MALAYSIA

BACKGROUND INFORMATION Malaysia is a federation of 13 States in Southeast Asia, formed in 1963. The country consists of two geographical regions divided by the South China Sea. West Malaysia (or Peninsular Malaysia) on the Malay Peninsula shares a land border on the north with Thailand and is connected by the Johor-Singapore Causeway and the Malaysia-Singapore Second Link on the south with Singapore. It consists of 11 states (Johor, Kedah, Kelantan, Malacca, Negeri Sembilan, Pahang, Perak, Perlis, Penang, Selangor and Terengganu), and two federal territories (Putrajaya and Kuala Lumpur). East Malaysia occupies the northern part of the island of Borneo, bordering Indonesia and the Sultanate of Brunei. It consists of the federal territory of Labuan islands and the states of Sabah and Sarawak. The total estimated population is 26.51 million i . Males comprise 50.7% of the total population, while females make up 49.3%ii. Life expectancy is 74.10 years (71.8 years for males, and 76.2 years for femalesiii). The infant mortality rate is 9.0 per 1000 live births (2005). Adult literacy rate is over 88%iv. About 50.4% of the people are Malay, and another 23.7% are Chinese. The remainder is comprised of indigenous peoples (11%), Indians (7.1%), and other ethnicities (7.8%)v. About 62.7% of the total population is of working age (i.e. between the ages of 15-64)vi.
Occupational Statistics at a Glance Land area: 330,250 Sq. km. Population: 26.51 Million (2006) GDP per capita: US$5,083 (2005) Key Industries: Palm oil and petroleum production Rubber manufacturing Logging and timber processing Electronics Textile manufacturing % Population aged 15-64: 62.7% Unemployment rate: 3.8% Occupational fatality rate: 11.3/100,000 workers National agency primarily responsible for occupational health and safety: Department of Occupational Safety and Health , Ministry of Human Resources National Focal Person for occupational health: Dr Sirajuddin Bin Hashim Principal Assistant Director Ministry of Health Malaysia Level 6 Block E-10 Parcel E Putrajaya, Malaysia 62590 Tel. No.: (603) 8883 4112 Fax No.: (603) 8888 6276 E-mail: siraj@dph.gov.my Key ILO conventions ratified: ILO 81 ILO 144 ILO 182

Malaysias per capita GDP, estimated at US$5,083vii (2005) classifies it as a middle-income country. Historically, tin mining and processing, and the cultivation and processing of rubber were the major revenue sources for the country. Industrialization began in the 1960s. By 1986, the Government launched its First Industrial Master Plan to shift the

economy from a model dependent on natural resources to one driven by manufacturing and servicesviii. The current national development plan emphasizes growth in the areas of information and communications technology, and services, with a focus on globalization and trade liberalizationix. Table 1. GDP Composition by Sector Sector Agriculture Industry Services

% of GDP 9.1% 48.5% 42.4%

Source: Asian Development Bank, Key Indicators of Developing Asian and Pacific Countries, 2004 at www.adb.org/statistics last accessed 31 March 2006.

In the 4th quarter of 2005, there were 10,398,300 people in the labour force, of which 9,998,100 were employed. The unemployment rate is currently at 3.8%x. It is estimated that 10-20% of the workforce is made up of foreign nationals, some of whom are in the country illegally xi . The current estimate for illegal migrant workers in Peninsular Malaysia is about 300,000-400,000, or about one illegal worker for every 3 documented workers. The official estimate of illegal workers by the Sabah Labour Department is about 100,000. However, unofficial estimates suggest that there are about two unregistered workers for every documented worker. Sabah not only has a higher proportion (about 50%) of foreign workers in its labour force, but it also has a higher incidence of illegal entry and employment.xii. Table 2. Employment by Economic Activity (2004) Economic Activity (based on ISIC-Rev.3) Agriculture, Hunting, Forestry Fishing Mining and Quarrying Manufacturing Electricity, Gas and Water Supply Construction Wholesale and Retail Trade Hotels and Restaurants Transport, Storage and Communications Financial intermediation and Real Estate Public Administration and Defense Education Health and Social Work Other Community, Social and Personal Service Activities Private Household with Employed Persons TOTAL

Number (thousands) 1350.0 130.0 30.0 2020.0 60.0 890.0 1610.0 700.0 530.0 230.0 460.0 680.0 610.0 200.0 230.0 260.0 9990.0

Source: Population Census as reported by the Department of Statistics Malaysia, 2005at www.statistics.gov.my/english last accessed 30 March 2006.

