GEORGE TOWN, Feb 9 — The Social Security Organisation (Perkeso) is stepping up efforts, including working with local authorities in every state, to close the protection gap among self-employed individuals, especially hawkers and small traders, through the Skim Lindung Kendiri (Self-Employed Social Security Scheme).
Perkeso Group chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed said this comes amid a worrying social protection gap, with many self-employed workers still not covered by the scheme.
He said Labour Force statistics from the Department of Statistics Malaysia as of November 2025 recorded 3.26 million self-employed individuals nationwide.
However, the organisation’s data as of Jan 23 showed that only 325,008 self-employed persons, about 10 per cent, were actively contributing under the scheme, with 15,021 registered in Penang.
“These figures clearly signal that the social protection gap among the self-employed remains wide and needs to be addressed urgently. The breakdown also shows that only 38,358 people nationwide are contributing from the hawker sector.
“In Penang, hawkers make up 13.17 per cent or 5,053 contributors, which indicates that many small traders have yet to see or feel the benefits of this social protection,” he told reporters after the signing of a memorandum of understanding (MoU) with the Penang City Council (MBPP) at Wisma Perkeso here today.
He said the MoU between Perkeso and MBPP reflects the critical need to close the protection gap among self-employed workers and strengthen the social security safety net, particularly for hawkers and small traders.
The MoU was signed by Mohammed Azman and MBPP Mayor Datuk R Rajendran, and witnessed by state Local Government and Town and Country Planning Committee chairman H’ng Mooi Lye and Perkeso deputy chief executive (Operations) Azirruan Ariffin.
Mohammed Azman said Penang is the first state to sign the MoU and hoped the collaboration would drive the development of a more structured social protection ecosystem and become a standard model for all 156 local authorities nationwide in strengthening Malaysia’s informal economy.
“In 2025 alone, Perkeso paid out RM31.25 million in benefits to 7,693 contributors under the Skim Lindung Kendiri nationwide, including 424 self-employed individuals in Penang who received assistance when they were affected by misfortune,” he said.
Meanwhile, H’ng welcomed the collaboration, saying it would enhance the welfare of hawkers and traders in case of unforeseen incidents. He added that the state government would also study making contributions under the scheme a mandatory requirement for obtaining business licences.
Rajendran said that beyond providing security, the initiative also boosts confidence among the target group to continue earning a living in a safer environment. He noted that MBPP oversees 5,220 licensed hawkers operating at 30 markets, 68 food complexes, 58 hawker sites and 25 temporary static stalls.
“They are exposed to various risks in their daily operations, including on-site accidents, equipment-related injuries, fires and health hazards. Therefore, this protection scheme is crucial to ensure their personal safety and the sustainability of their income,” he said. — Bernama
