KUALA LUMPUR: Corporate wellness programmes are rapidly becoming a strategic priority in Malaysian workplaces as employers confront rising non-communicable diseases (NCD), increasing medical insurance premiums, and growing employee expectations for comprehensive well-being.
Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman said more companies are now investing in structured wellness programmes that cover fitness, nutrition and mental health compared to pre-pandemic levels.
The Covid-19 crisis, he noted, was a “turning point” that made employers see workforce health as essential to business sustainability.
“Post-pandemic, employers have shifted from ad-hoc health initiatives to structured programmes,” he said, adding that healthier employees deliver higher productivity, lower absenteeism, reduced healthcare costs and better talent retention.
MEF data shows that multinational corporations (MNC) in technology, pharmaceuticals, manufacturing, and professional services, as well as financial institutions and the oil and gas sector, are leading the adoption.
Many cite environmental, social and governance compliance, high-performance demands and mental health pressures as key drivers.
Mental health support has seen the biggest investment jump, including employee assistance programmes, counselling services, stress management workshops and mental health leave.
“Workplace anxiety, burnout and depression are no longer ignored,” Syed Hussain said.
Traditionally, wellness spending was one of the first areas to be cut during economic slowdowns, but employers are now treating it as a long-term investment in human capital.
MEF reports that structured wellness programmes have delivered a 10-30% drop in absenteeism, earlier detection of chronic illnesses, and higher employee engagement.
Rising healthcare costs are also a catalyst.
With NCD such as diabetes, hypertension and cardiovascular disease pushing premiums higher, some insurers are offering rebates or tailored coverage for companies that adopt preventive wellness measures.
While large firms and MNC are driving uptake, small and medium enterprises (SME) lag, constrained by limited budgets, internal expertise and awareness.
Universiti Malaysia Kelantan Human Resource and Industrial Relations Professor Dr Balakrishnan Parasuraman stated that SME comprise over 99% of Malaysian businesses, with more than 60% being micro-enterprises, most of which lack dedicated HR departments or structured wellness budgets.
“SMEs focus heavily on profit and daily operations, but if they want to retain good staff and improve productivity, they must transform and make wellness part of their strategy,” he said.
“The government can help by offering training, HRD Corp incentives, and grants targeted at SMEs.”
Balakrishnan noted that younger employees, particularly those in Gen Z, are vocal about mental health and work-life balance, often citing stress from key performance indicators, family pressures, and environmental changes.
Nutrition and fitness habits also require attention, as busy urban lifestyles often lead to high sugar and fast-food consumption.
“Companies can engage nutritionists, organise weekly fitness activities, and encourage healthier eating habits,” he said, pointing to Malaysia’s rising rates of diabetes and heart disease.
He also highlighted the role of HR departments, which he believes should evolve from administrative functions to strategic partners in wellness and employee engagement.
Both experts believe corporate wellness is shifting from a “nice-to-have” perk to a business necessity.
MEF projects that within five years, medium to large companies will view it as a standard part of the employee value proposition.
However, for universal adoption, especially among SMEs, government support is key.
Syed Hussain suggested tax incentives, matching grants, and public-private mental health campaigns, while Balakrishnan stressed the importance of partnerships between government agencies, HR leaders, and industry to embed wellness into Malaysia’s corporate culture.
“The post-Covid workplace has changed. Profit will always be important, but balancing it with wellness and work-life balance is how companies will win the future,” Balakrishnan said.
