SEMINAR KKP PERATURAN KENDIRI

MAJIKAN DAN PEKERJA

OSH: Self Regulation at the Workplace –
Readiness on Self Regulation at the Workplace
By:
Dato’ Ahmad Nadzarudin bin Abdul Razak
Honorary Treasurer
Malaysian Employers Federation

Membina Mindset Bekerja Tanpa Kemalangan

My current knowledge of OS

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MALAYSIAN EMPLOYERS FEDERATION

 CONTENTS

1 Malaysian OSH Self Regulation Model

2 Readiness of Self Regulation

3 Challenges Faced by Employers

4 MEF Recommendation

5 Conclusion

3
 BACKGROUND ON SELF
REGULATION

◼ OSH Act enacted in 1994

◼ The act is based on self- regulation concept
introduced by the Robens’ Report in UK in 1972.
◼ Robens’ Report states that the responsibility for
managing safety and health lies with those who
create the risk and those who work with the risks.
◼ After 28 years, overall safety and health performance
has improved.

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 BACKGROUND ON SELF
REGULATION

What is it ?
◼ “Self-regulation is the controlling of a process or
activity by the people or organisations that are
involved in it rather than by an outside
organisation such as government.”

Neil Gunningham
Investigation of Industry Self Regulation in Workplace Health and Safety in New
Zealand, 2011

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 3 Implementation Types of
Self Regulation
1 Voluntary self regulation
▪ Companies or industry make the
rules and enforces them
▪ Independent of direct
government involvement

Mandated full self regulation

Companies or industry make the
2
▪
rules and enforces them
▪ Government officially sanctions
them, monitors effectiveness, may
intervene if necessary
Mandated partial self regulation
▪ Companies or industry either make or enforce
rules but not both
3 ▪ Public enforcement of private rules, or
government-mandated internal enforcement

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OSH self regulation in Malaysia

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MALAYSIAN EMPLOYERS FEDERATION

 Malaysian OSH
Self Regulation Model

SELF REGULATION AT WORKPLACE

OSH MANAGEMENT

MEASUREMENT

OSHWA REPORTING
CONSEQUENCE
MANAGEMENT

COMPETENCY &
POLICY

BALANCE
SYSTEM

CHECK &
KPI &
ACCOUNTABILITY
OSH ACT 1994
SELF REGULATION MODEL – OSHMP 25
MEF co-chair the committee to develop
the “Nota Panduan Peraturan Kendiri Di tempat Kerja-Edisi 2021” Under OSHMP25

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 Malaysian OSH
Self Regulation Model

SELF REGULATION AT WORKPLACE

1. Self regulation, a priority of the employer

POLICY

2. To be integrated with company OSH policy

ACCOUNTABILITY
OSH ACT 1994

SELF REGULATION MODEL – OSHMP 25

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 Malaysian OSH
Self Regulation Model

SELF REGULATION AT WORKPLACE

OSH MANAGEMENT
SYSTEM

Workplace to implement Occupational

Health and Safety Management
Systems (OSHMS) e.g. ISO 45001:2018

ACCOUNTABILITY
OSH ACT 1994

SELF REGULATION MODEL – OSHMP 25

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 Malaysian OSH
Self Regulation Model

SELF REGULATION AT WORKPLACE

CONSEQUENCE
MANAGEMENT

1. Corrective action and preventive measure to

ensure non conformance will not recur
2. Conformance to the law

ACCOUNTABILITY
OSH ACT 1994

SELF REGULATION MODEL – OSHMP 25

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 Malaysian OSH
Self Regulation Model

SELF REGULATION AT WORKPLACE

MEASUREMENT
KPI &

1. To establish leading and lagging indicators

2. Progressive continual improvement

ACCOUNTABILITY
OSH ACT 1994

SELF REGULATION MODEL – OSHMP 25

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 Malaysian OSH
Self Regulation Model

SELF REGULATION AT WORKPLACE

1. A mechanism to monitor and evaluate OSH

BALANCE

performance need to be established

CHECK &

2. Internal OSH audit team, internal inspectors,

consultation with subject matter expert,
competent person should be undertaken
ACCOUNTABILITY
OSH ACT 1994

