Article: Women’s Participation in the Malaysian Workforce: Key Challenges & Solutions

Introduction 

In the contemporary modern era, women play a vital role in human progress and hold an important place in today’s society. In the past, women were mainly responsible for household chores; nonetheless, due to higher education and socio-economic advancements, females have penetrated further fields to build robust careers (Shanker, 2019). Thus, women contribute more than ever to the labor market (Wei & Cinn, 2021). 

The occurrence of women can benefit the workforce as they help to build an inspiring work culture by fostering healthy competition, promoting teamwork, and bonding, thereby aiding the business to grow to its full potential (Bhardwaj, 2018). Therefore, this paper aims to examine the level of female workforce participation, particularly in the Malaysian context, and discuss the factors that lead to the low participation of females in today’s workforce as many of them did not engage with the workforce once they graduated from the university.  

Gender Gap & Women Participation in the Global Context 

Today, feminism is an ideology presented worldwide which asserts that females should be treated the same as males, particularly in work opportunities to develop gender equality and reduce gender stereotypes (Hoffman, 2001). In other words, women’s participation in labor is a crucial criterion to determine their social status and raise living standards as well as economic well-being. Nonetheless, in some regions of the world, women are more likely to become and remain unemployed than men (Endow & Dutta, 2022).  

From a global perspective, gender equality has been one of the most debated topics in our modern society. The global labor force participation rate for women is about 47%, and for men, it is 72% (ILO, 2022). ILO’s Report on “Gender Gap in Labour Force Participation Rates” updated in February 2020 indicated women participation in labor nations such as India, Pakistan, Afghanistan, Iran, and Oman is lower compared to other nations (e.g., China, Australia, New Zealand, UK, USA, and Canada) (ILO, 2021; refer to Figure 1.0)  

Figure 1.0: Differences Between Male and Female Labor Force Participation Rate 

Source: ILOStat, 2021 

Women’s Participation in the Malaysian Workforce 

Female labor force participation significantly reduces the social stigma against women, narrows the gender gap, and contributes to economic development. In Malaysia, gender diversity has been actively encouraged by policymakers in recent years (Wei & Cinn, 2021). Since Malaysia’s independence in 1957, the nation’s labor force model has encountered a significant demographic change with increasing women’s participation (Ghazali, Peck-Leong, & Tan, 2015).  

Generally, improving women’s economic prospects helps developing nations develop and advance. In this light, although women’s educational accomplishment has remarkably improved, their participation in the labor force is still lower than men’s in Malaysia (Salleh & Mansor, 2022). According to ILO Stats (2021), Malaysia’s labor force contains 51.2 % women and 77.6% men (refer to Figure 2.0).  

Figure 2.0: Differences Between Male and Female Labor Force Participation Rate in Malaysia 

Source: ILOStat, 2021 

Nevertheless, the major global public health crisis (COVID-19) was marked at the beginning of 2020 and felt its presence in more than 100 countries by the first week of March 2020 (Bhumika, 2020). Malaysia was among the first countries that announced several rapid steps to protect its citizens from COVID-19; thus, on 18th March 2020, the Malaysian government imposed the Movement Control Order (MCO 1.0) as the initial step to respond to the super-spreading disease. Whereas the closure of the childcare sector and drastic reductions in learning institution supervision hours due to the COVID-19 outbreak urged millions of mothers out of the paid workforce (Kashen, Novello & Glynn, 2020). The following sections will discuss the global challenges and solutions to women’s participation in the workforce from global and Malaysian perspectives.  

Challenges and Solutions of Women’s Participation in the Workforce Globally  

It is acknowledged that the world’s economy would enhance if females had the same career opportunities as males in the workforce. Selby (2019) also emphasized that “trillions of dollars could be added to the world’s economy if women had the same work opportunities as men.”  

Increased women’s involvement in the economy has been linked to global economic growth as it could eliminate poverty, especially in emerging nations, and boost women’s access to high- productivity industries and careers (ILO, 2018). In addition, women represent half the world’s population (StatisticsTimes, 2021). However, most regions do not make up half the workforce as gender discrimination and inequality keep them out of the workforce. 

