Seberang Perai City Council (MBSP) has been recognised by the Malaysia Book of Records (MBOR) as the first local authority to make contributions to the Self-Employment Social Security Scheme (Lindung Kendiri) mandatory for hawkers.
The recognition was formalised through the exchange of a memorandum of understanding (MOU) between Social Security Organisation (Perkeso) and MBSP at the city council headquarters in Bukit Mertajam, Penang.
Perkeso chairman Datuk Seri Subahan Kamal said the MOU required all hawkers under MBSP to contribute to the scheme as a condition for new or renewed business licences.
“Our aim is to ensure hawkers and small traders have a strong social safety net.
“These contributions serve as protection for them.
“In Penang, from 2024 to February this year, RM3.92mil in benefit claims has been approved for contributors,” he said.
The MOU was signed by Seberang Perai mayor Datuk Baderul Amin Abdul Hamid and Perkeso Group chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed.
Subahan said as of April 3, 16,933 self-employed individuals in Penang were actively contributing under the scheme, including 5,422 hawkers (32%), as reported by Bernama.
He said Perkeso, through Human Resources Ministry, aimed to expand this model to local authorities nationwide.
Baderul Amin said the move reflected MBSP’s commitment to protecting the welfare of hawkers and small traders.
Over 5,641 licensed hawkers under the city council were expected to benefit under the scheme, he said.
“Social protection is no longer optional, it is necessary.
“It protects hawkers from risks such as accidents or loss of income, while supporting their families.”
He added that the initiative was supported by integrating MBSP’s digital system with Perkeso to ease contribution checks during licence applications and renewals, in line with digitalisation.
