Attracted by the weakened ringgit currency, many Bruneian shoppers have been flocking into Malaysian towns just across the border with the sultanate on Borneo island.

The Economic Planning Unit (EPU) in a meeting with local business people this week said that a recent survey had showed an average of B$348,000 was spent by Bruneians each day in the town of Miri in Sarawak state alone. Much money is also flowing into several other towns, it said.

The government has given local business people one week to come up with ideas to counter this trend.

"The ball is in their court and the local traders will have to come up with creative ideas," said Murni Mohamad, deputy head of the EPU.

One of the ideas mooted is to hold a grand sale in the country.

Local businessmen said it would be difficult to match prices because rents and wages are much lower in Malaysia.

Brunei's relatively strong currency has made some of its goods less price competitive in regional markets.

While the Brunei and Singapore dollars have fallen only about 20 per cent against the dollar since the Asian currency crisis began in July last year, but the ringgit has lost about 40 per cent.

By agreement between the Brunei and Singapore governments, the two currencies are interchangeable at par.

Brunei Solidarity National Party, the sultanate's sole political organisation, has urged the government to break up the common currency agreement with Singapore.

Its president, Mohd Hatta Zainal Abidin, said the agreement was "one-sided".

"Banks in Brunei deposit their money freely in Singapore but the island republic's financial institutions are prohibited by law to put funds in other countries including Brunei.

"This has resulted in a one-way street with Brunei money pouring into Singapore without any checks," he said.

However, currency officials said it was unlikely that the two currencies would break up in the near future.

"The current agreement has stood the test of time and is working very well. We see no reason to change it," said a top currency board official.