PUTRAJAYA — Work-from-home (WFH) arrangements have seen 62% of employers reporting increased productivity, while 70% of employees enjoy higher job satisfaction, according to data by TalentCorp.
The agency under the Human Resources Ministry (Kesuma) said the findings were based on the implementation of the flexible working arrangements initiative since 2021, to date. It involved 5,340 organisations and over 1.6 million employees.
Employers said productivity increased “when flexible working arrangements are implemented in a structure manner”, while employees reported job satisfaction “due to time and location flexibility”, Kesuma said in a statement today.
“Over 90% of organisations (also) reported increased employee engagement and a decrease in employee turnover rates of between 15% and 20%.
“These findings prove that the implementation of AKF not only supports the continuity of organizational operations in challenging situations, but is also able to increase productivity, strengthen work-life balance and contribute to the retention of talent in the national labor market,” the ministry added.
Kesuma highlighted these findings while expressing support for Prime Minister Datuk Seri Anwar Ibrahim’s remarks yesterday urging the private sector to also consider flexible working arrangements to address current economic challenges.
The government began allowing working from home for civil servants earlier this month to stem rising costs as a result of the US-Israel war with Iran which has put pressure on oil supplies worldwide.
The ministry reminded the private sector that such arrangements must be implemented in line with relevant provisions in the Employment Act 1955 and the Sabah and Sarawak Labour Ordinances.
It also reminded employers that such arrangements “cannot be used as an excuse for any reduction in employee salaries or benefits, unless there is a new agreement involving changes to overall working hours”.
Noting that well-being issues could arise, such as burnout, work-life imbalance, social isolation and communication challenges, the ministry said employers must ensure their workers receive “clear work management, empathetic communication, reasonable working hours and the provision of mental wellbeing support such as access to counselling”.
Employers should also improve their digital readiness for employees to continue adopting flexible working arrangements while not sacrificing organisational efficiency, operational continuity and productivity, the ministry added. – April 25, 2026