This survey—the first nationally representative survey of Malaysian firms on inclusive employment practices—was conducted to understand how firms are supporting inclusive employment and what more can be done to enable women and caregivers to stay and thrive in the workforce. As Malaysia’s workforce ages and labor force growth slows, inclusive employment practices are not just good for equity—they are essential for economic resilience.
KEY FINDINGS
Women remain underrepresented in Malaysia’s workforce, making up just 47% of employees across firms, with lower representation in: 1) construction, agriculture, and manufacturing; and 2) high- and mid-level positions, especially in large firms and firms in the eastern and central regions.
Most women hired are younger (21–30), mirroring national trends that show many women exit the workforce in their 30s and do not return.
Over 60% of firms agree hiring more women improves productivity and talent attraction. However, care responsibilities and compliance with maternity regulations are major barriers. Around 40% of firms say additional benefits like lactation rooms or childcare increase the cost of hiring women.
To further promote a more inclusive workforce, firms highlighted the importance of implementing flexible work arrangements (FWA) and providing childcare assistance and benefits as key measures to support women in balancing work and family responsibilities.
Flexible work arrangements (FWA) are gaining traction, but many firms still face implementation challenges, particularly managing productivity, cohesion, and supervision.
Childcare benefits are increasingly recognized as critical and over half of firms offer childcare benefits, including flexible work or on-site daycare. However, most facilities are at full capacity, with waiting lists of up to 40 children.
The government has introduced various measures to promote workplace inclusivity, and further enhancements could strengthen these programs, including:
Refining TalentCorp’s Career Comeback Program (CCP) by tailoring support based on the skills and experience levels of returnees
Incorporating strategies for managing productivity and efficiency in the Flexible Work Arrangement Guidelines (Aturan Kerja Fleksibel, AKF)
Broadening current tax incentives for setting up childcare centers to include alternative care arrangements
Systematically monitoring and evaluating impact and conducting a gap analysis for initiatives with lower-than-expected uptake
While government-driven measures are vital, firm-level initiatives can play an equally significant role in promoting inclusiveness, such as extending the mandatory paternity leave and introducing family leave.
Most importantly, it is crucial that in designing policies for a more inclusive workforce, it should not be designed solely for women. A balanced approach helps to avoid stigmatization and ensure that hiring women is not seen as a higher-cost decision.