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With support from the European Union and ILO, the move aims to strengthen employment outcomes, support business continuity, and enhance national workforce sustainability.
Malaysia is hoping to chart its next steps in widening social protection for foreign workers. At a workshop held in Kuala Lumpur on 17 June 2025, stakeholders from across government, employer and worker groups, the European Union (EU), and UN agencies gathered to discuss the future of inclusive labour protections. Organised by the International Labour Organization (ILO) with EU backing, the event spotlighted Malaysia’s progress and the opportunities ahead.
The workshop was organised with the support of the Ensuring Decent Work and Reducing Vulnerabilities for Women and Children in the Context of Labour Migration in Southeast Asia (PROTECT) and the Ship to Shore Rights South-East Asia: Safe migration for decent work in the blue economy (S2SR) projects which are both funded by the EU.
During the event, Malaysia's Social Security Organisation (PERKESO) reported that its social security coverage now includes more than 85% of legally registered foreign workers. The discussions focused on practical approaches to further expand coverage under both existing and new schemes, especially for hard-to-reach groups such as domestic workers and fishers.
Speaking at the opening ceremony, Edmund Cheong, Deputy Chief Executive (Strategic and Corporate), PERKESO, emphasised that actuarial valuation work carried out under the ILO PERKESO actuarial project highlighted the financial benefits of extension of coverage and positive impacts of adequacy improvements of PERKESO schemes.
He said: “Since July 2024, foreign workers have been covered under the invalidity and survivors’ scheme managed by PERKESO. This very welcome development was able to build on the clear and documented positive outcome of their inclusion under the Employment Injury scheme from 2019."
Simon Brimblecombe, Chief Technical Adviser and Manager of the ILO PERKESO project added that, “Whilst challenges remain in further increasing foreign worker coverage in PERKESO schemes, as Malaysia’s population ages, the financial and labour market case to do so is clear. The ILO congratulates PERKESO and the Government of Malaysia on the positive measures taken in recent years which show what can be done and the benefits to the country.”
Joanna Wasiewska, First Counsellor at the EU Delegation to Malaysia, pointed out the opportunities for extending social security coverage to foreign workers: “Malaysia has made major progress in extending social security coverage to its foreign workforce in recent years. However, many workers are still unable to fully benefit due to practical barriers.
"Establishing effective monitoring and enforcement mechanisms, as well as providing accessible information to hard-to-reach groups such as domestic workers, fishers and their employers on social security rights can help to ensure these workers are not left behind.”
READ MORE: PERKESO and foodpanda Malaysia sign MoU to strengthen social protection for gig workers
Lead image / ILO
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