Experts urge shift in Malaysia’s social protection approach

Dr Amjad Rabi, Social Security Economist at the Social Wellbeing Research Centre, Universiti Malaya, said that in many countries, social protection is still viewed through a charitable lens, where aid is given to those who “look most miserable.”

While this instinct is compassionate, he cautioned that such an approach risks creating dependency rather than opportunity. “There’s nothing wrong in wanting to help our fellow Malaysians but governments must pursue multiple objectives where social protection should not only alleviate hardship, but also promote long-term development and productivity.” said Dr Amjad.

Citing the Sumbangan Tunai Rahmah (STR) programme, Dr Amjad explained how linking assistance too closely to income levels can disincentivise work.

He pointed out that under current STR criteria, a household with no children earning RM2,500 receives the same RM1,000 aid as a family with four children earning slightly more.

In such cases, he said, a spouse may decide against joining the workforce if doing so results in losing the aid ,effectively making the decision based on a smaller perceived gain.

“You don’t want to send the signal that working hard or earning more means losing your benefits. We need a system that promotes self-reliance and mobility, not one that penalises effort.” he said

Dr Amjad suggested gradually de-linking social assistance from income, and instead anchoring eligibility on more stable indicators such as wealth, which are harder to manipulate and better reflect long-term capacity.

Complementing that view, Calvin Cheng, Director of the Economics, Trade, and Regional Integration Division at ISIS Malaysia, said that social protection should not be seen as exclusive to low-income groups such as the B40, but as a universal system supporting all Malaysians at varying degrees of need.

“Social protection isn’t just for the B40. It’s a fundamental societal policy, not just a ‘feed the poor’ framework.” said Cheng.

He stressed that there is no single best design for social protection, noting that an effective system should consist of multiple layers and instruments serving different purposes.

“The best design is one that’s fit for the purpose of each specific programme. We need a mix where a formulation of components that complement each other and work in synergy.” he explained.

Both experts agreed that Malaysia’s future social protection framework must move beyond narrow income thresholds, toward a system that recognises diverse forms of vulnerability, encourages participation in the workforce, and reinforces national development goals.

They made the comments during an episode on Consider This on Wednesday.