Experts: M’sia’s social protection level is too low

UNIVERSITY Malaya Social Wellbeing Research Centre (SWRC) director Datuk Emeritus Prof Dr Norma Mansor revealed that the social protection in Malaysia is minimal compared to other high income and upper middle-income countries.

According to Norma, the gap was due to several reasons including low tax revenue and income disparity.

“We are listed as an upper middle-income country, but our social protection is lower than the other nations in the group. Among ASEAN countries, we are comparable to Thailand in terms of social expenditure, but marginally lower than Singapore and Vietnam,” she said.

Malaysia’s tax-to-GDP ratio was 12.5% in 2018, below the Organisation for Economic Cooperation and Development (OECD) benchmark average of 34.3%.

Norma suggested a life-cycle approach to benefit the vulnerable categories, as well as to mandate all Malaysians to contribute to funds such as the Employees’ Provident Fund (EPF) and Social Security Organisation (SOCSO).

“People do not have something to fall back on if there were no social protection. If we do not innovate, we cannot get the productivity that we want in the country unless we correct the security aspects of our people,” she added.

The professor also suggested a single-window entry for all protection benefits, and the use of MyKad for entitlement to benefits, just like the existing universal healthcare.

“What I am proposing is to have one single window; that you can just go and register either at SOCSO or the Inland Revenue Board, then you are also registered for other social protection (programmes),” she said.

Meanwhile, World Bank Malaysia economist Dr Amanina Abdur Rahman said Malaysia should also consider encouraging productive employment to cushion the lower income group and provide them with avenues to obtain skills to secure better jobs.

“The economy will only recover once people start spending again, and people will only spend when they have jobs again. It is a gradual process,” she said. – Dec 12, 2020

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