Malaysia is an active member of the following international organizations, which have potential influence on the state of occupational health and safety within the country: Asia Pacific Economic Cooperation (APEC) Asian Development Bank (ADB) Association of South East Asian Nations (ASEAN) G-77 International Monetary Fund (IMF) United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) United Nations Conference on Trade and Development (UNCTAD) World Health Organization (WHO) World Trade Organization (WTO) Malaysia played a leading role in the formation of Asia Pacific Occupational Safety and Health Organization (APOSHO), a network of national OSH agencies and nongovernmental organizations (NGOs) which aims to uplift OSH practices in the regionxiii.

OCCUPATIONAL HEALTH AND SAFETY INDICATORS Malaysia has several national agencies collecting data on occupational accidents and diseases. The Department of Occupational Safety and Health (DOSH) under the Ministry of Human Resources, the National Institute of Occupational Safety and Health (NIOSH), the Occupational Health Unit under the Ministry of Health, the Social Security Organization (SOCSO), the Department of Labour and other agencies all collect surveillance data related to occupational health. Table 3 shows the number and rate of work-related accidents reported to SOCSO from 1995-2004. The data shows a decrease in the work-related accident rate from 15.4 accidents per 1,000 workers in 1995 to 6.7 accidents per 1,000 workers in 2004. Table 3. Work Accidents Reported to the Occupational Health Division, 2003-2004 Year Number of Registered Number of Industrial Accident Rate per 1,000 Workers Workers Accidents 2004 10,318,209 69,132 6.7 2003 10,150,000 73,858 7.3 2002 7,912,385 81,810 10.3 2001 8,769,321 85,292 9.7 2000 8,877,304 95,006 10.7 1999 8,598,005 92,074 10.7 1998 8,428,589 85,338 10.1 1997 8,252,680 86,589 10.5 1996 7,613,635 106,508 14.0 1995 7,412,191 114,134 15.4
Source: National Institute of Occupational Safety and Health, Industrial accidents trends, at http://www.niosh.com.my/statistik.html last accessed 28 march 2006.

Table 4 shows the case fatality rates from 1977-2000 across the different sectors of economic activity. Case fatality rates are highest for construction, transportation and mining and quarrying. The work-related fatality rate for 2000 is 11.3 per 100,000 workersxiv. Table 4. Distribution of Accidents and Fatality Frequency by Sectors
Industry Agricultural, forestry & fishing Mining & quarrying Manufacturing & processing Electricity, gas, water & sanitary service Construction Commerce Transportation Financial & Insurance Services Civil Service TOTAL Overall Case Fatality (per 1,000 accidents) Indicator Case fatality Case fatality Case fatality Case fatality Case fatality Case fatality Case fatality Case fatality Case fatality Case fatality Accidents Fatality Case fatality 1977 18.7 11.9 1.0 5.5 6.4 2.8 11.2 7.9 47,912 165 3.4 1980 0.9 10.9 1.1 16.9 4.8 2.7 25.7 7.9 51,340 143 2.7 1985 1.9 13.4 1.8 56.6 6.8 7.3 27.2 10.0 61,724 238 3.8 1990 3.4 4.5 1.5 2.3 12.8 2.7 9.6 15.4 8.7 12.7 121,104 387 3.1 2000 9.6 17.5 6.8 14.8 32.6 9.7 20.5 16.0 10.9 11.7 95,006 1004 10.5

Source: Rampal KG, Aw TC, Jefferelli SB.(2002). Occupational health in Malaysia. In LaDou J (Ed).Occupational Medicine in Industrializing Countries. (pp 409-425). Philadelphia:Hanley & Belfus,Inc.

