuellig Pharma Brunei

4. ROYAL BRUNEI TRADING SDN BHD

Brunei is situated in a biodiverse area, providing a fantastic base for the exploitation of abundant
sources of medicinal plants and other beneficial forest products. Despite the fact that this has drawn
the interest of scientists from around the world, Jason Paul Bin Rumpun, key accounts manager of
Simpor Pharma, says that more efforts will need to be made to entice experts to the nation and
carry out more studies in collaboration with universities and pertinent departments in order to
explore what is available and how they can be used to the industry's advantage.

1.Simpor Pharma Pharmaceutical Company-

In accordance with the current global GMP standard for pharmaceutical products and health
supplements, including softgels, hard shell capsules, tablets, powder, and oral liquid SIMPOR
PHARMA SDN BHD is Brunei Darussalam's first contract manufacturer.

2.MEDIPHARM SDN BHD-

A leading provider of warehousing and distribution services for pharmaceuticals and medical
equipment, Medipharm Sdn Bhd. is dedicated to enhancing the quality, consistency, safety, and
dependability of services to fulfill the needs of customers. -

3.Zuellig Pharma Brunei-

A new relationship between Zuellig Pharma Brunei and Novartis, which builds on a decade-long
engagement, will see Zuellig Pharma distribute for both Novartis and Sandoz, a subsidiary of
Novartis.Zuellig Pharma Brunei is proud to continue working with Novartis, one of the top
pharmaceutical companies in the world, to investigate potential new areas of collaboration to
improve access to healthcare in Brunei.

4.ROYAL BRUNEI TRADING SDN BHD-

ROYAL BRUNEI TRADING SDN BHD is a wholly-owned government company in Brunei

Darussalam. It’s also one of the largest pharma companies in Brunei.
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 Cultural Trend

Brunei's culture is largely Malay, with strong Islamic influences. Traditional foods include Kuih
Kering (dry cakes) and Kuih Basah (wet cakes). Gasing, simban, guli, and kikik are some of their
traditional games. Hari Raya Aidilfitri is one of their most important festivals. It refers to the end
of Ramadan, the Islamic holy month of fasting from sunrise to sunset. Hari Raya Aidilfitri is one
of the two most important Muslim festivities, the other being Hari Raya Haji, or the Festival of
Abraham's Sacrifice.

Bruneians preserve their culture in a variety of ways while still looking to the future. Brunei culture
is inextricably linked to the rivers and oceans that surround it. Their fishing and crabbing methods,
as well as the fact that they live on or near rivers that provide them with food and drink. Brunei
culture also involves weaving.

Product Names

• Oral drugs

• Parenteral Formulations

• Topical Medicines

• Modified release Formulations

• Novel Drug Formulations

• Oncological Formulations

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 Advertising

There are various types of advertising. They are- paid search advertising, social media advertising,
native advertising, display advertising, print advertising, broadcast advertising, outdoor
advertising etc.

In Brunei, they do marketing in various ways. Industry events, trade shows, and product expos are
also common and provide good opportunities to reach customers and potential business partners.
Bruneian customers flock to coupons, VIP discount cards, and special deals.

Generalization of the best strategy for entering the market, for example, visiting the country; the
importance of relationships in finding a good partner; agent use.

Brunei's population is largely centered around the capital, Bandar Seri Begawan, with other
population centers connected by a well-maintained road network — is an ideal destination for any
U.S. company to expand their business and to export the pharma goods at a fraction of the cost.
Low shipping fee when the goods arrive in this country. Brunei's relatively small population is an
asset that makes exports to the country, once established, quickly nationally known.

Promotion and go-to-market strategies that often focus on cities can be applied with modifications
to enter the Brunei market. Companies with the ability to export goods and services that will help
enhance the capacity of Bruneian businesses and increase employment in Brunei will be
particularly welcome. U.S. companies should build personal relationships with local
representatives and customers through regular visits or by establishing resident representatives.
U.S. companies can establish their own subsidiaries or branches in Brunei as limited liability
companies registered with the Registrar of Companies and Trademarks.

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 Market Penetration

As majority of the people in Brunei are Muslims, the word “halal” will attract customers in Brunei
while selling the medicinal products through word of mouth. To maximize brand exposure and
make consumers aware about the products digital marketing should also be emphasized. Pricing
should be maintained in such a way that the products are a good value for money. Product changes
should be made also according to the customer’s preferences of the current market need in Brunei.
Respecting the emotional and religious beliefs of the target audience is one of the core benefits
that will make them satisfied. Halal labels should be clearly mentioned in the products packaging.
Thus the market penetration strategy will be successfully accomplished in Brunei.