Despite the increasing number of women pursuing higher education globally, there is more variation across developing nations in women’s labor force participation than men. For instance, women face various barriers in the workforce, such as lack of mentorship and sponsorship, lack of career opportunities, gender discrimination, poor work-life balance, lack of flexibility, cultural challenges, and insufficient childcare and caregiving support, particularly in developing countries (Selby, 2019; Sen, 2020; Hariton, 2021).  

Sen (2020) and Connley (2020) suggested some actions be taken to overcome the stated obstacles; however, sustained efforts of the governments to improve women’s participation in the labor force are highly required as the following aspects need to be promoted by the governments to the public:  

• The necessity of women’s engagement in the workforce. 
• The fact that women’s involvement in the workforce does not adversely impact children and families.  

• The essence of sharing childcare and household duties between men and women.  
• A cultural and mental shift in the social roles of women.  
• Providing more flexibility for women to have a better work-life balance. 
• Although there is a clear policy on gender equality, but businesses must implement particular initiatives to advance women in the workplace (e.g., unconscious bias training, hiring and treating women fairly, and equal access to sponsorship and mentorship opportunities).  

Challenges and Solutions of Women’s Participation in the Malaysian Workforce  

In the 21st century, women’s empowerment has become one of the most debated subjects worldwide, as modern women are seeking equal opportunities with men and aggressively competing in different fields such as politics, economics, and the social sector (Narayanan & Selvanathan, 2017).  

Challenges:  

The lack of job opportunities based on education qualifications demotivates female employees from joining the workforce. For instance, it is believed that specific jobs (e.g., civil engineering, aircraft) are men-dominated, although women fulfill the criteria of the jobs since they graduated in that certain field.  

Potential Solutions:  

The solution can be pinpointed to the support provided by the government, which allocated numerous programs for individuals to participate. For instance, TalentCorp launched a program called #KisahSiswa in May 2020 led by Mr Sunil Hasmukharay one of the international coaches and the President of Malaysia Association of Professional Trainers and Coaches. This program was set to support job seekers and those who lost their job due to the COVID-19 pandemic. After four months, 1,512 participants registered, and over 120 coaches from different industries were allocated to the initiative.  

During the pandemic era, Prof Dr. Balakrishnan Parasuraman, one of the coaches in the program was also nominated as one of the ten finalists for the MyHero Award, organized by the Chinese Chamber of Commerce and Industry of Kuala Lumpur and Selangor (KLSCCCI), presented to Malaysians who have contributed to society and national unity. Prof Dr. Balakrishnan Parasuraman could successfully coach two female candidates (Bachelor of Civil Engineering, USM, and Bachelor in Business Administration, UM) to seek for their desired jobs. The final year student, Nor Alia Shazana Binti Zulkifli from UM university was immediately recruited by the same company where she undertook her industrial training. At the same time, the other candidate Nadia Isa from USM was hired by one of the Mining and Quarrying companies after a series of coaching sessions. As of today, these candidates earn more than other fresh graduates due to the coaching sessions which highly focused on networking and branding of employees in today’s workforce.  

Recently, more graduates joined the labor force with a minimum wage salary; however, this is not the case as they can earn beyond the minimum wage which is based on their academic qualifications and productivity. Testimony by the candidate (Nurul Nadiah binti Mat Isa) coached by Prof Dr. Balakrishnan Parasuraman from the Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan (UMK), Research Fellow of National Human Resource Centre (NHRC) is presented below:  

“About two years ago, I participated in this career coaching program initiated by TalentCorp, which is #KisahSiswa. At first, I feel very awkward and shy at the same time because I have never interacted with anyone other than USM people before this. Alhamdulillah, I was given the opportunity to get to know Prof Bala and he was the one who taught me how to plan my career path during this pandemic and all that. 

Throughout this program, I have learnt the importance of expanding the network with industry partners via the LinkedIn platform in a strategic manner. I am glad to share that I also have managed to secure my first employment as a Quarry Engineer at CIMA Quarry Bahau via a direct offer from the Manager here. 

And now, I still work as a Quarry Engineer but with a better salary (RM 4k plus allowance) after negotiation. My senior from USM recommended me to his boss. My current manager gave me his trust to be in charge of two quarries and considering adding another one based on my good performance.” 

