More than 5,340 organisations across Malaysia have implemented flexible work arrangements since 2021, benefiting over 1.6 million employees, according to the latest data from TalentCorp.
PETALING JAYA: More than 5,340 organisations across Malaysia have implemented Flexible Work Arrangements (FWA) since 2021, benefiting over 1.6 million employees, according to the latest data from TalentCorp.
In a statement issued today, the Human Resources Ministry highlighted that TalentCorp’s findings demonstrate the tangible benefits of a flexible workforce.
Notably, 62% of employers reported improved productivity when FWA was implemented in a structured manner, while 70% of employees recorded higher job satisfaction due to increased control over their time and location.
The data further reveals that more than 90% of participating organisations reported stronger employee engagement.
Companies saw a 15% to 20% reduction in staff turnover.
“The data highlights how FWA not only supports business continuity during challenging economic conditions but also boosts productivity, strengthens work-life balance, and improves talent retention,” the ministry stated.
The ministry welcomed Prime Minister Datuk Seri Anwar Ibrahim’s call for the private sector to adopt FWA as a strategic response to current economic pressures, including global supply chain disruptions.
This approach is viewed as essential for an increasingly dynamic labour market that requires adaptive and productivity-driven work models.
FWA models include hybrid working, flexible hours and other adaptable arrangements.
However, the ministry stressed that these must be implemented in a phased manner and guided by clear policies in line with the Employment Act 1955.
Specifically, Sections 60P and 60Q grant employees the right to request flexible work arrangements and require employers to provide a written response within a stipulated timeframe.
Crucially, the ministry clarified that FWA must not be used as a justification for reducing salaries or benefits, unless there is a mutual agreement regarding changes to total working hours.
To support the transition, the ministry urged employers to enhance their staff’s digital capabilities.
Employers registered with HRD Corp are encouraged to utilise their human resource development levy to train workers in digital skills and collaborative technologies.
The ministry also acknowledged potential psychosocial challenges arising from FWA, including stress, burnout, work-life imbalance, social isolation and communication difficulties.
These issues were identified through monitoring by the Department of Labour Peninsular Malaysia and the Department of Occupational Safety and Health.
To mitigate these risks, employers are advised to ensure clear workload management, maintain empathetic communication, and provide access to mental health support, including counselling services.
