New Malaysian insurance scheme to cover citizens working in Singapore
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The new scheme will ensure that Malaysian workers who cross the border daily are not left out of social security protection after working hours.
ST PHOTO: TARYN NG
PETALING JAYA – A new insurance scheme will be created for Malaysians working in Singapore to ensure they remain covered even during their daily cross-border commute, said Malaysia’s Human Resources Minister R. Ramanan.
The new scheme will ensure that the nearly 400,000 Malaysians who cross the border daily from Johor are not left out of social security protection after working hours.
“What happens when you are travelling from your workplace back to your home?... Where is the coverage during this period?
“That coverage is not provided, so we are coming up with a new scheme for workers going back and forth between Malaysia and Singapore,” Datuk Seri Ramanan told The Star in an exclusive interview.
He added that the new insurance scheme was one of his main priorities since being appointed as minister in December 2025.
“Workers should not be victimised simply because they are working in Singapore.
“As long as you are from Malaysia, I believe that the same standards of safety and care should be given to you,” he added.
It is estimated that more than 1.18 million Malaysians work in Singapore, with between 300,000 and 400,000 commuting across the Causeway every day.
Mr Ramanan said his ministry is in the process of reviewing 26 related laws to ensure that they are relevant and in line with International Labour Organization standards.
Among the outcomes of the review so far was the amendment to the Employment Insurance System (SIP) Act, which was passed in the Lower House of Parliament at the end of 2025.
He explained that a moratorium of up to two years is being implemented despite the passage of the law, so that stakeholder engagement sessions can be held to gather input from industry players.
“They (industry players) will discuss and come up with a formula that best serves the nation... When you are implementing something new, of course you have a segment of the community that is happy and unhappy, so we must find a balance.
“Of course, our ministry must be for the workers, but we must also look after the employers because if they are squeezed too much, workers may be out of a job,” he added.
One of the perks of the SIP, said Mr Ramanan, is that employers pay only a small amount into the scheme, determined by a council of stakeholders.
“Assuming it (SIP) is 40 or 50 sen (16 Singapore cents) a day, isn’t this something that you should pay for the safety of yourself and your family who are dependent on you bringing home the bread?
“When they don’t contribute and have met with an unfortunate accident, families suddenly end up in a situation where they have no money.
“This is the same reason why we buy life insurance – it is a very small cost to pay for our safety,” added Mr Ramanan.
As at Nov 30, 2025, a total of 57,094 workers, or 85.3 per cent out of 69,923 job-loss cases, had received various SIP benefits amounting to RM437.19 million over the past five years. THE STAR/ASIA NEWS NETWORK
