Yii highlighted the changing nature of work, where boundaries are no longer confined to traditional working hours and locations.
KUALA LUMPUR: A comprehensive accident protection scheme that extends beyond work-related incidents is needed to address the rising costs associated with accidents, Kuching MP Dr Kelvin Yii Lee Wuen proposed.
“I would like to take this opportunity to highlight a gap that still exists, which concerns workers who are not covered outside of working hours and the sustainability of expenses due to the increasingly high and worrying costs of accidents,” Yii said during the Dewan Rakyat sitting on Monday.
Yii shared that there is a significant gap in Malaysia’s current worker protection framework, which only covers accidents occurring during working hours or activities classified as work- related incidents.
He pointed out that this leaves many workers vulnerable, as they are not protected outside of working hours or places of employment.
“In 2023, a total of 63,199 cases of disability and invalidity were reported to the Social Security Organisation (PERKESO), with 50% or 31,000 cases resulting from road or home accidents,” Yii said.
In 2023, 82,876 accidents were reported to PERKESO, but only 68,220 were accepted as work-related incidents.
“This means 18% or 14,000 of these applications were not accepted as work-related incidents, leaving these workers without the necessary protection and assistance they truly needed,” he said.
Yii suggested that a comprehensive non-work-related accident protection scheme, equivalent to the existing PERKESO scheme, could fill this gap.
He stressed the importance of policymakers considering the sustainability of such social insurance policies to provide the best protection without imposing unreasonable financial burdens.
Citing the Malaysia National Health Accounts Health Expenditure Report 2011-2021, he emphasised that health expenditure had reached RM78.22bil. The estimated expenditure for accidents alone, which might be claimed by workers, could reach RM378mil annually.
Meanwhile, he explained that for welfare purposes, the Madani government has transformed the Social Welfare department (JKM) aid scheme, which provides financial assistance to disabled workers amounting to RM450 per month, resulting in an overall cost of RM217.5mil per year financed by tax revenue.
“Most of these costs are due to accidents experienced by workers, and it can be said that both costs can reach RM595.6mil,” said Yii.
“This does not yet take into account the rising costs of invalidity due to health issues and non-communicable diseases (NCDs), which we know are increasing; PERKESO’s expenditure for dialysis last year was RM356.31mil, and we see an increasing trend every year.”
Yii proposed a shift from tax-based financing to social insurance schemes, reflecting global best practices. He mentioned countries like Germany and Japan, which have long-established social insurance systems funded by contributions from both employers and workers. He shared that China and Indonesia have begun adopting similar models, ensuring more stable funding sources for their social programmes.
Citing the International Labour Organisation (ILO), he said this could help to reduce fiscal pressure on governments and promote a fairer distribution of social protection costs.
“Therefore, I believe Malaysia should also move in this direction based on best practices and the concept of shared responsibility to create a sustainable system to address costs arising from accidents. For instance, extending protection from just working hours to 24-hour coverage could be achieved by a minor increase in contributions.
“A worker earning RM2,000 would only need to contribute an additional RM15, which could provide them with extensive benefits including medical, temporary disability and permanent disability benefits, with a pension of RM1,072.50 per month.
This additional contribution, he pointed out, offers far better and more comprehensive protection for contributors, regardless of when or where an accident occurs.
Yii emphasised that in the long run, such a scheme could save the government money as hospital and welfare expenses for these contributors would be funded by PERKESO.
He highlighted the changing nature of work, where boundaries are no longer confined to traditional working hours and locations, reinforcing the need for an updated and more inclusive social protection system.
Echoing Yii’s sentiments, MP for Sungai Siput, S. Kesavan, supported the Human Resources Ministry (Kesuma) call for expanded protection, emphasising the importance of increasing the PERKESO’s salary ceiling for workers from RM5,000 to RM6,000.
Kesavan stressed that social protection outside of working hours is crucial for providing income security and reducing poverty among injured workers.
“Without adequate protection, workers who suffer serious injuries outside of working hours may face difficulties in covering medical costs and daily needs, potentially leading to poverty.
“Social protection outside of working hours not only enhances productivity and fosters loyalty among workers but is also crucial for fostering a fair and prosperous society.
“By ensuring access to social protection, regardless of occupation or socioeconomic status, we can reduce inequality and enhance societal well-being,” Kesavan elaborated, highlighting the importance of expanding the system to prevent marginalisation and promote a brighter future for all workers.
He also referenced calls from the Malaysian Trades Union Congress (MTUC) for the introduction of a non-work-related accident scheme.
“I hope Kesuma will take immediate action to realise this scheme for the benefit of all workers in the country.”
