KUALA LUMPUR, July 22 — Many Malaysian firms believe hiring more women significantly boosts productivity and makes their companies more attractive to talent.
Despite this recognition, few are willing to assist with or accommodate a significant challenge women face in the workplace, namely childcare, according to a World Bank survey report released this afternoon.
Over 60 per cent of employers surveyed for the 2024 Inclusive Employment Practices Survey agreed hiring more women improves productivity and talent attraction, yet care responsibilities and compliance with maternity regulations remain as major barriers.
The finding came amid a backdrop of persistent underrepresentation of women in the workforce despite government efforts to reverse the longstanding trend.
In 2024, women made up just 47 per cent of employees across firms.
Their representation is visibly lower in construction, agriculture, and manufacturing; and high- and mid-level positions, especially in large firms and firms in the eastern and central regions.
“Despite most firms acknowledging the positive impact of hiring more women, particularly career returnees, barriers persist, often stemming from care responsibilities,” authors of the report said.
“These challenges include women’s family commitments and adhering to government regulations such as the provision of maternity leave.” Concerns about low female labour participation are further heightened by Malaysia’s sharp demographic shifts. The proportion of Malaysians aged 65 and above is projected to rise from approximately 8 per cent today to 14 per cent by 2043.
As a result, the working-age population has already begun to shrink since 2020, posing significant challenges to the labour market.
The rate of women working in Malaysia stood at just 56.2 per cent as of 2023, data from Department of Statistics Malaysia (DOSM) Labor Force Survey 2023 showed.
Malaysia lags behind high-income countries as well as regional peers such as Thailand (68 per cent), Vietnam (70 per cent), and Singapore (76 per cent).
The World Bank said the Malaysian government has put in some measures to get women to work again but said more interventions are needed, including building more childcare centres through more money or tax incentives, and enhancing flexible work arrangements.
“Existing initiatives such as TalentCorp’s Career Comeback Program (CCP) could be refined by tailoring support based on the skills and experience levels of returnees,” it said.
“Meanwhile the Flexible Work Arrangement Guidelines (Aturan Kerja Fleksibel, AKF) could incorporate strategies for managing productivity and efficiency which are key concerns for many firms,” the report added.
Past studies have pointed to several reasons for women in Malaysia to not participate in the labour market.
One of the main reasons cited is housework, including child and elderly care, as the main reason for not seeking work.
In addition, while there are indications of shifting social norms, the absence of childcare options for children of all ages compels a large share of women to stay out of the labour market.
This is further exacerbated by the lack of flexibility and unsupportive work environment.
