If the entire world were one colossal machine, each of us would have a part to play, wouldn’t we? In the context of the labour market, it’s much like a vast engine, driven by the ideas and hard work of millions of people.
However, when the potential of untapped talent is neglected, it effectively causes the engine to operate on just one cylinder. If that is so, it’s hardly surprising that the economy isn’t running at full throttle as it could be. This is especially evident in Malaysia, where the underutilisation of women’s talent remains a significant factor in this inefficiency. Despite representing nearly half of the population, women continue to be significantly underrepresented in the workforce.
As of 2023, the female labour force participation rate in Malaysia stood at 56.2%, showing a marginal increase from 2020’s 55.5% and 2021’s 55.9%—compared to 82.3% for men. This stark gender gap in employment means that a vast pool of potential talent is not being fully leveraged.
Womanhood penalties
But it is not just about participation in the workforce. Women face numerous barriers, including wage disparity. Even when they do enter the workforce, they are often paid less than their male counterparts for the same work.
For instance, female teachers in Malaysia were excluded from pension, medical and housing benefits, a disparity that persisted until the 1970s. They also earned lower wages than their male counterparts.
Despite years of efforts and advocacy, the nation’s gender pay gap remains significant, with women earning an average of RM42,080 annually, compared to RM63,117 for men. According to the Department of Statistics Malaysia (DOSM), the median monthly salary for female workers was RM2,464 in 2023, while men earned RM2,675 for overall jobs.
This means women were paid, on average, 7.9% less than men—an increase from the 4.9% gap in 2018. While there are now more female professionals in various fields—about 6,400 more than men— women still earn approximately 19% less than their male counterparts.
The persistence of the gender pay gap is embedded in systemic factors that have been reinforced over time and continue to shape women’s economic outcomes. While progress has been made in terms of women’s participation in the workforce, educational attainment, and professional development, these advancements have yet to translate into equal pay and opportunities.
A core issue is occupational segregation, where women, often due to societal expectations or unconscious biases, are overrepresented in lower-paying sectors like healthcare, education, and retail. These fields, while valuable, have historically been undervalued and underpaid, contributing to the wage gap. Additionally, the roles women hold often lack the financial rewards seen in male-dominated sectors.
The underrepresentation of women in leadership worsens the issue. Studies show women are less likely to be promoted, limiting their earnings. Despite high performance and competence, they face barriers to further advancement when they reach senior roles.
It was reported that Malaysian women hold only 13.51% of the seats in the House of Representatives, with 30 out of 222 parliamentarians being women. The Inter-Parliamentary Union’s (IPU) global ranking for women’s representation in national parliaments ranked the nation 150th out of 190 countries in 2024.
The nation has also not seen the appointment of a female prime minister, chief minister or menteri besar—unlike neighbouring countries like Singapore and Thailand, which have had women in top leadership roles.
Meanwhile, cultural norms continue to play a significant role. In many societies, including Malaysia, the expectation that women bear the primary caregiving responsibilities often leads to career breaks or even complete exits from the workforce.
Evidence also suggests some women choose occupations that pay less but provide more flexibility to accommodate their family care responsibilities. Data from the Khazanah Research Institute shows that 3.1 million women, constituting 62.9% of those outside the labour force, cite family responsibilities as their primary reason for not seeking employment. This contrasts sharply with a smaller percentage of men, only 2.3% or 50,500, attributing their decision to similar reasons. Meanwhile, unpaid care work, traditionally carried out by women, remains one of the most significant contributors to the global gender pay gap.
Studies in other parts of the world have found that women caregivers outearn men if they were paid for their work. It was estimated that the value of unpaid work carried out by stay-at-home mothers would be approximately £184,820 if they were paid for their contributions. This figure accounts for the wide range of roles women undertake as caregivers, including childcare, cooking, cleaning, shopping and managing household finances.
Another analysis of 800,000 earnings reports over 20 years shows that regardless of pay or education, all mothers get hit with the “motherhood penalty”. On average, they lose out on about US$8,000 a year with the birth of their first child, while fathers’ incomes do not take a meaningful hit.
Female economic might
Research has consistently shown that empowering women to access equal wages and workforce opportunities not only benefits individuals but drives positive change across entire economies and societies.
Socially, empowering women promotes more inclusive communities. Studies show that women’s participation in decision-making processes leads to policies that are more likely to focus on health, education and family welfare, which improves the overall quality of life.
The World Economic Forum’s 2024 Global Gender Gap Report highlights that countries with greater gender equality, such as Iceland and Norway, often experience higher levels of social well-being, increased life satisfaction and improved health outcomes for all citizens.
Additionally, financially empowered women are found to reinvest more in their families and communities. The United Nations estimates that when women earn income, they invest up to 90% of it back into their families and communities, compared to just 30% to 40% for men.
Economically, the inclusion of women in the labour market is proven to have a significant impact on growth. According to the McKinsey Global Institute, closing the gender gap in the workforce could add a staggering US$28 trillion to the global GDP.
In fact, companies with more women in leadership positions tend to have higher financial returns, as demonstrated by a 2019 report from Credit Suisse, which found that companies with women at the helm had a 26% higher return on equity than those led by men.
Closing the gender pay gap is a strategic economic choice. Given that Malaysia currently holds the Asean chairmanship, this presents an opportunity to reshape the region’s gender equality landscape and unlock substantial economic benefits, ensure long-term sustainability and foster a more prosperous, equitable society – leveraging it for regional progress.
The economic and social benefits of empowering women are clear. So, why, despite overwhelming evidence, does gender inequality persist in the workplace and beyond?
