Low OSH Compliance Among SMEs A Serious Concern, Says Lee

KUALA LUMPUR, March 29 (Bernama) -- Low compliance with Occupational Safety and Health (OSH) standards across industries, particularly among small and medium enterprises (SMEs), remains a serious concern that demands urgent action, said Alliance for a Safe Community chairman Tan Sri Lee Lam Thye.

Lee said workplace safety must never be treated as optional, as every worker has the right to return home safely, adding that low OSH compliance exposes workers to preventable accidents and fatalities while affecting business performance.

“Every worker has the fundamental right to return home safely at the end of the day, and employers have a legal and moral duty to ensure a safe working environment.

“Beyond the human suffering, poor safety practices also lead to productivity losses, compensation claims, reputational damage, and increased healthcare costs.

“In the long run, neglecting safety is far more expensive than investing in prevention,” he said in a statement.

Lee said that while SMEs often face constraints such as limited financial resources, a lack of technical expertise, and insufficient awareness of OSH requirements, these challenges must not compromise safety.

Stressing that safety must be embedded into business operations, regardless of company size, he called for stronger awareness and education, noting that many SMEs may not fully understand their OSH obligations.

“Government agencies, industry associations, and chambers of commerce should intensify outreach programmes, provide simplified guidelines and offer practical training tailored specifically for SMEs,” he said.

Lee also proposed incentives to encourage compliance, including reducing import duties and taxes on Personal Protective Equipment and other safety devices to make them more affordable for employers, especially SMEs, to invest in proper safety equipment.

"Additional incentives could include tax deductions for OSH investments, grants for safety upgrades and recognition schemes for companies with exemplary safety records," he said.

He emphasised that enforcement must be strengthened through regular inspections, risk-based audits and stricter penalties for repeated non-compliance, focusing not only on punishment but also corrective action requiring employers to rectify hazards within a specified timeframe.

Lee also highlighted the role of technology, including digital reporting tools and self-assessment platforms, to help SMEs manage compliance more effectively.

“Improving OSH compliance is not just about meeting regulations. It is about protecting lives, safeguarding livelihoods, and building responsible businesses. Safety is not a cost ... it is an investment in people, productivity and the nation’s future," he concluded.

-- BERNAMA