While I don't disagree with alan o that it could be a cloth badge, I wouldn't completely rule out a blackened metal capbadge. The Australians certainly wear metal badges that way. As for the British Army, if it is cloth I would expect it to be a regimental (yes, that's the same as 'unit' in this context) badge rather than a formation flash since he's already wearing the formation flash on his shoulder.
Incidentally, one of the reasons suggested for why cloth badges were preferred for jungle operations is that they didn't glint in the sunlight as a metal badge might. In jungle operations two opposing forces generally get much closer to each other compared to terrain like NorthWest Europe or North Africa where contact engagements tended to be at hundreds of metres, at least initially. Whereas movement and sounds in the jungle can have natural (animal) causes, a glint of sunlight on metal can only mean human activity.