Survey reveals gender disparity in Malaysian workforce

Survey reveals gender disparity in Malaysian workforce
Banking & Financial Services
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Ajay Banga 14th President of the World Bank Group | Official Website

The first nationally representative survey of Malaysian firms on inclusive employment practices has been conducted to understand how companies are supporting inclusive employment and what more can be done to enable women and caregivers to remain in the workforce. As Malaysia's workforce ages and labor force growth slows, inclusive employment practices are seen as essential for economic resilience.

The survey revealed that women make up only 47% of employees across firms, with lower representation in sectors such as construction, agriculture, manufacturing, and in high- and mid-level positions, particularly in large firms and those located in the eastern and central regions. Many women hired are younger (aged 21–30), reflecting national trends where many women exit the workforce in their 30s without returning.

Over 60% of firms believe hiring more women improves productivity and talent attraction. However, care responsibilities and compliance with maternity regulations pose significant barriers. Around 40% of firms indicate that additional benefits like lactation rooms or childcare increase hiring costs for women.

To promote a more inclusive workforce, firms emphasized the importance of implementing flexible work arrangements (FWA) and providing childcare assistance as key measures to support women balancing work and family responsibilities. Although FWA is gaining traction, many firms still face challenges related to managing productivity, cohesion, and supervision.

Childcare benefits are increasingly recognized as critical; over half of the surveyed firms offer such benefits including flexible work or on-site daycare. However, most facilities have reached full capacity with waiting lists extending up to 40 children.

The government has introduced various measures to enhance workplace inclusivity. Further enhancements could include refining TalentCorp’s Career Comeback Program by tailoring support based on returnees' skills and experience levels; incorporating strategies for managing productivity within Flexible Work Arrangement Guidelines; broadening tax incentives for setting up childcare centers; systematically monitoring impact; conducting gap analyses for initiatives with low uptake.

While government-driven measures are vital, firm-level initiatives can also play a significant role in promoting inclusiveness by extending mandatory paternity leave or introducing family leave policies. It is crucial that policies designed for a more inclusive workforce do not focus solely on women but adopt a balanced approach to avoid stigmatization.