An inaugural study by the World Bank found that more Malaysian women are quitting their jobs after turning 30 to start a family and are unlikely to return without additional support from employers.
The study, published in July 2025, surveyed an estimated 1,500 companies in Malaysia and found that the proportion of female employees between the ages of 21 and 30 forms the largest share at 41%. This is followed by Malaysian female workers between the ages of 31 and 40 (32%), those between the ages of 41 and 50 (17%), and those above the age of 50 (10%).
The World Bank also noted that, unlike in other countries where women often rejoin the workforce after a career break, the departure of Malaysian women from the labour market tends to be permanent.
“Malaysia has one of the lowest rates of women taking temporary career breaks, reinforcing this trend of permanent labour market exit,” the report said.
“Without employment practices that adequately support women’s caregiving responsibilities - such as flexible work arrangements and accessible childcare - many women will continue to remain outside of the labour force or resort to informal work in order to balance family and employment,” Malaysian World Bank country manager Judith Green said at the report’s launch.
However, these practices are also considered by many employers to be “significant obstacles” in employing women. 54% of the respondents said the provision of maternity leave is a barrier to hiring female employees, while 40% say additional benefits like lactation rooms and childcare facilities increase recruitment costs.
Not surprisingly, the labour force participation rate for women in Malaysia (56.6%) is much lower compared to men (83.4%).
Greene noted that if female labour participation rates were to reach levels similar to those of advanced economies, Malaysia’s income per capita could grow by 26.2% or the equivalent of RM9,400 ($2,200) per year.
“Under-representation in the labour market is a lost economic opportunity - it implies that Malaysia is not fully utilising its human resources,” she added.
Despite these challenges, the report notes that 60% of firms believe hiring more women improves productivity. More than half also say they have implemented measures to support female employees, such as hybrid or flexible working arrangements (54%), onsite or near-site daycare facilities (53%), and family or parental leave separate from annual leave (47%).
The Malaysian government has also introduced measures in support of workplace inclusivity, including the Career Comeback Programme (CCP), which helps women return to the job market after a career break, and expanded tax incentives for alternative care arrangements.
The World Bank also emphasised that inclusive employment policies should not be designed solely for women. A gender-balanced approach ensures that hiring female workers is not perceived as a higher-cost decision, reducing stigma and enabling a more stable workforce participation for all caregivers.