Social security is meant to be a safety net for when the unexpected happens, but recent data has raised serious concerns among officials regarding Malaysia’s lower-income workers.
According to the Social Security Organisation (PERKESO), nearly half of the employees who chose to opt out of the Non-Employment Injury Scheme (LINDUNG 24 Jam) are individuals earning below RM3,500 a month.
12.4% total opt-out rate by August deadline
According to Kosmo!, PERKESO Group Chief Executive Officer Datuk Seri Dr Mohammed Azman Aziz Mohammed revealed at a press conference today (September 9) that 12.4% of workers decided not to continue with the 24-hour protection scheme following the opt-out deadline on August 31.
Out of that 12.4%, almost 50% fall into the lower-income bracket earning under RM3,500.
“There is a bit of worry on our end at PERKESO regarding their protection because these individuals are among the B40 group,” he expressed, adding that over 96% of the B40 community currently lacks any form of private insurance coverage.
Selangor, KL, and Putrajaya record highest opt-out numbers
Geographically, urban economic hubs accounted for the majority of the opt-outs. Selangor, Kuala Lumpur, and Putrajaya made up a massive 53% of those who left the scheme. Meanwhile, Johor accounted for 11%, Penang contributed 9%, and the remaining 27% came from other states.
Dr Mohammed Azman noted that many workers in major cities might falsely assume their private insurance policies are enough to cover them.
“I don’t want to speculate, but perhaps with higher salaries, they can afford insurance and compare: ‘I have insurance, so I don’t need social protection.’ That is wrong. Social protection is not insurance coverage. Not at all,” he emphasised.
Over 9,000 workers have already re-enrolled
Despite the initial opt-outs, PERKESO noted a positive trend in recent days. Between September 1 and September 9, approximately 9,000 to 10,000 workers who previously opted out have already chosen to re-enrol in the 24-hour scheme.
PERKESO hopes to continue raising awareness so that lower-income workers remain fully protected around the clock, both on and off the job.
Also Read: Simpang Renggam Crash: PERKESO Extends Immediate Aid to Victims Under New ‘Lindung 24 Jam’ Scheme
