Occupational Safety & Health for

SMIs/SMEs
WEDNESDAY, 05 MARCH 2008 16:58

5
( 6 Votes )

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There has been increased awareness of occupational safety and health (OSH) issues over the past few years as
SMEs observe the role that OSH plays in generating higher returns for multinational companies. SMEs are
subsequently acknowledging OSH to be a key determinant of competitiveness through reduced safety and health
risks, which in turn results in higher productivity and profitability. Notwithstanding the fact that OSH is slowly
being accepted as a productivity enhancer, SMEs also find themselves confronted with the problem of putting this
significant philosophy into practice at the workplace. This problem arises as most SMEs lack the manpower,
expertise and financial resources to meet the OSH standards as stipulated in the Occupational Safety and Health
Act (OSHA) 1994, which forms the legislative framework for OSH in Malaysia. Furthermore, SMEs are
questioning as to whether the OSH legislation is entirely applicable to them, as SMEs typically employ a small
number of workers.
Number of Reported Industrial Accidents (1999-2004)

Source: Department of Occupational Safety and Health & Social Security Organisation
OSH CHALLENGES FOR THE SME
1. Constraints in OSH Legislation
As in most countries, there is some form of national labour standards which are often written with the large

enterprise in mind. This has also been the case with the OSHA 1994. In view of the fact that SMEs cannot be
regarded as scaled down versions of large enterprises, SMEs are faced with the dilemma of whether or not to
adhere to the labour standards applicable to larger enterprises. There is therefore, a requirement for a specific
piece of OSH legislation to cater to SMIs so as to ensure that SMEs provide reasonable protection to their
employees in the workplace. The typical characteristics of the SMI must be well understood to avoid any
ambiguity when it comes to meeting OSH standards. Further, OSH legislation should be such that it is simple and
applicable across organisations of any size. Meanwhile, SMEs should take the proactive approach by complying
fully to the provisions of the OSHA 1994, more so if they already have the necessary resources. Under Section
30 of the OSHA 1994, employers who have 40 workers and above, or as directed by the Director General, must
establish a safety and health committee at their workplace.
2. The Changing Workplace with the Introduction of Information Technology (IT)
In addition to changing our lives, IT has changed workflows, job descriptions and the requirements for competent
workers. New technologies have changed our work methods and traditional job practices considerably. Where
jobs once required more physical effort, new technologies have changed them to become more mental and
social in nature. This has therefore given rise to new issues involving human and IT interface such as visual and
workstation ergonomics as well as workflows between man and machine. The OSH system implemented in the
workplace should therefore, move in line with the changes brought about by IT. The competence demands of a
labour-intensive company will differ substantially once the organization becomes more information-intensive.
Further, general and psychosocial competences will also come into play when senior workers are challenged to
move up to speed in meeting the competence demands of the information society. There is therefore, a need to
provide continuous training in the field of IT if a move towards IT is deemed necessary for increased
effectiveness and efficiency in the workplace. Otherwise, an OSH system will not be effective in serving its role
as a productivity enhancer if incompetence and illiteracy eventually result in work hazards.
3. Protecting the Handicapped, Senior and Young Workers
Ageing affects a persons health and productivity in different ways, be it due to chronic illnesses or simply a
reduction in the maximum number of overtime hours a person can work over the years. There is therefore, a
need to make adjustments to the working environment to accommodate the changes in employees who have
aged. On the other hand, SMEs also face challenges when confronted with the employment of handicapped
persons and young workers in general. Because handicapped persons need to work to sustain their livelihoods
as with any other person, there is a need to accommodate them at the workplace by making ergonomic
adjustments to the office in terms of ensuring that there is free access to facilities and work tools as and when
needed. When it comes to young workers, SMEs should consider investing in them by providing training and
introducing safe working practices right from the first day of their employment. It is undeniable that these changes
will be costly and time-consuming but it is worth looking into if an SME is thinking of enhancing its productivity
through OSH practices.
EFFECTIVE ADOPTION OF OSH MEASURES AT THE WORKPLACE
The OSHA 1994 is considered to be a relatively young legislation in Malaysia compared to other acts and
regulations. In view of the constraints in the OSH legislation, there is no doubt that SMIs are still struggling to
meet the minimum requirements for safety and health at the workplace. The OSHA currently rests with the
concept of self-regulation amongst SMIs. A responsible employer is one who takes charge to work with the risks
he or she has created by applying relevant preventive measures to control safety and health risks. This is clearly
displayed if an employer who requires an employee to undertake a risky task applies what is required of him by
law to provide the necessary training to enable the employee to perform his duties safely. The employee on the
other hand must do his or her part in following instructions to work safely.
Since its enactment in 1994, OSHA has been successful in reducing the rate of accidents per 1,000 workers but
the OSHA has only been effective to a certain extent in tackling traditional OSH problems while fatality rate still
remains high. Injuries from the use of machinery and diseases contracted from the exposure to chemicals and

