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FMM PRESS STATEMENT: FMM Welcomes Passing of Social Protection Reforms, Calls for Transparency, Sustainability and Practical Implementation

December 3, 2025
Head Office, KL

Kuala Lumpur, December 3, 2025 — The Federation of Malaysian Manufacturing (FMM) welcomes the passing of the amendments to the Employees’ Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800) in the Dewan Rakyat yesterday, describing it as an important milestone in strengthening Malaysia’s social protection landscape under the MADANI Government.

FMM is of the view the introduction of the Non-Employment Injury Scheme (Skim Kemalangan Bukan Bencana Kerja – SKBBK), which extends 24-hour nationwide protection to more than 9.6 million workers, including foreign workers, represents a major reform addressing long-standing gaps that leave many employees unprotected when accidents occur outside working hours.

In its engagements with the Ministry of Human Resources, FMM has conveyed that the reforms are timely and necessary to close long-standing gaps in Malaysia’s social protection system, provided they are implemented transparently, sustainably and with clear operational guidance for employers.

FMM supports the reforms while stressing the importance of transparent contribution mechanisms and affordability for lower-income groups, noting that sustainable financing is essential to the long-term viability of the scheme.

On the amendments to the Employment Insurance System (EIS), FMM welcomes the strengthened benefits, including higher early re-employment allowance (EBSA), increased training fee ceilings, improved training allowances and an enhanced Mobility Assistance Allowance, noting that these measures reinforce Malaysia’s Active Labour Market Policies (ALMP) and support more effective reskilling, upskilling and job matching.

At the same time, FMM stresses that any benefit enhancements must be complemented by prudent financial management, regular utilisation reviews and continuous engagement with employers to safeguard long-term fund sustainability.

However, FMM expresses its concern over the proposed new Part VIa of Act 800, noting that the requirement to notify vacancies is an administrative responsibility. As such, FMM believes it should not be subject to punitive fines. Instead, compliance should be supported through sanction-based or administrative measures, as practised in many other countries with mature active labour–market systems.

FMM therefore urges the Ministry to reconsider the imposition of financial penalties and instead explore non-punitive compliance mechanisms. The federation also seeks further clarity on practical implementation, particularly relating to confidential or urgent hiring needs, duplication with employers’ existing recruitment systems and the implications for businesses with high-volume recruitment cycles.

As the reforms move toward implementation, FMM highlights the importance of clear guidelines, practical timelines and phased rollout mechanisms, where required, to ensure smooth and effective compliance by employers across industries.

FMM is of the view that both amendment Bills reflect the Government’s commitment to strengthening worker protection and enhancing Malaysia’s labour-market resilience. With transparent implementation, strong governance and continuous engagement, these reforms support a more confident, productive and future-ready workforce while reinforcing Malaysia’s industrial competitiveness.
Tan Sri Dato’ Soh Thian Lai
President, Federation of Malaysian Manufacturing

FMM Advocates Transparency, Integrity, Accountability and No Corruption


About FMM
The Federation of Malaysian Manufacturing (FMM) (formerly known as Federation of Malaysian Manufacturers) has been the voice of the Malaysian manufacturing sector since 1968, advocating policies and initiatives that drive industrial growth, competitiveness and workforce development. Representing over 13,300 member companies (4,200 direct and 9,100 indirect) from the manufacturing supply chain, FMM is actively engaged with government and its key agencies at Federal, State and local levels. FMM is also well-linked with international organisations, Malaysian businesses and civil society. Apart from benefitting from FMM’s advocacy, FMM members enjoy value-added services including training, business
networking and trade opportunities as well as regular information updates.

Media Enquiries:
Han Mong Ying, Senior Manager, Corporate Affairs
Tel : 03-6286 7200 | Email: webmaster@fmm.org.my




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