Covid-19: a preliminary assessment on the social security framework for an aged Malaysia

Abstract

Covid-19 had created not only a health crisis but also a social and economic crisis. The need to control the pandemic forced the Malaysian Government to impose partial lockdown, disrupting the economic sector, resulting in hardship on the vulnerable groups. This pandemic allows the country’s social security framework to provide assistance. To ensure the vulnerable groups are continued to be protected, the government had rolled out various assistance. This article examined the existing social security framework in responding to the pandemic. It also attempted to assess the said response in order to understand the effectiveness of the social security framework.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 Ben Hu, Xingyi Ge, Lin-Fa Wang and Zhengli Shi, ‘Bat Origin of Human Coronaviruses,’ (2015) 12 Virology Journal 221, DOI 10.1186/s12985-015-0422-1, <https://virologyj.biomedcentral.com/track/pdf/10.1186/s12985-015-0422-1> accessed 4 April 2020.

2 https://www.worldometers.info/coronavirus/country/china/ accessed 5 April 2020. The virus infected 81,285 people in China with 3,287 death.

3 https://covid19.who.int/?gclid=CjwKCAjwrvv3BRAJEiwAhwOdMwO7J9EHzJiaWfONlDjmSEzcPSBTAd6NRApJ57naMWo7lGsmF3O3AxoCc34QAvD_BwE accessed 3 July 2020.

4 The Prime Minister’s Special Message on Covid-19-16 March 2020, The Prime Minister’s Office at <https://www.pmo.gov.my/2020/03/perutusan-khas-yab-perdana-menteri-mengenai-covid-19-16-mac-2020/> accessed 26 March 2020.

5 P.U.(A) 136/2020 Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) (No. 5) Regulations 2020 <http://www.federalgazette.agc.gov.my/outputp/PUA1362020.pdf> accessed 2 June 2020; P.U.(A) 147/2020 Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) (No. 6) Regulations 2020 <http://www.federalgazette.agc.gov.my/outputp/pua_20200513_PUA147_2020.pdf> accessed 2 June 2020; P.U.(A) 170/2020 Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) (No. 6)(Amendment) Regulations 2020 <http://www.federalgazette.agc.gov.my/outputp/pua_20200522_P.U.%20(A)%20170.pdf> accessed 2 June 2020.

6 P.U.(A) 181/2020 Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) (No. 7) Regulations 2020 <http://www.federalgazette.agc.gov.my/outputp/pua_20200610_PUA181.pdf> accessed 12 June 2020); P.U.(A) 195/2020 Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) (No.7)(Amendment) Regulations 2020 <http://www.federalgazette.agc.gov.my/outputp/pua_20200630_PUA195.pdf> accessed 12 June 2020.

7 https://www.outbreak.my/ accessed 4 July 2020.

8 Prevention and Control of Infectious Disease Act 1988 (Act 342).

9 Police Act 1987 (Act 344).

10 P.U.(A) 91/2020 Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) Regulations 2020 <http://www.federalgazette.agc.gov.my/outputp/pua_20200318_PUA91_2020.pdf> accessed 26 March 2020; P.U.(A) 109/2020 Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) (No.2) Regulations 2020 <http://www.federalgazette.agc.gov.my/outputp/PUA103-109.pdf> accessed 7 April 2020; P.U.(A) 112/2020 Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) (No.2)(Amendment) Regulations 2020 <http://www.federalgazette.agc.gov.my/outputp/PUA1122020.pdf> accessed 7 April 2020; P.U.(A) 117/2020 Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) (No.3) Regulations 2020 <http://www.federalgazette.agc.gov.my/outputp/PUA116-1182020.pdf> accessed 20 April 2020; P.U.(A) 133/2020 Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) (No. 4) Regulations 2020 <http://www.federalgazette.agc.gov.my/outputp/PUA126-1342020A.pdf> accessed 28 April 2020.

11 Regulation 3 of the Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) 2020; Regulation 3 of the P.U.(A) 109/2020 Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) (No.2) Regulations 2020; Regulation 3 of the P.U.(A) 109/2020 Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) (No.3) Regulations 2020; Regulation 3 of the Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) (No. 4) Regulations 2020.

12 Ibid. The reasons, among others, are (a) to perform any official duty; (b) to perform any essential services as stipulated in the Schedule; (c) to purchase, supply or deliver food, daily necessities, medicine or dietary supplement; (d) to seek healthcare or medical services; (e) to procure any essential services other than those mentioned in (a); and (e) any other special purposes or reasons as may be permitted by the Director General of Health or the Police Officer in charge of the police station.

