PETALING JAYA: Hybrid work models are gaining prominence, with more than 70% of companies in Malaysia increasing the adoption of flexible work routines post-pandemic, according to a study by the Malaysian Employers Federation (MEF).
According to MEF president Datuk Dr Syed Hussain Syed Husman, 60% of these companies reported an increase in remote work opportunities.
He said the survey conducted by MEF last year, titled “Flexible Working Arrangement: Assessing Practices & Perspectives of Private Sector Employers in Malaysia”, also noted that half of the companies had made greater investments in technology.
Syed Hussain said more than 40% of the companies had observed a shift towards evaluating performance based on output and an increase in the use of automation and artificial intelligence.
He noted that 23.2% of the respondents of the survey recorded a rise in the gig economy and freelance work.
“It was also revealed that 58% of the survey’s respondents have implemented the flexible working arrangement (FWA) compared to 42% that have not.
“If we go by the sectors, 60.7% of companies in the non-manufacturing sector have adopted FWA compared to 53.5% in the manufacturing sector,” he said.
Syed Hussain said the most commonly offered FWA option was the flexibility in the hours of work, followed by flexible working hours and flexibility in the days of work.
The survey found that the companies would permit their workers to undertake duties that can effectively be fulfilled remotely or outside the traditional office setting.
Furthermore, these companies have faith that their employees would manage their time effectively and complete their work regardless of their location.
Syed Hussain said that these companies allowed the FWA in support of work-life balance and employees with children.
Some 38.8% of the companies anticipate that the flexible hour arrangement will not impact productivity.
The survey also highlighted why FWA was not feasible for some companies.
The main factor affecting 86% of such companies was that the tasks required the physical presence of the employees at their workplace, as their work cannot be effectively completed remotely.
Furthermore, it could disrupt the flow of production or daily operations.
Furthermore, the policy may negatively impact the delivery and quality of services or products delivered.
“Overall, the findings indicate that senior management, managers and executives generally maintained or improved their productivity under FWA.”
However, Syed Hussain said that supervisors, operation staff and production staff faced more challenges, with a noticeable percentage reporting decreased productivity.
“Employers must weigh flexibility against productivity risks. A structured, role-specific approach rather than blanket implementation will be able to balance employee welfare with business need.
“If managed well, it will lead to a win-win for both employees and employers. However, if poorly executed, it may lead to inefficiencies and resentment among non-eligible employees,” he added.
