Answer for Written Question PT084

QUESTION

Yang Berhormat Pengiran Haji Isa bin Pengiran Haji Aliuddin

YANG BERHORMAT PENGIRAN HAJI ISA BIN PENGIRAN HAJI ALIUDDIN asks the MINISTER OF HOME AFFAIRS to state whether a study has been carried out on the impact of the foreign worker insurance premium rate reaching BND100,000, particularly on employers who require domestic helpers and local companies that depend on foreign labour to support smooth operations and the country's economic diversification efforts?

ANSWER

Yang Berhormat Menteri Hal Ehwal Dalam Negeri

Before the implementation of the Insurance Protection Policy on 01 July 2025, there had indeed been a study conducted between the Ministry of Home Affairs together with the Labour Department and the Ministry of Health, whereby the findings of that study found that there were still several arising issues related to the medical insurance protection policy for immigrant workers as follows:

1. The Ministry of Health informed that treatment and medical costs, including for chronic diseases among immigrant workers, had resulted in arrears in the payment of medical bills, particularly among immigrant workers whose insurance coverage had lapsed and was not renewed or was insufficient.
2. The insurance period for immigrant workers is for a period of one year only, which is not in line with the period of the Work Pass, namely permission to reside and work in Negara Brunei Darussalam issued by the Department of Immigration and National Registration.
3. The increase in medical costs caused by rising prices of goods and the increase in the latest and more sophisticated medical machines, medical operating costs are increasing from time to time, causing the treatment costs to be charged to patients to also increase.

To carry out further study, the Labour Department together with the Ministry of Home Affairs and the Ministry of Health conducted several Stakeholders' Engagement sessions with employers and companies affected by the changes to be implemented, Worker Recruitment Agencies and Insurance Companies to ensure readiness as well as understanding of the objectives of implementing this policy. As a result of those sessions, the relevant stakeholders took note of the medical insurance protection currently in force and the proposed medical insurance protection for workers, of which the majority responded positively to the new proposal.

In addition, the Labour Department and the Department of Immigration and National Registration as well as the Ministry of Health have already held several outreach and briefing sessions to the relevant agencies such as the Brunei Insurance and Takaful Association (BITA), Employment Agencies, Private Companies and Foreign Embassies in Negara Brunei Darussalam. Meanwhile, outreach was also carried out through press releases and mass media via social media platforms and websites specifically for informing the public.

In addition to carrying out the updating of the Insurance Protection Policy, the Ministry of Home Affairs through the Labour Department has also enforced a cap on service fees for the recruitment of domestic workers at a rate not exceeding BND$2,000.00 beginning in 2023. This is intended to help reduce the financial burden, particularly for the recruitment of domestic workers. This is in line with the requirement of Chapter 20 of the Employment Agencies Order, 2004 which outlines that "a licensed employment agency shall not impose any payment or profit other than what has been prescribed under the provisions or provisions of this Order". With the implementation of this policy, it has to some extent reduced the burden on employers who require domestic helpers and prevented employment agencies from imposing high service fees, while also safeguarding the welfare of the people and residents of this country as well as the domestic workers to be recruited so that they will not be burdened by the regulations introduced.