It was a Tuesday morning, and Aisha found herself stuck in Kuala Lumpur’s notorious rush-hour traffic, staring at the sea of brake lights stretching endlessly before her. She had left home at 6:30 a.m., hoping to beat the worst of it, but as usual, the city had other plans.

As she sat there, she couldn’t help but wonder – was this daily grind truly necessary?

New regulations in Malaysia meant she could formally request flexible working arrangements (FWAs), and this time, her employer would have to consider it seriously.

The rise of work flexibility in Malaysia: A post-pandemic shift

Not too long ago, flexible work was an exception, reserved for freelancers, tech startups, or high-ranking executives.

In Malaysia, as in much of the world, the COVID pandemic upended these conventions, forcing businesses to embrace remote work practically overnight.

What began as a temporary emergency measure soon evolved into a fundamental shift in workplace culture.

By 2024, flexible work had cemented itself as a cornerstone of modern employment. Employees no longer saw it as a privilege but an expectation.

Businesses – recognising the advantages in productivity, talent retention, and work-life balance – had begun adapting accordingly.

Yet, with work flexibility came the need for structure. Enter the Malaysian government which, in 2023, amended the Employment Act 1955 to formally recognise FWAs, ensuring employees had a legal pathway to request them.

The legal amendments, particularly Sections 60P and 60Q, provided a structured approach to FWAs.

Employees now had the statutory right to request flexible hours, workdays, or work locations, with employers required to respond within 60 days.

Rejections had to be justified, ensuring transparency and fairness.

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To support this transition, the Ministry of Human Resources (KESUMA) introduced new guidelines in December 2024. These guidelines encouraged businesses to formalise policies around flexible work, ensuring consistency and clear expectations.

Employers were advised to consider three core dimensions:

• Flexible working hours – allowing employees to adjust their start and end times.
• Flexible workdays – enabling compressed workweeks or adjusted schedules.
• Flexible work locations – including remote and hybrid working arrangements.

Performance monitoring emerged as a key component, ensuring flexibility did not compromise efficiency.

Employers were encouraged to implement productivity benchmarks, regular check-ins, and structured communication methods.

Employers in Malaysia welcome change

As of late 2024, over 2,800 companies and more than 565,200 employees had adopted flexible work in some form or the other.

Government-backed initiatives, spearheaded by KESUMA, the Department of Labour Peninsular Malaysia, and Talent Corporation, played a pivotal role in driving this transformation.

Businesses experimented with different FWA models, including:

• Permanent flexibility – Employees work flexibly on an ongoing basis.
• Periodic flexibility – Employees shift to flexible work for a set period, such as during major life events.
• Rotational flexibility – Employees alternate between traditional and flexible schedules to ensure business continuity.

While some industries, such as finance and IT, quickly embraced FWAs, others, like manufacturing and security, faced limitations due to the nature of their work. However, even within these sectors, companies explored creative solutions, such as staggered shifts and location-based flexibility.

Implementing flexible work arrangements effectively

The path to effective FWA implementation isn’t without its challenges. Employers must consider offering flexibility while maintaining operational efficiency. The new guidelines emphasise the importance of:

• Transparent policies ensuring fairness and consistency
• Clear performance monitoring mechanisms
• Compliance with existing labour laws, including working hour limits and rest day entitlements
• Provisions to review and refine FWA policies periodically

For employees, flexible work isn’t just about convenience. It’s also about reclaiming time, reducing burnout, and fostering a better work-life balance.

For businesses, it represents an opportunity to attract and retain top talent in an increasingly competitive job market.

Successful FWAs ultimately depend on trust, adaptability, and a willingness to embrace change. Those who resist may find themselves left behind, while those who strike the right balance between flexibility and structure will position themselves as forward-thinking employers of choice.

Employers in Malaysia have gradually understood how a rigid, one-size-fits-all model of employment is fast becoming a relic of the past.

The future belongs to organisations that understand that flexibility isn’t just a perk. It’s the foundation of a resilient, engaged, and high-performing workforce.