Response to Written Question PT2

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📖 Reading time: 7 minutes
📊 Word count: 1,181 words

YANG BERHORMAT AWANG ZAINOL BIN HAJI MOHAMED

QUESTION:

Yang Berhormat Awang Zainol bin Haji Mohamed requests the Minister in the Prime Minister's Office and Minister of Finance and Economy II to state the actual rate of unemployment among local citizens without considering temporary programs like apprenticeship schemes. What are the long-term measures to ensure stable employment, with sustainable income, and aligned with the skills of the local workforce to reduce dependence on temporary solutions?

YANG BERHORMAT MINISTER IN THE PRIME MINISTER'S OFFICE AND MINISTER OF FINANCE AND ECONOMY II

ANSWER:

Yang Berhormat Pehin Yang Di-Pertua

بسم الله الرحمن الرحيم
السلام عليكم ورحمة الله وبركاته

i. Kaola first expresses gratitude for the question and also thanks Yang Berhormat Awang Zainol bin Haji Mohamed for his concern who has raised the issue regarding the true unemployment rate without considering programs or apprenticeship schemes and long-term steps to ensure stable employment, sustainable income, and alignment with skills.

ii. As we are aware, labor force statistics in the country, including the unemployment rate, are based on labor force surveys that use systematic sampling methods and methodologies used by the International Labour Organisation (ILO). Based on this, the calculation of the unemployment rate without considering apprenticeship schemes as questioned by Yang Berhormat, must be studied together with relevant agencies, considering the unemployment rate using ILO methodology that counts apprentices as part of those employed.

iii. Regarding steps to ensure stable employment and sustainable income aligned with the skills of the local workforce, the Government continues to implement long-term measures, including:

• Firstly, prioritizing job creation in the private sector, including through the entry and growth of foreign direct investments (FDIs), spin-offs from FDIs, and encouraging entrepreneurship.

  In line with the growth of the private sector, including through FDIs growth and major projects in the downstream oil and gas sector, the number of workers in the Private Sector increased by 4 percent in 2024, raising the proportion of the workforce in the Private Sector to 70 percent in 2024 based on the preliminary 2024 Labor Force Survey Report compared to 53 percent of the workforce in the same survey in 2014. Significant increases were recorded in five sectors, namely Wholesale and Retail Trade; Manufacturing (Petrochemicals); Support Services; Food and Accommodation Services; and Information and Communication Technology based on the quarterly business survey in 2024.

  In line with efforts to promote entrepreneurship among local youth, the self-employed category has also increased, driven by the economic trend shift towards a gig economy powered by digital platforms. This positive development reflects that local youth no longer rely on the government sector and make the private sector their employment choice. In this regard, the government will continue to collaborate with stakeholders, including the private sector, in a coordinated effort to create more stable and sustainable income-generating job opportunities for local youth.

• Secondly, promoting upskilling and reskilling of the local workforce, especially for those with secondary education levels and below to remain relevant to industry needs. The government will continue to prioritize strengthening human capital development through innovative training at all levels, focusing on increasing skills and marketability of local youth. This includes coordinating efforts with industry needs, economic development, and professional bodies to ensure the workforce is equipped with the skills and experience to face current and future challenges. Recently, the Apprenticeship Scheme for Public Service (SkiPPA) was introduced to provide job experience to graduates, with 794 apprentices currently participating in the program at ministries and government departments.

  Upskilling and reskilling programs for the local workforce, such as SkillsPlus, will continue in 2025 with several new courses according to industry needs. This is supported by ongoing dissemination through platform mini recruitment drive, employability workshop, career fairs, mukim connect, and Brunei JobCentre (PPB) Open Day, where job seekers will have the opportunity to understand more about programs offered by PPB, interact directly with participating agencies, and enhance their knowledge on preparation for tests, interviews, etc., to increase their employability.

  The government will continue to cooperate with industry sectors in the country to develop programs and vocational training to ensure the workforce is equipped with the necessary skills in line with job market demands.

  Besides the government, Government Linked Companies (GLCs) also support human capital development and provide employment to local youth.

  A provision of BND 19.21 million is allocated under the Brunei JobCentre, Prime Minister's Department, to manage capacity development programs such as SkiPPA, TVET Scheme, Skillsplus, SPIN in Accountancy, and Tradeskills in the government's ongoing effort to provide viable local workforce aligned with current and future job and industry requirements, thus ensuring sustainable income aligned with acquired skills.

  The youth in this country are urged to seize opportunities to enhance their skills through various platforms provided by the government or the private sector and various interested agencies.

• Thirdly, reducing mismatch through manpower planning, including coordination between the needs of five (5) priority sectors under the Economic Blueprint and priority course areas under the Ministry of Education. This step is to ensure training programs and skill development are aligned with labor market needs.

• Fourthly, strengthening training and certification. Efforts continue in strengthening certification and skills recognition through recognized bodies to ensure local workforce possesses competitive qualifications. Several training programs under the Human Resources and Employment Planning Council, such as the Clinical Supervisory Programme (CSP) and HSE program, are recognized by the Ministry of Health and Safety, Health and Environment National Authority (SHENA) as regulators and industry players that enable locals to become practitioners in specific fields;

• Fifthly, supporting quality employment by encouraging the growth of sectors offering high-value jobs, such as the digital economy and green energy, to create more stable and resilient employment opportunities;

• Sixth, supporting citizens in becoming global talents by exploring placement and employment opportunities internationally to gain work experience and knowledge, including exposure to the latest technology, best work practices, and international professional networks that will enhance their capabilities and expertise to drive the country's progress. This certainly not only provides employment opportunities but is an investment in high-quality, globally competitive human capital; and

• Seventh, the introduction of Employment Order (Minimum Wage), setting a minimum salary of BND500 per month or BND2.62 per hour for part-time workers in phases as an effort for workers in the private sector to receive fair and sustainable wages in line with their skills, as well as promoting fair employment practices. To date, the 2025 Employment Order (Minimum Wage) covers seven (7) identified industries, namely: (i) Banking and Finance; (ii) Info-Communication Technology; (iii) Security; (iv) Tourism and Hospitality; (v) Architecture, Engineering Professionals, Quantity Surveying, and Land Surveying; (vi) Medicine and Dentistry; and (vii) Private Higher Education.

iv. The government will continue to evaluate and improve existing initiatives considering labor market conditions and feedback from stakeholders to ensure a balance between labor supply and demand in the country. This effort will require commitment and coordinated efforts from all parties, whether individuals, the government, or the private sector.

v. With cooperation from various parties and a whole-of-nation approach, it is hoped to create a competitive workforce and reduce reliance on temporary solutions, in line with the country's development aspirations.

That is all Kaola can convey. Thank you.