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<h1>Social Security Programs Throughout the World: Asia and the Pacific, 2016</h1>
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<h1>Malaysia</h1>
<div class="exchangeRate">Exchange rate: <abbr class="spell">US</abbr>$1.00&nbsp;= 4.03&nbsp;ringgits.</div>
<h2>Old Age, Disability, and Survivors</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First law:</span> 1951 (provident fund).</p>
<p><span class="h4">Current laws:</span> 1969 (social security), 1980 (pension adjustment), 1991 (provident fund), and 2012 (minimum retirement age).</p>
<p><span class="h4">Type of program:</span> Provident fund, social insurance, and social assistance system.</p>
<p>Note: The Employees Provident Fund (<abbr class="spell">EPF</abbr>) provides two types of individual accounts for each member: Account&nbsp;1 that funds retirement and Account&nbsp;2 that may be accessed prior to retirement for education, designated critical illnesses, or a home purchase. Fund members with sufficient savings may choose to invest a portion of their Account&nbsp;1 balance with an external fund manager.</p>
<h3>Coverage</h3>
<p><span class="h4">Provident fund:</span> Private-sector employees and certain public-sector employees not covered by a separate public-sector system.</p>
<p>Voluntary coverage for household workers, self-employed persons, and foreign workers.</p>
<p>Special systems for certain public-sector employees and military personnel.</p>
<p><span class="h4">Social insurance:</span> Private-sector employees and certain public-sector employees not covered by a separate public-sector system.</p>
<p>Exclusions: Household workers, spouses of business owners, self-employed persons, and foreign workers.</p>
<p>Special systems for certain public-sector employees and military personnel.</p>
<p><span class="h4">Social assistance:</span> Needy elderly persons.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person</span></p>
<p><span class="h5">Provident fund:</span> 8% of monthly earnings for private-sector employees younger than age&nbsp;60; 4% of monthly earnings for fund members aged&nbsp;60 to 75. (70% and 30% of monthly contributions are allocated to Accounts&nbsp;1 and 2, respectively.)</p>
<p>Additional voluntary contributions to Account&nbsp;1 are possible.</p>
<p>The insured person's contributions to Account&nbsp;2 also finance sickness and maternity benefits.</p>
<p>The minimum monthly earnings used to calculate contributions are 10&nbsp;ringgits.</p>
<p>There are no maximum earnings used to calculate contributions.</p>
<p>Up to 6,000&nbsp;ringgits a year of the insured person's contributions to the <abbr class="spell">EPF</abbr> are tax deductible.</p>
<p><span class="h5">Social insurance:</span> 0.5% of monthly earnings, according to 45&nbsp;wage classes.</p>
<p>There are no minimum monthly earnings used to calculate contributions.</p>
<p>The maximum monthly earnings used to calculate contributions are 4,000&nbsp;ringgits.</p>
<p><span class="h5">Social assistance:</span> None.</p>
<p><span class="h4">Self-employed person</span></p>
<p><span class="h5">Provident fund:</span> 50 to 5,000&nbsp;ringgits a month.</p>
<p>The insured person's contributions to Account&nbsp;2 also finance sickness and maternity benefits.</p>
<p>Up to 6,000&nbsp;ringgits a year of the insured person's contributions to the <abbr class="spell">EPF</abbr> are tax deductible.</p>
<p><span class="h5">Social insurance:</span> Not applicable.</p>
<p><span class="h5">Social assistance:</span> None.</p>
<p><span class="h4">Employer</span></p>
<p><span class="h5">Provident fund:</span> 13% of monthly earnings for fund members younger than age&nbsp;60 earning up to 5,000&nbsp;ringgits a month; 12% for fund members younger than age&nbsp;60 earning 5,001&nbsp;ringgits a month or more; 6.5% for fund members aged&nbsp;60 to 75 earning up to 5,000&nbsp;ringgits a month; 6% for fund members aged&nbsp;60 to 75 earning 5,001&nbsp;ringgits a month or more. (70% and 30% of monthly contributions are allocated to Accounts&nbsp;1 and 2, respectively.)</p>
<p>Additional voluntary contributions are possible.</p>
<p>The employer's contributions to Account&nbsp;2 also finance sickness and maternity benefits.</p>
