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Daily Express
3 days ago
- Business
- Daily Express
13MP cannot ignore Sabah's informal sector
Published on: Sunday, July 27, 2025 Published on: Sun, Jul 27, 2025 Text Size: Sabah's informal sector is not a marginal issue. It plays a central role in the state's economic fabric. Recognising this in the 13th Malaysia Plan is not only a matter of fairness but also a matter of sound policy. - Pic credit Sabah Tourism Board As Malaysia prepares its 13th Malaysia Plan (13MP), policymakers must confront an uncomfortable but necessary truth. That is, the country cannot afford to exclude the informal economy any longer, particularly in states like Sabah, where informal employment is not just common, it is a lifeline. Sabah's economy has long operated in two spheres, the visible, formal sector, and the informal one that is referred to as the shadow economy. From roadside traders and wet market hawkers to undocumented plantation workers and domestic helpers, a significant portion of Sabahans rely on informal work to survive. Despite their importance, these workers remain largely invisible in policy design, lacking recognition, protection, and access to support mechanisms. According to a 2024 World Bank report, Sabah recorded an informal employment rate of 29.1 percent in 2019, even when agricultural workers were excluded. Informality is especially prevalent in rural areas, where nearly 42 percent of workers are not part of the formal economy. This places Sabah among the top six states with the highest informal employment rates in the country. The issue extends beyond livelihoods. The prevalence of untaxed, unregistered economic activities contributes to major revenue leakages. While no official estimate is available, the state and the country could be forfeiting billions of Ringgit annually in unrealised tax income, uncollected licensing fees, and undocumented transactions. This is not just a financial concern but a missed opportunity to reinvest in social development, infrastructure, and poverty reduction. Equally critical are the social implications of informality. Many workers in Sabah's informal sector operate without access to basic protections such as retirement savings, health coverage, or workplace safety measures. The World Bank highlights that informal workers, especially women and youth, are highly vulnerable to shocks, abuse, and displacement. Women are disproportionately affected, with many engaged in informal care work, domestic service, or home-based sales. Without formal employment relationships, these women are excluded from schemes like Socso or EPF. They also face income instability and greater exposure to exploitation. The lack of maternity support, job security, and affordable child care reinforces the gender gap in economic participation. Furthermore, the link between informal work and poverty is clear. Nearly half of all informally employed Malaysians come from B40 households, and among the poorest 10 percent, the informal employment rate reaches nearly 80 percent. In Sabah, these realities are compounded by remoteness, lack of documentation, and weaker institutional outreach. The result is not just economic exclusion, but systemic marginalisation. The 13th Malaysia Plan presents a critical opportunity to shift how we approach informality, not as a problem to eliminate, but as a sector to support, protect, and eventually integrate. The World Bank recommends a 'protection before enforcement' approach, whereby informal workers are first offered access to social security, skills development, and financial services before being expected to comply with formal regulations. Among the steps that should be considered are deploying mobile registration units to remote districts and introducing voluntary EPF and Socso schemes via digital platforms. Simplified micro-registration processes, microinsurance products, and targeted upskilling programmes for women in care work and youth in the gig economy would also offer practical inroads. Innovations such as automatic deductions for savings through gig platforms or group-based micro-pension plans can help reduce vulnerability. Sabah's informal sector is not a marginal issue. It plays a central role in the state's economic fabric. Recognising this in the 13th Malaysia Plan is not only a matter of fairness but also a matter of sound policy. Formalising informal work does not require rigid structures and instead, it means creating opportunities and support systems for those who need them most. With the right strategies, Sabah can transform informality from a challenge into a driver of inclusive and sustainable growth. If Malaysia is committed to building an economy that truly leaves no one behind, the process must begin with the communities where most Sabahans already earn their living. The time has come to place them at the heart of national development efforts. Saizal Pinjaman The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: [email protected]
The Sun
10-07-2025
- Business
- The Sun
Socso helps 4,105 ex-convicts find work since 2020