Table 5 displays the number and types of occupational diseases reported to SOCSO in the years 1999, 2002 and 2003. The numbers of work-related diseases are small compared to occupational accidents, and may reflect underreporting due to failure to recognize the work-relatedness of medical diagnoses, non-reporting of diagnosed occupational diseases to the appropriate agencies or failure to capture occupational morbidities occurring among workers in small and medium-sized enterprises and the informal economy. Table 5. Occupational Diseases Reported to SOCSO, 1999, 2002, 2003. YEAR Occupational Disease
Cancer Noise induced hearing loss Respiratory disease Skin disease Musculoskeletal disorders 1999 61 8 14 40 1 2002 65 59 17 10 8 2003 86 1 8 5 0

Source: Hashim SB, Amin FB, Khalid HM. Malaysia Country Report, WHO/ILO Meeting on Strengthening Occupational Health and Safety, Kuala Lumpur, Malaysia, November 2005.

Under-recognition of occupational diseases is reported by data collected by the Information and Documentation System (IDS) Unit of the Ministry of Health, on the total probable occupational diseases among hospital admissions for the years 1999-2003 (Table 6) xv . This data indicates that, on the average, about 103 cases of probable

occupational disease occur for every 10,000 hospital admissions---about 1% of all admissions. Table 6. Probable Cases of Occupational Diseases among MOH Hospital Admissions, 1999-2003
Diseases 1999 Total probable occupational respiratory diseases Total probably occupational cancer Total probable occupational pesticide poisoning Total probable occupational skin disease Total admissions, MOH hospitals 2000 YEAR 2001 2002 2003 Total Admissions Rate per 10,000 admissions

11,087

11,078

10,060

8294

7769

48,288

68

4100

3884

3881

3848

3781

19,494

28

796

914

913

901

950

4,474

161

169

163

162

151

806

1,325,199

1,494,248

1,420,613

1,476,273

1,369,720

7,086,053

Source: Hashim SB, Amin FB, Khalid HM. Malaysia Country Report, WHO/ILO Meeting on Strengthening Occupational Health and Safety, Kuala Lumpur, Malaysia, November 2005.

CAPACITY, INFRASTRUCTURE AND SERVICES Health care in Malaysia is a priority for the Government. Health care expenditure per capita was approximately US$63 in 2004, comprising 6.3% of the national budget, and 1.7% of the GDP. The national infrastructure for occupational health and safety is well-established. The Department of Occupational Safety and Health (DOSH) within the Ministry of Human Resources is the lead agency charged with the administration and enforcement of legislation and policies related to occupational health and safety. In 2005, DOSH had 462 enforcement officers divided among one Head Office and 13 State or Provincial Offices. The Occupational Health Unit of the Ministry of Health provides occupational health services through its network of Primary Health Care clinics and hospitals. The Unit also publishes guidelines for occupational safety and health and for health promotion in the workplace.

The National Institute of Occupational Safety and Health (NIOSH), which was established in 1993, provides information, training, advocacy and research on occupational safety and health. The Social Security Organization provides for injury and disease compensation and rehabilitation of workers. It also collects data on work-related accidents, injuries and illnesses. The National Council for Occupational Safety and Health (NCOSH) is a tripartite body that acts as an advisory body to the Minister of Human Resources on worker safety and health issues. Other agencies in both the public and private sectors participate in occupational health and safety issues in Malaysia. Examples of these agencies include the Malaysian Society for Occupational Safety and Health, the Malaysian Trade Union Congress, the Construction Industry Development Board, the Pesticides Board, various universities and the Malaysian Occupational Health Nurses Association.

