WFH policy must address productivity and management challenges, says MEF

LocalBusiness & Finance
8 Apr 2026 • 12:28 PM MYT
Twentytwo13
Twentytwo13

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KUALA LUMPUR: The government’s decision to introduce a work-from-home (WFH) policy for ministries, agencies, statutory bodies and government-linked companies starting April 15 has led to calls for a unified framework across the nation’s workforce.

The move aims to reduce fuel consumption and ensure the sustainability of the country’s energy supply, which has been affected by the US-Israel war against Iran, which has now entered a two-week ceasefire.

The Malaysian Employers Federation (MEF) last month called for Flexible Work Arrangements (FWAs). It added that discussions must address real operational concerns and challenges in implementing WFH.

“WFH should not be mandated across the board. Instead, it should remain employer-driven, based on operational needs and role-specific requirements, taking into account productivity, service delivery and customer requirements,” MEF president Datuk Dr Syed Hussain Syed Husman told Twentytwo13.

“Employers have concerns, particularly when it comes to productivity measurement, supervision and collaboration. Tracking output can be difficult for roles without clearly defined performance indicators.

“WFH can limit direct oversight, especially for roles that require closer monitoring or guidance. This raises questions about accountability in certain functions,” he added.

Syed Hussain said WFH could reduce physical interaction, affecting innovation as face-to-face engagement plays an important role in collaboration, brainstorming and building team cohesion.

He also warned that remote access to sensitive information increases risks, particularly if companies do not have robust cybersecurity systems in place.

“However, these issues can be mitigated with clear key performance indicators, appropriate digital tools and strong internal communication practices.”

He highlighted several practical challenges faced by employers.

One is inconsistent productivity levels among employees. While some perform well remotely, others may struggle due to various factors, including their home environment.

“Coordinating remote teams requires different management approaches, and in many cases, it adds to the administrative burden,” he said.

“There is a perception that WFH reduces costs, but in reality, many companies face higher digitalisation expenses, including investments in software, systems and cybersecurity. This is particularly challenging for small and medium enterprises.”

He added that work-life balance has also emerged as a concern, as blurred boundaries between work and personal life can lead to burnout or disengagement if not properly managed.

“There are suitability gaps, especially among smaller businesses that may lack the infrastructure to support remote work effectively,” he said.

“These challenges clearly show that WFH cannot be implemented as a rigid or one-size-fits-all solution.”

Despite these concerns, the government’s move reinforces MEF’s long-standing position that flexible working arrangements, including WFH, are valuable, particularly for non-critical roles such as administrative, finance, IT and customer support functions.

At the same time, industries such as manufacturing, construction, healthcare, logistics and retail continue to require physical presence, limiting the scope of remote work.

Looking ahead, MEF expects hybrid work models to dominate and supports the development of national guidelines to provide clarity and consistency.

“Ultimately, WFH must be implemented in a way that is practical, balanced and business-sensitive,” said Syed Hussain.

“We must ensure that productivity, competitiveness and employee well-being are not compromised,” he added.