Kuala lumpur: Talent Corporation Malaysia Berhad (TalentCorp) is undertaking a six-month study to evaluate the impact of Flexible Working Arrangements (FWA) on the Malaysian job market. This study is expected to conclude by the end of this year.
According to BERNAMA News Agency, Human Resources Minister Steven Sim announced that the study is being conducted in Penang, the Klang Valley, and Johor. The study aims to deliver data-driven insights into how FWA influences productivity, profitability, and employee well-being in Malaysia.
Minister Sim highlighted the lack of local data on the positive outcomes of flexible work environments, which have been reported in other countries. He emphasized the need for a Malaysian context to understand cultural and work attitude differences. The study's findings are anticipated to be published by the end of the year or early next year, benefiting nearly one million workers who have already adopted FWA.
The initiative is part of the government's broader strategy to foster a progressive and inclusive work environment, with TalentCorp spearheading policy advocacy and implementation efforts. Minister Sim also addressed efforts to increase women's workforce participation, noting the low take-up rate of a tax incentive for women returning to work after a career break. The government has extended tax relief to companies under Budget 2025 to address this issue.
Minister Sim explained the challenges faced in implementing the tax break for women and highlighted TalentCorp's involvement in approving applications. He stressed the importance of understanding ground realities for effective policymaking and announced the extension of tax breaks to employers as an incentive to rehire women.
Under Budget 2025, companies can receive tax breaks for rehiring women, offering FWA, or investing in equipment and systems to support flexible work environments.
Furthermore, Minister Sim urged employers to adopt FWA during the upcoming ASEAN Summit in Kuala Lumpur, which is expected to cause traffic congestion and road closures. He encouraged employers to accommodate their employees' work arrangements during this period.
The Human Resources Ministry (KESUMA) has stated that employees may apply for FWAs under Sections 60P and 60Q of the Employment Act 1955 to adjust their working hours, days, or locations, including during the ASEAN Summit. KESUMA emphasized that private-sector workers should ensure that flexibility does not impact productivity or company operations.