Malaysia Advances Social Security Coverage for Migrant Workers with ILO, EU Support

In a significant move toward inclusive social protection and economic sustainability, Malaysia is advancing efforts to expand social security coverage to foreign workers, a population that forms a critical component of the nation’s labour force. These developments were the focus of a key workshop held on 17 June 2025 in Kuala Lumpur, hosted by the International Labour Organization (ILO) with backing from the European Union (EU).

Titled “Extending Social Security Coverage and Benefits to Foreign Workers in Malaysia”, the event brought together government officials, representatives of workers’ and employers’ organizations, UN agencies, and EU delegates to share progress, examine ongoing challenges, and outline a roadmap for broader, equitable coverage.

..Foreign Worker Coverage Reaches Over 85%—A Policy Milestone

At the heart of the discussion was the success of Malaysia’s Social Security Organisation (PERKESO) in reaching over 85% coverage among legally registered foreign workers—a milestone that marks one of the most significant expansions of migrant worker protection in Southeast Asia.

This achievement builds upon earlier policy reforms, notably the inclusion of foreign workers under the Employment Injury Scheme in 2019 and, more recently, under the Invalidity and Survivors’ Pension Scheme, which took effect in July 2024.

“This very welcome development was able to build on the clear and documented positive outcome of their inclusion under the Employment Injury scheme,” said Edmund Cheong, Deputy Chief Executive (Strategic and Corporate) of PERKESO. “Actuarial studies clearly show that extending this coverage improves the financial sustainability of our schemes.”

Roadmap for Reaching the Uncovered: Domestic Workers and Fishers

Despite these gains, many hard-to-reach groups—including domestic workers, fishers, and undocumented migrants—remain outside the formal protection net. To address this, the workshop introduced a practical roadmap designed to:

• Enhance outreach to vulnerable employment sectors

• Improve access to information for both workers and employers

• Establish stronger monitoring and enforcement mechanisms

• Leverage digital platforms to simplify registration and claims processing

Special attention was given to language barriers, lack of legal documentation, and informal employment arrangements as critical obstacles that require tailored strategies.

ILO and EU Recognize Malaysia’s Progress, Call for Continued Reform

The workshop showcased strong international support for Malaysia’s efforts. Simon Brimblecombe, Chief Technical Adviser of the ILO PERKESO project, praised recent policy shifts and emphasized their long-term value.

“As Malaysia’s population ages, the financial and labour market case for including foreign workers in social security becomes even more compelling,” Brimblecombe said. “PERKESO and the Malaysian government have shown what is possible with vision and commitment.”

Joanna Wasiewska, First Counsellor at the EU Delegation to Malaysia, reinforced the EU’s commitment to worker protection through practical collaboration.

“Malaysia has made major progress, but many foreign workers still face barriers to accessing benefits,” Wasiewska noted. “Clear communication, robust enforcement, and targeted outreach to groups like fishers and domestic workers are essential for ensuring no one is left behind.”

Support from Regional Migration and Labour Rights Programs

The event was supported by two key EU-funded projects:

1. PROTECT (Ensuring Decent Work and Reducing Vulnerabilities for Women and Children in the Context of Labour Migration in Southeast Asia) – focused on enhancing protections for migrant women and children.

2. S2SR (Ship to Shore Rights South-East Asia: Safe Migration for Decent Work in the Blue Economy) – targeting better working conditions and rights in maritime and coastal employment sectors.

These initiatives play a vital role in strengthening governance, building awareness, and supporting regional cooperation in advancing decent work and safe migration frameworks.

Looking Forward: A Model for Inclusive Social Security in Southeast Asia

As Malaysia continues to diversify its economy and adapt to demographic changes, extending social protection to its large foreign workforce is not only a moral imperative, but a strategic necessity. More inclusive social security systems:

• Improve worker well-being and productivity

• Enhance economic resilience

• Reduce inequality and informal employment

• Build public trust and international credibility

The ILO and EU’s ongoing partnership with Malaysia reflects a shared vision of a labour market that is fair, inclusive, and future-ready.