MEF CALLS FOR BALANCED, SUSTAINABLE ROLLOUT OF AMENDED SOCSO ACT

KUALA LUMPUR, Dec 1 (Bernama) -- The Malaysian Employers Federation (MEF) has called for the SOCSO (Amendment) Act 2025 to be implemented in a balanced and sustainable manner despite the significant improvements it introduces, including 24-hour coverage, enhanced benefits and new mobility and training support for employees.

MEF president Datuk Dr Syed Hussain Syed Husman said while the federation supports the government’s commitment to strengthening the country’s social protection system, the rollout of the amendments must be practical to avoid unintended implications for employers and employees.

He said the enhancements must be supported by transparent financial planning and efficient implementation mechanisms to ensure confidence in the system.

“As benefits expand, long-term sustainability of the SOCSO (PERKESO) funds becomes even more critical. Employers and employees need assurance that the enhanced protection is financially sound, actuarially justified, and supported by clear guidelines that prevent misuse,” he said in a statement today.

Syed Hussain also emphasised the need for clear claim guidelines and verification procedures to curb moral hazards, noting that extending protection to non-work-related accidents marks a major shift in PERKESO’s coverage framework.

He said although employer contribution rates remain unchanged, transparency is needed on the actuarial basis for increased employee contributions, along with a gradual and well-communicated implementation timeline to minimise the impact on workers.

“Contribution increases must be justified with clear data. Employees should understand why the adjustments are necessary and how they contribute to the long-term resilience of the system,” he said.

He also welcomed the introduction of mobility allowances and expanded training support but stressed that such programmes must align with actual industry needs.

“Training support should prioritise high-impact, industry-relevant skills that help Malaysians secure better jobs, not merely increase the number of courses. Employers must be involved in shaping these programmes,” he added.

Syed Hussain said although the amendments do not increase business costs, employers are expected to face a higher administrative workload, the need for updated human resource processes and potential disputes without clear definitions of non-employment-related injuries.

MEF, therefore, urged the government and PERKESO to strengthen engagement with employers, provide adequate training and enhance digital support systems to ensure smooth implementation of the amendments.

-- BERNAMA