MBSP Breaks New Ground With Mandatory Lindung Kendiri For Hawkers

BUKIT MERTAJAM, April 21 (Bernama) -- The Seberang Perai City Council (MBSP) has been recognised by the Malaysia Book of Records (MBOR) as the first local authority in the country to make contributions to the Self-Employment Social Security Scheme (LINDUNG Kendiri) mandatory for hawkers.

The recognition was formalised through the exchange of a Memorandum of Understanding (MoU) between the Social Security Organisation (Perkeso) and MBSP today.

Perkeso chairman Datuk Seri Subahan Kamal said the MoU requires all hawkers under MBSP to contribute to the scheme as a condition for new or renewed business licences.

“Our aim is to ensure hawkers and small traders have a strong social safety net. These contributions serve as protection for them.

“In Penang, from 2024 to February this year, RM3.92 million in benefit claims has been approved for contributors,” he said.

Earlier, Subahan and Penang Local Government and Town and Country Planning Committee chairman H’ng Mooi Lye witnessed the MoU exchange between Seberang Perai mayor Datuk Baderul Amin Abdul Hamid and Perkeso Group CEO Datuk Seri Dr Mohammed Azman Aziz Mohammed.

Subahan said the scheme covers 20 sectors, with hawkers receiving RM479,048 in benefits. As of February, 20 hawkers in Penang had received RM90,734.

He added that as of April 3, 16,933 self-employed individuals in Penang were actively contributing under the scheme, including 5,422 hawkers, or 32 per cent.

He said Perkeso, through the Ministry of Human Resources (KESUMA), aims to expand this model to other local authorities nationwide.

Meanwhile, Baderul Amin said the move reflects MBSP’s commitment to protecting the welfare of hawkers and small traders, benefiting more than 5,641 licensed hawkers under its supervision.

“Social protection is no longer optional but necessary. It protects hawkers from risks such as accidents or loss of income, while supporting their families,” he said.

He added that the initiative is supported by integrating MBSP’s digital system with Perkeso to ease contribution checks during licence applications and renewals, in line with public service digitalisation.

-- BERNAMA