<p><span class="h5">Social insurance:</span> 0.5% of monthly payroll, according to 45&nbsp;wage classes.</p>
<p>There are no minimum monthly earnings used to calculate contributions.</p>
<p>The maximum monthly earnings used to calculate contributions are 4,000&nbsp;ringgits.</p>
<p><span class="h5">Social assistance:</span> None.</p>
<p><span class="h4">Government</span></p>
<p><span class="h5">Provident fund:</span> Matches 10% of contributions up to 120&nbsp;ringgits a year for self-employed persons and household workers (Account&nbsp;1 only).</p>
<p><span class="h5">Social insurance:</span> None; contributes as an employer.</p>
<p><span class="h5">Social assistance:</span> The total cost.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Old-age benefit (provident fund):</span> Age&nbsp;55 to withdraw all funds (Account&nbsp;1 and 2).</p>
<p>Fund members are not required to retire at age&nbsp;55 and may withdraw all or part of their funds (Accounts&nbsp;1 and 2) and continue working up to age&nbsp;75. Fund members who are still working and do not withdraw their funds at age&nbsp;55 must continue to make contributions to the <abbr class="spell">EPF</abbr>. Those fund members who withdraw all of their funds at age&nbsp;55 can choose to rejoin and contribute to the <abbr class="spell">EPF</abbr> if still employed or working in a new job.</p>
<p>Other withdrawals can be made under specified conditions:</p>
<p><span class="h5">Leaving the country withdrawal (Account&nbsp;1 and 2):</span> May withdraw funds at any age if the member permanently emigrates from Malaysia or is a foreign worker who returns home after the job contract expires.</p>
<p><span class="h5">Investment withdrawal (Account&nbsp;1):</span> May withdraw funds before age&nbsp;55 to make investments with approved institutions. Fund members must have at least 5,000&nbsp;ringgits more than the required basic savings level based on their age.</p>
<p>The basic savings level ranges from 1,000&nbsp;ringgits (age&nbsp;18) to 196,800&nbsp;ringgits (age&nbsp;55).</p>
<p><span class="h5">Housing withdrawal (Account&nbsp;2):</span> May withdraw funds to purchase or build a house or to reduce a housing loan or monthly mortgage payments, subject to certain conditions.</p>
<p><span class="h5">Health withdrawal (Account&nbsp;2):</span> May withdraw funds to pay for the treatment of a critical illness for the fund member or his or her children, if the fund member's employer does not provide full coverage for such treatment. The <abbr class="spell">EPF</abbr> Board provides a list of 55 designated critical illnesses.</p>
<p><span class="h5">Education withdrawal (Account&nbsp;2):</span> May withdraw funds to pay for the education of the member or the member's children at any approved institution of higher learning.</p>
<p><span class="h5">Age&nbsp;50 withdrawal (Account&nbsp;2):</span> A <span class="nobr">one-time</span> withdrawal from Account&nbsp;2 at age&nbsp;50.</p>
<p><span class="h5">Hajj withdrawal (Account&nbsp;2):</span> Paid up to age&nbsp;55 to cover expenses related to a member's first Hajj pilgrimage if there are insufficient savings in the fund member's Lembaga Tabung Haji (LTH) account. (The purpose of the account is to save for a pilgrimage. LTH invests according to Islamic principles.) The insured needs a letter from LTH indicating &ldquo;Selected&rdquo; status and evidence of insufficient savings.</p>
<p>All provident fund benefits are payable abroad.</p>
<p><span class="h4">Noncontributory <span class="nobr">old-age</span> pension (social assistance, mean tested):</span> Age&nbsp;60 and assessed as needy, with no financial support from other family members.</p>
<p><span class="h4">Incapacitation benefit (provident fund):</span> Must be assessed by a medical doctor as mentally or physically unable to work. Fund members may be referred to an <abbr class="spell">EPF</abbr> panel to confirm the disability assessed by the medical doctor.</p>
<p>Additional benefit: Paid up to age&nbsp;55.</p>
<p>All provident fund benefits are payable abroad.</p>
<p><span class="h4">Disability pension (social insurance):</span> Must be younger than age&nbsp;60 with at least a 66.7% assessed loss of earning capacity and at least 24&nbsp;months of contributions in the last 40&nbsp;months; or have contributions in at least 66.7% of the months since first becoming insured, with a total of at least 24&nbsp;months of contributions.</p>
