KUALA LUMPUR, Dec 5 — The Malaysian Employers Federation (MEF) has welcomed Putrajaya’s move to extend Socso protection to 24 hours but cautioned that any additional costs must not be shifted onto companies already struggling with rising operating expenses.

MEF president Datuk Syed Hussain Syed Husman said employers support the expanded coverage as it protects workers beyond the workplace, but stressed that implementation must be cost-sensitive.

“We are happy to protect our people, but we must ensure the cost does not burden employers,” he said, adding that companies can support wider coverage as long as contributions remain manageable.

MEF’s former executive director Datuk Shamsuddin Bardan said the federation was relieved that the government agreed employers would not bear the cost of the additional 12-hour non-employment injury coverage.

“Employers already pay the full 1.25 per cent for employment injury and commuting coverage. For the remaining 12 hours, the cost should not be passed on to employers,” he said.

“We are glad the government accepted this, and that employee contributions will be staggered instead of imposing the full 1.25 per cent immediately.”

He said the gradual rollout will help workers adjust to the new deductions without adding pressure on businesses.

Meanwhile, MEF said companies remain frustrated by delayed tax refunds and questioned why outstanding refunds cannot be offset against future tax payments — a long-standing complaint raised again during MEF’s briefing.

Shamsuddin said many companies have excess credit with LHDN but are still required to pay new instalments in full, creating cash-flow problems, especially for smaller firms.

“Let’s be practical. If companies already have credit with LHDN, why can’t that be used to reduce their next payment?” he said.

“Refunds often come late, and meanwhile employers still have to remit new taxes. It’s challenging.”

He noted that while individual taxpayers generally receive refunds promptly, corporate refunds remain slow and opaque.

“Companies are in a difficult situation. Some have even quietly complained, but nobody wants to be seen as criticising LHDN,” he added.

MEF said resolving refund delays and allowing offsets would ease financial strain on companies at a time when they are also grappling with rising medical insurance premiums, wage pressures and new compliance requirements.