Malaysia: Towards a Social Protection System in an Advanced Equitable Society

This paper argues why Malaysia needs to strengthen and provide more formal social protection. It describes the social protection programmes currently available in Malaysia — public assistance; and social security and insurance schemes including employer's liability scheme, Workmen's Compensation Scheme, civil service pension, Employees Provident Fund (EPF), Armed Forces Provident Fund, and Social Security Organisation (SOCSO) insurance schemes. The paper also attempts to identify the challenges faced by these programmes, especially in terms of coverage, governance and sustainability. Policy recommendations include finding ways to protect the informal sector, relooking at the EPF Annuity Schemes proposals and promoting them again to EPF members, improving transparency and accountability of civil service schemes by subjecting them to regular evaluations and making it publicly available. The introduction of a minimum wage, the discussion of introducing unemployment insurance and raising the retirement age to sixty years in the private sector this year augur well for the Malaysian workers.