Mavcom executive chairman Datuk Seri Saripuddin Kasim
KUALA LUMPUR: Only a small number of companies have failed to make statutory payments to the Social Security Organisation (Socso) post the Covid-19 pandemic, says the Malaysian Aviation Commission (Mavcom).
Its executive chairman Datuk Seri Saripuddin Kasim said compliance with statutory obligations to Socso by aviation service providers on behalf of their employees is a key licensing condition.
“The misconduct or default is not rampant. Before a licence is issued or renewed to any aviation company, statutory contributions to the Employees Provident Fund and Socso is one of the areas we look at.
“We found that some aviation companies failed to make contributions to Socso, especially post-pandemic.
“However, this does not necessarily mean that we will not renew their licences, as we also look at other aspects like the financial health and prospects of a company,” he told reporters at the signing of a memorandum of understanding (MoU) between Mavcom and Socso yesterday.
Saripuddin said the new partnership will enable better information exchange on aviation service providers’ statutory obligations to Socso, which is crucial for evaluating licences and ensuring industry compliance.
This collaboration, Mavcom’s first engagement with statutory bodies, may expedite enforcement procedures, enabling immediate investigations into non-compliance among its licence and permit holders.
In return, Socso aims to develop an end-to-end ecosystem for employability, placements and internships in the aviation industry, leveraging its established MYFutureJobs Portal and Active Labour Market Programmes.
Saripuddin noted that the aviation industry is currently facing a shortage of pilots and licensed aircraft engineers.
Meanwhile, Socso group chief executive officer Datuk Seri Mohammed Azman Aziz Mohammed said the defaults occurred during the pandemic as companies sought to reduce costs.
“However, the issue persists post-pandemic as some may not have prioritised making the necessary contributions,” he said.
Mohammed Azman noted that the MoU will reinforce compliance under three crucial legislative frameworks.
The Employees’ Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800) ensure comprehensive protection and fair contributions for all licence holders within the aviation sector.
Additionally, the Malaysian Aviation Commission Act 2015 (Act 771) provides for the licensing conditions for aviation service providers in Malaysia.
“With Mavcom as our strategic partner, we hope to foster more opportunities for local talent.
“This collaboration prioritises the utilisation of skilled Malaysians to fill critical roles, reducing dependency on foreign labour,” he said.
As of Dec 13, 2024, a total of 280 job loss claims were approved by Socso, with total benefits amounting to RM3.02mil.
During the pandemic, Socso disbursed RM20.3bil through the Wage Subsidy Programme to assist 357,520 employers, helping to retain 2.95 million local workers and reduce unemployment in the country.
Mohammed Azman said Socso helped more than 800 aviation employees retain their jobs during the pandemic, granting over RM13mil through the Wage Subsidy Programme.