13 Ibid, Regulation 3(4).

14 P.U.(A) 109/2020 Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) (No.2) Regulations 2020 <http://www.federalgazette.agc.gov.my/outputp/PUA103-109.pdf> accessed 7 April 2020.

15 Ibid., Regulation 4.

16 Ibid.

17 Ibid., Regulation 2 and the Schedule, the essential services include food, water, energy, Communication and internet, security and defence, solild waste and public cleansing management and sewerage, healthcare and medical including dietary supplement, banking and finance, E-commerce and Logistics confined to the provision of essential services.

18 The Prevention and Control of Infectious Diseases (Measures within Infected Areas) (No. 2) (Amendment) Regulations 2020. The essential services include port, dock and airport services and undertakings, including stevedoring, lighterage, cargo handling, and pilotage, and storing or bulking of commodities, production, refining, storage, supply and distribution of fuel and lubricants; hotel and accommodations; and any services or works determined by the Health Minister as important or critical to public health or safety.

19 P.U.(A) 117/2020 Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) (No.3) Regulations 2020 <http://www.federalgazette.agc.gov.my/outputp/PUA116-1182020.pdf> accessed 20 April 2020.

20 P.U.(A) 133/2020 Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) (No. 4) Regulations 2020 <http://www.federalgazette.agc.gov.my/outputp/PUA126-1342020A.pdf> accessed 28 April 2020.

21 Banking and finance, electricity and energy, fire, port, dock and airport services, postal, prison, services pertaining to fuel and lubricants, healthcare and medical, solid waste management and public cleansing, sewerage, radio and broadcasting communication, transport by air, land and water, telecommunication, water, E-commerce, defense and security, food supply, wild life, immigration and customs, hotel and accommodations and any services or works essential or critical as determined by the Minister.

22 MTUC: Workers face higher risk of retrenchment as MCO extended yet again, Malay Mail, <https://www.malaymail.com/news/malaysia/2020/04/11/mtuc-workers-face-higher-risk-of-retrenchment-as-mco-extended-yet-again/1855638> accessed 11 April 2020; Survey finds 63% of companies may resort to layoffs, retrenchments, The Sun Daily, <https://www.thesundaily.my/home/survey-finds-63-of-companies-may-resort-to-layoffs-retrenchments-GN2294190> accessed 21 April 2020; SOCSO to monitor retrenchment, job loss during COVID-19 crisis, Bernama, <https://www.bernama.com/en/general/news.php?id=1835659> accessed 25 April 2020; 398 employers in Johor seek to lay off, cut workers’ wages during MCO, The Sun Daily, <https://www.thesundaily.my/covid-19/398-employers-in-johor-seek-to-lay-off-cut-workers-wages-during-mco-HC2352687> accessed 30 April 2020.

23 New legislation needed to protect workers: MTUC, The Sun Daily, <https://www.thesundaily.my/home/new-legislation-needed-to-protect-workers-mtuc-MF2337961> accessed 27 April 2020.

24 https://dictionary.cambridge.org/dictionary/learner-english/social-security accessed 26 March 2020.

25 Asian Development Bank, <https://www.adb.org/themes/social-development/social-protection> accessed 26 March 2020.

26 International Labour Organisation, Facts on Social Security, <https://www.ilo.org/wcmsp5/groups/public/—dgreports/—dcomm/documents/publication/wcms_067588.pdf> accessed 26 March 2020.

27 Radduan Yusof, Mohamad Fazli Sabri, The 5 Pillars of the Social Security System for the Aged Malaysian, 6TH International Conference on Public Policy And Social Science (ICOPS 2017) ‘ICOPS 2017: Excelling the Challenge of Change’ 8 TH – 9 TH MARCH 2017 Universiti Teknologi MARA Kedah, Malaysia, <file:///C:/Users/User/Downloads/YusofSabri-2017-The5PillarsoftheSocialSecuritySystemfortheAgedMalaysians2.pdf> accessed 27 March 2020.

28 Habibah Tolos, Peijie Wang, Miao Jhang, and Rory Shand, ‘Retirement System and Pension Reform: A Malaysian Perspective’ (2014) 15(3) International Labour Review 489–502; See also, Kamal Halili Hassan, et. al, A Review of Malaysia’s Private Sector Services Retirement and Pension System, 2015 Istanbul International Academic Conference Proceedings (Istanbul, 7–10 June 2015); See also, Kamal Halili Hassan, Rohani Abdul Rahim, Fariza Ahmad, Tengku Noor Azira Tengku Zainuddin, Rooshida Rahim Merican and Siti Kohlijah Bahari, ‘Retirement Planning Behaviour of Working Individuals and Legal Proposition for New Pension System in Malaysia’ (2016) 9(4) Journal of Politics and Law 43–52.

