Social Security in Malaysia: Stock-Take on Players, Availablec Products and Databases

Social Security Research Centre, SSRN Working Paper Series No. 2014-2

64 Pages Posted: 21 Apr 2016

See all articles by Norma Mansor

Norma Mansor

University of Malaya

Sharifah Nabilah Syed Salleh

Independent

Lih-Yoong Tan

University of Malaya (UM)

Evangelos Koutronas

Universiti Sains Malaysia

Sarala Aikanathan

University of Malaya (UM)

Date Written: September 18, 2014

Abstract

The main aim of this article is to provide an overview of social security in Malaysia. The focus is on relevant services, players and databases in the country. The development of social security in Malaysia is captured in Malaysia’s Five Year Development plans with a twin goal of achieving good growth and equitable development. Hence, social security policies in the more recent development plans were part of the distribution policies. The study uses the ILO’s three-dimensional approach to social protection as a benchmark for analysis. The first dimension refers to the proactive measures to provide social assistance to the non-productive and productive groups in society by ensuring access to basic essential goods and services. The basic protection floor has improved over the years with programmes targeted at equitable development and inclusive growth as seen in the NEM and the 10th MP. The second dimension refers to the social insurance system to prevent or at least mitigate the impact of risks borne by society. The four main schemes such as pension for civil servants, the LTAT, the EPF, and SOCSO have contributed to a relatively higher score for Malaysia (same income group), in the Social Protection Index (SPI) introduced by the ADB (2003). However, post-1997 Asian Financial Crisis saw social security policies beginning to incorporate labour market programmes, the third dimension of the ILO’s framework which aims at promoting the potentials and opportunities for individuals to contribute positively to society. Several agencies that are accountable to different authorities are responsible for the programmes. Yet, there is no effective coordination; in other words, no supreme body to oversee the products of social security and to link them all to meet the national framework and policy. The absence of an overarching social policy is not helping either. All social protection service providers and government agencies collect data and information in order to support their own programmes. As a result, the single-user data collection remains isolated with no mega-database as an interface among social security providers.

Keywords: social security, Government expenditures, Health, Education, Welfare Programs

JEL Classification: H51, H52, H53, H55

Suggested Citation

Mansor, Norma and Syed Salleh, Sharifah Nabilah and Tan, Lih-Yoong and Koutronas, Evangelos and Aikanathan, Sarala, Social Security in Malaysia: Stock-Take on Players, Availablec Products and Databases (September 18, 2014). Social Security Research Centre, SSRN Working Paper Series No. 2014-2. Available at SSRN: https://ssrn.com/abstract=2766851 or http://dx.doi.org/10.2139/ssrn.2766851

Norma Mansor

University of Malaya ( email )

Faculty of Economics and Administration Building
Kuala Lumpur, 50603
Malaysia

Sharifah Nabilah Syed Salleh

Independent ( email )

No Address Available

Lih-Yoong Tan

University of Malaya (UM) ( email )

Kuala Lumpur, Wilayah Persekutuan 50603
University of Malaya (UM)
Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia

Evangelos Koutronas (Contact Author)

Universiti Sains Malaysia ( email )

Minden, Penang
Malaysia

Sarala Aikanathan

University of Malaya (UM) ( email )

Kuala Lumpur, Wilayah Persekutuan 50603
University of Malaya (UM)
Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia

Register to save articles to
your library

Register

Paper statistics

Downloads
41
Abstract Views
313
PlumX Metrics