PETALING JAYA: The government should focus on a hybrid work model instead of a blanket work from home (WFH) initiative to protect economic stability.
The Federation of Malaysian Business Associations (FMBA) said a blanket WFH policy would cause consumer spending consequences that outweigh short-term fiscal benefits.
Based on its analysis, urban consumption contraction in the Klang Valley alone could generate monthly economic losses between RM320mil and RM495mil.
“These losses are expected to be 1.9x to 2.9x higher than the projected savings of widespread WFH,” the federation said in a statement on Wednesday (April 8).
When accounting for economic multiplier effects, the federation estimated the true economic contraction could reach RM480mil to RM1bil per month.
Various key sectors in the Klang Valley could see significant reductions due to reduced daily commuting activity.
This includes monthly losses for the food and beverage (F&B) sector of up to RM180mil and retail stores of up to RM125mil.
Petrol stations could lose up to RM250mil, while parking and toll revenues could drop by RM40mil.
The public transport and ride-hailing ecosystem could also see a reduction of up to RM90mil.
FMBA noted that the petrol station industry is particularly vulnerable due to its volume-driven and low-margin structure.
“This sector warrants consideration under targeted support measures if WFH is widely implemented,” the federation said.
The federation recommended the government adopt a balanced hybrid model limiting WFH to non-critical roles.
It also suggested maintaining full staffing in essential services and implementing staggered attendance models.
FMBA added that a targeted loan moratorium framework would act as a mechanism to stabilise the economy.
Key features should include a six to 12-month repayment moratorium with no compounding interest.
The federation said such a framework should be offered to priority sectors like petrol stations, urban F&B operators, and retail SMEs.
