International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue IV, April 2021 | ISSN 2454–6186

Issues and Challenges Social Insurance in Malaysia

M.Z.A. Chek¹, I.L. Ismail²
¹,²Center for Actuarial Studies, Universiti Teknologi MARA, Perak Branch

Abstract- Social insurance programs differ from private insurance in several ways. Firstly, the contributions are normally compulsory and may be made by the insured’s employer, by the state, as well as by the insured himself. Benefits are also not as strictly tied to contributions as is the case with private insurance. For example, to make the programmes serve certain social purposes, some contributors are included among the beneficiaries even though they may not have contributed for the required period of time. Next, benefits may be increased in response to the rising cost of living, which reduce the amount between contributions and benefits. The main objective of this study is to discuss and describe the current issues and challenges of social insurance qualitatively.This method provides an overview of further understanding pertaining to the phenomena faced by Social Security Organisation (SOCSO) as administer social insurance in Malaysia.

Keywords – Social Insurance, SOCSO, Contribution, Benefits, Malaysia

I. INTRODUCTION

Many developing countries are in the process of improving their social security while having made efforts in implementing social financing reforms. Some countries have been attempting to advance even further toward the ultimate goal of universal health insurance coverage. Malaysia is no exception, to this progress and have been made the government’s attempt to expand the coverage of social security in placed further emphasis on this issue and it now has a grand design and time line to achieve this objective leading to an expanded social security coverage by 2025 [4]–[6]. Hence, various dynamic changes have occurred in the social security system of Malaysia in recent years[4], [7]–[10].