Post by : Shweta

Malaysia Flexible Work Policy Boosts Productivity

Kesuma Study Highlights Positive Impact on Workers

A new study by Malaysia’s Ministry of Human Resources (Kesuma) has found that flexible work arrangements have significantly improved employee productivity across several regions. The research revealed that 81 percent of workers in the Klang Valley reported better job performance after adopting flexible working policies.

Study Conducted Across Three Major Regions

The study covered employees and employers in the Klang Valley, Johor and Penang to measure the effectiveness of flexible work arrangements. Deputy Human Resources Minister Khairul Firdaus Akbar Khan said the findings clearly show that allowing employees greater flexibility leads to stronger workplace performance and higher efficiency.

Johor Workers Report Higher Productivity

According to the report, 77 percent of workers in Johor said they became more productive when allowed to choose flexible starting and finishing times. Around 64.4 percent also stated that working from home made completing their daily responsibilities easier and more efficient.

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Penang Employers See Operational Benefits

The study also highlighted positive feedback from employers. In Penang, 77 percent of companies reported noticeable improvements in operational efficiency after introducing flexible work arrangements. Businesses experienced smoother workflows while maintaining employee performance.

Government Says Policy Supports More Workers

The deputy minister explained that flexible work policies help more women, parents, caregivers and senior citizens remain active in the workforce. The initiative also reduces commuting costs, improves work-life balance and supports Malaysia’s goal of increasing labour force participation across the country.

Legal Rights and Employer Incentives

Malaysia amended the Employment Act 1955 on January 1, 2023, giving private sector employees the right to request flexible work arrangements, including flexible hours, workdays and work locations. Employers can approve these requests based on operational needs.

Tax Incentives Encourage More Companies

To encourage wider adoption, the government offers employers a one-time tax deduction incentive covering 50 percent of eligible training and digital transformation costs. Companies can claim up to RM500,000 through TalentCorp for assessment years 2025 to 2027, subject to government conditions.

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