COMPANIES found to have fraudulently claimed incentives under the Social Security Organisation's (SOCSO) Daya Kerjaya 2.0 programme must face firm legal consequences, following revelations that alleged false claims involving 1,638 companies may have caused losses of approximately RM45 million, Tan Sri Lee Lam Thye said.
The Alliance for a Safe Community chairman described the allegations disclosed by the Malaysian Anti-Corruption Commission (MACC) as a serious abuse of public funds, stressing that the wage incentive programme was established to preserve jobs, encourage recruitment and accelerate Malaysia's post-pandemic economic recovery.
"If these allegations are proven, this would constitute a serious abuse of public funds and a betrayal of the trust placed in employers who are expected to act responsibly when benefiting from government assistance programmes," he said.
Lee said the alleged RM45 million lost through fraudulent claims could have been channelled towards creating employment opportunities, supporting legitimate businesses, strengthening social protection measures and improving the welfare of Malaysian workers.
"Every ringgit lost through fraud ultimately deprives deserving beneficiaries of assistance intended for them," he added.
He stressed that the case underscored the importance of maintaining the highest standards of integrity, accountability and transparency in managing public funds, noting that SOCSO programmes are financed through contributions and government resources intended to benefit genuine employers and employees.
Lee expressed full support for the ongoing investigations by the MACC and other enforcement agencies, urging prosecutors to pursue those found to have knowingly submitted false claims, falsified documents or engaged in fraudulent activities without fear or favour.
"There must be no compromise when it comes to safeguarding public funds," he said.
He also called on government agencies responsible for administering financial assistance and incentive schemes to strengthen safeguards against abuse through stricter verification and screening procedures before claims are approved.
Among the reforms proposed were enhanced data sharing between SOCSO and agencies including the Employees Provident Fund (EPF), the Inland Revenue Board (LHDN), the Companies Commission of Malaysia (SSM) and the National Registration Department (JPN), together with more frequent audits and compliance checks.
Lee further recommended deploying advanced data analytics and artificial intelligence to identify suspicious claims, strengthening internal control and risk management systems, providing greater protection for whistleblowers, blacklisting companies convicted of fraud from future government incentive programmes and recovering funds obtained through false claims.
He said preventing corruption and fraud required a collective commitment from employers, employees, government agencies, professional bodies and the wider public.
"As Malaysia continues its efforts to strengthen economic growth and social protection, it is imperative that public resources are managed prudently and protected from abuse," he said.
Lee urged the authorities to conduct a comprehensive investigation, ensure all responsible parties are held accountable and review existing safeguards to prevent similar abuses from recurring. - June 21, 2026
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