29 Employees Provident Fund Act 1991 (Act 452)

30 Employment Insurance System Act 2017 (Act 800)

31 List of assistance provided for by the Ministry of Women and Family, at <https://www.kpwkm.gov.my/kpwkm/index.php?r=portal/fullpage&id=WWlWRyt2M0JxZnNsK1JTL1UxYUtXdz09> accessed 27 March 2020. Aside from this, there are other aids given to those who are in need sucha Household living aids (BSH), Back to School aids, MySalam, Government Aids for the people at <https://www.pmo.gov.my/governments-aid-for-the-people/> accessed 1 April 2020.

32 Ibid, The B40 National Protection Scheme or known as mySalam is a national health protection scheme aimed at providing free takaful (equivalent to insurance) health protection to B40 individuals who are also the recipients of the Household Living Aid (BSH) and individuals in the M40 category who earns gross income of less than RM 100,000.00 per year. The BSH recipients who are aged 18 to 55 years and their spouse are qualified for this scheme.

33 Azman Ab Rahman, Mohammad Haji Alias, Syed Mohd Najib Syed Omar, ‘Zakat Institution in Malaysia: Problems and Issues’ (2012) 2(1) Global Journal Al-Thaqafah 35–41, DOI: 10.7187/GJAT122012.02.01, accessed on 27 March 2020.

34 Social Protection Insight, <https://www.kwsp.gov.my/documents/20126/84157b7b-bab0-52ab-ea4e-fe5e1e21fcd5> accessed 27 March 2020.

35 Pensions Act 1980 (Act 227)

36 Employees’ Provident Fund Act 1991 (Act 452)

37 Section 3 of the Pensions Act 1980.

38 Section 43 of the Employees’ Provident Fund Act 1991.

39 Ibid, Section 2.

40 Retirement incentive (i-Saraan) at <https://www.kwsp.gov.my/member/contribution/i-saraan> accessed 30 March 2020.

41 Financial Security for the housewives/i-Suri at <https://www.kwsp.gov.my/member/contribution/insentif-suri> accessed 30 March 2020.

42 Section 54 of the Employees’ Provident Fund Act 1991.

43 Employees’ Social Security Act 1969 (Act 4).

44 Ibid., section 6.

45 Employment Insurance System Act 2017 (Act 800). See Ng Seng Yi, ‘An Overview of the Employment Insurance system Act 2017’ (2018) University of Malaya Law Review, <https://www.umlawreview.com/lex-in-breve/an-overview-of-the-employment-insurance-system-act-2017> accessed 3 April 2020.

46 Ibid., section 3 definition of employee.

47 Ibid., section 6.

48 Ibid., section 34.

49 Ibid., section 35.

50 Ibid., section 36.

51 Ibid., section 37.

52 Ibid., section 44.

53 Part IIIA of the Capital Markets and Services (Private Retirement Scheme Industry) Regulations 2012 and the Guidelines on Private Retirement Schemes.

54 Section 10 of the Pensions Act 1980.

55 Minimum Retirement Age Act 2012 (Act 753).

56 Silver Collar: Retaining and employing the older workforce, <https://www.mycdc.com.my/news/silver-collar-retaining-and-employing-older-workforce> accessed 6 April 2020.

57 Kassim Othman & Satu Lagi v Raja Suzana Raja Kassim & Satu Lagi [2010] 2 Jurnal Hukum 299 (Syariah High Court, Negeri Sembilan); Khalil Ahmad v Kamal Halil [2003] 1 Jurnal Hukum 19 (Syariah High Court, Negeri Sembilan).

58 Section 61 in the Islamic Family Law (Federal Territory) Act 1984, section 61 in the Islamic Family Law (State of Selangor) Enactment 2003, section 61 in the Islamic Family Law (Perak) Enactment 2004, section 61 in Islamic Family Law (Kedah Darul Aman) Enactment 2008, section 60 in Islamic Family Law (State of Perlis) Enactment 2006, section 61 of Islamic Family Law (State of Penang) enactment 2004, section 61 of Islamic Family Law (State of Malacca) Enactment 2002, Clause 61 of the Islamic Family Law (State of Johor) Enactment 2003, section 61 of the Islamic Family Law (State of Pahang) Enactment 2005, section 61 of the Islamic Family Law ( Negeri Sembilan) enactment 2003, section 59 in the Islamic Family Law (State of Terengganu) Enactment 1985, section 61 of the Islamic Family Law (Kelantan)Enactment 2002, section 61 of the Islamic Family Law (Sabah) Enactment 2004 and section 60 in Chapter 43 Islamic (Sarawak) Ordinance 2001.

