Workplace stress could cost Malaysia RM34 billion annually by 2030

Unmanaged workplace stress and health-related presenteeism could cost the Malaysian economy RM34 billion annually by 2030, equivalent to around 1.4% of the country’s gross domestic product (GDP), according to financial wellness platform and earned wage access provider Paywatch.

The estimate highlights the growing economic impact of employee stress, absenteeism and working while unwell, as financial pressures continue to affect the wellbeing and productivity of Malaysian workers.

The report said businesses lose an average of 73.1 productive days per employee each year due to absenteeism and presenteeism. For mid-sized and large enterprises, the resulting productivity losses are estimated to average RM2.27 million annually.

Financial pressure could further exacerbate the issue. As of December 2025, 70.2% of Malaysia’s formal-sector workforce earned RM5,000 or less per month, according to the report.

At the same time, the cost of meeting basic living needs varies significantly across the country. A family of four in Kuala Lumpur requires around RM6,183 a month for basic expenses, compared with RM3,845 in Kuala Terengganu.

The gap between income and living costs could leave workers vulnerable to financial stress, particularly when unexpected healthcare expenses arise. Paywatch said financial constraints may cause employees to delay paying for medical treatment, potentially affecting their health, productivity and overall financial wellbeing.

“When 80% of working Malaysians are living strictly paycheck to paycheck, an unexpected medical expense can tip an employee into serious financial distress,” said Richard Kim, co-founder and CEO of Paywatch.

Against this backdrop, Paywatch has partnered with IMU Healthcare to launch MediPay, a feature that will allow employees to use wages they have already earned to pay for healthcare and wellness packages.

The service is expected to become available from September and is designed to help employees cover unexpected healthcare expenses without relying on credit or loans.

Kim said the initiative aims to address financial stress among employees, particularly those who live from one pay cheque to the next.

“By partnering with IMU Healthcare, we are dismantling the month-end barrier to healthcare access,” he said.

IMU Healthcare Medical Director and consultant obstetrics and gynaecology specialist Professor Dr Nazimah Idris said affordability remains one of the biggest barriers preventing people from accessing healthcare when they need it.

“By enabling employees to use wages they have already earned to access the care they need, we are helping more Malaysians seek care when they need it, rather than when they can afford it,” she said.

The findings underscore the growing link between financial wellbeing, access to healthcare and workplace productivity. For employers, addressing these pressures could become increasingly important as organisations seek to reduce absenteeism and presenteeism while supporting employee wellbeing.

The projected RM34 billion annual economic cost also points to a wider workforce challenge, with employers potentially needing to look beyond traditional wellbeing initiatives and consider how financial security and access to timely healthcare affect employees’ ability to remain healthy and productive at work.