Penang: The Social Security Organisation (PERKESO) is intensifying its efforts to bridge the social protection gap among self-employed individuals, particularly hawkers and small traders, through the Skim Lindung Kendiri (Self-Employed Social Security Scheme). This initiative is being carried out in collaboration with local authorities across all states.
According to BERNAMA News Agency, PERKESO Group chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed emphasized the existing social protection gap, as a significant number of self-employed workers remain uncovered by the scheme. Recent Labour Force statistics from the Department of Statistics Malaysia reported 3.26 million self-employed individuals nationwide as of November 2025. However, PERKESO's data from January 23 indicated that only 325,008, or about 10 percent, were actively contributing to the scheme, with 15,021 registered in Penang.
The figures highlight an urgent need to address the gap in social protection among the self-employed. Specifically, only 38,358 contributors come from the hawker sector nationwide. In Penang, hawkers comprise 13.17 percent, or 5,053 contributors, illustrating that many small traders have yet to realize the benefits of this social protection.
The memorandum of understanding (MoU) between PERKESO and the Penang City Council (MBPP) underscores the critical need to enhance the social security safety net for self-employed workers, especially hawkers and small traders. The MoU was signed by Mohammed Azman and MBPP Mayor Datuk R Rajendran, witnessed by state Local Government and Town and Country Planning Committee chairman H'ng Mooi Lye and PERKESO deputy chief executive (Operations) Azirruan Ariffin.
Penang is the first state to formalize this collaboration, with Mohammed Azman expressing hope that this initiative will establish a more structured social protection ecosystem and serve as a model for the 156 local authorities nationwide, thereby strengthening Malaysia's informal economy.
In 2025 alone, PERKESO disbursed RM31.25 million in benefits to 7,693 contributors under the Skim Lindung Kendiri nationwide, including 424 self-employed individuals in Penang who received assistance during adverse events.
H'ng Mooi Lye welcomed the collaboration, noting that it would improve the welfare of hawkers and traders in the event of unforeseen incidents. He suggested that the state government would consider making scheme contributions a mandatory requirement for obtaining business licenses.
Datuk R Rajendran explained that the initiative not only provides security but also boosts confidence among the target group, enabling them to continue their livelihoods in a safer environment. He highlighted that MBPP oversees 5,220 licensed hawkers operating across 30 markets, 68 food complexes, 58 hawker sites, and 25 temporary static stalls. These workers face various risks, including on-site accidents, equipment-related injuries, fires, and health hazards, making the protection scheme essential for their safety and income sustainability.