59 Law Reform (Marriage and Divorce) Act 1976, The Women and Children Maintenance Act 1957.

60 Foo Yuen Wah, ‘Population Ageing and Social Security Challenges of Elderly: A Review of the Social Security Legal Framework in Malaysia’ (LLM thesis, Faculty of Law University Malaya, 2019), 149–154.

61 Imam-Tamim Muhammad Kamaldeen, Sodiq O. Omoola, Najibah Mohd Zin and Shuhada Kamaruddin, ‘Legal rights of Elderly Parents to Maintenance in Malaysia: A Positive Approach’, in Siti Zaharah Jamaluddin et al.(eds), Protecting the Elderly against Abuse and Neglect-Legal Social Strategies (Kuala Lumpur, University of Malaya Press 2017) 97–108; See also, Dina Imam Supaat, ‘Maintenance of Elderly Parents: The Syariah and Legal Perspective,’ in Siti Zaharah Jamaluddin et al. (eds) Protecting the Elderly against Abuse and Neglect-Legal Social Strategies, (Kuala Lumpur, University of Malaya Press 2017) 127–141.

62 Foo Yuen Wah, (n 60) 154–156; See also, Foo Yuen Wah and Siti Zaharah Jamaluddin, ‘Population Ageing and Laws on Social Security in Malaysia: A Preliminary Study,’ in Zulazhar Tahir et al. (eds), Elder Abuse and Neglect in Selected Asian Countries, (Kuala Lumpur, University of Malaya Press 2019) 183–212.

63 Refers to the house hold income of RM 4,360 and below, B40, M40 & T20: What do they even mean?? The Rakyat Post, 8 Jan 2020, <https://www.therakyatpost.com/2020/01/08/b40-m40-t20-what-do-they-even-mean/> accessed 30 March 2020.

64 Amongst others are Kenchara Soup Kitchen, SESO (Save Environment Save Ourselves), The Nasi Lemak Project, Chef on Wheel, Bantu Jiran Kita, The Lost Food Project, Pit Stop Community Café, Persatuan Untuk Anka Kita (PUAK) Payong, and Buku Jalan Chow Kit.

65 Covid-19: FT religious council donates RM12.1mil zakat to help asnaf, The Star, 21 March 2020, <https://www.thestar.com.my/news/nation/2020/03/21/covid-19-ft-religious-council-donates-rm121mil-zakat-to-help-asnaf> accessed 30 March 2020.

66 Edge Weekly, Breaking down the RM250b stimulus package, 28 March 2020, <https://www.theedgemarkets.com/article/breaking-down-rm250b-stimulus-package> accessed 31 March 2020.

67 The Edge Market, Malaysia’s latest stimulus package PENJANA includes childcare incentives, free internet, 5 June 2020, <https://www.theedgemarkets.com/article/malaysias-latest-stimulus-package-penjana-includes-childcare-incentives-free-internet> accessed 6 June 2020.

68 The Edge Market, Stimulus Package 2020, 28 February 2020, <https://www.theedgemarkets.com/stimulus-package-2020> accessed 31 March 2020.

69 Ibid.

70 What is in the 2020 Economic Stimulus Package? [Update], 27 March 2020, <https://www.imoney.my/articles/2020-economic-stimulus-package> accessed 1 April 2020.

71 Ibid.

72 Ibid., Bantuan Sara Hidup (Household Living Aid) is an aid from the Government intended for certain categories of receivers. The aid is given in cash to the receivers who are qualified according to a set of criteria that has been announced by the Government. Besides aid in form of cash, those who are entitled to receive the BSH would also entitled to a ‘Skim Khairat Kematian’ (Death Benefit Scheme), Government Aids for the people <https://www.pmo.gov.my/governments-aid-for-the-people/> accessed 1 April 2020.

73 Edge Weekly, Breaking down the RM250b stimulus package, 28 March 2020, <https://www.theedgemarkets.com/article/breaking-down-rm250b-stimulus-package> accessed 31 March 2020.

74 Ibid.

75 Ibid.

76 Thumbs down for EPF withdrawal proposal, The Sun Daily, 24 March 2020, <https://www.thesundaily.my/local/thumbs-down-for-epf-withdrawal-proposal-ED2173107> accessed 1 April 2020; EPF: Malaysians should not forget their future needs under current crisis, The Edge Markets, 25 April 2020, <https://www.theedgemarkets.com/article/epf-malaysians-should-not-forget-their-future-needs-under-current-crisis> accessed 27 April 2020.

