Challenges and the Need for Enhanced Social Protection for Self-Employed Youth in Malaysia

While the rise in Malaysia's self-employed youth workforce indicates greater autonomy and entrepreneurship, it also exposes significant challenges related to social protection and financial security. Many self-employed youths remain outside the ambit of adequate social safety nets, with only a small fraction actively enrolled in the Social Security Organisation's Self-Employment Social Security Scheme. This low coverage heightens vulnerability to unforeseen risks such as illness, accidents, and income instability. Additionally, structural mismatches in the labor market and insufficient job creation for highly skilled workers contribute to the shift towards non-standard employment, which often lacks traditional employment benefits. Therefore, there is a pressing need for policy reforms and government interventions to expand coverage and tailor social security schemes to the unique circumstances of the self-employed, particularly youths.