There is no provision for prolonged illness in the Employment Act. It depends on the policy and practice of individual company. Some well established companies do provide such benefit like an employee may be entitled to prolonged illness for a certain period like for certain number of months with full pay, certain number of months with half and certain number of months with no pay.
I think SOCSO is the right place for you to consult especially about "medically boarding out" of employees.
KL Siew has put up a sister site by the name of mylabourlaw.net, which is in effect a more user-friendly version of the present popular pesaraonline.net. The site is in the process of being fine-tuned but it is fully functional. You are invited to visit the website at http://www.mylabourlaw.net and give your views or suggestions. Queries can be posted and be responded from there as usual.