77 These include FELDA settlers, farmers, fishermen, small traders, and all those belonging to the M40 groups and below.

78 Muhyiddin unveils RM250bil economic stimulus package, The Star, 27 March 2020, <https://www.thestar.com.my/news/nation/2020/03/27/muhyiddin-unveils-rm250bil-economic-stimulus-package> accessed3 April 2020.

79 BNM tells banks to grant automatic moratorium on loan repayments by individuals, SMEs, FMT News, 24 March 2020, <https://www.freemalaysiatoday.com/category/nation/2020/03/24/bnm-tells-banks-to-grant-automatic-moratorium-on-loan-repayments-by-individuals-smes/> accessed 3 April 2020.

80 Thomson Hospital Kota Damansara offers drive-through Covid-19 screening, The Malay Mail, 23 March 2020, <https://www.malaymail.com/news/malaysia/2020/03/23/thomson-hospital-kota-damansara-offers-drive-through-covid-19-screening/1849243> accessed 3 April 2020; COVID-19: Nilai Medical Centre becomes 2nd hospital in N9 to offer drive-thru testing, <https://www.soyacincau.com/2020/04/01/nilai-medical-centre-drive-thru-covid-19-test-skg/> accessed 3 April 2020.

81 Two weeks into MCO, health experts say Malaysia still lags behind on Covid-19 testing, The Malay Mail, 2 April 2020, <https://www.malaymail.com/news/malaysia/2020/04/02/two-weeks-into-mco-health-experts-say-malaysia-still-lags-behind-on-covid-1/1852600> accessed 3 April 2020.

82 PENJANA, Building the Economy Together, Ministry of Finance Malaysia, <https://penjana.treasury.gov.my/pdf/PENJANA-Booklet-En.pdf> accessed 15 June 2020.

83 This incentive takes effect on 1st June 2020.

84 This incentive takes effect on 1st July 2020.

85 Social Protection Insight, <https://www.kwsp.gov.my/documents/20126/84157b7b-bab0-52ab-ea4e-fe5e1e21fcd5> accessed 6 April 2020.

86 Pros and cons to lowering EPF contribution rates, The Star, 23 February 2020, <https://www.thestar.com.my/news/focus/2020/02/23/pros-and-cons-to-lowering-epf-contribution-rates> accessed 3 April 2020.

87 As EPF accounts run dry, gov’t urged to rethink i-Lestari scheme, New Straits Times, 19 June 2020, <https://www.nst.com.my/news/nation/2020/06/601803/epf-accounts-run-dry-govt-urged-rethink-i-lestari-scheme> accessed 20 June 2020.

88 KWSP website <https://www.kwsp.gov.my/-/epf-sets-rm228-000-as-minimum-target-savings-at-age-55> accessed 3 April 2020.

89 Long-term challenges in retirement planning, The Edge Markets, 18 July 2019, <https://www.theedgemarkets.com/article/longterm-challenges-retirement-planning> accessed 3 April 2020.

90 The recession is much worse than the IMF expected and the hit to jobs ‘catastrophic’, CNN, 24 June 2020, <https://edition.cnn.com/2020/06/24/economy/imf-economic-outlook/index.html> accessed 27 June 2020.

91 Is it a concern that Malaysians are saving less now?, The Edge Markets, 22 October 2018, <https://www.theedgemarkets.com/article/it-concern-malaysians-are-saving-less-now> accessed 3 April 2020.

Additional information

Notes on contributors

Siti Zaharah Jamaluddin

Siti Zaharah Jamaluddin is an Associate Professor at the Faculty of Law, Multimedia University, Melaka, Malaysia. Her areas of research include elderly and the law, labour law, family and children issues. She has published books and articles.

Foo Yuen Wah

Foo Yuen Wah obtained both the Bachelor of Laws and Master of Laws from the University of Malaya, Malaysia. She was admitted as an Advocate & Solicitor of the High Court of Malaya in 2015. Her research interests include law and society, elder law, labour law and social protection.

Mohammad Abu Taher

Mohammad Abu Taher is an Assistant Professor at the Dept. of Law & Justice, Southeast University, Dhaka, Bangladesh. He did his PhD in 2015 under the Faculty of Law, University of Malaya, Kuala Lumpur, Malaysia. His areas of research include child rights, elder law and social protection.