KUALA LUMPUR: The Social Security Organisation's (Perkeso) 24-hour coverage plan can help prevent families from slipping into poverty as a result of a breadwinner's injury or death, says an economist.
Sunway University economics professor Dr Yeah Kim Leng said, without such a coverage, the government may need to increase social spending.
"Having a more comprehensive social protection system will enable the government to create a better, just, and resilient society while improving well-being and peace of mind," he told the New Straits Times.
He said a well-functioning social protection system is crucial to a strong and stable economy.
"While those who can afford private insurance schemes or have adequate savings are better prepared, the majority of Malaysians are not equipped to cope with loss of employment and livelihoods."
This, he said, makes them highly vulnerable in the event of accidents and other life-cycle risks.
Yesterday, deputy Perkeso chief executive officer of strategy and corporate, Edmund Cheong, said nearly nine million Malaysian workers could enjoy 24-hour coverage as early as the middle of next year.
Round-the-clock protection could be important for those in the private sector, as many workers cannot afford to rely on their retirement savings in the event of an injury or disability outside of work.
Former member of parliament, Charles Santiago, meanwhile, said the 24-hour coverage was "much needed" given rising healthcare costs.
However, the former Klang MP, an advocate for social security protection, said he hoped there would be provisions in place to ensure people are still protected if they get sick after retiring.
"It is a gap that needs to be addressed."
Currently, Perkeso coverage is limited to those in the workforce, regardless of age, leaving many retirees without a safety net should they deplete their retirement savings.
"There is also a need to extend protection to gig economy workers. I know of a gig worker who was in an accident and dislocated his shoulder. He couldn't work for six months.
"This is exactly where a system like Perkeso's 24-hour coverage would be essential," he said.