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Malaysia
This Week in AsiaEconomics

Malaysian business lobby says working from home will hurt city profits, faces backlash

The Federation of Malaysian Business Associations warns of losses of more than US$120 million but critics say the group is ‘missing the point’

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Vehicles are seen near the Prime Minister’s Office in Putrajaya on March 27. Malaysia will begin a phased work-from-home rollout for eligible civil servants on April 15. Photo: EPA
Iman Muttaqin Yusof
A Malaysian association has come under fire after warning that wider work-from-home arrangements would hurt urban businesses, with critics accusing it of prioritising city-centre takings over the government’s effort to cut fuel use across the country and rein in soaring subsidy costs.
The backlash comes days before Malaysia begins a phased work-from-home roll-out for eligible civil servants on April 15, part of a wider effort to cut fuel use and manage rising costs tied to disruptions caused by the Iran war.
Prime Minister Anwar Ibrahim announced the measure on April 1, saying it was meant to reduce fuel consumption and protect the sustainability of the country’s energy supply.
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Federal civil servants in Kuala Lumpur, Putrajaya, Selangor and state capitals with a one-way commute exceeding 8km (5 miles) are eligible, while critical sectors such as security, defence, healthcare and education are excluded.

In response, the Federation of Malaysian Business Associations (FMBA) said a blanket work-from-home policy could cost the Klang Valley – Malaysia’s main urban and commercial corridor around Kuala Lumpur – hundreds of millions of ringgit a month.

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“These losses are expected to be 1.9x to 2.9x higher than the projected savings of widespread [work-from-home],” it said in a statement on Wednesday.

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