Kuala lumpur: The COVID-19 pandemic, which struck the world in late 2019, had a profound impact not only on public health but also on the global economy, as movement restrictions and border closures disrupted lives and businesses. In Malaysia, the crisis forced many companies to restructure, downsize, or shut down entirely-leaving countless individuals without jobs and affecting their socioeconomic stability. Commenting on the issue, Social Security Organisation (PERKESO) Group Chief Executive Officer Datuk Seri Dr Mohammed Azman Aziz Mohammed said COVID-19 had a direct and substantial impact on workers’ welfare and society as a whole.
According to BERNAMA News Agency, Dr Mohammed Azman emphasized the importance of a robust social protection system during economic uncertainties. He highlighted that PERKESO serves as a critical safety net for workers and their families, emerging as the primary provider of social protection for Malaysian workers during unexpected crises like a pandemic. In 2017, PERKESO proactively introduced the Employment Insurance System Act 2017 (Act 800), providing coverage for workers who lose their jobs due to unforeseen circumstances. The act played a crucial role in helping affected workers return to the workforce more swiftly, with programmes like the Wage Subsidy Scheme safeguarding jobs and businesses.
This proactive measure by PERKESO successfully shielded more than 3.1 million workers and nearly 400,000 employers through financial support during the pandemic-induced economic downturn. Although Malaysia’s economy is recovering, challenges remain, especially for workers in the informal sector. The Department of Statistics Malaysia (DOSM) reported a rise in informal sector workers to 3.45 million in 2023. Recognizing the need for social protection for these workers, PERKESO introduced the Self-Employment Social Security Scheme (SKSPS) to cover informal sector workers, including those in gig economy platforms.
Dr Mohammed Azman highlighted the introduction of the Housewives’ Social Security Scheme (SKSSR) to acknowledge women’s contributions in the care economy, providing them with social protection against work-related risks. PERKESO has also implemented early intervention strategies, in collaboration with the Department of Labour, to address job loss risks. Identifying employers intending to downsize, PERKESO offers briefings and support programmes for affected employees, minimizing the impact of job loss and facilitating smoother transitions into new employment.
From 2020 to May 2023, more than 36,000 individuals participated in upskilling and retraining programmes under the Employment Insurance System, with over 16,000 securing employment post-training. In response to evolving economic dynamics, PERKESO amended Act 800 to raise the salary ceiling for contribution and benefit calculation, ensuring protection remains aligned with current job market trends. Initiatives like MYFutureJobs assist informal sector workers in transitioning to more stable employment, enhancing social security coverage.
Dr Mohammed Azman noted the significance of empowering the gig economy and entrepreneurship through various programmes, helping workers improve their skills and income potential in the digital economy. The Bina Kerjaya programme, for instance, has trained over 7,900 individuals, facilitating opportunities for upskilling and better job prospects. PERKESO’s Social Synergy Programme, involving over 350 agencies, aims to streamline social assistance schemes for more efficient aid distribution. The MySynergy system, with over 4,000 coordinators nationwide, enhances the delivery of employment, entrepreneurship, poverty eradication, and social insurance protection services.
Looking ahead, Dr Mohammed Azman highlighted the need for Malaysia’s social security ecosystem to evolve in response to demographic changes and global economic shifts. Addressing the ‘Golden Tsunami’ phenomenon, with a focus on retirement fund sustainability and elderly healthcare, is crucial. PERKESO remains committed to addressing social and economic challenges, ensuring no group of workers is left behind as the dynamics of the work world evolve.