<p><span class="h5">Reduced disability pension:</span> The insured paid contributions for at least 33.3% of the months since first becoming insured, with a total of at least 24&nbsp;months of contributions.</p>
<p>A medical board appointed by the Social Security Organization in consultation with the Ministry of Health assesses the degree of disability.</p>
<p><span class="h5">Constant-attendance allowance:</span> Paid if the insured requires the constant attendance of others to perform daily functions.</p>
<p><span class="h4">Disability grant (social insurance):</span> Paid if the insured is ineligible for a disability pension but has at least 12&nbsp;months of contributions.</p>
<p><span class="h4">Survivor benefit (provident fund):</span> Paid to the named beneficiary (non-Muslims) or administrator (Muslims). If there are no named beneficiaries, the benefit is paid (in order of priority) to the spouse, children, parents, and siblings.</p>
<p>All provident fund benefits are payable abroad.</p>
<p><span class="h4">Survivor pension (social insurance):</span> The deceased had at least 24&nbsp;months of contributions in the last 40&nbsp;months before death; or had contributions in at least 66.7% of the months since first becoming insured, with a total of at least 24&nbsp;months of contributions.</p>
<p><span class="h5">Reduced survivor pension:</span> The deceased paid contributions for at least 33% of the months since first becoming insured, with a total of at least 24&nbsp;months of contributions.</p>
<p>Eligible survivors include a <span class="nobr">widow(er),</span> unmarried children younger than age&nbsp;21 (or until the completion of an undergraduate degree, no limit if disabled), parents, grandparents, and unmarried dependent brothers and sisters younger than age&nbsp;21.</p>
<p>The spouse's pension continues upon remarriage.</p>
<p><span class="h5">Funeral grant (social insurance):</span> Paid to the insured's dependents, next of kin, or the individual who paid for the funeral.</p>
<h3>Old-Age Benefits</h3>
<p><span class="h4">Old-age benefit (provident fund):</span> Fund members can withdraw total or partial savings through: a <span class="nobr">lump-sum</span> withdrawal (employee and employer contributions plus compound interest minus drawdown payments); a monthly withdrawal of at least 250&nbsp;ringgits for at least one year, up to age&nbsp;75; a withdrawal at any time of at least 2,000&nbsp;ringgits a month; a combination of the last two options or a withdrawal of only the annual dividend by keeping the principal in Account&nbsp;1.</p>
<p>The guaranteed minimum interest rate is 2.5% a year. If funds remain in the accounts after age&nbsp;55, fund members continue to earn compound interest until age&nbsp;100.</p>
<p><span class="h5">Leaving the country withdrawal (Accounts&nbsp;1 and 2):</span> A lump sum of total employee and employer contributions plus compound interest minus drawdown payments is paid.</p>
<p><span class="h5">Investment withdrawal (Account&nbsp;1):</span> Up to 20% of the amount above the required basic savings level may be invested with an approved institution. The minimum amount that can be invested is 1,000&nbsp;ringgits.</p>
<p>The basic savings level ranges from 1,000&nbsp;ringgits (age&nbsp;18) to 196,800&nbsp;ringgits (age&nbsp;55).</p>
<p><span class="h5">Housing withdrawal (Account&nbsp;2):</span> Up to the balance of funds is paid.</p>
<p><span class="h5">Health withdrawal (Account&nbsp;2):</span> Up to the total cost of medical care or the balance of funds, whichever is less, is paid.</p>
<p><span class="h5">Education withdrawal (Account&nbsp;2):</span> Up to the total education fees or the balance of funds, whichever is less, is paid to the fund member or institution of higher learning.</p>
<p><span class="h5">Age&nbsp;50 withdrawal (Account&nbsp;2):</span> Up to the balance of funds is paid.</p>
<p><span class="h5">Hajj withdrawal (Account&nbsp;2):</span> The difference between the cost of Hajj and the amount in the Hajj savings account (LTH) is paid, up to 3,000&nbsp;ringgits.</p>
<h4><span class="h4">Noncontributory <span class="nobr">old-age</span> pension (social assistance, means tested):</span> 300&nbsp;ringgits a month is paid.</h4>
