New OSHA alert for SMEs

THE Occupational Safety and Health (Amendment) Act 2022 (ACT A1648) was gazetted on March 16, 2022, but as of today, the authorities have not announced the date of enforcement yet.

As the amendments place more onerous duties on employers, industries may not be ready when it finally comes into force.

In Malaysia, businesses that are most affected by the amendments are small and medium enterprises (SMEs). Under the SME definition adopted by the National SME Development Council (NSDC) in 2013, SME covers manufacturing, agriculture, construction, services, and mining and quarrying.

SMEs are the backbone of the Malaysian economy, accounting for 97% of total business establishments, generating 38% of GDP and providing employment to 7.3 million people. They are the key drivers of our economic growth, innovation, employment, and social integration.

Generally, awareness of occupational safety and health (OSH) is low in SMEs, and employees are at greater risk of workplace accidents and work-related ill health. The issue is therefore a priority in our Occupational Safety and Health Master Plan (OSHMP) 2025.

SMEs have a “general and multifaceted lack of resources”, causing a substantial proportion of them to pursue “low road” business strategies. The key characteristics of such companies are a weak economic position; concerns about economic survival; lack of investment in OSH; limited knowledge, awareness, and competence on the part of owner-managers; and attitudes that do not prioritise OSH.

Some of the frequently observed attitudes include a strongly reactive approach to OSH; the perception that “common sense” is a sufficient OSH measure, and the belief that risks are “part of the job”.

But we must admit that there are SMEs who pursue “high road” strategies to achieve admirable OSH outcomes.

Common reasons for the perceived higher rate of occupational accidents in SMEs compared with larger companies are lack of financial resources, absence of employee representation, insufficient OSH inspections and limited support provided by trade associations.

Another obstacle for SMEs is that their managers, who are often the owners, have multiple responsibilities and tasks that could prevent them from getting sufficient knowledge about OSH regulations and implementation.

However, SMEs have some advantages when it comes to working with OSH improvements. These include fewer hierarchical levels and closer relations between managers and employees; they often have a familiar and supportive climate; and there are more opportunities for employees to participate in improvement processes.

Many SMEs are members of their respective trade associations, which may have their own OSH committees. Trade associations with no OSH committees should consult the established ones for assistance in setting up and running their own committees.

With the impending enforcement of the OSHA (Amendment) Act 2022, the authorities should focus on providing advice on compliance to industries rather than merely issuing penalties.

WONG SOO KAN

Petaling Jaya