KUALA LUMPUR, Dec 5 — Human Resources Minister Steven Sim today announced that the government will provide additional tax deductions to companies adopting flexible work arrangements (FWAs).
He said the initiative promotes flexible work practices, fostering better work-life balance and progressive workplace environments.
“It is not enough to simply launch guidelines. During the 2025 Budget, our Prime Minister, Datuk Seri Anwar Ibrahim, announced that companies implementing these initiatives will be eligible for additional tax deductions.
“This reflects the government’s sincerity and determination to promote a more progressive and conducive work environment. The aim is to create healthier, safer, and more comfortable workplaces for employees, contributing to the development of society as a whole,” he said during the launch of the FWA Guidelines here today.
Sim also highlighted that adopting FWAs benefits employees and helps address broader societal challenges, such as reducing traffic congestion in major cities.
The campaign will initially target urban areas, including Penang, the Klang Valley, and Johor Bahru.
“Why start with these areas? These locations are hubs for businesses, including SMEs, and implementing FWAs here can provide the added benefit of easing traffic congestion.
“We encourage more companies to adopt FWAs, and the government will provide the necessary support and assistance. Together, we can create better work environments and grow as a forward-thinking nation in these transformative times,” he said.
Sim noted that as of October, more than 3,000 companies have attended FWA implementation workshops, though the target for this year has yet to be finalised.
He added that over the next six months, TalentCorp will conduct a study to evaluate the impact of FWAs on productivity and other factors.
“While international reports suggest that productivity remains unaffected, the study will analyse these findings within the Malaysian context.
“As part of the initiative, a tracer study will be carried out to assess the effects of implementing FWAs on participating companies,” he said.