NIBONG TEBAL: A total of 4,105 former prisoners have successfully reintegrated into society through the Social Security Organisation's (Socso) career-matching program from 2020 to July 2024. Human Resources Minister Steven Sim highlighted that the initiative supports national efforts to reduce reliance on foreign labour by tapping into local talent, including rehabilitated individuals. The manufacturing, construction, agriculture, food services, and wholesale and retail trade sectors have absorbed the highest number of these job seekers. Sim noted that Malaysia's workforce comprises 16.78 million people, with foreign workers making up 13.7 per cent of the total. 'This underscores the need to utilise local potential inclusively, including former inmates,' he said during the MYFutureJobs Career and Entrepreneurship Carnival at the Seberang Perai Prison Complex. The event, a collaboration between Socso and the Prisons Department, featured 20 employers offering 1,080 vacancies. Nine public and private agencies also provided entrepreneurship programs. Since 2020, Socso's Daya Kerjaya program has placed 2,604 individuals in jobs, with RM12 million disbursed in employer incentives. Sim emphasised the government's commitment through the Active Labour Market Stimulus Policy, which offers RM600 monthly for three months to employers hiring ex-convicts. Socso also signed an MoU with six industry associations to expand job opportunities for rehabilitated individuals. Present at the event were Prisons Commissioner-General Datuk Abdul Aziz Abdul Razak, Socso Chairman Datuk Seri Subahan Kamal, and CEO Datuk Seri Dr Mohammed Azman Aziz Mohammed. – Bernama
Borneo Post
05-07-2025
- Health
- Borneo Post
Introduce National Insurance Scheme to ensure universal care, says Sarawak DAP
Brolin says that healthcare costs are becoming increasingly unaffordable for ordinary citizens. KUCHING (July 5): The Sarawak Democratic Action Party (DAP) has urged the government to introduce a National Insurance Scheme (NIS) to address rising medical inflation and safeguard access to essential care for Malaysians. Bandar Kuching MP Dr Kelvin Yii's special officer, Brolin Nicholsion, said that healthcare costs are becoming increasingly unaffordable for ordinary citizens. 'This alarming trend underscores the urgent need to explore a comprehensive NIS to ensure no one is left behind when illness strikes,' he said in a statement yesterday. Brolin added that while existing programmes — like the Social Security Organisation (Socso), Employees' Provident Fund (EPF), MySalam, and Peka B40 — are valuable, they remain fragmented and fail to sufficiently cover the informal workforce, gig workers, and self-employed individuals. He thus calls for a well-structured NIS to integrate these efforts, pooling contributions from both formal and informal sectors to provide universal access to healthcare, basic income protection, and long-term security for all Malaysians. According to Brolin, countries like South Korea and China-Taiwan have shown that a national insurance model can succeed with political will and smart design. 'South Korea transformed its fragmented system into a unified National Health Insurance Service (NHIS), covering its entire population through a tiered contribution system. 'Meanwhile, Taiwan had built one of the most efficient single-payer systems in the world, balancing equity, quality and affordability through universal participation and low administrative costs. 'These models demonstrate how Malaysia could also transition toward a sustainable, inclusive healthcare safety net,' he added. Brolin also emphasised that strong governance and trust via transparent fund management, citizen oversight, and independent audits must be ensured towards this end. He said the proposed NIS must align with existing systems like Socso and EPF to avoid duplication and overburdening, adding: 'It should start with targeted groups such as B40 gig workers or recent graduates before nationwide implementation.' 'The proposed NIS is not just a healthcare policy, but a nation-building strategy. It will protect vulnerable families from rising costs, empower youth and informal workers with real safety nets, and foster a fairer and more resilient Malaysia. 'The longer we wait, the more people fall through the cracks,' he added. Brolin Nicholsion dap National Insurance Scheme
Borneo Post
02-07-2025
- Business
- Borneo Post
Madani Government reaffirms commitment to ethical, resilient media ecosystem, says DPM Fadillah
Fadillah (centre) receives a souvenir from Abdullah while Lee (right) looks on. – Photo by Chimon Upon KUCHING (July 2): The Madani Government remains steadfast in its commitment to cultivating a robust, ethical, and resilient media ecosystem in Malaysia, said Deputy Prime Minister Dato Sri Fadillah Yusof. He said this commitment reached a milestone with the passing of the Malaysian Media Council Bill 2024 – a significant step toward industry self-regulation, symbolising trust, maturity, and empowerment. 'Just last month, during National Journalists' Day (Hawana) 2025, our Communications Minister Datuk Fahmi Fadzil announced ground breaking protections for part-time and freelance journalists – stringers – through Socso and the i-Saraan EPF scheme, benefitting thousands, while also extending travel support through 50 per cent AirAsia fare discounts across Asean destinations. 'These are not just policies. These are affirmations of respect for your labour, your integrity, and your service to society,' Fadillah said during the Sarawak Media Conference (SMeC) 2025 and Hawana dinner at a hotel here this evening. He emphasised the pivotal role of media in national development. 'The media is not a bystander in national development. It is a vital strategic partner. Journalists are not just storytellers. You are the eyes that witness truth, the ears that listen to the nation's heartbeat, and the pens that shape understanding. You give voice to the voiceless. 