<h3>Permanent Disability Benefits</h3>
<p><span class="h4">Incapacitation benefit (provident fund):</span> A lump sum of total employee and employer contributions (Accounts&nbsp;1 and 2) plus compound interest minus drawdown payments is paid.</p>
<p>The guaranteed minimum interest rate is 2.5% a year.</p>
<p>Additional benefit: A lump sum of 5,000&nbsp;ringgits is paid.</p>
<p><span class="h4">Disability pension (social insurance):</span> 50% to 65% of the insured's average monthly earnings in the 24&nbsp;months before the disability began is paid, depending on the number of contributions.</p>
<p>The maximum pension is 65% of the insured's average monthly earnings in the 24&nbsp;months before the disability began, up to 1,917.55&nbsp;ringgits.</p>
<p>The maximum monthly earnings used to calculate benefits are 2,950&nbsp;ringgits.</p>
<p>Reduced disability pension: 50% of the insured's average monthly earnings in the 24&nbsp;months before the disability began is paid.</p>
<p>The minimum monthly pension is 475&nbsp;ringgits.</p>
<p>Constant-attendance allowance: 40% of the insured's pension (up to 500&nbsp;ringgits a month) is paid.</p>
<p><span class="h4">Disability grant (social insurance):</span> A lump sum of total employer and employee contributions plus accrued interest is paid.</p>
<p>Benefit adjustment: Social insurance benefits are adjusted according to changes in the cost of living and the social insurance system's finances.</p>
<h3>Survivor Benefits</h3>
<p><span class="h4">Survivor benefit (provident fund):</span> A lump sum of total employee and employer contributions (Accounts&nbsp;1 and 2) plus compound interest minus drawdown payments is paid.</p>
<p>The guaranteed minimum interest rate is 2.5% a year.</p>
<p>Additional benefit: A lump sum of 2,500&nbsp;ringgits is paid.</p>
<p><span class="h4">Survivor pension (social insurance):</span> If the deceased received a disability pension (social insurance), 100% of the disability pension is paid; if the deceased was employed at the time of death, 50% to 65% of the insured's average monthly earnings in the 24&nbsp;months before death is paid, depending on the number of contributions.</p>
<p>The survivor pension is split as follows: 60% of the benefit is paid to an eligible <span class="nobr">widow(er)</span> and 40% to eligible children.</p>
<p>If there are no other eligible survivors, 40% of the benefit is paid to parents or grandparents and 30% to eligible single siblings up to age&nbsp;21.</p>
<p>Reduced survivor pension: 50% of the deceased's average monthly earnings in the 24&nbsp;months before death is paid.</p>
<p>The minimum monthly survivor pension is 475&nbsp;ringgits.</p>
<p><span class="h4">Funeral grant (social insurance):</span>&nbsp;A lump sum of up to 1,500&nbsp;ringgits is paid.</p>
<p>Benefit adjustment: Social insurance benefits are adjusted according to changes in the cost of living and the social insurance system's finances.</p>
<h3>Administrative Organization</h3>
<p><span class="h4">Provident fund:</span> Ministry of Finance (http://www.treasury.gov.my/) provides general supervision.</p>
<p>Employees Provident Fund (http://www.kwsp.gov.my/), managed by a tripartite governing board, administers contributions and benefits and is responsible for investing members' funds.</p>
<p><span class="h4">Social insurance:</span> Ministry of Human Resources (http://www.mohr.gov.my/) provides general supervision.</p>
<p>Social Security Organization (SOCSO) (<a href="https://www.perkeso.gov.my/">http://www.perkeso.gov.my/</a>), managed by a tripartite governing board, administers contributions and benefits.</p>
<p><span class="h4">Social assistance:</span> Ministry of Women, Family, and Community Development (KPWKM) (<a href="https://www.kpwkm.gov.my/">http://www.kpwkm.gov.my/</a>) provides general supervision for social assistance benefits.</p>
<p>Department of Social Welfare (JKMM) administers benefits through local branches.</p>
<h2>Sickness and Maternity</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First laws:</span> 1955 (public health) and 1951 (provident fund).</p>
<p><span class="h4">Current laws:</span> 1955 (sickness and maternity) and 1991 (provident fund)</p>
<p><span class="h4">Type of program:</span> Provident fund (medical benefits only) and employer-liability (sickness and maternity) system.</p>
