Brunei to pioneer collateral registry system in Asean
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BANDAR SERI BEGAWAN - Brunei is the first Asean country to introduce the collateral registry system (CRS), which, according to the central bank, would improve the ease of getting credit in the country.
Brunei will be the first Asean country to introduce a collateral registry system (CRS), which would allow the registration of secured interest of a movable property, said the country’s central bank, Autoriti Monetari Brunei Darussalam (AMBD), on Friday (August 5).
The CRS will centralise all movable property (assets), which are secured for loans, and subsequently, facilitate and encourage the flow of credit.
“Obtaining a loan will be relatively easier for SMEs, companies and individuals as they can secure their assets against their loans to the banks. The banks will also be encouraged to give out loans, as the loan will be secured against the assets, which can be enforced in cases of non-payments. This method of financing will encourage economic activities and help stimulate growth of the national economy,” AMBD said in a statement.
AMBD said that they are introducing CRS in line with the Secured Transaction Order, which was publicised earlier this year. “This Order will commence on the ‘go-live’ date of the system, which is scheduled to be in December this year.”
AMBD noted that Brunei is the first Asean country to introduce the CRS, which, according to the central bank, would improve the ease of getting credit in the country.
“This initiative is part of a series of reform measures to improve Brunei’s position in the World Bank Ease of Doing Business Ranking, supported by the PENGGERAK (Prime Minister's Delivery Unit), Prime Minister’s Office, and the ‘Ease of Doing Business’ (EODB) Steering Committee,” said AMBD.
AMBD recently signed the contract to build the CRS with IOS Partners, a vendor from the United States. IOS Partners specialises in the development and implementation of projects on collateral registry in different countries all over the world.
According to the statement, for the next few months, AMBD will continue to meet and engage with the relevant stakeholders, such as banks, finance companies, relevant ministries and government departments, Darussalam Enterprises (DARe) and Chambers of Commerce to introduce the CRS in more detail.