'You hold power to account. You keep democracy alive. In this age of misinformation, your role becomes more crucial than ever. When truth is drowned in a flood of falsehoods, you are the beacons of clarity, the guardians of integrity,' he said. Fadillah also spoke about the disruptive impact of artificial intelligence on all aspects of life, including journalism. 'AI is changing the world at lightning speed. It touches everything — our food, our jobs, our homes, even our privacy and security. And yes, it is transforming journalism. But the question is not whether AI will shape the future. It will. The real question is: Will we shape AI – or will AI shape us? 'And that is why this conversation is so important. I do not pretend to have all the answers. But what I do have is faith – in the power of dialogue, of collective wisdom, and of a media community that is not afraid to evolve,' he said. As Sarawak pursues its ambition to become a high-income, green, and tech-driven economy under the Post Covid-19 Development Strategy (PCDS) 2030, he called on the media to continue amplifying stories that matter. 'Let your platforms be spaces where the truth is heard, where dignity is preserved, and where hope is never extinguished,' he said. As a proud Sarawakian, Fadillah expressed his pride in Sarawak's leadership through the SMeC platform, which brings together policymakers and media practitioners for open dialogue and mutual learning. He also paid tribute to two Sarawakians — The Borneo Post and Utusan Borneo General Manager Madam Phyllis Wong, and Kuching Division Journalists Association President Ronnie Teo — who are among the founding members of the national Media Consultative Council. 'Their presence is a testament to the strength and leadership this state contributes to the national media landscape,' he said. Also present were Sarawak Deputy Transport Minister, Dato Sri Lee Kim Shin and Deputy Minister in the Sarawak Premier's Department (Corporate Affairs, Information and Sarawak Public Communications Unit (Ukas)) Datuk Abdullah Saidol, who chaired the event's organising committee. The highlight of the evening was the presentation of media awards. The editors category were won by Bernama Sarawak Bureau Chief Hamdan Ismail, Sarawak Tribune Chief Editor Aden Nagrace and Dayak Daily Director Cheng Lian Hiok. The reporters category were won by Sarawak Tribune's Caroline Anne Ranyed Jackson, RTM's Dayang Fatimah Awang Lai and RTM's Petrus Abai. The news casters category was won by RTM Sarawak's Khalid Suut while the Radio (DJ) category were won by Red FM's Teo Oh Meng and Cats FM's Sharbarudin Abu Bakar. The photographers category were won by Sarawak Public Communications Unit's Mohammad Rais Sanusi and TV3 Sarawak's Basri Mohamad.
Sinar Daily
02-07-2025
- Sinar Daily
Businessman fined RM300,000 for cheating Socso over non-existent courses
Judge Suzana Hussin meted out the sentence on P. Sathia Seelan, 52, after he pleaded guilty to all 10 charges during the case mention today. 02 Jul 2025 04:22pm A businessman was fined RM300,000 by the Sessions Court here today, after he pleaded guilty to 10 counts of cheating Socso, involving RM496,000 for non-existent training courses, five years ago. KUALA LUMPUR - A businessman was fined RM300,000 by the Sessions Court here today, after he pleaded guilty to 10 counts of cheating the Social Security Organisation (Socso), involving RM496,000 for non-existent training courses, five years ago. Judge Suzana Hussin meted out the sentence on P. Sathia Seelan, 52, after he pleaded guilty to all 10 charges during the case mention today. The court imposed a RM30,000 fine for each charge, totalling RM300,000, and ordered the man to be jailed for 10 months if he fails to pay the fine. According to the first to 10th charges, Sathia Seelan was accused of deceiving two Socso officers by submitting documents containing falsified attendance lists and participant signatures for three training courses that were never conducted. The offences, involving five companies, were allegedly committed between Dec 4, 2020, and July 22, 2021. It prompted Socso to make a payment of RM496,000 to Global Education Network Sdn Bhd, owned by the accused, which the agency would not have done if it had not been deceived. He was charged with committing the offences at the Employment Services Division, Menara Perkeso, Putrajaya, between Dec 23, 2020, and Aug 12, 2021. The charges were framed under Section 417 of the Penal Code, which carries a penalty of up to five years' imprisonment, a fine, or both, upon conviction. In the same proceedings, R. Nanthagopal, 43, was also fined RM300,000 or 10 months' jail, after pleading guilty to abetting Sathia Seelan in committing the offences at the same location and time. The charge was framed under Section 417 of the Penal Code, read together with Section 109 of the same law, which provides for a maximum sentence of five years' imprisonment, a fine, or both. Earlier, deputy public prosecutor Noor Syazwani Mohamad Sobry urged the court to impose a sentence which would serve as a deterrent, ensuring both accused do not repeat such offences. Lawyer R. Babu Naidu, representing both accused, pleaded for a lighter sentence on the grounds that his clients had expressed remorse and had fully cooperated with the police and the Malaysian Anti-Corruption Commission (MACC) throughout the investigation since 2023. - BERNAMA More Like This