<h3>Coverage</h3>
<p><span class="h4">Cash sickness and maternity benefits (employer liability):</span> Employed persons.</p>
<p>Exclusions: Self-employed persons.</p>
<p><span class="h4">Medical benefits (provident fund):</span> Private-sector employees and certain public-sector employees not covered by a separate public-sector system.</p>
<p>Voluntary coverage for household workers, self-employed persons, and foreign workers.</p>
<p>Special systems for certain public-sector employees and military personnel.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person</span></p>
<p><span class="h5">Cash sickness and maternity benefits:</span> None.</p>
<p><span class="h5">Medical benefits (provident fund):</span> See source of funds (provident fund) under Old Age, Disability, and Survivors.</p>
<p><span class="h4">Self-employed person</span></p>
<p><span class="h5">Cash sickness and maternity benefits:</span> Not applicable.</p>
<p><span class="h5">Medical benefits (provident fund):</span> See source of funds (provident fund) under Old Age, Disability, and Survivors.</p>
<p><span class="h4">Employer</span></p>
<p><span class="h5">Cash sickness and maternity benefits:</span> The total cost.</p>
<p><span class="h5">Medical benefits (provident fund):</span> See source of funds (provident fund) under Old Age, Disability, and Survivors.</p>
<p><span class="h4">Government</span></p>
<p><span class="h5">Cash sickness and maternity benefits:</span> None.</p>
<p><span class="h5">Medical benefits (provident fund):</span> See source of funds (provident fund) under Old Age, Disability, and Survivors. Subsidizes public health care services from general revenues.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Cash sickness benefits (employer liability):</span> A registered medical practitioner or dentist must provide medical certification.</p>
<p><span class="h4">Cash maternity benefits (employer liability):</span> Must have been employed in the last four months and have worked for the same employer for at least 90&nbsp;days in the last nine months.</p>
<p><span class="h4">Medical benefits (provident fund):</span> See qualifying conditions (health withdrawal, provident fund) under Old Age, Disability, and Survivors.</p>
<h3>Sickness and Maternity Benefits</h3>
<p><span class="h4">Sickness benefit (employer liability):</span> 100% of the employee's earnings is paid for up to 22&nbsp;days with at least five years of service; up to 18&nbsp;days with two to five years; and up to 14&nbsp;days with less than two years. May be paid for up to 60&nbsp;days if the illness requires hospitalization, regardless of the length of service.</p>
<p><span class="h4">Maternity benefit (employer liability):</span> The insured's wage or the rate set by the Minister of Labour, whichever is greater, is paid for at least 60&nbsp;days.</p>
<h3>Workers' Medical Benefits</h3>
<p><span class="h4">Medical benefits (provident fund):</span> Fund members may draw down a portion of their account balance to cover the cost of medical care. See cash benefits for insured workers (health withdrawal, provident fund) under Old Age, Disability, and Survivors.</p>
<p>The Ministry of Health provides subsidized public health care services.</p>
<h3>Dependents' Medical Benefits</h3>
<p>The Ministry of Health provides subsidized public health care services.</p>
<h3>Administrative Organization</h3>
<p><span class="h4">Cash maternity benefits:</span> Ministry of Human Resources (http://www.mohr.gov.my/) provides general supervision.</p>
<p><span class="h4">Medical benefits:</span> Ministry of Health (<a href="http://www.moh.gov.my/">http://www.moh.gov.my/</a>) provides general supervision.</p>
<p>Employees Provident Fund (http://www.kwsp.gov.my/), managed by a tripartite governing board, administers contributions and benefits and is responsible for investing members' funds.</p>
<h2>Work Injury</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First and current law:</span> 1969 (social security).</p>
<p><span class="h4">Type of program:</span> Social insurance system.</p>
<h3>Coverage</h3>
<p>Private-sector employees and public-sector employees not covered by a separate public-sector system.</p>
<p>Exclusions: Household workers, spouses of business owners, self-employed persons, and foreign workers.</p>