Links to these agencies and institutions, and to individual occupational health practitioners in the country can be found through the Malaysian Integrated Occupational Safety and Health Network internet portal at http://www.miosh.my Workplace enforcement visits increased by 14.7% from 2003 to 2004. These visits included statutory occupational health and safety inspections, industrial hygiene visits, major hazards inspections and inspection of places of work in agriculture, forestry, fishery and transportation sectors. Table 7. Workplace Enforcement Inspections by Sector, 2002-2004 Type of Inspection 2003 Statutory Inspections 135,079 Industrial hygiene visits --Major hazards inspections and inspections 764 of places of work

2004 156,717 1,053 1434

Source: Che Man, AB and Musri M. Occupational safety and health system and programme in Malaysia. Asia-pacific Newsletter on Occupational Health and Safety 2005;12:30-35.

Malaysias NIOSH conducted a total of 1099 training programmes at varying levels of proficiency in 2004, with a total of 28,149 participants trained. NIOSH offers certificate programmes to qualify health professionals as occupational health doctors and nurses.

POLICY AND LEGISLATIVE ENVIRONMENT The policy and legislative environment relating to occupational health and safety in Malaysia has evolved over time to reflect transitions in the countrys economy. The Machinery Enactment of 1913, later revised as the Machinery Ordinance of 1953, was intended to protect the safety of workers employed predominantly in the tin mining and agricultural industries during the first half of the 20th century. By the 1960s, the country

was moving towards manufacturing. The Factories and Machinery Act (FMA) of 1967 was created to ensure the health and safety of workers in factories. The FMA was the cornerstone of occupational health and safety legislation in Malaysia until the Occupational Safety and Health Act (OSHA) in 1994. The introduction of this comprehensive legislation was in response to the need to cover a more diverse employee base and newer hazards introduced in the workplace. The National Council for Occupational Safety and Health was established under the OSH Act of 1994. This Council is composed of 15 council members with tripartite representation from Government, employers, employees and OSH professionals (with at least one woman member). The OSH Act also contains provisions for formulating regulations and Codes of Practice (COPs) to assist the employers to comply with the Act. A series of regulations, introduced under OSHA 1994, address the establishment of mechanisms to implement OSH in workplaces. For example, workplaces with five or more workers are required to formulate a Safety and Health Policy. The Safety and Health Committee Regulations 1996 requires establishments with 40 workers and above to form a safety and health committee. The committee is required to identify hazards at the workplace, institute control measures, investigate adverse incidents and conduct auditsxvi. Malaysia has ratified at least 15 ILO Conventions on occupational health and safety. In addition to those listed in Table 8, the country has ratified the followingxvii: ILO 29 Forced Labour Convention ILO 50 Recruiting of Indigenous Workers Convention ILO 64 Contracts of Employment (Indigenous Workers) Convention ILO 65 Penal Sanctions (Indigenous Workers) Convention ILO 88 Employment Service Convention ILO 95 Protection of Wages Convention ILO 98 Right to Organize and Collective Bargaining Convention ILO 100 Equal Remuneration Convention ILO 105 Abolition of Forced Labour Convention ILO 119 Guarding of Machinery Convention ILO 123 Minimum Age (Underground Work) Convention\ ILO 138 Minimum Age Convention

Table 8. Status of Malaysias Participation in Selected ILO OSH Treaties ILO OHS Treaty Ratification Status
ILO 81 Labour Inspection Convention ILO 121 Employment Injury Benefits Convention ILO 139 Occupational Cancer Convention ILO 144 Tripartite Consultation ILO 148 Occupational Hazards and Working Environment Convention ILO 155 Occupational Safety /Health Convention ILO 161 Occupational Health Services Convention ILO 162 Asbestos at Work Convention ILO 170 Chemicals at Work Convention ILO 182 Worst Forms of Child Labour Convention
Source: www.ilo.org last accessed 28 March 2006

