Employers urged to adopt flexible work strategy as energy costs rise, says HR Ministry

PUTRAJAYA, March 27 — The Ministry of Human Resources Malaysia (Kesuma) has called on employers to implement Flexible Work Arrangements (FWA) as a strategic measure to strengthen organisational resilience, reduce the impact of rising energy costs, and support sustainable economic growth.

In a statement today, the ministry encouraged private sector employers to assess the suitability of adopting FWA based on operational needs, including through work-from-home (WFH) approaches, flexible working hours, job rotation or hybrid models.

“Kesuma believes that implementing FWA offers comprehensive benefits to both employers and employees, particularly in the context of rising energy costs driven by geopolitical tensions and the reliance on daily commuting,” the statement said.

The ministry noted that such arrangements can help optimise resource usage while promoting better work-life balance for employees.

The call follows a recent suggestion by Prime Minister Datuk Seri Anwar Ibrahim urging the private sector to adopt work-from-home practices, as already implemented by several companies and financial institutions.

Kesuma highlighted that FWA provisions were introduced through amendments to the Employment Act 1955, which came into force on January 1, 2023.

Under Sections 60P and 60Q of the Act, employees are allowed to apply for flexible working arrangements, including adjustments to working hours, days and workplace location.

The ministry stressed that employers implementing FWA must not reduce statutory employee benefits such as overtime pay, rest days, public holiday entitlements, annual leave and sick leave.

To support employers, Kesuma, through the Department of Manpower Peninsular Malaysia (JTKSM) and Talent Corporation Malaysia Berhad (TalentCorp), offers advisory services, training and best practice sharing to ensure effective implementation.

JTKSM has also issued the 2024 FWA Implementation Guidelines to assist organisations in adopting structured and sustainable flexible work policies. It can be downloaded at the link.  

Employers can also obtain further information or participate in related initiatives via TalentCorp’s FlexWorkLife platform at [email protected] or by visiting www.flexworklife.my. — Bernama