With retrenchment quietly unfolding in Brunei’s oil and gas sector, many working professionals are beginning to feel the tremors; even if they’re not directly affected yet.
A recent LinkedIn article by Malai Hassan Othman highlighted what many insiders already knew: the industry is under strain. Production levels are declining, exploration projects have slowed, and operational budgets are tighter than ever. The once-reliable sector that powered many Bruneian livelihoods is facing headwinds in 2025.
This isn’t about panic though; it’s about preparation.
Whether you’re in oil and gas, government-linked companies, or any sector vulnerable to restructuring, here’s how to retrenchment-proof your finances and stay ahead of uncertainty.
1. Build (or Rebuild) Your Emergency Fund
An emergency fund is your financial buffer against sudden income loss. The rule of thumb? Aim for 3 to 6 months of basic expenses. But in times like these, consider stretching that to 9 months if you’re in a volatile industry.
Where to keep it:
- High-interest savings accounts (BIBD Aspirasi, TAIB Tekad Haji)
- Easy-to-access, no-risk vehicles
Avoid: Locking it in fixed deposits or investments you can’t easily liquidate.
2. Review Your Insurance Coverage
Retrenchment doesn’t just mean a loss of income; it can also mean losing company-paid medical or life coverage.
What to do:
- Health Insurance: Consider a standalone plan with AIA, Great Eastern, or Takaful Brunei. Don’t rely solely on employer coverage.
- Income Protection: A term plan or critical illness rider can help maintain household cash flow if you fall seriously ill during this transition.
Tip: Focus on must-haves first – hospitalisation, disability, and death protection. You can always review and upgrade later.
3. Audit Your Existing Loans
Loans don’t disappear just because your income does.
Action plan:
- Identify all current debts: housing loan, car loan, credit cards, personal loans.
- List repayment obligations: Minimum payments, interest rates, and remaining tenure.
- Talk to your bank: Discuss options like deferment, refinancing, or consolidating if retrenchment becomes likely.
Avoid: Taking on new debt unless it improves your financial resilience (e.g. a lower-interest debt consolidation).
4. Reassess Family Expenses
This is where most people struggle emotionally but a proactive approach can help you stretch your resources.
How to manage:
- Categorise your spending: Essentials, Comforts, Luxuries
- Involve the household: Set new budget expectations together.
- Plan for the long haul: Assume the job search may take 6–12 months.
Examples:
- Cut back on takeaways, streaming subscriptions, and branded goods
- Prioritise children’s schooling, healthcare, and groceries
5. Explore Side Income Early
Don’t wait until you’re jobless to start exploring side income. Start while you’re still employed.
Ideas in Brunei:
- Freelancing (copywriting, tutoring, design, etc.)
- Home-based baking or crafting
- Financial planning or insurance (if properly licensed)
Bonus: Having a side income makes you more resilient and can even turn into a new full-time career.
6. Know Your Exit Rights
If retrenchment is announced:
- Understand your entitlements (severance pay, final salary, notice period)
- Get it in writing
- Don’t sign documents you don’t understand – seek advice first!
Refer to Brunei’s Employment Order 2009 or consult a legal advisor.
7. Upskill While You Can
Make yourself valuable; within your company or for the next one.
- Join workshops (e.g. Bilif, UTB short courses)
- Explore online self-paced learning modules like Udemy or Coursera
- Learn digital tools: Excel, Canva, Google Workspace, financial literacy
- Get certified in areas with regional demand: ESG, compliance, personal finance, etc.
Final Thoughts
Retrenchment is never easy but with smart preparation, it doesn’t have to be financially devastating. Start with what you can control: your savings, your expenses, and your plan.
Need help building your safety net or planning your finances under pressure?
🦊 Book a free financial consultation with Savey and get a tailored plan that protects your future.
Stay Savey!