<p>Special systems for certain public-sector employees, foreign workers, and military personnel.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> None.</p>
<p><span class="h4">Self-employed person:</span> Not applicable.</p>
<p><span class="h4">Employer:</span> 1.25% of monthly payroll, according to 45&nbsp;wage classes.</p>
<p>There are no minimum monthly earnings used to calculate contributions.</p>
<p>The maximum monthly earnings used to calculate contributions are 4,000&nbsp;ringgits.</p>
<p><span class="h4">Government:</span> None.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Work injury benefits:</span> There is no minimum qualifying period.</p>
<p><span class="h4">Temporary disability benefit:</span> Must be certified by a medical doctor to be unfit for work for at least four days.</p>
<h3>Temporary Disability Benefits</h3>
<p>80% of the insured's average daily wage in the six months before the disability began is paid during the employee's medical leave.</p>
<p>The minimum daily benefit is 30&nbsp;ringgits.</p>
<p>The maximum daily benefit is 105.33&nbsp;ringgits.</p>
<h3>Permanent Disability Benefits</h3>
<p><span class="h4">Permanent disability pension:</span> For a total (100%) disability, 90% of the insured's average daily wage in the six months before the disability began is paid.</p>
<p>The minimum daily benefit is 30&nbsp;ringgits.</p>
<p>The maximum daily benefit is 118.50&nbsp;ringgits.</p>
<p>Constant-attendance allowance (total permanent disability): 500&nbsp;ringgits a month is paid if the insured requires the constant attendance of others to perform daily functions.</p>
<p>Partial disability: A percentage of the full pension is paid according to the assessed degree of disability.</p>
<p>The minimum daily benefit for a permanent partial disability is 30&nbsp;ringgits.</p>
<p>If the disability is assessed as less than 20%, the insured can request the benefit as a lump sum. If the disability is at least 20%, the insured is paid monthly, and may request up to 20% of the benefit as a lump sum.</p>
<p>Benefit adjustment: Benefits are adjusted according to changes in the cost of living and the social insurance system's finances.</p>
<h3>Workers' Medical Benefits</h3>
<p>Benefits include necessary medical treatment, hospitalization, medicine, artificial limbs and other prosthetic appliances, and physical and vocational rehabilitation.</p>
<p>Government hospitals and physicians under contract with the Social Security Organization provide care.</p>
<h3>Survivor Benefits</h3>
<p><span class="h4">Survivor pension:</span> 60% of the full daily benefit is paid to the widow (the widower if previously the insured's dependent) and 40% to unmarried children (60% to full orphans) younger than age&nbsp;21 (until the completion of a graduate degree, no limit if disabled).</p>
<p>The full daily benefit is 90% of the insured's average daily wage in the six months before death.</p>
<p>The spouse's pension continues upon remarriage.</p>
<p>Other eligible survivors: If there are no other eligible survivors, 40% of the full daily benefit is paid to parents (grandparents if the parents are deceased) and 30% to unmarried dependent siblings younger than age&nbsp;21.</p>
<p>The minimum daily survivor benefit is 30&nbsp;ringgits.</p>
<p>The maximum daily survivor benefit is 118.50&nbsp;ringgits.</p>
<p>Benefit adjustment: Benefits are adjusted according to changes in the cost of living and the social insurance system's finances.</p>
<p><span class="h4">Funeral grant:</span> Up to 1,500&nbsp;ringgits is paid to the person who paid for the funeral. The benefits are paid (in order of priority) to the deceased's surviving spouse, orphans, or parents.</p>
<p>Benefit adjustment: Benefits are adjusted according to changes in the cost of living and the social insurance system's finances.</p>
<h3>Administrative Organization</h3>
<p>Ministry of Human Resources (http://www.mohr.gov.my/) provides general supervision.</p>
<p>Social Security Organization (SOCSO) (<a href="https://www.perkeso.gov.my/">http://www.perkeso.gov.my/</a>), managed by a tripartite governing board, administers contributions and benefits and contracts with health care providers for medical services.</p>
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