KUALA LUMPUR, March 11 — The merger of the Employees Provident Fund and the Social Security Organisation is not a feasible course of action, said the Malaysian Employers Federation .‘’The former is established by the Employee Provident Fund 1991, whereas the latter is covered by the Workers Social Security Act 1969 and also the Employment Insurance System Act 2017.
Recently a suggestion about merging the two organisations to address the needs of Malaysia’s ageing population reemerged in a news story. ‘’It requires strong engagement from every stakeholder since merging them may have a domino effect on other sectors. What will happen to EPF and Socso workers? Some of their jobs may overlap with one another.Syed Hussain also stressed the vast differences in the number of contributors and employers involved in these two institutions, and merging them into one entity will result in greater financial risk and payout.
‘’EPF focuses on savings and retirement funding while Socso, on the other hand, is responsible for an extensive role including accidents and injury, loss of employment, jobseekers, placements as well as upskilling and reskilling,’’ he said.