In a major shift to its healthcare and labor policy, Brunei has moved to mandate that foreign nationals maintain a minimum level of private health insurance, placing the onus on employers to provide or sponsor this coverage. This new requirement, introduced to ease the burden on the country’s public health system, is being rolled out in phases from mid-2025 into 2026.
What’s changing — and why
Historically, Brunei’s public health services extended free or heavily subsidized care to permanent residents and to foreign spouses of citizens. But as healthcare costs surged—driven by an ageing population, rising drug prices, and greater demand—the government decided to tighten eligibility for free services. As of July 1, 2025, foreign permanent residents and foreign spouses are no longer automatically entitled to free treatment and must now secure personal health insurance for medical expenses.
The government justification is financial sustainability: over the past three years, the Ministry of Health’s budget jumped 66%, reflecting growing strain on public resources.
Insurance mandate: Phases and coverage requirements
The private health insurance mandate is divided into two phases, depending on the type of visa or permit the foreign national holds and the duration of stay.
From July 1, 2025
Persons entering under professional or business visit passes must carry coverage of at least BND 10,000 (~USD 7,700) for trips under 90 days, or BND 100,000 (~USD 77,000) for longer stays.
Permanent residents and domestic service employment pass holders must maintain coverage of BND 100,000.
Visitor pass holders must have at least BND 10,000 coverage.
From January 1, 2026
Private sector employment passes will require BND 100,000 coverage.
Dependent passes (spouses and non-schooling children) will need BND 10,000 coverage.
Student pass holders must carry BND 5,000 coverage.
Insurance may be sourced from either domestic or foreign insurers. Foreign nationals will be required to present proof of valid private health insurance at entry or during permit renewal. Failure to do so may limit their entry pass to just two weeks.
Importantly, employer-provided health plans already in force can remain valid until their scheduled expiry, giving companies some runway to adjust.
Implications for employers and workers
According to WTW, approximately 93% of Brunei employers already offer supplemental private medical benefits, chiefly covering hospitalization and surgery, with more limited outpatient coverage.
Nonetheless, experts warn that the new mandate may inflate labor costs and complicate hiring processes for companies employing foreign talent.
Businesses will need to audit their current health insurance arrangements, ensure that coverage meets the new minimums, and possibly renegotiate terms or switch providers. Human resources and payroll functions may need to be reorganized to handle insurance compliance and reporting.
For foreign workers and residents, the shift means healthcare cost exposure unless they hold qualifying private health insurance. The government has sought to cushion this transition through various support mechanisms: the Patients’ Relief Fund, Islamic charitable institutions, and installment schemes are available for those unable to pay.
One insurer, Takaful Brunei, has launched digital medical takaful plans tailored to foreign nationals, facilitating easier access to compliant coverage.
Broader trends and takeaways
Brunei’s move reflects a broader global pattern: as public health systems strain under demographic pressures and escalating costs, governments are increasingly shifting risk onto private health insurance markets. Countries across Asia are seeing more stringent rules around employer-sponsored health benefits and mandatory private coverage.
For multinational employers, such regulatory shifts underscore the importance of agile benefits governance and localized compliance strategies. As international assignment policies adjust to local insurance mandates, companies may need to reconfigure their global mobility, compensation, and benefits frameworks.
Foreign nationals in Brunei should proactively review their immigration status, check whether their current health coverage meets the new thresholds, and consider upgrading or switching plans before
