Lim Guan Eng Urges Government to Scrap RM10,000 SIP Penalty

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Bagan MP Lim Guan Eng has urged the federal government to repeal Section 45F of the amended Employment Insurance System (SIP) Bill, which imposes a RM10,000 fine on employers who fail to notify PERKESO of any job vacancy or newly created position within seven days.

Lim, who also serves as DAP secretary-general, warned that the amendment passed by the Dewan Rakyat on December 2, 2025, would place an excessive burden on employers — especially those facing multiple vacancies over several weeks, potentially resulting in cumulative penalties.

“The RM10,000 penalty under Section 45F must be repealed when the SIP is debated in the Dewan Negara,” he said in a statement, expressing confidence that MPs will support the repeal once the matter is returned to the Lower House.

Lim criticised PERKESO for failing to engage stakeholders before pushing the amendment through Parliament. He noted that on December 4, PERKESO only then announced a two-year moratorium on enforcement and promised consultations with employers.

He questioned why engagement was planned after, rather than before, the amendment was passed.
“The moratorium means nothing because eventually the RM10,000 penalty will still be enforced,” he said.

Lim added that government MPs had assumed stakeholder consultations had already taken place, calling the situation “surprising” and saying the legislative process had been compromised.

He insisted that Section 45F be scrapped entirely, but suggested that if the government insists on implementing it, SMEs should be exempt, while penalties for larger companies be reduced to RM100.

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