SELF REGULATION MODEL – OSHMP 25

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 Malaysian OSH
Self Regulation Model

SELF REGULATION AT WORKPLACE

OSHWA REPORTING

1. Appointment of competent person i.e SHO or

COMPETENCY &

OSH Coordinator to manage self regulation

2. Internal reporting and reporting to DOSH -

OSH workplace assessment via online

ACCOUNTABILITY
OSH ACT 1994

SELF REGULATION MODEL – OSHMP 25

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 Malaysian OSH
Self Regulation Model

SELF REGULATION AT WORKPLACE

OSH MANAGEMENT

MEASUREMENT

OSHWA REPORTING
CONSEQUENCE
MANAGEMENT

COMPETENCY &
POLICY

BALANCE
SYSTEM

CHECK &
ACCOUNTABILITY KPI &
OSH ACT 1994

SELF REGULATION MODEL – OSHMP 25

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The 6 pillars of the
Malaysian OSH
Self Regulation Model

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MALAYSIAN EMPLOYERS FEDERATION

 CONTENTS

1 Malaysian OSH Self Regulation Model

2 Readiness of Self Regulation

3 Challenges Faced by Employers

4 MEF Recommendation

5 Conclusion

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 Benefits of Self Regulation for
Employers
2
It promotes workers participation and
cooperation thus this can motivate them
hence improve OSH performance and
safety culture of the organization
1 3
Hazards are dynamic and It relies on response and
volatile, therefore self mitigation done internally
regulation gives the without intervention from
advantage for employers external parties thus the
to identify the most response time is swift.
suitable and appropriate Quick fix can be done
control measure to immediately
reduce the risk of the
hazards.

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 Readiness of Self Regulation
for Employers: Low Numbers
ISO45001 OHSMS
No of companies
certified
1,349
SHO

SSS
5,903 No of certified Safety &
Health Officers personnel
No of Site Safety
Supervisors
6,712
OSH Coordinator
Sources: The ISO 9,052 No of Occupational Safety &
Health Coordinators
Survey 2021, DOSH
Website

Low number of certified companies and competent persons

means we’re getting there,
but still far to achieve pervasive OSH self regulation
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 Readiness of Self Regulation
for Employers: MEF Experience
MEF experience with members :
◼ Employing competent SHO is a challenging task due to limited
numbers of SHO registered with DOSH.
◼ The supply of SHO does not meet the demand needed by
industry.
◼ This problem is compounded when the location of the Company is
in remote areas ( Sabah and Sarawak)
◼ MEF anticipate that should the OSH Coordinator becomes
compulsory, this issue could be compounded.

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 CONTENTS

1 Malaysian OSH Self Regulation Model

2 Readiness of Self Regulation

3 Challenges Faced by Employers

4 MEF Recommendation

5 Conclusion

22
 CHALLENGES FACED BY EMPLOYERS IN
IMPLEMENTING SELF REGULATION

OSH Act 1994

◼ The penalty from RM50,000 to RM500,000 for general duties of
employers (Section 15 )under the OSH Act (Amendment) 2022 is
a concern to employers
◼ Section 15 is a self-regulatory provision and therefore subjective
in its implementation
◼ It would be very easy for employer to fall into the “breach trap”
based on Section 15
◼ Should the new RM500,000 penalty be enforced many employers
will be prone and vulnerable

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 CHALLENGES FACED BY EMPLOYERS IN
IMPLEMENTING SELF REGULATION

Implementation of OSH Management System

◼ For companies to be certified by a certification body, the audit
fee for 6 man-days + registration fee is estimated to be
RM10,000
◼ Additional fee would also be applicable to maintain certification
◼ For Small and Medium Enterprises this could be expensive

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 CHALLENGES FACED BY EMPLOYERS IN
IMPLEMENTING SELF REGULATION

Competency – OSH Coordinator

◼ Section 29A - OSH Act (Amendment) 2022 requires a place of
work to appoint 1 occupational safety and health coordinator if
he employs five or more employees at his place of work.
◼ A total of 261,999 are small and medium enterprise (based on
SME Corp) in Malaysia and will be subjected to this provision.
◼ As of 30 Sept 2022 only 59 training providers are registered
nationwide with DOSH for OSH Coordinator training.
◼ Only 9 training providers available in Sarawak & 4 in Sabah.

