More companies adopt hybrid work models post-Covid, says MEF

In the wake of the Covid-19 pandemic, more private companies in Malaysia have adopted hybrid work models, offering flexibility in terms of work hours, location, and days.

A recent Malaysian Employer Federation (MEF) study revealed that approximately 188 companies - or 70.5 percent of the surveyed organisations - have implemented such models.

MEF president Syed Hussain Syed Husman shared that companies typically consider five critical criteria when implementing hybrid work models.

The most important factor is whether the job can be performed remotely or outside the office environment.

“About 78 percent of the respondent companies based their decision on this criterion,” he said.

“Following this, 58 percent trusted their employees to manage their time and work location effectively. Additionally, 46 percent cited employees’ strong performance record as a deciding factor.”

He also noted that 44 percent of companies recognised the importance of work-life balance, while 39 percent emphasised maintaining productivity levels as a condition for granting hybrid work arrangements.

Physical presence needed

The survey gathered participation from 226 private companies across Malaysia, with 61.9 percent representing the manufacturing sector and the remaining 38.1 percent from non-manufacturing industries.

Of the 78 companies that rejected hybrid work, 86 percent cited the need for physical presence at the workplace, 56 percent raised concerns about potential disruption to daily operations, and 42 percent doubted employees' ability to perform effectively.

“The remaining 35 percent of companies felt that hybrid models could negatively affect the quality of the services and products delivered,” Syed Hussain added.

To encourage broader adoption of hybrid work, the companies surveyed made several recommendations to the government, including:

• Establishing clear legal guidelines for hybrid work arrangements;

• Introducing tax incentives and grants to support remote work technologies;

• Enhancing social security measures for employees in hybrid work setups;

• Assisting companies in acquiring the technology and equipment needed to implement hybrid models.

More engagement

Syed Hussain highlighted the need for closer collaboration between industry players and educational institutions to better prepare young people for the workforce.

“Malaysia produces a large number of graduates, and we invest significantly in education. The real question is: do these graduates have the right skills to transition seamlessly into the workforce and be immediately productive?” he asked.

He called for more engagement with industries to ensure that the educational curriculum aligns with job market requirements.

“While the student is studying, they get to study the latest requirements by the industry. They can do longer practical training in the industry. All these will make them market-ready,” he explained.

His comments were made in response to the latest Statistics Department study, which revealed that as of the third quarter of 2024, approximately 1.95 million tertiary-educated workers in Malaysia are employed in low-skilled jobs.

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