Expanding Perkeso coverage to Malaysians working abroad is a progressive move to strengthen social safety nets for cross-border workers, experts say.
KUALA LUMPUR: The initiative to expand the coverage of the Social Security Organisation (PERKESO) to Malaysians working abroad is considered a progressive step in strengthening the social safety net, especially for cross-border workers in the event of a disaster.
Universiti Kebangsaan Malaysia (UKM) senior lecturer at the Centre for Development, Social and Environmental Studies (SEEDS), Faculty of Social Sciences and Humanities, Prof Dr Novel Lyndon said that focusing on cross-border workers between Malaysia and Singapore is appropriate, considering the risks they face, especially for those who commute daily using their own vehicles.
He said this expansion is expected to provide comprehensive protection that is not offered by foreign employers or regular commercial insurance, while ensuring the welfare of families at home is maintained if the main source of income is affected by an accident abroad.
“In principle, this is a progressive step. All this time, there has been a ‘black hole’ (protection gap) for our citizens working abroad who also contribute to the national economy through the inflow of foreign currency,” he told Bernama.
However, a coordination mechanism between PERKESO and foreign agencies such as the police or hospitals in Singapore needs to be established to facilitate the accident verification process and avoid claim delays.
Meanwhile, Novel said the government also needs to build an integrative database to verify the employment status of Malaysians abroad, thereby preventing any abuse of the scheme.
“This effort is a much-needed ‘safety net’. Although it may add a slight monthly financial commitment for employees, its long-term benefits, especially the protection for next of kin, are something that should not be underestimated.
“The key to the success of this protection lies in the ease of registration and the speed of the claims process. If the process is cumbersome, this noble goal may not achieve a high participation target,” he said.
Meanwhile, Universiti Malaysia Kelantan (UMK) Professor of Human Resource Management and Industrial Relations, Faculty of Entrepreneurship and Business, Prof Dr P. Balakrishnan said the proposal to expand protection is a good initiative and reflects the government’s concern in protecting Malaysian workers abroad.
However, he emphasised that the main challenge lies in the workers’ willingness to contribute, especially in an uncertain economic situation, even though such protection is greatly needed.
In this regard, Balakrishnan proposed that a comprehensive study be conducted with the involvement of industry practitioners and academics in the field of human resources to ensure the successful implementation of the initiative.
At the same time, Balakrishnan also expressed appreciation to Prime Minister Datuk Seri Anwar Ibrahim for considering the views of academics to focus on the sustainability of the micro and small industries.
At the same time, at the national-level Workers’ Day 2026 celebration yesterday, the Prime Minister announced that the Self-Employment Social Security Act 2017 will be amended to extend PERKESO’s protection to Malaysians working abroad, starting with cross-border workers between Malaysia and Singapore, and it is expected to benefit more than 480,000 workers earning a living across the Johor Causeway.
