KUALA LUMPUR, July 9 — A study on the impact of flexible work arrangements (FWA) by the Human Resources Ministry (MOHR) has found that 81 per cent of workers in the Klang Valley reported improved job performance, clear evidence that work flexibility drives productivity.
Deputy Human Resources Minister Khairul Firdaus Akbar Khan said the findings came from a study conducted across the Klang Valley, Johor and Penang to evaluate the effectiveness of FWA for both employees and employers.
In Johor, he said 77 per cent of workers were more productive when given the freedom to set their own start and end times, while 64.4 per cent said working from home made their jobs easier.
In Penang, 77 per cent of employers reported a noticeable boost in operational efficiency after adopting the flexible work arrangements.
“The policy not only lifts worker productivity but also sharpens labour market efficiency, cuts commuting costs including fuel and public transport fares and promotes a healthier work-life balance,” he said during the Dewan Rakyat’s special chamber session today.
Khairul Firdaus was replying to Datuk Mumtaz Md Nawi’s (PN-Tumpat) questions about the effectiveness of work-from-home and FWA policies.
He stressed that the policies allow more individuals, especially women, parents, caregivers, senior citizens who remain productive, and those with other commitments, to remain in or rejoin the workforce, directly supporting the government’s push to boost labour force participation.
Under amendments to the Employment Act 1955 that came into force on January 1, 2023, private sector workers have the right to apply for FWA under Sections 60P and 60Q, covering flexible hours, work days, or work locations, including working from home, subject to employers’ approval.
To push more companies on board, Khairul Firdaus said the government offers a 50 per cent tax deduction incentive for employers who implement such arrangements, covering employee training costs and software purchases to support digital work transformation.
“This one-off incentive up to RM500,000 can be claimed through TalentCorp for assessment years 2025 to 2027, subject to terms and conditions,” he said.
