Minister of HR: The Government should provide companies implementing flexible work schedules with extra tax deductions

The government will grant additional tax deductions to businesses that implement flexible work schedules (FWAs), according to Steven Sim, the minister of human resources.

According to him, the program encourages progressive work cultures, improved work-life balance, and flexible working schedules.

“Launching rules is insufficient on its own. In the 2025 Budget, our Prime Minister, Datuk Seri Anwar Ibrahim, announced that businesses implementing these projects will qualify for additional tax credits.

“This demonstrates the government’s sincerity and commitment to promoting a workplace that is more progressive and suitable.” During the announcement of the FWA Guidelines today, he stated, “The goal is to establish workplaces that are healthier, safer, and more comfortable for employees, thereby contributing to the overall development of society.”

Sim also underlined how implementing FWAs helps solve more general social issues, including lowering traffic congestion in big cities and benefiting workers.

The first targets for the campaign would be metropolitan areas such as Johor Bahru, the Klang Valley, and Penang.

“Why begin with these spheres? These sites serve as hubs for companies, especially SMEs, and implementing FWAs here will alleviate traffic congestion, thereby benefiting these areas.

“We want more businesses to use FWAs; the government will help and support them as required. Together, we can design better workplaces and develop as a forward-looking country in these transforming times.

Sim said that, although the objective for this year is yet unknown, as of October, about 3,000 businesses had attended FWA implementation seminars.

Over the following six months, TalentCorp will also do research to assess how FWAs affect output and other elements, he said.

“The study will examine these results inside the Malaysian setting even when international statistics indicate that production stays unchanged.

“We will conduct a tracer study as part of the initiative to evaluate the impact of implementing FWAs on involved companies,” he stated.