SHAH ALAM: In a landmark enforcement action, a catering supply company in Malaysia has had its assets seized for failing to settle Social Security Organisation (Perkeso) contributions amounting to RM19,765.20. This marks the first instance of such a measure being taken against an employer in the country.

According to BERNAMA News Agency, Selangor Perkeso director Ismail Abi Hashim stated that the seizure followed the issuance of a Melevi warrant by the court. The warrant was a result of the company’s non-compliance with an order from the Shah Alam Magistrate’s Court, which had previously fined the company RM4,000 on March 9 for its failure to address outstanding contributions. The court had granted the company the option to settle the arrears in six instalments starting from March 25, 2023. However, the company did not meet this obligation, prompting Perkeso to seek judicial intervention for asset seizure.

The assets confiscated in the operation are estimated to be worth approximately RM20,000. Ismail Abi Hashim emphasized that the company now has a seven-day window to resolve its Perkeso arrears, failing which the seized assets will be auctioned on January 13, 2025. This decisive action underscores the authorities’ commitment to enforcing social security compliance among employers.