PETALING JAYA: Business groups have welcomed the government’s decision to reduce penalties for employers who fail to notify the Social Security Organisation (PERKESO) of job vacancies, but urged Putrajaya to adopt a voluntary, education-first approach before enforcing mandatory reporting.
Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) treasurer-general Datuk Koong Lin Loong said the revised penalty structure addressed concerns raised by businesses, particularly micro, small and medium enterprises (MSMEs), but the priority should be encouraging adoption rather than enforcement.
He said employers should first be allowed to use the MyFutureJobs platform voluntarily before the government decides whether mandatory reporting is necessary.
“The government could first introduce the platform on a voluntary basis, assess how many businesses actually use it, gather feedback and improve the system over time,” he said.
Under amendments to the Employment Insurance System (EIS) Bill, the maximum fine for failing to report vacancies has been reduced to RM5,000, with fines of RM1,000 for first-time offenders and RM3,000 for second offences.
Koong said PERKESO should instead channel EIS funds into strengthening a digital platform that effectively matched employers with jobseekers, while allowing businesses the flexibility to decide when to use it.
He also called for clearer guidelines on which vacancies and businesses would be subject to the reporting requirement.
“Otherwise, mandatory reporting could duplicate administrative work and increase compliance costs for MSMEs, many of which do not have dedicated human resources personnel,” he said.
Small and Medium Enterprises Association (Samenta) president Datuk William Ng also welcomed the reduced penalties but maintained that vacancy reporting should remain voluntary and incentive-driven.
Describing the tiered fines as “a more rational approach”, he said the policy remained fundamentally flawed because it required employers to report every vacancy before hiring.
“Reducing the price tag of a penalty does not fix a fundamentally flawed policy.
“The core issue is not the quantum of the fine; it is the compulsory nature of the reporting itself,” he said, adding that SMEs often needed to fill vacancies immediately to keep their businesses operating.
Malaysian Food Manufacturers Association president Ding Hong Sing also supported the goal of improving job matching but said enforcement should only begin after businesses had been adequately informed.
“If an MSME makes a mistake because it does not understand the new requirements, the government should first issue a warning and explain the correct procedure rather than immediately imposing penalties,” he said.
Ding described MyFutureJobs as a useful recruitment platform that helped employers fill vacancies and enabled jobseekers to secure employment more quickly.
However, he said many small businesses were still unfamiliar with the reporting requirements because they lacked dedicated HR personnel and business owners often performed multiple roles.
“One person could be the factory manager, the company’s driver and handle the paperwork all at once. That’s the reality of small businesses.
“The government needs to do more outreach through seminars, training sessions and public awareness campaigns instead of expecting businesses to discover the information on their own,” he said.
He added that businesses which continued to disregard the requirements after receiving guidance could then face enforcement, but education should precede penalties.
The Employment Insurance System (Amendment) Bill 2025 was first passed by the Dewan Rakyat in December last year with a proposed maximum fine of RM10,000 for employers who failed to notify PERKESO of job vacancies.
Following concerns raised by MSMEs, the Dewan Negara amended the penalty provision in March. The Bill was returned to the Dewan Rakyat, which approved the revised tiered fines on June 30.
