Response to Oral Question PL121

Reading Summary

📖 Reading time: 5 minutes
📊 Word count: 856 words

YANG BERHORMAT PENGIRAN HAJI ISA BIN PENGIRAN HAJI ALIUDDIN

QUESTION:

Yang Berhormat Pengiran Haji Isa bin Pengiran Haji Aliuddin asks the Minister of Home Affairs regarding the issue of the increase in foreign nationals running small businesses such as grocery shops, cleaning services, and grass cutting, which could be done by local citizens. It seems they dominate these businesses and employ local youth with low wages and long working hours. Has any study been conducted by relevant agencies on this issue, and what findings resulted from the study?

YANG BERHORMAT MINISTER OF HOME AFFAIRS

RESPONSE:

Yang Berhormat Pehin Yang Di-Pertua and Your Honourable Members,

1. Based on the statistics from the 2023 Employer and Employee Census released by the Labour Department, as of April 1, 2024, there are 8,350 foreign workers in the retail shop activities, compared to 6,001 local workers. For grass cutting activities, there are 366 foreign workers compared to 97 local workers, while in cleaning activities, there are 1,323 foreign workers compared to 576 local workers.

2. In this regard, it is clarified that the target for workforce replacement involving the recruitment of foreign workers is based on the needs of the companies. However, the Labour Department works closely with the Brunei JobCentre (JCB) to ensure that employment opportunities for local children are prioritized. This practice is implemented when a Foreign Worker's License is applied through the National Labour Management System (NLMS) where a "Clearance letter" from PPB is needed to support the recruitment of foreign workers after the company has advertised the position and no local is interested in or qualified for the position.

3. The National Labour Management System (NLMS) is a system that has been in use since April 1, 2023, to facilitate the services provided by the Labour Department, including the Domestic Service License (LPD) online.

4. Additionally, the Labour Department has implemented a policy to freeze five (5) positions in the private sector from being filled by foreign workers. These positions are clerical positions, Cashier, Salesperson, Storekeeper, and Security Guard.

5. Therefore, to ensure that local children have the necessary skills aligned with current labor market needs, capacity building in skilled and semi-skilled fields through recognized Registered Training Organisations (RTOs) in the country is also prioritized to ensure that local citizens have the competencies and technical skills necessary to replace foreign workers in certain sectors.

6. The Ministry of Home Affairs is making efforts to support employment opportunities among local children, especially among village youth. Through the Tutong District Office, an initiative was implemented by awarding a grass-cutting service contract to MPM Telisai Company for eight months starting from September 2024 to April 2025 in the Community Hall area of the National Housing Scheme of Bukit Beruang and Mukim Telisai Stalls, and as a start, two (2) village youth are employed under the said company. Insha Allah, this effort will be expanded in collaboration with relevant Government agencies, and such initiatives reflect the Government's care in helping villagers find employment to become more self-reliant.

7. Meanwhile, the Labour Department, in collaboration with the Human Resource Planning and Employment Council (MPTMP), has updated the implementation of the Minimum Wage policy, aiming to improve the overall welfare and well-being of workers. The Minimum Wage Policy aims to set a more reasonable base wage, protect workers from excessively low wages, encourage local workforce motivation and productivity, and stimulate socio-economic growth while reducing dependency on foreign labor. This initiative is also aligned with Brunei Darussalam’s commitment under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which emphasizes the protection of worker rights and the enhancement of local workers' living standards.

8. To ensure that employers and workers comply with Immigration Act Chapter 17 and its Regulations, and the Employment Order Chapter 278, the Legal Enforcement Division of both Departments has conducted continuous inspections and operations, either independently or in coordination with other enforcement agencies. In 2024, the Department of Immigration and National Registration conducted one thousand five hundred fifteen (1,515) observations and three hundred forty-seven (347) operations, with two thousand eight hundred forty-nine (2,849) immigration offenders fined for various offenses under the Immigration Act Chapter 17 and its Regulations. The total fines collected amount to one million three hundred nineteen thousand seven hundred dollars ($1,319,700.00). As a result of these enforcement activities, forty-one (41) foreigners were brought to court and found guilty under Chapter Fifteen Clause one [15 (1)] of the Immigration Act for overstaying in the country after their Immigration Pass expired.

9. Meanwhile, the Labour Department conducted two thousand three hundred twenty-five (2,325) inspections in 2024, and three hundred thirty-six (336) joint operations were carried out by the Labour Department in 2024. From these operations, six hundred five (605) offenses were fined, with the majority being major offenses under Chapter One Hundred Twelve Clause [Chapter 112 (2)] of the Employment Order Chapter 278, namely the violation of Foreign Worker License conditions and employing foreign workers without a Foreign Worker License (LPA).

That concludes what Kaola can convey in response to the question.

Thank you, Yang Berhormat Pehin Yang Di-Pertua.