solvents are still rampant amongst SMIs. These traditional OSH problems are still best controlled using traditional
strategies such as risk assessment, technical preventive measures, inspection and auditing as well as training.
The principle of self-regulation is not always the best answer to OSH problems in all circumstances, more so for
certain sectors of the industry, such as the SMIs. With the introduction of new technologies which in turn have
changed workflows, work practices and job descriptions, new types of work hazards have now resulted. These
work hazards range from infectious diseases to occupational cancer and reproductive disorders among working
people. As in business where strategies are constantly changing for the business to remain competitive, there is
also a need for regular revisions and updates to the OSH legislation to cater to technological advancements and
economic developments.
On top of that, the government has also reviewed and changed its strategies towards getting organisations to
adopt OSH measures. The government has placed emphasis on the formulation of an Occupational Safety and
Health Management System, OSH-MS which is based on the International Labour Organisation (ILO) guidelines.
The OSH-MS will regard safety and health as an essential element of total business management and will easily
integrate OSH into business operations. The OSH-MS will serve as a proactive preventive and curative measure
as it will anticipate, identify, assess, prevent and control safety and health risks. It is a necessity to implement a
formal and long term OSH-MS to successfully manage OSH problems in the workplace. This is because without
such a system, the approach towards OSH will not be systematic and will always be on an ad-hoc basis. Being
based on ILO guidelines, the implementation of an OSH-MS is beneficial to a local SME in that it will reflect
compliance with OSHA on the local front and at the same time, provide the local SME with foreign recognition in
meeting specific OSH criteria and standards which are set by market players overseas. This would therefore give
the local SME a competitive edge over the many local and foreign market players, more so with the everincreasing liberalisation of the global economy.
DEPARTMENT OF OCCUPATIONAL SAFETY AND HEALTH (DOSH)
The OSHA 1994 is enforced by DOSH, a government department under the Ministry of Human Resources
Malaysia. DOSH will ensure that employers, self-employed persons and all employees practice a good working
culture and comply with existing legislation, guidelines and codes of practice through its enforcement and
promotional activities. The following are the roles and responsibilities of DOSH to assist with the implementation
and improvement of OSH in the workplace:

To become secretariat and give inputs to the National Council regarding safety and health at the
workplace.

To study, identify and formulate policies and regulations regarding safety and health at the workplace.

To do technical analysis and to identify steps to control dangerous encroachments to safety and health
at the workplace.

To review and to improve the design of boilers, unfired pressure vessels, hoisting machines.
To review and to improve the design of instruments related to the usage of petroleum products,
industrial hygiene instruments and personnel protective equipment.

To review and to improve the design of storage systems, delivery and usage of petroleum products.

To provide examination syllabus and assessment, and to carry out examinations for certification of
competent persons.

To provide certification criteria and to work on certification of competent firms and organisations.

To identify and review safety reports and emergency response plans, to do examinations and audits on
major hazard installation.

To conduct periodic examinations and safety and health audits on machinery and other workplace
covered by Act 514.

To monitor health hazards at the workplace.

To review health hazards as reported by a competent person.

To investigate accidents and cases of industrial disease and poisoning at the workplace and other
related complaints.

