Malaysia has recently increased compulsory paid maternity leave from 60 to 98 days, aiming to draw women back into the workforce.
The amended Employment Act 2022, which took effect in January, was celebrated by labour and women’s rights groups, but raised concerns among some employers about the potential for increased operating costs.
The Malaysian Employers Federation estimates the policy will cost employers an additional MYR 960 million (USD 287 million) per year.
Despite these concerns, experts believe the policy will ultimately encourage female participation in the workforce, with many employers recognising the importance of gender diversity and social responsibility.
