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Malaysian Paper

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COMMENT by Aina Syazwani Salleh

Unleashing women’s workforce power M ALAYSIA has successfully transitioned into an upper middle-income economy, with sustained growth only to gradually leave the workforce over time.

In contrast, several advanced economies display a “double-peak” pattern, where participation falls during childbearing years but rebounds later as women re-enter employment. Evidently, many women in Malaysia who leave the workforce do not return. Caregiving responsibilities appear to be a major factor. The 2023 Labour Force Survey found that 63% of women outside the labour force cited housework and caregiving obligations as the main reason for not working. In many households, women remain the primary caregivers for children, elderly parents and other family members. Economists often refer to this dynamic as the “care penalty”. When societies rely heavily on unpaid care work, women inevitably become the default caregivers at the expense of their economic agency. Without adequate care systems, women are compelled to navigate – and often choose between – productive and reproductive labour. Removing barriers To be effective, the discourse on female labour force participation must evolve from recruitment strategies to long-term retention. Closing this gap is not only a matter of equality; it is also an economic imperative. Greater participation of women in the workforce will expand the labour pool, strengthen productivity and support long-term growth. But the benefits also extend beyond that. Studies have shown that when more women work, families and communities flourish. The evidence is clear: women tend to reinvest up to 90% of their earnings back in their children’s education and well being. The impact of investing in women goes beyond the individual; it is intergenerational. Encouragingly, Malaysia has begun taking steps in the right direction. Under the Ekonomi Madani

translating into higher incomes, improved living standards and stronger investments in social development. Against this backdrop, Malaysia must simultaneously navigate a rapidly transitioning demographic: an increasingly ageing population and a rapidly declining birth rate. This will gradually place pressure on labour supply, productivity and economic competitiveness. One of Malaysia’s most powerful yet underutilised economic resources lies in plain sight: women. Women make up roughly half of the population, yet their participation in the labour force remains significantly lower than men. Harnessing human capital According to the Department of Statistics Malaysia, female labour force participation hovers around 56.6%, well-below that of men at 83.3%. This gap is particularly striking as Malaysian women are more highly educated than ever before and often surpass men in tertiary education. The challenge, therefore, is not capability but opportunity and support. Malaysia must now harness the full potential of its human capital, particularly by encouraging greater women’s workforce participation. At the fundamental level, greater inclusion will drive economic growth by increasing overall productivity. On an individual level, women who have access to resources are better able to shield themselves from life-cycle risks and economic shocks. Providing adequate care systems Further data analysis reveals a stark contrast between male and female labour force participation rates over a life cycle. Malaysian labour force data reveals a “single-peak” pattern for women. Many begin their careers with strong momentum, with participation reaching its height between the ages of 25 and 34,

“Malaysia must now

harness the full potential of its human capital, particularly by encouraging greater women’s workforce participation. At the fundamental level, greater inclusion will drive economic

With demographic shifts tightening the labour supply, unlocking women’s full economic potential is essential for Malaysia’s future growth. – ADAM AMIR HAMZAH/THESUN

community-based care models. These initiatives are designed to reduce barriers that prevent women from fully participating in the workforce, enabling more balanced care-giving responsibilities and supporting sustainable career progression. Sustaining progress will require commitment from policymakers, employers and society. With demographic shifts tightening the labour supply, unlocking women’s full economic potential is essential for Malaysia’s future growth. Harnessing the skills and talent of half the nation could double the country’s possibilities. Aina Syazwani Salleh is the Gender and Safeguards Lead for UNDP Malaysia, Singapore and Brunei Darussalam. Comments: letters@thesundaily.com

framework, the government aims to raise female labour force participation to 60% by 2030. Recent policy changes under the Employment Act includes longer maternity leave and provisions for flexible work arrangements, reflecting growing recognition that workplaces must adapt to modern family realities. Commitment to sustained progress To strengthen the broader care ecosystem, the United Nations Development Programme (UNDP) partnered with the Women, Family and Community Development Ministry last year to develop the Care Action Plan and Strategic Framework. Building on this momentum, UNDP is now moving into the implementation phase, focusing on improving care related data monitoring and piloting

growth by increasing overall productivity.

Education retains its importance in the Malaysian landscape for parents, students and stakeholders. The changes are fast paced with new developments in new fields of study such as cybersecurity, data protection, augmented and virtual reality, machine learning in education, digital education and artificial Intelligence. Leading the way are universities, who are invited to showcase their latest programmes, curriculum and content in our Education Focus for 2026.

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