OSH Implementation in SMEs in Malaysia: The Role of Management Practices and Legislation

Abstract

In an operational analysis report of the Occupational Safety and Health Regulations (Penggunaan dan Standard Pendedahan Bahan Kimia Berbahaya Kepada Kesihatan) 2000 has found that 80% of more than 800 workplaces investigated failed to adhere fully to regulations. In addition, the Small Medium Enterprises (SMEs) have been reported to contribute some 30 to 50% of industrial accidents. Since SMEs constitute almost 99% of the Malaysian business establishments, and contributing about 36% of the country’s GDP, improvements to its workers’ safety and health issues should go hand in hand with Malaysia economic development. Malaysia faces greater challenge to monitor OSH requirements are adhered to in spite of trying to stay competitive and survive with its limited capital or financial resources. Reviews have shown that the involvement of various parties including the public in policy making, the development of appropriate infrastructure and human resources, enforcement autonomy, focused job scope within department, appropriate language usage, training inclusive of all forms of diversity at work and appropriate penalty are key success factors at reducing death rates, accidents and lost work days at the workplace for these two countries. Through questionnaire distributed to 150 SMEs in Malaysia, results were analysed and findings with regard to the implementation of OSH in workplace is discussed. The results showed that safety rewards and employee participation in management practices are significant in OSH implementation in the SMEs. Practical implications are discussed. Recommendations include open management and safety behaviour acknowledgement as reward.