YES NO NO YES NO NO NO NO NO YES

KEY ISSUES AND CHALLENGES The Malaysian economy is poised to enter the post-industrial phase of development with the services sector assuming a larger and more dynamic role in the economy. This entails drastic changes in work processes and work exposures. Malaysias challenge lies in adapting the policy and programme environment to respond to the changes in the nature of work, and the qualities of the workforce as the transition occurs. Although there is an effective support for the formal sector of the employment market, much work and effort need to be done for workers in small and medium-sized industries. The same goes to those workers in the informal sectors, in ensuring better protection from work-related hazards and exposures. The presence of a large number of immigrant workers, especially those who are undocumented, compounds the problem associated with occupational safety and health. Nevertheless, various approaches have been made by several agencies in enhancing safety and health of immigrant workers. This include easy access to medical services through-out the country and continuous collaboration with countries of origin in improving mechanism related to occupational health and safety. The multisectoral nature of Malaysias occupational health and safety system is both an asset and a challenge. Having the various stakeholders involved broadens ownership of occupational health and safety initiatives, but it also increases the demands for effective cross-agency communication and collaboration. Ensuring standardization in progress indicators and data collection will be vital to strengthening the current surveillance capacity. The existing coordination of occupational health and safety service provision need to be strengthened. Finally, strengthening of the tripartite role in order to raise the standard of occupational safety and health is very essential in accompanying the countrys economic transition in order to meet the demand and challenge of globalization. This encompass not only hazard identification and disease management but also the promotion of preventive safety and health culture.

Official government website, Department of Statistics Malaysia, www.statistics.gov.my/english/ last accessed 31 March 2006. ii WHO WPRO Regional Database at http://www.who.wpro.int/ last accessed 28 March 2006. iii Official government website, Department of Statistics Malaysia, www.statistics.gov.my/english/ last accessed 31 March 2006. iv WHO WPRO Regional Database at http://www.who.wpro.int/ last accessed 28 March 2006 v CIA World Factbook, Malaysia at http://www.cia.gov/cia/publications/factbook/geos/my.html last accessed 28 March 2006. vi WHO WPRO Regional Database at http://www.who.wpro.int/ last accessed 28 March 2006. vii Ibid. viii Che Man, AB and Musri M. Occupational safety and health system and programme in Malaysia. AsiaPacific Newsletter on Occupational Health and Safety 2005;12:30-35. ix World Health Organization. Malaysia Environmental Health Country Profile. WHO-Western Pacific Regional Office, Manila, Philippines, January 2005. x Official government website, Department of Statistics Malaysia, www.statistics.gov.my/english/ last accessed 31 March 2006. xi Newman, N. Malaysias cracking down on illegal workers. Oxford Prospect, June 2005. At http://www.oxfordprospect.co.uk/Illegal%20Workers.htm last accessed 31 March 2006. xii Knapathy V. International migration and labour market developments in Asia: economic recovery, the labour market and migrant workers in Malaysia. Report prepared for the 2004 Workshop on International Migration and Labour Markets in Asia organised by the Japan Institute for Labour Policy and Training (JILPT) supported by the Government of Japan, Organisation for Economic Cooperation and Development (OECD) and the International Labour Office (ILO), February 2004. xiii Malaysia Society for Occupational Safety and Health at http://www.msosh.org.my/aboutus.htm last accessed 30 March 2006. xiv Rampal KG, Aw TC, Jefferelli SB.(2002). Occupational health in Malaysia. In LaDou J (Ed).Occupational Medicine in Industrializing Countries. (pp 409-425). Philadelphia:Hanley & Belfus,Inc. xv Hashim SB, Amin FB, Khalid HM. Malaysia Country Report, WHO/ILO Meeting on Strengthening Occupational Health and Safety, Kuala Lumpur, Malaysia, November 2005. xvi Che Man, AB and Musri M. Occupational safety and health system and programme in Malaysia. AsiaPacific Newsletter on Occupational Health and Safety 2005;12:30-35. xvii Malaysian Trade Union Congress, OSH Legislation and its implementation, in http://www.mtuc.org.my/osh_profile_malaysia.htm last accessed 31 March 2006.