Natural resources

Brunei Darussalam is one of the wealthiest countries in the world, not just in Southeast Asia.
Brunei is among the top Asian countries in terms of quality of life due to its oil and gas riches. The
city-economy state's is based on the extraction and processing of oil and gas. Its exports (crude oil,
petroleum products, and natural gas) make for over 60% of its GDP (GDP). Aside from oil, Brunei
possesses agricultural resources such as rice, corn, bananas, spices, cocoa beans, coffee, and so
forth. Nonetheless, Brunei's economic and social well-being is heavily reliant on oil and gas prices.
During the 2008-2009 economic and financial crisis, the GDP fell sharply (by around 2% each
year).

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 Recommendation

• Attention to Labor Needs: If the costs of labor vastly outweigh the advantages of having
access to a large source of biologically diverse pharmaceutical raw materials and being close to a
developing south-east Asian pharmaceutical industry, then businesses would prefer countries with
lower labor costs to lower their overall operating costs and increase their chances of profiting. By
not imposing a large number of hidden fees and working directly with the foreign company to
ensure stability and a level of satisfaction that is understood and expected between the two parties
in order to avoid welcoming any unexpected surprises that may cause the public-private
relationship to degrade, the pharmaceutical industry can be a success being implemented and
conducted effectively and affordably.

• Employee Satisfaction: The bulk of the labor has expectations that are different from those
of the employer. The majority of unemployed workers decide to stay off the job market until the
precise job they expect becomes available as a result of this expectation gap, which creates a
schism in the labor force. This is problematic because it results in economic stagnation and
significantly lowers individual productivity, which lowers the employability of local labor and
increases dependency on highly skilled imported labor. Hence it is crucial to satisfy the workforce
that is employed.

• Development of Infrastructure: While progress has been made with the recent completion
of the temburong bridge project, providing access to the rich bio diverse rainforests and plant
cultures for experimentation and allowing for more cost-effective transportation of laboratory
equipment to temburong, additional improvements to both specific and general infrastructure
should continue to be a top priority.

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• Establishment of a Transparent Financial District: Due to the requirement for several
expeditions and appointments with various governmental organizations, running financial business
or anything involving capital is made slightly more difficult by the absence of a financial district.
While there is a governmental district, it can be challenging to find adequate support because of
the "bouncing" effect, in which one department may refer a person to another, passing
responsibility to the new department, which then repeats the process. This causes frustration and
wasted time for all parties and results in an unsatisfactory outcome. To lessen bouncing within a
government organization, this should be resolved with and clear information and transparency
implemented.

• Abstaining from Export Overreliance: One issue with Brunei's existing rentier-style
economy is that it relies more on exports because it does not generate a significant portion of its
revenues through taxation and therefore through the domestic population. The government cannot
continue to frantically invest in its exports as it would put unnecessary risks in the feasibility of
the pharmaceutical industries as it would be a high risk, high reward situation that is close to the
ideal low risk, high reward bracket. Instead, the government should implement policies to
encourage or collect revenue streams domestically to ensure self-sufficiency and a lowering of risk
of investments by the government itself. As a result of their increased trust in the government,
which in the language of economics means that stability is profitability and anarchy is unprofitable,
this would also reduce the risk of enterprises operating.

Conclusion

Brunei has a lot of promise in the growing pharmaceutical sector, but it must not get complacent
and must take steps to manage and grow the sector effectively. With the embrace of the
pharmaceutical industry, diversification is also expected and welcomed. While foreign investors
may find Brunei attractive, the government of Brunei still needs to go above and beyond to

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persuade them to invest by investing money in infrastructure improvements within the nation and
collaborating with said businesses or bodies. If the government is successful in changing the
socioeconomic perspective of career titles and the stigma between employee and employer
expectations, this business has the potential to significantly lower the jobless rate among Bruneian
adolescents. Last but not least, being an Islamic country, Brunei stands to gain from the expanding
worldwide halal market, which includes halal pharmaceutical items. However, Brunei's future
halal and pharmaceutical industries will need effective management and close attention to global
demand. Overall, the future for Brunei's developing industries is encouraging; while there are
dangers, these can be managed by the government over time. So, it can be concluded that the
pharmaceutical sector in Brunei has a lot of promise.

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