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 SUMMARY OF CHALLENGES FACED BY
EMPLOYERS TO IMPLEMENT SELF
REGULATION
Section 15 of OSHA 2022
1 ▪ Penalty of RM50k-RM500k may be high
▪ Open to subjective interpretation
▪ “General duty of care” may cause
employers to fall into “breach trap”

OSH Management System

Companies must be certified by a
2 certification body at RM10k audit cost +
annual surveillance cost makes it expensive
for SMEs

OSH Coordinator
262k SMEs employing >5 employees need to
appoint trained Occupational Safety & Health
3 Coordinator while only 59 training providers
are registered
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 CONTENTS

1 Malaysian OSH Self Regulation Model

2 Readiness of Self Regulation

3 Challenges Faced by Employers

4 MEF Recommendation

5 Conclusion

27
 MEF RECOMMENDATIONS
If self regulation is to be effective a dynamic approach is needed.
◼ DOSH may recognize that ‘good’ companies should be treated
differently from the recalcitrant.
◼ DOSH may :
◼ employ a blend of persuasion and coercion depending upon
the responsiveness of the companies;
◼ adopt a ‘target analytic’ approach that recognizes some
degree of self-regulation may be appropriate ; or
◼ ‘meta regulate’, seeking by law to stimulate modes of self-
regulation within the firm rather than regulating
prescriptively.
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 MEF RECOMMENDATIONS

◼ DOSH might insist that industry implement OSH management

systems which are auditable by DOSH or by Competent Auditors,
rather than checking thoroughly the compliance with sections and
regulations of the OSH Act 1994 and Factory and Machineries
1967.
◼ DOSH should support employers by providing technical experts
for guidance and advice.
◼ DOSH should only charge / prosecute as last resort when
employer is persistently recalcitrant.

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 MEF RECOMMENDATIONS

◼ Employers should be given more flexibility to manage

and control their OSH activities. DOSH may give a degree
of latitude, encouragement, rewarding and facilitating
leading companies to go ‘beyond compliance’.
◼ Administrative breach should only be highlighted for
improvement and should not be compounded or
prosecuted.
◼ Guidance and advice should be given and employers be
given reasonable time to improve the gaps.

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 MEF RECOMMENDATIONS

Notifying and reporting of incidences:

◼ Single incident notification systems with no penalty
implication should be established

◼ Employers should not be penalized for failure to fulfill

reporting requirements

◼ Information from accident reporting should be used to

improve workplace and share within the same sector as
lessons learned.

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 MEF RECOMMENDATIONS

Special assistance fund:

◼ A fund for industries or enterprises to establish
OSH best practices, technical standards, code of
practice, or guidelines should be set up to ensure
that safety and health initiatives are industry-driven
instead of government-driven.

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 MEF RECOMMENDATIONS

◼ Penalties and compounding of offences should not

be main factors in self-regulation.

◼ Employers and employees should be given full trust

and support in managing OSH at the workplace.
There are many employers that go beyond
legislation in fulfilling self regulation.

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 CONTENTS

1 Background on Self Regulation

2 Readiness of Self Regulation

3 Challenges Faced by Employers

4 MEF Recommendation

5 Conclusion

34
 CONCLUSION
Self regulation is way forward
OSHA 1994 and OSHAA 2022 is right to push self regulation.
This is internationally accepted practice.
Plenty of lessons and knowledge can be obtained from
others

Self Regulation under OSHMP25 to be pushed

For employers & employees to self-regulate, the self regulation
model under OSHMP25 must be pushed out more diligently
OSH Self
Regulation
DOSH should advise more
Readiness DOSH has important role to advice employers & employees
attempting to self-regulate at workplace and must play this
role hard and help share more lessons

Employers are getting there, but

challenges remain
Low number of certified companies, low registered training
providers, high cost of OSHMS registration for SMEs are
some challenges that means journey is still long

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 THANK YOU

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