Social Protection Coverage Gaps in Malaysia

<jats:title>Abstract</jats:title> <jats:p>Malaysia’s existing social protection covers two ends of the spectrum: the first includes salaried full-time employees in the formal sector who enjoy relatively good protection in the form of social insurance administered by the government, and the second includes the poor, often targeted by many social assistance programs offered by multiple ministries and agencies. However, fragmentation in the delivery of social assistance programs has resulted in many benefits not reaching their targeted population. In addition, coverage for those in unstable forms of wage employment and the self-employed is not automatic or mandatory. Therefore, significant coverage gaps exist, despite efforts to extend coverage of formal contributory arrangements. Reaching out to the most vulnerable became even more challenging during the COVID-19 pandemic. The authors propose that Malaysia adopt a two-dimensional approach covering scope, extent, and depth for consolidating and coordinating the fragmented social protection arrangements and closing the coverage gap.</jats:p>