GEORGE TOWN: Only about 10% of the country’s 3.26 million self-employed individuals are actively contributing to the Social Security Organisation (PERKESO) under the Self-Employed Social Security Scheme (Skim Lindung Kendiri).
PERKESO chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed (pic) said that as of Jan 23 this year, only 325,008 self-employed persons were registered as contributors nationwide, including 15,021 in Penang.
Describing the trend as worrying, he said PERKESO has intensified efforts to close the social protection gap by working closely with local authorities in every state, particularly to reach hawkers and small traders.
“These figures show that the social protection gap among the self-employed remains wide and needs to be addressed urgently.
“Nationwide, only 38,358 contributors are from the hawker sector, including 13.17% or 5,053 contributors in Penang. This shows that many small traders have yet to see or feel the benefits of this protection,” he said after the signing of a memorandum of understanding (MOU) between PERKESO and the Penang Island City Council (MBPP) at Wisma PERKESO here yesterday.
The MOU was signed by Mohammed Azman and MBPP mayor Datuk A. Rajendran, and witnessed by state local government, town and country planning committee chairman H’ng Mooi Lye and PERKESO deputy chief executive officer (operations) Azirruan Ariffin.
Mohammed Azman said Penang was the first state to sign such an MOU, which aims to strengthen the social safety net for hawkers and small traders. He expressed hope that the collaboration would serve as a model for all 156 local authorities nationwide.
“In 2025 alone, PERKESO paid out RM31.25mil in benefits to 7,693 contributors under the Skim Lindung Kendiri nationwide, including 424 self-employed individuals in Penang who received assistance after being hit by misfortune,” he said.
Rajendran said MBPP oversees 5,220 licensed hawkers operating across 30 markets, 68 food complexes, 58 hawker sites and 25 temporary static stalls.
“They face various risks in their daily operations, including accidents, equipment-related injuries, fires and health hazards. This protection scheme is therefore crucial to ensure their safety and the sustainability of their income.”
