PERKESO At The Forefront Of Addressing Socio-Economic Crises

Barnama

17-07-2025

T
he 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.
'The pandemic underscored the importance of having a strong social protection system to support workers in times of economic uncertainty. At PERKESO, we are committed to being a safety net for workers and their families,' he said in an exclusive interview with Bernama recently.
Dr Mohammed Azman said that in facing unexpected crises like a pandemic, PERKESO emerged as the primary provider of social protection for Malaysian workers.
'For example, in 2017, PERKESO proactively introduced the Employment Insurance System Act 2017 (Act 800), two years before the pandemic, to provide coverage for workers who lose their jobs due to unforeseen circumstances.
'Act 800 was a crucial step to ensure affected workers, especially in unexpected situations like a pandemic, could return to the workforce more quickly. Programmes such as the Wage Subsidy Scheme demonstrated how social insurance can safeguard jobs and businesses,' he said.
This proactive move by PERKESO successfully protected more than 3.1 million workers and nearly 400,000 employers through the Wage Subsidy Scheme, which provided financial support to employers to retain their workers, especially during the economic downturn caused by the pandemic.
PROTECTION FOR INFORMAL SECTOR WORKERS
Although Malaysia's economy is recovering post-pandemic, social and economic crises stemming from structural changes in employment continue to linger.
The latest data from the Department of Statistics Malaysia (DOSM) shows that the number of workers in the informal sector rose to 3.45 million in 2023.
Workers in sectors such as p-hailing, e-hailing, and various gig economy platforms face significant challenges, particularly in terms of social security and job stability.
Recognising the importance of extending social protection to this group, Dr Mohammed Azman said PERKESO introduced the Self-Employment Social Security Scheme (SKSPS) to provide coverage for informal sector workers.
'The informal sector continues to grow rapidly, but its workers remain highly vulnerable to risks. That's why we introduced SKSPS—to ensure they too receive appropriate social protection.
'In addition, the Housewives' Social Security Scheme (SKSSR) was launched to recognise the contribution of women in the care economy, particularly housewives who may not have a steady income but are exposed to significant work-related risks such as accidents and injuries,' he said.
EARLY INTERVENTION AND EMPLOYMENT RECOVERY
PERKESO has also taken proactive steps to address job loss risks through early intervention strategies in collaboration with other agencies, such as the Department of Labour.
Dr Mohammed Azman said PERKESO identifies employers intending to lay off workers or downsize operations, and then provides briefings and support programmes for the affected employees.
'Early intervention is crucial because it allows us to support workers before they lose their jobs. This gives them a chance to prepare and seek new employment without overwhelming pressure,' he said.
Through Act 800, retrenched workers are supported via case management and retraining programmes, helping them to secure new jobs within six months.
PERKESO also provides allowances such as the Job Search Allowance (EMP) and Reduced Income Allowance (EPB) while workers seek new employment.
From 2020 to May 2023, more than 36,000 individuals participated in upskilling and retraining programmes under the Employment Insurance System.
'Statistics show that over 16,000 of them successfully secured employment after completing the training,' he said.
INCENTIVES AND AMENDMENTS TO ACT 800
In line with evolving economic dynamics, Dr Mohammed Azman said PERKESO amended Act 800 to raise the salary ceiling for contribution and benefit calculation to RM6,000 per month, up from RM5,000 previously.
'This move ensures the protection provided remains relevant to the current job market, particularly for workers in the expanding gig and informal sectors.
'With the higher salary cap, we aim to extend commensurate protection to workers in these fast-growing sectors. We're always striving to keep our coverage in line with market developments,' he said.
He added that initiatives like MYFutureJobs play a key role in helping informal sector workers transition into more stable, formal employment.
'Through the Informal to Formal Employment Transition Programme, PERKESO assists gig workers and online traders in securing jobs that offer better protection under the social security system,' he said.
EMPOWERING THE GIG ECONOMY AND ENTREPRENEURSHIP
Dr Mohammed Azman noted that PERKESO is also actively empowering the gig economy and entrepreneurship through the Gig Economy and Entrepreneurship Career Programme.
This programme includes business skills training and partnerships with various digital gig platforms to help workers improve their skills and generate income in the digital economy.
'PERKESO also implements the Bina Kerjaya (Career Building) programme, which offers reskilling training for workers in the informal sector. Since the programme began, over 7,900 individuals have undergone training with allocations totalling RM13.6 million.
'The gig economy is part of Malaysia's employment future. Through programmes like these, we hope to give workers the opportunity to upskill and access better job prospects,' he said.
SOCIAL SYNERGY AND CROSS-AGENCY COLLABORATION
One of PERKESO's latest initiatives is the Social Synergy Programme, involving over 350 government, non-governmental, and private agencies.
Dr Mohammed Azman said the platform aims to integrate various social assistance schemes into a more coordinated and accessible system for those in need.
'Collaborating with over 350 agencies is a testament to our commitment to delivering aid and support more efficiently to those who need it. The MySynergy system helps accelerate this process,' he said.
Under MySynergy, more than 4,000 coordinators nationwide have been trained to manage the programme, which includes assistance in employment, entrepreneurship, poverty eradication, and social insurance protection.
'This system also enables faster and more efficient aid distribution through an end-to-end strategy that includes home visits and immediate problem-solving,' he said.
MOVING FORWARD: FACING THE 'GOLDEN TSUNAMI'
Looking ahead, Dr Mohammed Azman said Malaysia's social security ecosystem must continue evolving to stay relevant amid changing demographics and global economic shifts.
He noted that the 'Golden Tsunami' phenomenon—referring to the global rise in the elderly population, including in Malaysia—requires particular focus on retirement fund sustainability and elderly healthcare.
'We must be prepared for major demographic shifts. Social protection for senior citizens and sustainable retirement funds will be key focus areas in our future planning.
'With the various initiatives already in place and plans for the future, PERKESO continues to play a key role as the nation's main line of defence in addressing social and economic challenges, while ensuring that no group of workers is left behind due to the rapidly changing dynamics of the world of work,' he said.