KUALA LUMPUR: Industry players will adapt the flexible work arrangement incentives to back the government's call to sustain the new normal brought about by the Covid-19 by allowing their employers to work from the comfort of their respective homes.
SME Association of Malaysia president Datuk Michael Kang Hua Keong said such incentives would help companies reduce their operational costs.
"It's good that employers can get tax exemption if they provide their staff with equipment, such as laptops, to help them work from home as some workers may not be able to afford such devices.
"Traditionally, office equipment and facilities are part of companies' expenses. Only now the equipment is given to the worker for them to work from home, and in return, companies get incentives," he told the New Straits Times.
Kang said when employees work from home, employers could save on rentals.
"Companies now need smaller space to run their businesses. For example, tech companies can share offices because fewer workers come to the office, by doing that, they can further save on operational cost."
Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan proposed that the government amend the Employment Act 1955.
"It's good that the government is prepared to give tax incentives to employers to encourage working from home.
"But since working from home is the new norm in the current context, hence the act should also be regulated to cater to the new economy.
"We need to have a more flexible law, such as more flexible working and rest hours. If one is working from home there is no travelling time involved.
"All these need to be imputed into the system to achieve a win-win situation for employers and employees."
He also suggested that the government provide incentives to workers, to allow them to establish a proper working space at home.
"By creating a proper working space, employees will be more disciplined, and hence, more efficient in delivering their jobs."