Challenges:  

Humanity continues to embark on an era of remarkable technological developments due to the profound changes caused by the Industrial Revolution 4.0 (IR 4.0). Undeniably, women are stronger in problem-solving abilities, and empathy can make them ideal business professionals (Choo, 2019). Therefore, being an entrepreneur in the era of IR 4.0 is not limited to gender; instead, the contemporary digital landscape enables women around the globe with the flexibility to start their businesses with a small amount of investment to market their products/services through digital platforms.  

However, in today’s digitized society, women highly prefer remote work or Work from Home (WFH) due to some reasons such as cost of savings for expenses, family commitments, lower exposure to diseases, time-saving, better work-life balance, control and flexibility over work schedule (Oliveros, 2021). 

Potential Solutions:  

The Malaysian government took the necessary actions by announcing the implementation of the amended Employment Act 1955, which was supposed to be implemented on 1 September 2022; however, it has been postponed to 1 January 2023. From the perspective of employees and unions, more women will be able to participate in the labor force with the new amendment of the act that should be implemented with the goodwill of employers, employees, trade unions, and government. The amendment of the Employment Act will enable employers to design Flexible Working Arrangements (FWA) for their employees to have a more flexible schedule. In addition, adopting FWA aims to boost the organization’s flexibility, provide better work-life balance, and enhance the company’s performance as well (NHRC, 2021). These amendments are in line with the research findings conducted by NHRC, in 2021 on FWA policy.  

Figure3.0: Flexible Working Arrangement (FWA) Components 

Source: NHRC, 2021 

Moreover, the survey has received 1136 respondents, comprising of two groups (22% employers and 78% employees). In addition, based on the survey findings, most respondents represent women (56%), as they highly prefer flexibility in their working schedules. 

Table 1.0: Gender by Age Group 

Source: Survey by NHRC, 2021 

Apart from the implementation of FWA, the amended Employment Act entails other key changes that may help enhance women’s workforce participation are displayed in Table 2.0, and are applicable for men and women; however, some of the changes can be more beneficial for women.  

Table 2.0: Key Changes in the Employment Act 1955  

Source: (Geyzel, 2021; New Strait Times, 2022) 

Discussion & Conclusion  

Today, women seek to create a sustainable and peaceful future with equal rights and opportunities for all; however, women frequently quit the workplace due to familial commitments. Therefore, some re-adjustments of working are highly required; nevertheless, from the Malaysian context, the implementation of key changes (e.g., FWA, discrimination law, sexual harassment law, maternity and paternity leave, as well as a reduction in maximum working hours) in the Amendment of Employment Act 1955 will indeed help Malaysian women to be more attracted to engage in the workforce actively by providing better prospects toward the workforce.  

Facilitating women’s economic empowerment is key to attaining gender equality, but persistent social norms and discrimination continue to prevent women from flourishing in the workforce (Rodriguez, 2021). At the same time, it is believed that enforcing policies and social protection systems for women will enable them to engage in today’s workforce, leading to career development. Notably, women play a crucial role in the workplace due to their skills and expertise; thus, their active commitment and enabling them to participate and be heard in the workforce is vital (Agarwal, 2021). 

In conclusion, the issue of women exiting the workforce can be resolved at the university level by appropriate coaching and mentoring. The current situation will improve the gender gap, and eventually, males and females will be equal in terms of contributing to GDP and Malaysia’s economy. Thus, in this context, schools, universities, government, and trade unions need to be united to come up with unique strategies to enable the country to achieve high-income nation status.  

The Prime Minister of Malaysia, Datuk Seri Ismail Sabri Yaakob, is highly concerned and urges women to participate actively in the workforce to reduce the gender gap and discrimination and develop more women’s talents for the nation. 

** The author would like to say thanks to Ms. Nazanin Dara, a Ph.D. Student from the University of Cyberjaya who assisted me in this research project.  

 Professor Dr. Balakrishnan Parasuraman is a Professor of Management/HR/Industrial Relations at the Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan (UMK) based in Kota Bahru, Kelantan. He is a member of the International Honor Societies of the International Employment and Labor Relations Associations (IIRA) based in Geneva, Switzerland, Malaysian Institute of HRM, and International Employment Relations Association, Sydney, Australia.