KUALA LUMPUR: Government tax incentives aimed at encouraging the hiring of women returning to the workforce and promoting flexible work policies are gaining traction among employers, said TalentCorp chairperson Wong Shu Qi.
Wong said although official data has yet to be released, the agency has seen a surge in enquiries from companies keen to take advantage of the incentives.
“Last year, Prime Minister Datuk Seri Anwar Ibrahim announced additional 50% tax incentives under Budget 2025 to encourage employers to hire women returning to work, adopt flexible work arrangements and provide paid caregiver leave.
“However, these incentives are in the process of being gazetted before full implementation.”
She said to close the gender pay gap, the government is offering a one-year income tax exemption for women re-entering the workforce, part of a broader push to boost female labour participation.
Speaking after launching Malaysia’s first Women’s Empowerment Principles (WEP) Corporate Action Lab yesterday, Wong said the policy would remain in place until 2027 as part of ongoing efforts.
“We will be announcing the full incentive mechanism soon. Once that is in place, more companies will come forward and we will be able to collect clearer data on women returning to work.”
Earlier, theSun reported a need for greater salary transparency and stricter enforcement of fair pay to address gender wage disparities.
Women’s Aid Organisation executive director Nazreen Nizam highlighted that the absence of legislation mandating equal pay for work of equal value has allowed gender wage gaps to persist unchecked across various sectors.
She stressed that Malaysia must roll out clear legal frameworks, backed by enforcement and penalties, to ensure pay equity.
Wong said narrowing the gender pay gap is not the sole responsibility of any one agency as it also requires active participation from the private sector.
“A wide pay gap not only hampers economic growth but also shifts hidden costs to families. Tax relief policies are a start but they must be part of a broader strategy.
“There is no one-size-fits-all solution but businesses must understand that hiring more women delivers long-term returns. Failing to do so ultimately hurts the economy and individual companies.”
She also reaffirmed TalentCorp’s commitment to building pathways that empower women to balance careers and caregiving, aligned with the national target of 60% female labour participation.
UN Women, LeadWomen and TalentCorp have launched the WEP, which is an initiative to guide companies in adopting gender-responsive strategies and creating more equitable workplaces.
“Malaysia’s female labour participation has remained stagnant at around 56%. We have been working with policymakers and partners to push that number forward,” said Wong.
Australian High Commission to Malaysia political and economic counsellor Clare Gatehouse said the proportion of women in senior management and board roles dropped from 40.4% in 2023 to 36.5% this year.
“Despite equal or higher levels of education, Malaysian women earn about 80% of what men make in similar roles.”
To support change, Australia has worked with the Women, Family and Community Development Ministry to strengthen Malaysia’s care economy, including by developing policies to improve the quality of care services for workers and users.
“Minister Datuk Seri Nancy Shukri believes family-friendly workplaces and a strong care sector are crucial to achieving gender parity. Without focused action, we will not see these numbers improve,” she said.
