BRUNEI DARUSSALAM, JANUARY 2025: Brunei’s labour market challenges remain a significant roadblock to achieving Vision 2035.
With 11,700 unemployed citizens and over 86,700 informal workers, the nation’s ability to create a resilient and sustainable workforce is under scrutiny.
This follow-up delves deeper into the realities behind the numbers, shedding light on the voices of those affected and exploring practical solutions.
Informal Jobs: A Short-Term Solution with Lasting Impacts
Informal jobs often lack contracts, benefits, or job security, leaving workers vulnerable to exploitation and financial instability.
These jobs also limit workers' ability to contribute to TAP and SPK, further jeopardising their future financial security.
Simplifying business registration processes and ensuring access to TAP and SPK for informal workers could be game-changers.
Offering incentives like supplemental income protection and extended benefits could encourage formalisation, enabling more sustainable career paths.
An independent observer noted, "Formalizing informal work is essential for a stable economy. Without it, we risk an underutilized workforce and limited social protections."
The informal sector, comprising over 100,087 workers, provides temporary relief but lacks long-term stability.
For Siti, an informal worker who lives paycheck to paycheck, emergencies can bring devastating financial consequences.
Meanwhile, Brunei employs 73,845 work pass holders, highlighting the untapped potential of its unemployed workforce.
Better workforce management could empower unemployed locals to fill roles currently occupied by foreign labour, reducing dependency and strengthening the local economy.
Countries like Malaysia and Indonesia offer valuable lessons.
Malaysia’s token taxation model encourages small-scale entrepreneurs to formalise their businesses, making it easier for them to access financial resources.
Similarly, Indonesia’s flat 0.5% tax on gross turnover for micro-enterprises has successfully integrated informal businesses into the formal economy.
An economist commented, "The key lies in blending formalisation with accessible incentives, ensuring that businesses see the value in transitioning without fear of excessive costs."
Voices from the Ground: Stories of Struggle
The personal accounts of Bruneians reveal the harsh realities of the workforce.
One worker lamented, “Banyak factors yang menghalang for us untuk berjaya..telampau banyak rintangan, apabila berjaya terpaksa membagi makan banyak mulut untuk terus hidup.” This highlights the emotional and financial strain faced by families.
Rahim, a university graduate, has been searching for work for over a year despite his qualifications.
Siti, an informal worker, shared, “If I fall sick, I don’t earn anything. With this job, we don’t even have the opportunity to invest in our future and retirement in TAP and SPK, let alone save for our kids’ education.”
These experiences reflect the plight of the 69,200 informal workers in the services sector, as reported in the Labour Force Survey (LFS) 2023.
A policy expert remarked, "We need to address the root causes, not just the symptoms.
Aligning education with market needs and fostering innovation in small businesses can unlock new opportunities for locals."
Economic Diversification: A Necessity for Growth
Brunei’s reliance on oil and gas poses a significant vulnerability. Efforts to diversify into sectors like technology, tourism, and agriculture have progressed slowly.
The CSPS Job Futures study warns that without automation and AI adoption, economic stagnation will persist.
Public-private partnerships could foster innovation and growth
Providing grants, low-interest loans, and mentorship to startups could stimulate entrepreneurship.
Lessons from Malaysia and Indonesia highlight the value of robust ecosystems for small businesses, which can create sustainable job opportunities while reducing reliance on foreign labour.
The Financing for Sustainable Development Framework emphasises the importance of mobilising resources for sustainable and inclusive growth.
It highlights that "investment in dynamic and people-centred economies is key to fostering innovation and creating productive employment."
Leadership and Action: Paving the Way for Vision 2035
Realizing Wawasan 2035 requires decisive leadership and collaboration across all sectors.
As one community leader remarked, “While the journey is tough, our shared resilience and determination can transform these challenges into opportunities.”
Key priorities must include upskilling the workforce, formalizing informal jobs, and diversifying the economy.
Strong collaboration between government, private sectors, and communities will be essential to creating a prosperous future for all citizens.
An independent report stressed, "Managerial capital, which refers to the skills, expertise, and efficiency of management across all sectors, is a critical missing component in developing economies like Brunei.
For example, effective managerial leadership can optimise resource allocation, enhance workforce productivity, and drive innovation.
In the context of small and medium enterprises (SMEs), a lack of managerial expertise often leads to inefficiencies, limited scalability, and missed opportunities.
Bridging this gap can empower local businesses to compete regionally and internationally while fostering a more robust economic ecosystem."
A Call to Action
Brunei stands at a crossroads. Leaders must act boldly to address the labour market crisis.
Vision 2035 can be a transformative milestone or a missed opportunity.
For Rahim, Siti, and countless others, the stakes couldn’t be higher. The time to act is now. Brunei’s future depends on it.
Imagine a Brunei where every citizen has access to stable employment, where businesses thrive on innovation, and where economic growth benefits all.
That vision is achievable—but only with decisive action today. (MHO/01/2025)
