Bridging the ‘grey area’: Malaysian workers who commute to Singapore welcome new insurance scheme

JOHOR BAHRU – Every week, social worker Muhammad Fariezatul Ahmed rides his motorcycle across the Causeway into Singapore – not to work, but to help Malaysians injured in road accidents on their daily commute.

Many are fellow motorcyclists crossing the border daily for higher-paying jobs. Too often, he finds they are unaware of their insurance coverage, under-insured, or completely unprotected for their daily commute.

“It’s a worrying trend. We receive calls for help almost every day... Every month, at least one person dies on the way to work or on the way home. When they get into an accident, they don’t know what to do,” said the 35-year-old Johorean based in Tebrau.

A full-time employee with Johor Bahru-based NGO Singapore Accident Help Centre (SAHC), he assists those affected with applying for financial aid and accessing pro bono legal support, as well as repatriation services.

That coverage gap may soon narrow.

Malaysia plans to introduce a new insurance scheme specifically for its citizens working in Singapore, covering them during their daily cross-border commute – a longstanding blind spot in protection.

Announced on Feb 5 by Human Resources Minister R. Ramanan, the proposed Traveller Scheme (Skim Pengembara) aims to insure the roughly 400,000 Malaysians who travel daily between Johor and Singapore, beyond their working hours.

The cross-border worker protection scheme for Malaysians is expected to be ready by the second quarter of 2026, with the authorities reviewing related laws to align with international labour standards, local media reported.

Busy border crossing brings risks

The need is clear. Hundreds of thousands of Malaysians cross the land border each day, many on motorcycles – one of the cheapest and fastest ways to beat congestion.

Singapore estimates that between 300,000 and 400,000 people pass through its two land checkpoints daily, making the Causeway one of the busiest land crossings in the world. In 2024, about 77,000 foreign-registered vehicles entered Singapore daily, 82 per cent of them motorcycles.

But the commute comes with risks. SAHC recorded 48 deaths in 2024 from accidents involving Malaysian workers travelling to and from Singapore, and 54 in 2025, based on cases it handled.

Workers say the new scheme could provide much-needed peace of mind.

Mr Izzat Rozali, 36, who travels from Gelang Patah to Tuas for work, already pays for personal accident and life insurance in Malaysia. Still, he welcomes the move.

“I think the new insurance scheme is something like what we (already) have in Malaysia, something like SOCSO,” he said, referring to the government-mandated safety net Social Security Organisation. “I support it, but it’s still too early to see how it will be implemented.”

SOCSO or Perkeso is a Malaysian government agency established in 1971 that provides social security protection for employees against workplace injuries, diseases, accidents and death. It mandates monthly contributions from both employers and employees to fund benefits like medical care and cash payments for temporary or permanent disability. While it was traditionally associated with lower-wage earners, the wage ceiling for contributions has recently been increased to broaden coverage.

Mr Nathan Krishna, 40, who commutes daily from Iskandar Puteri in Johor to an aircraft engineering firm in Changi, said many workers are unclear about their coverage.

“They don’t know the limits of coverage provided by their employers, and may not have their own insurance,” he said, adding that the planned insurance scheme will at least give commuting workers some basic protection.

Motorists flagged the Causeway, Second Link, SLE, BKE and AYE as high-risk zones during peak periods. Across the border, the Eastern Dispersal Link and Pasir Gudang Highway are similarly recognised as accident-prone stretches within the JB district.

Mr Wilson Lee, who works for a port operator in Johor, said: “Apart from being poorly maintained, these roads are frequently congested and see a massive presence of heavy vehicles, which makes it risky for motorcyclists.”

A gap between two systems

Part of the problem lies in how protection is split across borders.

In Singapore, employers of work permit and S Pass holders must give their workers medical insurance coverage with an annual claim limit of at least $60,000.

Under Singapore’s Work Injury Compensation Act or WICA, workers are generally not covered for accidents that occur while commuting in their own vehicles, a friend’s car, or on public transport between home and their workplace, as this is not considered to be “in the course of employment”.

Financial adviser Carlos Lee said this leaves many workers exposed.

“Generally, workers are not covered for their commute to and from work,” he said. “But some employers may want to better protect their workers by purchasing an extension on the existing plans for their employee that covers the journey to and from work.”

This creates a “grey area” for cross-border workers – particularly when accidents occur outside Singapore or beyond working hours.

Ms Janey Wong, chief operating officer of SAHC, said such confusion is common.

“Many cases we hear of, they (Malaysians) get caught in an accident (in Singapore) and the immediate reaction is to want to go home... they are afraid that the hospital bills in Singapore will be more expensive,” she said.

One such case is of Mr Loqman Hussen, 26, a kitchen assistant in Tuas, who was injured on March 10 while riding from his home in Gelang Patah to work. He had cleared Malaysian immigration but had not yet entered Singapore when the accident occurred.

He suffered a broken ankle and collarbone, and was treated at Hospital Sultanah Aminah in Johor Bahru, which gave him two months of medical leave. But his employer’s insurance did not cover the accident, and his medical leave from a Malaysian hospital was not recognised for paid leave.

“I don’t have personal accident insurance, and my company’s plan covers only treatment in Singapore,” he said. “I might have to look for another job,” he added, unsure if he still has a job to return to.

Bridging the ‘grey area’

Industry observers say such cases highlight the fragmented nature of protection for cross-border workers.

Malaysian Employers Federation president Syed Hussain Syed Husman told The Straits Times that workers often rely too heavily on employer-provided benefits, which are limited in scope and geography.

“As a result, incidents that occur outside the workplace, particularly during the commute between Malaysia and Singapore, may fall into a ‘grey area’ where coverage is unclear or insufficient,” he noted.

A Malaysia-based scheme could help close that gap, especially if it mirrors elements of SOCSO, which provides protection against workplace injuries, disability and death through mandatory contributions.

Still, questions remain over how the Traveller Scheme will work in practice – including who will pay, how contributions will be structured, and what level of coverage it will provide.

Ms Wong said clarity will be crucial to ensure workers understand their protection.

Implementation is key, she stressed. Workers need to know exactly what they are covered for, especially during the daily commute that carries the most risk.

“What are the limits and extent of the coverage offered by the scheme?” is a question she hopes will be answered soon.