ACCCIM noted that although the Government’s Post-Maternity Leave Allowance under the EPCB mechanism will help ease part of the wage burden on employers, it does not translate into zero cost for businesses. Employers will continue to bear indirect and operational costs, including workforce replacement, training, workflow adjustments and productivity management. These challenges are particularly significant for small and medium enterprises (SMEs), which operate with limited manpower flexibility.
The Chamber further highlighted that businesses are currently facing rising cost pressures due to global oil and energy price volatility, which has driven up transportation, logistics and input costs. In this context, the timing of introducing such measures should be carefully considered to avoid adding further strain on businesses.
ACCCIM also cautioned against potential unintended consequences, stating that higher employment costs and workforce uncertainties may influence hiring and promotion decisions, particularly involving women of childbearing age, potentially giving rise to indirect workplace discrimination.
In this regard, ACCCIM urged the Government to engage in comprehensive consultations with the business community before implementation and to introduce pragmatic, targeted support mechanisms. These should include cost-sharing initiatives such as incentives for temporary workforce arrangements, tax relief measures, and the strengthening of enabling ecosystems, including accessible childcare services and flexible work frameworks, as well as the reinforcement of legal safeguards to prevent employment discrimination.
ACCCIM also recommended the adoption of a reasonable transition period to allow businesses to adjust their workforce planning and operational processes. The Chamber reiterated that policy measures must strike a balance between social objectives and business sustainability to ensure long-term effectiveness and positive outcomes for both the workforce and the economy.
