Malaysia’s Dewan Rakyat retabled and passed the Employment Insurance System (Amendment) Bill 2025 on June 30, 2026, adopting a progressive fine structure for employers who do not notify the Social Security Organisation (Socso) of job vacancies before recruitment begins [1, 2, 3]. The amendment imposes fines of RM1,000 for a first offence, RM3,000 for a second, and RM5,000 for the third or subsequent offence under Clause 11, Subsection 45F(4) [1, 2, 3].
Initially, the Bill included a maximum fine of RM10,000, but this was reduced after feedback from micro, small, and medium enterprises (MSMEs) and Cabinet approval on February 27, 2026 [1, 2, 3]. Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan said, “The amendment does not alter the original intent of the provision, which is to improve the effectiveness of employment services and ensure that more accurate and comprehensive labour market information is made available.” He added employers will receive compliance notices and guidance before fines are imposed [1, 3].
The government emphasized efforts to educate employers and encourage voluntary compliance instead of immediate penalties, taking MSME concerns into account to avoid excessive burdens [1, 2, 3].
Opposition MP Liew Yu Hui (邹宇晖) criticized the government for backtracking on an earlier commitment to abolish fines. She argued the penalties still pose a “significant financial burden” on small businesses, saying, "为什么这项当初获得举国赞誉、承诺要取消的罚款，会半途变卦？我们的商家要的是更简便的经商环境，而不是因为迟交一封信或空缺报告，就要面对高达5000令吉的沉重的罚款." She added that even the RM1,000 fine for a first offence is heavy for small shops [4].
The Bill aims to improve labour market data reporting and employment services by ensuring more timely and reliable notifications of new job vacancies [1, 2, 3]. The Dewan Negara approved the amendments on March 12, 2026, before the Dewan Rakyat’s final passage today after debate involving 13 MPs [1, 2, 3].
