Flexible work gains traction in Malaysia

KUALA LUMPUR – As Singapore introduces new guidelines enabling employees to request flexible work arrangements (FWAs), neighbouring Malaysia quietly celebrates a head start. Malaysian workers have enjoyed the right to request FWAs since September 2022, predating Singapore’s recent move.

This revelation came from Human Resources Minister Steven Sim Chee Keong, who highlighted PART XIIC of Malaysia's Employment Act 1955. The Act outlines provisions for employees to formally request adjustments like four-day work weeks or increased work-from-home arrangements.

Employers are obligated to respond within 60 days, providing clear reasons for any denials.

“We are committed to fostering a work environment that promotes employee well-being and skills development,” said Sim.

These provisions, he said, are part of Malaysia’s ongoing efforts to modernise its labour laws and align them with the changing needs of the workforce.

Flexible work to be the norm in Malaysia: study

A recent study by Mercer found that 80% of Malaysian employers are planning to offer flexible work arrangements in the next 12 months. The study also found that 75% of Malaysian employees are interested in working remotely at least some of the time.

The Mercer study also found that there are a number of challenges to implementing flexible work arrangements in Malaysia. These challenges include:

• A lack of awareness of the benefits of flexible work arrangements
• A lack of policies and procedures to support flexible work arrangements
• A lack of infrastructure and technology to support remote work

Despite these challenges, the Mercer study concludes that flexible work arrangements are likely to become the norm in Malaysia.

The study found that there is a strong demand for flexible work arrangements from both employers and employees. Additionally, the government is taking steps to support flexible work arrangements, such as by introducing new guidelines for employers.

The Mercer study suggests that Malaysia is moving towards a future of flexible work arrangements. This is a positive development, as flexible work arrangements can have a number of benefits for both employers and employees.

However, it is important to address the challenges to implementing flexible work arrangements in order to ensure that they are successful.

Approval is not a guarantee

However, the right to request flexible arrangements isn’t a guarantee. The ultimate decision rests with employers, who must consider the terms of individual employment contracts and the operational needs of their businesses.

In contrast, Singapore’s new Tripartite Guidelines on Flexible Work Arrangement Requests, effective by 1 December this year, mandate that all employers establish formal processes for handling such requests. Employers must respond within two months and can only deny requests based on valid business grounds, such as demonstrable cost or productivity concerns.

Singapore’s Ministry of Manpower has stated that it may issue warnings or mandate corrective workshops for employers who fail to comply with the guidelines. Despite this, some employers in Singapore have expressed reservations about the potential impact of FWAs on local hiring practices and operational efficiency.

This divergence in approaches between Malaysia and Singapore provides a valuable case study for other countries grappling with the changing nature of work.

Malaysia’s proactive stance in granting employees the right to request flexible arrangements, even before the pandemic, could serve as a model for others seeking to create a more adaptable and resilient workforce.

Singapore’s more recent adoption of formalised guidelines demonstrates a growing recognition of the importance of FWAs in attracting and retaining talent. The requirement for employers to provide clear justifications for denying requests aims to create a fairer and more transparent process.

As the global workforce continues to evolve, the experiences of Malaysia and Singapore offer valuable insights into the potential benefits and challenges of implementing flexible work arrangements. The key takeaway is clear: embracing flexibility is no longer a luxury but a necessity in today’s work landscape.