Kuala lumpur: The Malaysian Employers Federation (MEF) has called for the SOCSO (Amendment) Act 2025 to be implemented in a balanced and sustainable manner despite the significant improvements it introduces, including 24-hour coverage, enhanced benefits, and new mobility and training support for employees. MEF president Datuk Dr Syed Hussain Syed Husman emphasized the importance of a practical rollout to avoid unintended implications for both employers and employees.

According to BERNAMA News Agency, the enhancements must be supported by transparent financial planning and efficient implementation mechanisms to ensure confidence in the system. Syed Hussain highlighted the critical need for the long-term sustainability of the SOCSO (PERKESO) funds as benefits expand. Employers and employees need assurance that the enhanced protection is financially sound, actuarially justified, and supported by clear guidelines to prevent misuse.

Syed Hussain also stressed the necessity for clear claim guidelines and verification procedures to curb moral hazards, particularly noting the major shift in PERKESO's coverage framework with the extension of protection to non-work-related accidents. Although employer contribution rates remain unchanged, he pointed out the need for transparency on the actuarial basis for increased employee contributions, along with a gradual and well-communicated implementation timeline to minimize the impact on workers.

Contribution increases must be justified with clear data, ensuring that employees understand the necessity of adjustments and how they contribute to the system's long-term resilience. While welcoming the introduction of mobility allowances and expanded training support, Syed Hussain emphasized that such programs must align with actual industry needs and prioritize high-impact, industry-relevant skills that help Malaysians secure better jobs. He also noted the importance of employer involvement in shaping these programs.

Though the amendments do not increase business costs, employers are expected to face a higher administrative workload, updated human resource processes, and potential disputes without clear definitions of non-employment-related injuries. Consequently, MEF urged the government and PERKESO to strengthen engagement with employers, provide adequate training, and enhance digital support systems to ensure the smooth implementation of the amendments.