KUALA LUMPUR (Oct 16): While Malaysia is focused on technology and digitalisation investments, it is equally important to invest in human capital, said Human Resources Minister Steven Sim Chee Keong.

“We tend to forget that human factors play an important role in the economy. Don’t get me wrong, artificial intelligence (AI) and tech are very important, but it is also high time that we put the spotlight on day-to-day workers,” he said during the fireside chat titled “Beyond Awards: Transforming the Future of Work, Workforce and Workplace” at the LIFE AT WORK Awards Conference 2025, held at Hilton Kuala Lumpur.

He added that while tech eases lives, during times of crises, it is the human workers and labourers that move the needle.

“We don't see the invisible workers, like cleaners and factory operators; they are our essential services. It is an important time for the country, as we are tracing and retracing our direction towards the future, especially in this AI-driven future, where equal attention [must be] given to the labour force,” he added.

Sim, who also delivered a keynote speech at the conference, said the LIFE AT WORK Awards 2025, which will take place on Oct 30, will recognise Malaysia’s progressive employers advancing flexibility, inclusion and employee wellbeing.

He also emphasised that Budget 2026 will continue to raise job quality through people-centred policies; and linking productivity with inclusion and wellbeing are key to ensuring Malaysians thrive in a rapidly changing world of work.

Under Budget 2026, RM1.82 billion was allocated to upskilling and safeguarding the wellbeing of Malaysia’s workforce. Among key measures was the government’s move to cover 70% of contributions under the Self-Employment Social Security Scheme (SKSPS) for gig workers in sectors where participation is not yet mandatory.

“When we create workplaces that care, where flexibility and wellbeing are valued, productivity follows. Through initiatives like TalentCorp’s LIFE AT WORK and flexible work arrangements, we are shaping an economy that empowers every Malaysian to participate meaningfully,” he said.

He added that the Human Resources Ministry’s (Kesuma) ongoing workforce policy reforms, including amendments to the Employment Act 1955 enabling formal flexible work applications, targeted tax incentives for care-friendly workplaces and initiatives to raise women’s labour-force participation, reflect Malaysia’s broader mission to build an economy that values both growth and humanity.

“The government can set policies and tax instruments and incentives, but if we do not align ourselves to the values on the ground, then all this remains moot,” said Sim.

In 2024, the ministry proposed an additional income tax exemption of 50% for 12 months to employers that hire women who are returning to the workplace. The incentive was approved by the Ministry of Finance and it was announced in Budget 2025.

“If companies rehire women who have returned to the workplace, provide flexible working arrangements (FWA) and spend on systems that enable flexible working, they will get a tax break,” he noted.

Sim shared that through TalentCorp’s initiatives, more than 900,000 employees benefitted from flexible work arrangements. Employers, in turn, are seeing higher productivity, stronger engagement and lower turnover, demonstrating that productivity grows when people are trusted and supported.