Answer to Oral Question PL276

QUESTION

Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin

YANG BERHORMAT AWANG HAJI SALLEH BOSTAMAN BIN HAJI ZAINAL ABIDIN requests MENTERI HAL EHWAL DALAM NEGERI to state what action plans and annual targets are being formulated by the Ministry together with the relevant agencies to progressively replace foreign work permit holders with local graduates who have undergone skills enhancement programmes such as SKiPPA, iReady, iSkill and sector-specific training, and what incentives or disincentives will be introduced to accelerate this transition?

ANSWER

Thank you Yang Berhormat Pehin Yang Di-Pertua.

بسم الله الرحمن الرحيم

Assalamualaikum Warahmatullahi Wabarakatuh and greetings.

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

1. Based on the findings of the Employer and Employee Census, five (5) sectors have been identified as recording high rates of foreign worker involvement compared to the local workforce. These sectors are 1) the Agriculture, Forestry and Fisheries Sector; 2) the Manufacturing Sector; 3) the Construction Sector; 4) the Wholesale and Retail Trade as well as Motor Vehicle Repair Sector; and 5) the Accommodation and Food Services Sector.

2. It is a pleasure to share the breakdown of the number and percentage of local workers and foreign workers for the past five (5) years for the sectors mentioned:

2.1. The Agriculture, Forestry and Fisheries Sector remains dependent on foreign workers, where the number of foreign workers increased from 2,707 in 2020 to 3,714 in 2024. Meanwhile, local workers increased from 912 to 1,173 during the same period. This shows a significant gap in local workforce participation in this sector.

2.2. The Manufacturing Sector is also dominated by foreign workers, namely between 63 per cent and 66 per cent of the total workforce over the five years. In 2024, foreign workers totalled 8,377 compared to 8,260 in 2020. Meanwhile, local workers increased slightly from 4,185 to 4,911, but the percentage of local worker participation still remained around 34 per cent to 37 per cent;

2.3. The Construction Sector recorded the highest domination by foreign workers compared to other sectors, with an average exceeding 80% throughout 2020 to 2024. The number of foreign workers increased from 21,559 in 2020 to 21,974 in 2024. During the same period, local workers remained low, at around 4,116 to 4,379, which is about 16 per cent to 17 per cent of the total.

2.4. The Wholesale & Retail Trade, Motor Vehicle & Motorcycle Repair Sector shows a more balanced ratio between local and foreign workers compared to other sectors. Although foreign workers still dominate, the difference is not too significant. In 2024, foreign workers totalled 16,200 people (56%), while local workers numbered 12,753 people (44%). This total shows steady growth since 2020, when local workers then totalled 9,493 people (42%). This sector is seen as increasingly supporting local workforce participation.

2.5. The Accommodation Provision & Food Services Activities Sector is still dominated by foreign workers with a percentage of around 63 to 66 per cent throughout the five-year period. The number of foreign workers increased from 9,218 in 2020 to 13,005 in 2024. Although local workers also showed an increase from 4,809 to 6,916 during the same period, this only amounted to 34 to 35 per cent of the total.

3. Nevertheless, according to the 2024 Labour Force Survey, local workforce participation stood at 71.3%, an increase of 3.8% compared to the previous year. Meanwhile, the foreign workforce comprised 28.7% of the country's overall labour market.

4. In the Professional, Managerial, Executive and Technical (PMET) job category, 71,500 locals have filled such positions, compared to 15,900 foreign workers, reflecting a positive trend in line with the aspirations of Wawasan Brunei 2035.

5. In line with the Government's policy of prioritising job opportunities for local jobseekers, the Government has set one key condition for every Foreign Worker Licence (LPA) application at the Labour Department, MENTERI HAL EHWAL DALAM NEGERI, namely that any company wishing to employ foreign workers is required to first undergo an assessment process by the JobCentre Brunei (PPB), including the requirement to obtain a Letter of Confirmation (Clearance Letter).

6. This assessment takes into account the company's efforts in localising the workforce and ensures that priority is given to hiring local workers before any approval is granted for the employment of foreign workers. With the implementation of this condition, companies must advertise vacancies through the official JobCentre Brunei (PPB) platform and undergo a local candidate screening process. Only after there are no suitable and interested local candidates will a (Clearance Letter) be issued in support of the Foreign Worker Licence application.

7. The Government continues to encourage companies to take part in apprenticeship programmes such as i-Ready, which provide direct workplace training as well as opportunities to develop structured succession planning, and involve local apprentices in the company's daily operations to enable them to gain knowledge and skills directly from the existing foreign workforce.

8. This approach aims to create a competitive local workforce, in addition to fostering knowledge transfer comprehensively and effectively.

9. In line with the goal of making the labour market more sustainable, the Government through the Majlis Perancangan Tenaga Manusia dan Pekerjaan (MPTMP) is reviewing the foreign worker recruitment mechanism so that it remains aligned with the actual needs of industry, without neglecting the importance of local workforce participation.

10. As part of this improvement effort, a new approach is being studied to encourage companies to provide workforce strategies that are more balanced and progressive, and companies that show a strong commitment to hiring locals have the potential to obtain more efficient approval in their application process.

11. Several initiatives under the supervision of the Majlis Perancangan Tenaga Manusia dan Pengangguran (MPTMP) have shown encouraging results in increasing the employability of locals:

• Program i-Ready:
  As of 30 June 2025, a total of 6,229 apprentices have successfully obtained permanent employment, including in the public and private sectors.

• Program iSkills (IBTE):
  59.2% of graduates from Cohorts 1 to 4 obtained employment within six months after completing training.

• Program Coding.bn (under the Manpower Industry Steering Committee for the ICT sector):
  Recorded an employability rate of 73% within one year after completion of the programme.

12. The Government will remain committed to strengthening the involvement and role of locals in the country's economic development through the continued implementation of various skills enhancement initiatives and improvements to labour policies.

13. It is the Government's aspiration that this effort will produce more high-quality, highly skilled local workers who are ready to contribute effectively and meaningfully towards the country's inclusive, sustainable and resilient economic progress.

That is what Kaola can convey in answering the question.

Thank you Yang Berhormat Pehin Yang Di-Pertua.