Brunei finance and insurance sector posts mild optimism in April

The improvement was attributed to higher demand for motor insurance.

Brunei’s finance and insurance sector reported mild optimism in April 2025, according to the Brunei Darussalam Central Bank’s latest Business Sentiment Index (BSI).

The sector’s business conditions sub-index was at 50.2, indicating slightly better sentiment compared to March. 

The improvement was attributed to higher demand for motor insurance, increased takaful contributions, and anticipated loan drawdowns during the festive season.

Across all sectors, the overall current business conditions index stood at 49.9, signaling a slight contraction in sentiment. 

However, the one-month-ahead outlook edged up to 50.1, suggesting modest optimism for May. The investment sub-index remained above 50, indicating continued capital spending by businesses, including upgrades and new equipment acquisitions.

The employment index in the finance and insurance sector was not detailed separately, but the broader April employment sub-index stood at 50.2, suggesting hiring activity remained firm across the board.

Cost expectations remained stable, with the current cost sub-index at 49.9 and the one-month-ahead index rising slightly to 50.1. 

Businesses noted that whilst April saw lower costs due to reduced overtime and cheaper raw materials, global trade tensions could drive import costs higher going forward.

The BSI report, based on responses from over 500 companies across 11 sectors, reflects trends in sentiment that may affect the insurance industry’s outlook for premium growth and operational expenditure in the short term.