The Ministry of Human Resourses (KESUMA), through Talent Corporation Malaysia Bhd (TalentCorp) will conduct a study on companies that have implemented flexible work arrangements (FWA).
Minister Steven Sim Chee Keong said the six-month study (starting in January 2025), aims to assess the impact of FWA implementation on company and employee productivity.
“We have international reports stating that productivity is not affected, but for KESUMA, we also want to examine this within the Malaysian context,” he said, adding that the guidelines contain important elements that all parties, especially employees and employers need to know in the implementation of FWA.
Among the guidelines are the definition of FWA, methods of implementation, the application procedure for employees as well as the responsibilities of employees and employers in the FWA implementation process.
According to Sim, nearly 3,000 companies involving more than 565,000 employees have shown potential for FWA transformation after participating in workshops conducted by TalentCorp.
Additionally, in collaboration with the Department of Labour Peninsular Malaysia (JTKSM), TalentCorp will intensify campaigns and workshops to provide guidance on FWA implementation based on appropriate timing, locations and target groups, in hopes to further encourage FWA adoption especially for companies in major cities like the Klang Valley, Penang and Johor Bahru.
“With the implementation of FWA, we hope it will slightly ease traffic congestion by allowing more flexible working hours, working from home or working at locations closer to home.
“We are also confident that creating a more conducive and flexible work environment that provides work-life balance will benefit companies, especially in retaining talents to continue serving in their organisations,” he said.
In a previous survey via email among selected companies from 9 September to 5 October, TalentCorp reported that 78 companies have implemented FWA, while another 46 companies have approved FWA applications from their employees.
The survey also showed that 11,272 employees had their FWA applications approved, with the most common types requested being flexible working hours, flexible work locations and flexible working days.
Digital talents’ wages stabilising from growing digital economy
At the same time, there has been a surge in demand for skills in artificial intelligence (AI), data science, cloud computing and cybersecurity due to the rapid digital adoption in the country. This has caused the salaries of digital talents to stabilise at 7.19% this year and 7.12% in 2025.
“The double-digit salary growth of 13.9% recorded in 2023 was a one-off adjustment following salary stagnation during the pandemic years. This healthy adjustment to above 7% reflects a robust digital economy,” said National Tech Association Malaysia (PIKOM) chairman Ong Chin Seong.
He added that sustainable salary increments are critical to addressing the ongoing brain drain of digital talents to economies offering significantly higher remuneration.
Meanwhile, PIKOM’s advisor and research committee chair Woon Tai Hai said the nation’s digital economy continues to make a significant impact, serving as a cornerstone for Malaysia’s long-term growth and competitiveness.
“With strong government support, increasing private sector collaboration and a growing pool of skilled digital professionals, Malaysia is well on its way to becoming a regional digital leader.
“The opportunities are immense and if we remain focused on nurturing talent, fostering innovation and bridging salary gaps, we as a nation can continue to unlock the full potential of our digital economy and solidify our position on the global stage,” he added.
