Malaysia needs better social security benefits
In this write-up by Ravindran Raman Kutty – an awardwinning communications practitioner and a fellow of the Institute of Public Relations Malaysia – he talks about Socso’s role in providing social security benefits to Malaysians. KUALA LUMPUR: Social Security is a form of protection provided to individuals and households to ensure access to health care and guarantee income security, particularly in cases involving old age, unemployment, illness, invalidity, work injury, maternity issues or loss of a breadwinner.
Social security prevents employees and their dependents from falling into poverty and destitution.
In Malaysia, the provision of social security varies considerably among the people, depending on which sector they work in. For government employees, social security is taken care of reasonably well by the various government agencies that are well managed by the Public Service Department.
For those in the private sector, social security is provided by various parties namely employers, Employees Provident Fund (EPF), Social Security Organisation (Socso) and certain non-governmental organisations.
Although EPF and Socso are among the key providers of social security, one cannot discount the critical role played by federal- and state-level ministries and government departments that support and provide various services.
The Ministry of Finance (MOF) offers support in terms of economic and financial aid.
The Ministry of Health (MOH) heavily subsidises medical and health care and conducts research into the prevention of diseases, whilst collaborating with the Ministry of Human Resources and Ministry of Transport in terms of occupational safety and health, as well as road safety.
Other departments and agencies, including the welfare and religious departments, also play their respective role in providing social security for the rakyat.
However, lately, it has become rather clear that the responsibilities and main purpose of Socso are overlapping or clashing with that of other departments and agencies that have been set up with similar if not the exact functions and intentions in fulfilling the needs of the people.
In 1969, due to the weaknesses in the Workmen’s Compensation Act 1952, Parliament passed the Employees Social Security Act (ESSA) to address the needs of injured workers. Certain provisions were made mandatory, including: Medical care (Section 37) Temporary and permanent disablement benefit (Section 22) Invalidity pension and grant (Sections 17, 20, 21) Survivors’ pension (Section 20A) Dependents’ benefits (Section 26) Funeral benefits (Section 29) ESSA also provides optional benefits such as: Physical rehabilitation (Section 57) Provisions of prostheses Orthotics Medical aide (Section 57) Vocational training (Section 57) Peritoneal/Hemodialysis Dialysis and Implants (Section 57) Holding of properties (Section 74) Investment (Section 75)
These provisions seem impressive at a glance but maternity benefits and old age pension – two vital and muchneeded components of social security – are somewhat missing from the list.
With more women joining the workforce, maternity benefits should be a top priority, while old age pension is also a must to care for those who have served the nation for decades. Both of these provisions can be implemented easily if there is effective collaboration among Socso, EPF, MOF and the Ministry of Women, Family and Community Development.
Questions have been raised regarding some of the functions and practices of Socso. Over the past decade, Socso has given much importance to optional functions such as ‘dialysis rehabilitation’ when, in fact, this is the responsibility of MOH.
Socso also undertakes the health screening programme, which is again a function of MOH. Socso’s dabbling in occupational safety and health matters overlaps with the primary functions of the Occupational Safety and Health Department under the Ministry of Human Resources.
Promotional activities on road safety are primarily a function of the Road Safety Department and yet Socso is relegated to duplicating these functions.
The Tun Abdul Razak Socso Rehabilitation Centre in Melaka boasts state-of-the-art facilities but its performance has yet to be evaluated after being in existence for several years.
How many Socso contributors have been successfully rehabilitated and gainfully employed or living independently with dignity?
How much money has Sosco productively saved by sending contributors to this rehabilitation centre? What is the costeffectiveness of this venture?
Socso has been in existence for the past 46 years. With the exception of the Self-Employed Employment Injury Scheme for taxi drivers that was introduced last year and Employment Insurance Scheme for retrenched workers which came into effect this year, Socso has been ‘wallowing’ in just two schemes all these years, accumulating about RM24 billion along the way.
Socso has to come up with holistic social security schemes for the benefit of private-sector employees and their families especially after they retire.
Socso should also look into and focus its energies on providing the mandatory services to its contributors as provided by the law, with the support of/and working together with the primary providers of these services. If the stakeholders feel that the optional functions are more important, then the Act should be amended accordingly.
Socso should think carefully before venturing into investments. The organisation has gone into multimillion ringgit property projects of late – a wrong move, in my humble opinion. Socso should not venture into investments but instead, stick to its main purpose which is to provide social security for the people.
I wonder if there have been other deals which are not privy to the public. Public accountability is paramount in the operations of Socso. Evidence of Socso’s ineffective services was made known to me recently.
A good friend of mine lost her husband who was lecturing at a college in Ipoh. He was actually standing in for another lecturer who was on medical leave. While in class, he collapsed and later passed away on his way to Kuala Lumpur. His wife, a mother of three children, approached Socso to obtain some form of social support or compensation but was told that heart attack was not linked to the occupation of the victim.
I wonder if the officials in Socso understand the meaning of ‘employment injury’ in the Social Security context – or are they thinking of the concept of ‘sphere of employment’ in his case.
Socso is being hard on their contributors but seems to take the ‘easy’ approach when it comes to investing the contributors’ money and spending on optional benefits. I have observed that the secretariats of Socso’s Medical Board and Appellate Medical Board are placed under the purview of the Medical and Rehabilitative Department while the secretariat to the Appellate Social Security Board is placed under the Legal Department.
It would be better if these secretariats are placed under the purview of the relevant minister’s office.
Schedule 9, Item 14 of the Federal Constitution states that the government has to provide health care for every citizen. Socso and EPF should not be used for health or medical purposes as in the present form.
The EPF and Socso should be merged so that a healthcare fund, pension fund and workmen’s compensation fund can be created for every citizen in the country. Better still, a good social security fund or organisation that offers all the elements of social security. Every child born has a birth certificate, likewise, every child must also have a pension fund account opened the day he or she is born.
It should be a service-based fund which must be reviewed from time to time and its funds can be generated from employers, employees and also the government.
The merger between EPF and Socso should also look into a value-based fund that can provide pensions irrespective of the monthly income and guaranteed by the government.
The scheme should cover all sicknesses irrespective of whether it is work-related or otherwise; cover all accidents 24 hours, seven days a week; protect the small- and mediumscale industry workers, farmers, fishermen, the Orang Ali communities; and cover workers in the informal sectors.
Socso must join hands with EPF to provide a statesponsored, supervised and managed pension and healthcare scheme for all members and, after their death, their immediate family members. Socso has not carried out its social security function properly although its accumulation of funds is an indication of its sustainability as per its actuarial principles.
Socso currently offers medical benefits but these are restricted by the laws. The child-care plan must also be improved and studied. Children who are born with congenital defects or are physically incapacitated are not covered under any plan and this is a serious issue for parents who have such children.
I certainly feel that Socso should accord priority to its core functions of truly caring for the subscribers and follow the provisions of the law to provide and enhance social security for its members.
Let us focus on how to provide better benefits to the subscribers. These include a lifelong retirement plan, wellequipped retirement homes at low cost and enabling stressrelated illnesses to qualify for Socso claims. — Bernama