THE COVID-19 pandemic, which gripped the globe from late 2019, left in its wake not only a health crisis but also a severe economic downturn, leading to widespread business closures, job losses, and a disruption of livelihoods.
Reflecting on the pandemic’s impact, Datuk Seri Dr Mohammed Azman Aziz Mohammed, Group Chief Executive Officer of Malaysia’s Social Security Organisation (PERKESO), said it served as a stark reminder of the critical need for a robust social protection system to safeguard workers during times of economic uncertainty.
"The pandemic underscored how vital it is to have a strong social protection system to support workers through economic volatility. At PERKESO, we are committed to being the protective barrier for workers and their families," he said in an exclusive interview with Bernama.
PERKESO emerged as a frontline institution during the crisis, providing immediate and widespread support. Among the key frameworks enabling this response was the Employment Insurance System Act 2017 (Act 800), introduced two years before the pandemic to offer protection against unexpected job losses.
"Act 800 was a crucial step in ensuring that workers affected by unforeseen circumstances, such as a pandemic, could re-enter the labour market more swiftly. The Wage Subsidy Programme is a testament to how social insurance can help sustain businesses and save jobs," he said.
Through this initiative, over 3.1 million workers and nearly 400,000 employers received financial support, enabling many businesses to retain staff amid the economic downturn.
Expanding Coverage to Informal and Vulnerable Sectors
As Malaysia continues its post-pandemic recovery, socioeconomic challenges persist—particularly those stemming from shifting job structures. According to the Department of Statistics Malaysia, the informal workforce grew to 3.45 million in 2023.
Workers in the gig and informal sectors, including p-hailing and e-hailing, face major vulnerabilities due to the lack of structured social safety nets. Recognising this, PERKESO launched the Self-Employment Social Security Scheme (SKSPS).
"The informal sector is expanding rapidly, but workers in these areas remain exposed to significant risks. The SKSPS ensures they are not left behind in terms of social protection," said Dr Mohammed Azman.
Additionally, the Housewife Social Security Scheme (SKSSR) was introduced as a form of economic recognition for women in care roles who face occupational risks without stable income.
Proactive Intervention and Employment Reintegration
In tackling unemployment risks, PERKESO has adopted an early intervention model, working in tandem with agencies such as the Department of Labour to support workers before they are formally retrenched.
"Early intervention allows us to offer support before workers lose their jobs, giving them a better chance to transition smoothly into new employment," he said.
Under Act 800, displaced workers receive tailored case management and reskilling programmes aimed at reemployment within six months. Financial assistance, such as the Job Search Allowance (EMP) and Reduced Income Allowance (EPB), also provides interim relief.
Between 2020 and May 2023, more than 36,000 individuals participated in PERKESO’s reskilling initiatives, with over 16,000 successfully re-entering the job market.
Legislative Amendments and Incentives for a Changing Workforce
Adapting to economic shifts, PERKESO recently amended Act 800 to increase the salary ceiling for contributions and benefits from RM5,000 to RM6,000 per month.
"This adjustment ensures the relevance of our protection in today’s job market, particularly for gig and informal sector workers," said Dr Mohammed Azman.
Through MYFutureJobs and the Informal-to-Formal Job Transition Programme, PERKESO also supports workers in moving into more secure and protected employment.
Driving Gig Economy Empowerment and Entrepreneurship
PERKESO’s initiatives extend to strengthening Malaysia’s gig economy and entrepreneurial landscape. The Gig and Entrepreneurship Career programme includes skill-building, business training, and partnerships with digital platforms to enhance income-generation capabilities.
Another key effort, the Build Career programme, has trained over 7,900 individuals with an investment of RM13.6 million.
"The gig economy is undeniably part of Malaysia’s employment future. Through such programmes, we aim to empower workers to upskill and access better job opportunities," he said.
Cross-Agency Collaboration and Social Synergy
PERKESO’s Social Synergy Programme unites over 350 government, private, and civil society agencies under a single assistance platform, streamlining access to support services through the MySynergy system.
"This collaboration is a demonstration of our commitment to efficient and integrated support delivery. Over 4,000 coordinators nationwide have been trained to manage interventions ranging from employment and entrepreneurship to poverty eradication and social insurance," he explained.
The system enables rapid, on-the-ground response through an end-to-end strategy that includes home visits and immediate problem-solving.
Looking Ahead: Preparing for the 'Silver Tsunami'
Dr Mohammed Azman emphasised the importance of evolving Malaysia’s social protection ecosystem in response to shifting demographics, especially the ageing population trend known as the ‘Silver Tsunami’.
"We must prepare for this demographic transition. Safeguarding retirement funds and eldercare will be central to our long-term planning," he said.
"With the range of initiatives already in place and plans for the future, PERKESO remains a critical shield against the nation’s social and economic crises—ensuring that no segment of the workforce is left behind amid the rapid transformations of the modern labour landscape." - July 17, 2025