To organise talks and conduct training related to safety and health.

To give advisory service related to safety and health at the workplace to public and private agents and
organisations.

To collect and to provide information regarding safety and health at the workplace for reference, lending
and circulation.

To do prosecution work.

Apart from formulating and enforcing Acts and regulations, the government has also carried out promotional
activities to help on creating awareness on OSH not only to employers and employees but also to the general
public. These promotional activities come in the form of seminars, courses and campaigns and are the
governments first steps in inculcating a safe and healthy work culture in Malaysians. There is no denying that
moulding a safe and healthy work culture will take time and effort but the results will be highly beneficial in
helping to solve many OSH problems. Chances are that a safe and healthy work culture will not happen
overnight and that OSH awareness must be deliberately fostered through various efforts and initiatives. Where
previously the Programme Approach was the way to go about in tackling OSH issues, the government via DOSH
is now focusing on the Systems Approach to formulate long-term solutions to OSH issues. DOSH has formulated
a strategic plan to include the participation of multinational companies to guide and assist SMEs. Via its Strategic
Management Group, DOSH has drafted the Enhancing the Standard of Occupational Safety and Health among
SMIs plan which aims at securing top management commitment to OSH, providing systematic guidance on OSH
to SMIs, having systematic recognition procedures for companies participating in the program and having a
systematic mechanism to enhance OSH standards in SMIs.
Top management commitment is an integral part of a successful OSH management system in SMIs. Loan
providers to SMIs are encouraged to incorporate OSH clauses in their loan agreements which will then
necessitate commitment from top management in upgrading OSH in the workplace. Obviously, the failure to show
such commitment will result in rejected loan applications. DOSH has also drawn up an umbrella programme
which requires the participation of multinational companies to include OSH clauses in their agreements with SMIs
to ensure commitment from top management of SMEs on OSH. The evidence of present OSH standards in an
SME is considered before it is approved to be a vendor to a multinational company.

Systematic guidance on OSH is provided to SMIs through the mentor and good neighbourhood programmes.
Both programmes require larger organisations to provide knowledge and guidance on OSH to improve OSH
standards in the SMIs. DOSH has also proposed for systematic recognition procedures for larger organisations
participating in these programmes. Together with the National Council for OSH, DOSH has proposed for awards
such as certificates and plaques to be given to participating companies. The criteria for the awards include the
OSH-MS implemented, compliance with OSH laws and audit results reported by DOSH inspectors.
In relation to the need for a systematic mechanism to oversee and monitor the actual implementation of OSH
programmes, DOSH and the National Institute of Occupational Safety and Health (NIOSH) will be working
collaboratively.
NATIONAL INSTITUTE OF OCCUPATIONAL SAFETY AND HEALTH (NIOSH)
NIOSH was set up by the government in 1992 to spearhead the safety and health culture in the workplace. A
dedicated SMI unit was formed with the objectives of promoting OSH among SMIs, tackle OSH-related issues as
well as provide technical support and OSH consultation services to SMIs.
In 2002, NIOSH signed a memorandum with the Small Medium Industries Development Corporation (SMIDEC)
where NIOSH plays the role of one of the skill development centres under the Skills Development Programme.
The SMIDEC grant will sponsor 50% of the training fees for the skill development training programmes which
SMEs have signed up for. The training programmes provided are aimed at creating awareness on the importance
of OSH practices, creating a safe and healthy workplace and enhancing the competitiveness, efficiency and
productivity of the SME. The eligibility criteria for this grant scheme are similar to that of the NIOSH grant
scheme.
CONCLUSION
OSH problems are still being faced by SMEs and there can only be effective solutions to them if there are
concerted efforts by all parties concerned in devising a comprehensive plan at a national level. OSH issues will
need to be managed collectively and comprehensively by the government, employers, employees and the public
while taking into account social and economic factors. The pursuit of a safer and healthier workforce and
workplace is an ongoing mission and unless there are concerted efforts to tackle OSH issues, the nations
economic future will be subject to major repercussions brought about by a dip in productivity levels.