In the wake of the fuel price surge that has sent shockwaves through the entire world as a result of the ongoing Iran war, some parties have since advocated for the implementation of work-from-home (WFH) directives to help reduce fuel usage and manage supply, in addition to strengthening fuel subsidies.
However, according to Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman, temporary WFH directives or staggered office hours are unlikely to significantly reduce fuel consumption across the country’s diverse economy.
Speaking to The Sun, Syed Hussain said that while sustained disruption to oil supply chains would indirectly affect businesses through higher transport costs, electricity tariffs, logistics expenses, and overall operational costs, the effectiveness of WFH directives heavily depend on the needs of the specific sector.
“Many businesses, particularly in manufacturing, logistics, retail, construction and hospitality, require physical workforce presence and cannot rely extensively on remote work. For these sectors, fuel cost increases primarily affect production, supply chains and distribution networks rather than employee commuting. WFH measures may therefore have limited impact on overall fuel consumption,” he explained.
Energy-intensive sectors such as manufacturing, aviation, and heavy industry could have limited scope for WFH or staggered hours, as they rely on continuous operations and on-site staff. Any reduction in commuting would have only “marginal impact” compared to the substantial energy required for production.
Additionally, he says that customer-facing industries, including retail, hospitality, healthcare, and essential services also require physical interaction. “Business hours and staffing are dictated by customer demand and service continuity, making adjustments difficult without affecting operations.”
He added that sectors in which remote work is viable could see benefits in adopting temporary, flexible arrangements, including hybrid working models, staggered hours, or energy-saving practices within offices, provided the measures remain advisory rather than mandatory.
“It is important that any policy recommendation allows companies flexibility to determine arrangements that best suit their operational realities, productivity requirements and customer service obligations. Employers generally prefer advisory guidelines rather than mandatory directives, allowing companies to adopt practices that are practical within their specific operational environments,” Syed Hussain explains.
The MEF instead avocates for broader policy responses to support businesses, including stabilising energy costs, business continuity measures, and energy efficiency improvements across industries. “Incentives for energy-efficient equipment, better public transport connectivity and policies supporting digitalisation could reduce energy use without disrupting operations,” he added.
Following tensions in the Middle East, Prime Minister Datuk Seri Anwar Ibrahim has assured Malaysians that the government will “continue to make every effort” in ensuring the subsidised RON95 fuel prices remain at RM1.99 per litre, in its commitment to keep living costs manageable. Additionally, the BUDI diesel cash aid for eligible subsidy recipients has also been raised to RM300 for the month of March, in response to fuel price hikes.
Neighbouring ASEAN countries such as Thailand and Vietnam are now encouraging employees in its public sector to implement WFH directives. Meanwhile in Malaysia, the Prime Minister has now tasked the Chief Secretary and the Director General of Public Service Department to conduct a comprehensive review for WFH proposals to ensure administrative consistency across the board. A decision is expected to be reached this coming Tuesday (March 17).
