Brunei's textiles industry is likely to be affected when the deal between China and Asean to liberalise world trade comes into force in the near future, officials have warned.

"The textile industry would be badly affected as the Asean China FTA materialises," the Department of Economic Planning and Development (DEPD) said in the Economic Bulletin on Friday. "China produces cheaper textile for the world market due to the advantage in low labour cost and economies of scale."