A FOUR-DAY work week is unnecessary and adds cost to companies, industry and employers groups said.

They said most industries and employers are not ready for it, even as Putrajaya undertakes a study on its feasibility.

Federation of Malaysian Manufacturers president Soh Thian Lai said a shorter work week has implications for efficiency and productivity.

Furthermore, it is “not required” for a country like Malaysia, which has so many public holidays, he added.

“As it stands currently, an employee working five days a week is effectively working an average of four days a week after taking into account the many public holidays, sick leave, maternity or paternity leave, among others.

“As such, in Malaysia, reduced hours per week or a four-day week is not required,” Soh told The Malaysian Insight.

Last week, the Public Service Department’s director-general Mohd Shafiq Abdullah said a special team is undertaking a study on the policy, following a request for a thorough analysis from various parties.

He said the team will research the matter for the government, taking into account the arrangement’s suitability for sectors and the maximum and minimum working hours based on the Employment Act 1955.

Shafiq said a lot of things have to be ironed out because there are many different kinds of jobs, while working days and breaks will need to be examined.

Soh said that any attempt to introduce a change in work patterns must take into account other factors, such as cost to the company.

Higher costs

If such a move incurs a cost increase, Soh said that consumers will have to pay the price as it will be transferred to them via products and services.

“Reduced hours of work will result in increased cost of wages in the name of workplace flexibility, as factory operations in particular run 24 hours, seven days a week.

“Any work performed beyond the four-day week would be considered as overtime.

“Someone – in this case, consumers – will have to bear the cost of new hours of work, which will be passed on to the products and services that the industries provide,” he said.

Soh said a remote and hybrid work option may be suitable in some work environments and for certain job functions, but not for factories, which have to operate round the clock and require a physical presence on the production floor.

“In addition, having a four-day week will push the employers of these sectors to pressure their employees to work overtime, for which the employers have to incur higher costs in overtime payments.

“This would not result in any real benefit, especially since it will not make any difference in the work-life balance of employees wanting to improve their mental, physical and emotional health,” he added.  

He urged Putrajaya to consult with industry players before deciding on the matter.

Policy poses more problems

According to a survey conducted by the Malaysian Employers Federation (MEF), initial findings show that Malaysian employers do not plan to implement a shorter work week.

MEF president Syed Hussain Syed Husman said that based on the findings of the preliminary study, as many as 60% of 170 companies that do not have shift work, while 78.6% of 112 companies that have shift work, do not intend to perform four-day work week.

The MEF Survey on Implementation of Four Working Days Per Week in Malaysia was conducted in April this year.

Syed Hussain said that the study also showed employers would be on the losing end with such a policy, with 79.4% of the respondents saying it would be difficult to implement it because not all sectors require such working hours.

At this point, there is also no data to show that productivity will increase if a four-day work week is implemented, he added.

“There will be overtime issues, work schedules, customer requirements and different workforce requirements in each work division or company.

“In addition, 65% of respondents stated that customer service may be affected, and companies have to face the issue of higher production costs or high wage costs as they have to pay overtime wages.”

Syed Hussain agreed that the country is experiencing a “stressful” economy due to Covid-19, hence employers implemented flexible working arrangements, shorter working hours and rotational working hours to retain existing employees and attract new ones.

However, he said bosses should have the discretion to determine their company’s direction, its work culture and also the management of the company’s working hours.

He said private employers should not be forced to implement a policy on how to manage their employees. – July 7, 2022.