Obstacles to Female Employment in Malaysia Highlighted by World Bank Survey

A survey conducted by the World Bank, which included responses from 1,500 companies in Malaysia, has identified family responsibilities and maternity regulations as major hurdles for firms considering hiring women. The findings indicate that 58 percent of employers view women's family commitments as a significant challenge in recruitment, while 54 percent cite maternity leave policies as a deterrent. The report also highlights a concerning trend where the proportion of female employees diminishes as they age, with the largest share (41 percent) being women aged 21 to 30 years, and only 10 percent aged over 50.

As women often exit the workforce after starting families, their return to employment is impeded without substantial support from employers. Judith Green, the World Bank's country manager for Malaysia, emphasized the importance of employment practices that accommodate women's caregiving roles, such as flexible schedules and accessible childcare services. The report indicates that unlike other countries where women re-enter the job market after a break, Malaysian women frequently leave and do not return, with low rates of temporary career breaks further entrenching this issue.

Additionally, the participation rate for men is significantly higher than that for women, creating a notable gender gap. Green pointed out that this underrepresentation not only presents equity issues but also represents a substantial economic loss for Malaysia. A prior World Bank analysis suggested that increasing women's labor force participation to levels comparable to advanced economies could potentially raise Malaysia's income per capita by over 26 percent. Green also noted the declining working-age population since 2020, underscoring the need for strategic interventions to encourage women to participate in the workforce.

On a more positive note, over half of the companies surveyed are implementing measures to enhance support for women in the workplace, with 54 percent providing flexible work arrangements and 53 percent offering childcare facilities. Hamidah Naziadin, former chief people officer of CIMB Group, highlighted the importance of family-friendly policies, arguing that these should be viewed as investments rather than mere costs. During her time at CIMB, maternity leave was extended significantly, and she emphasized that policies must cater to the majority for greater branding value and employee productivity. Meanwhile, Nazrul Aziz from TalentCorp noted that smaller firms often struggle to adopt such policies, yet highlighted the need for guidance from larger companies to drive necessary changes in the workplace ecosystem.