The government urges private firms to adopt flexible work arrangements to manage rising energy costs, improve productivity, and support employee well-being.
PETALING JAYA: The government has called on private sector employers to implement flexible working arrangements (FWA), including work-from-home (WFH) options, as part of efforts to navigate global energy price pressures and ongoing economic uncertainty.
The Human Resources Ministry (Kesuma) said in a statement today that FWA is a strategic approach that can help organisations maintain productivity while adapting to rising operational costs, particularly those linked to increased energy prices and workforce mobility.
“Flexible work models, including hybrid arrangements, staggered hours and job rotation, can benefit both employers and employees by improving efficiency and supporting better work-life balance,” it said.
The ministry also highlighted provisions under the Employment Act 1955, following amendments that came into force on Jan 1, 2023, which allow employees to apply for flexible working arrangements regarding working hours, days or location.
It added that under Sections 60P and 60Q of the Act, employers are required to consider such applications.
“However, existing statutory employment benefits, including overtime pay, rest day and public holiday entitlements, annual leave and sick leave, must not be reduced for employees under FWA,” it stressed.
The ministry urged employers to assess suitability, implement flexible work models gradually based on operational needs, and make use of available government support, stressing that the initiative aims to strengthen organisational resilience while safeguarding workers’ welfare.
To support implementation, Kesuma, through the Labour Department of Peninsular Malaysia and Talent Corporation Malaysia Berhad (TalentCorp), is providing advisory services, training and best practice guidance.
A dedicated FWA guideline published in 2024 is also available to assist employers in rolling out the system. Employers can access further information via TalentCorp’s FlexWorkLife initiative.
“We reaffirm our commitment to ensuring that employee well-being and business continuity remain balanced amid global challenges,” the ministry added.
