By Yasmin Ramlan
KUALA LUMPUR, July 22 — Deep-rooted gender biases and inadequate workplace support systems remain barriers to Malaysian women’s full participation in the workforce, said Human Resources Minister Steven Sim.
Speaking at the launch of the World Bank’s Inclusive Employment Practices Survey, he acknowledged that while Malaysia has made progress in narrowing the gender gap, structural challenges remain, especially around caregiving responsibilities, limited flexible work options, and outdated workplace mindsets.
“Women in Malaysia are often more educated than men, yet their participation in the workforce remains significantly lower. It’s not just about policies, it’s about changing mindsets and making workplaces truly inclusive,” he said in his opening remarks at the survey report launch at Asia School of Business here today.
As of 2023, Malaysia’s female labour force participation rate was 56.2 per cent, below the government’s 60 per cent target, and behind neighbours Thailand, Vietnam, and Singapore.
Sim said overcoming this gap is crucial, especially as Malaysia faces the twin challenges of a shrinking workforce and an ageing population.
To address these issues, he outlined several government initiatives under the Madani Economy Framework, including tax incentives for companies hiring women returning to work, additional tax breaks for employers offering caregiving leave, and statutory flexible work arrangement (FWA) rights under the Employment Act 1955.
“Since the tabling of Budget 2025, we are not only continuing tax breaks for women returning to work, but also offering additional tax deductions to companies that hire them. This is a joint responsibility between the government and employers,” he said.
He added that FWA is now a legal right, backed by published guidelines to help companies implement them effectively.
The government has expanded protections across Malaysia by amending labour laws in Sabah and Sarawak, harmonising them with the Employment Act 1955 to ensure equal rights nationwide.
This includes updated provisions on maternity and paternity leave, anti-discrimination protections, and safeguards against workplace harassment.
Sim said these efforts have contributed to Malaysia’s recent improvement in the World Economic Forum’s Global Gender Gap report, where the country climbed six places in rankings, especially in economic participation and political empowerment.
However, he acknowledged that more must be done to close the gender gap.
“The gender gap is not only an issue of fairness but of national productivity. We need all hands — government, employers, and society — on deck to remove these barriers and build a workforce where no one is left behind,” Sim said.
