Employing locals in private sector an ongoing challenge

Wednesday, March 12, 2008

THE need to hire local Bruneians to fulfil vacancies and positions in the private sector has once again come to the fore, in particular during the recent sessions of the State Legislative Council.

Home Affairs Minister Pehin Dato Hj Adanan is the latest amongst many senior government officials to call for Bruneians to take up positions in the private sector.

While Brunei Darussalam is unanimous in this goal to provide opportunities for employment, figures continue to highlight a staggeringly high dependence on foreign labour. As the home minister pointed out, in 2006 there were only 32,224 locals in the private sector versus 74,098 foreigners.

Some employers in Brunei Darussalam take on foreign workers because of bad experiences with hiring locals.

"When I had just started my business, I had a member of staff that left after receiving her first paycheck," said Mohammad Idham, 25-year-old entrepreneur, "There was no notice, no message, no letter, nor a reply to telephone calls or even an SMS." As it happened in the first few weeks, a critical time in any startup, the incidence left a bitter taste in his mouth.

"There is nothing protecting us as employers," he added, stressing one of the downsides of employing locals was the vulnerability to businesses should the workers decide to not turn up.

Meanwhile, another entrepreneur, who wished not to be named, recounted how a member of his staff had not come in for days on end. "It came to almost two weeks without hearing from him, and all of a sudden he would just show up," he said.

Both have spoken out because to take legal action is considered to be a lose-lose situation for both parties and disadvantageous to say the least. A negative letter of referral is usually the consequence for misfit workers and the course of action taken by local companies. Yet this is a slap on the wrists, which could be sidestepped by those who choose not to mention their previous workplace or employers for fear of retribution from disgruntled bosses.

In respect to the foreign workers coming in to fill the void, a baggage of responsibility and obligation must be overseen including their time-consuming relocation processes. Despite being tasked to look after the welfare of foreign staff, the double edged sword is deemed to be worth it in exchange for a dependable and reliable workforce.

This draws a clear line which points towards locals needing not only the right set of skills, but a level of professionalism and the right mentality to do the job.

The Labour Department has identified some 13 categories within the private sector to have priority set aside for locals, including cashiers, clerks, salespersons and security guards. In the past, jobs such as these do not appeal to the majority of the local labour force and it seems that those who are genuinely interested find their chances spoiled by the proverbial 'bad apples' that spoil it for the whole bunch.

The other aspect faced by locals is the mentality to join the government irrespective of the careers which they are passionate about.

What does a government position offer that a job in the private sector can't? "Job security, it gives me a stable salary and 13th month pay (what locals refer to as a bonus), I can also think about realistically owning a home," said one civil servant who spoke on condition of anonymity.

It is sometimes an overbearing approach, with some parents going as far as to encourage their children to leave the private sector in order to serve in the public. "I tried out for the Royal Brunei Armed Forces," said Amir, " because my mother and father think its best."

It is a trait which threatens the existence of the small and micro entrepreneurs within Brunei Darussalam's economy. SMEs make up 98 per cent of active businesses here, according to the Oxford Business Group's 2007 Report on Brunei Darussalam, which also cites that 92 per cent of employment in the private sector is afforded by jobs in the niche of that sector.

It isn't all doom and gloom for Brunei's private sector though. It has been successful in stimulating the non-oil and gas economy. According to Pehin Dato Dr Awg Hj Ahmad, Minister of Industry and Primary Resources, in 2003, the contribution of oil and gas was $6.5 billion to Brunei's economy, while non-oil and gas was 43 per cent, or $4.8 billion. This figure rose to $5.7 billion in 2006.

Shame that a potentially blooming private sector industry in Brunei is not wholly borne on the backs of Bruneians.The Brunei Times