222 employers shut businesses after getting wage subsidy


Chan Kok Leong Zaim Ibrahim

For rent banners hanging on empty shop lots at Bandar Tropicana Aman in Teluk Panglima Garang, Selangor. Socso has identified 156 employers who have made false claims or are abusing the wage subsidy programme. – The Malaysian Insight pic by Hasnoor Hussain, November 18, 2020.

A TOTAL of 222 employers who applied for Socso’s wage subsidy programme have shuttered their businesses, said M. Saravanan.

“According to the Employee Insurance Scheme records, those who lost their jobs are from 2,713 companies that have closed their businesses (as at October),” the human resources minister told the Dewan Rakyat today.

“As of November 11, Socso has received 388 complaints from workers about their employers abusing the wage subsidy scheme, amounting to RM20 million.

“Socso will suspend payments to employers suspected of having made false claims or are abusing the wage subsidy programme.”

He said Socso has identified 156 employers who have made false claims or are abusing the programme.

He added Socso is also investigating 232 further cases. 

“Socso has referred five cases to the Malaysian Anti-Corruption Commission, with one employer arrested in Kedah last month.

“Socso has also identified another 5,537 employers who have contravened the terms and conditions of the wage subsidy programme.”

He said the employers have been blacklisted for not paying their employees or contributing towards the Socso fund.

The minister was responding to Charles Santiago (Klang-PH), who asked how many employers had received the wage subsidy and closed their businesses during the Covid-19 lockdown from March till October. – November 18, 2020.


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