KUALA LUMPUR, March 31 — The proposal giving the Social Security Organisation (Socso) the power to set up or take over companies is not meant as a bailout of any company, the Dewan Rakyat was told today.

Human Resource Minister Datuk Seri Richard Riot said, it was actually aimed at improving the efficiency and effectiveness of the organisation in achieving its objectives and fulfilling its functions.

“It is aimed at helping people with insurance by improving its delivery system by setting up a company under Socso,” he said when winding up the debate on the Employee’s Social Security Bill (Amendment) 2015 at the Dewan Rakyat sitting today.

The proposal to allow Socso to set up or take over a company was one of the items included in the bill which was presented for the second reading yesterday.

Riot said under the proposal, the setting up or takeover of a company by Socso would be subject to stringent administrative rules and procedures and could not be simply done, as it was subjected to approval by the board of directors, Human Resource Minister and Finance Minister.

On the proposal to exclude a representative of the Bank Negara Malaysia (BNM) from the Socso Investment Panel, he said it was upon the advice and request of the central bank itself through a letter dated July 12, 2010.

Riot said in the letter, the BNM stated that as a regulatory body for the country’s finances, its membership in the investment panel would be a conflict of interests.

He said besides BNM, the panel would also include a representative from the Finance Ministry who could participate in any discussion on the country’s financial regulations and policies.

“The government will not simply drop any representative from the investment panel who has the interests and expertise in financial matters and policies on the management of public funds,” he said.

The Bill was presented with the main aim of extending social security coverage to all employees as well as improving Socso’s delivery system.

It was later debated at the committee level and passed without any amendments. — Bernama