Sheda Institute
KUCHING (July 7): The implementation mechanism of the recently passed Employment Insurance System (Amendment) Bill 2025 should be reviewed to avoid placing unnecessary administrative burdens on employers, said the Sarawak Housing and Real Estate Developers’ Association (Sheda) Institute.
It said the amendments, which were passed by the Dewan Rakyat on June 30, require employers to notify the Social Security Organisation (Socso) of job vacancies before recruitment and again within seven days after the position has been filled.
Failure to comply would attract a progressive penalty structure of up to RM1,000 for a first offence, RM3,000 for a second offence and RM5,000 for subsequent offences.
“We understand that the objective is to obtain more comprehensive nationwide employment data, enabling the government to better monitor labour market trends, formulate employment policies and match job seekers with available opportunities.
“However, while Sheda Institute fully supports initiatives that improve workforce planning and employment opportunities, we believe the implementation mechanism warrants further review to ensure that it achieves its intended objectives without placing unnecessary administrative burdens on employers, particularly those in the property development and construction industry,” it said in a statement.
Sheda Institute noted that recruitment in the property development and construction sector is often project-driven and time-sensitive, with developers, contractors and consultants needing to hire personnel at short notice to meet project schedules and contractual obligations.
It said employers also commonly advertise vacancies through established recruitment platforms and professional networks, making the proposed reporting requirement an additional administrative process without necessarily improving the effectiveness or efficiency of recruitment.
“There is also concern that mandatory pre-recruitment reporting could inadvertently slow down hiring and disrupt decision-making where vacancies need to be filled urgently to avoid interruptions to construction progress.
“While each notification may appear straightforward, the cumulative administrative effort can become significant for companies managing multiple developments or projects simultaneously, where manpower requirements frequently change throughout the project lifecycle,” it said.
It also pointed out that the government already receives extensive employment information through existing statutory reporting mechanisms, including monthly Employees Provident Fund (EPF), Socso and Monthly Tax Deduction (PCB) submissions.
“These datasets already provide regular updates on employment numbers and workforce movements.
“It may therefore be worthwhile to explore greater integration and utilisation of these existing databases to help achieve the government’s policy objectives while minimising additional reporting obligations on employers,” it said.
The institute also proposed that the government encourage voluntary compliance through incentives, such as tax incentives or other forms of recognition, for employers that actively and consistently participate in vacancy reporting.
“Such measures would encourage wider participation, improve the quality of labour market data and foster a more collaborative partnership between the Government and the business community.
“At present, the proposed framework focuses largely on sanctions and penalties for non-compliance, without providing corresponding benefits to employers who consistently fulfil the reporting requirements,” it said.
As the property development industry continues to face rising construction costs, labour shortages and increasing regulatory compliance requirements, Sheda Institute called on the government to engage further with industry stakeholders before finalising the implementation of the proposed amendments.
“By leveraging existing statutory employment data, streamlining reporting processes and incorporating positive incentives alongside compliance measures, the government can achieve its objective of obtaining comprehensive labour market information while minimising unnecessary regulatory burdens on employers,” it said.
It added that it remains committed to working closely with the government in developing practical policies that strengthen Malaysia’s employment ecosystem, support efficient housing delivery and promote sustainable economic growth.
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