In Malaysia, the provision of workplace childcare facilities, commonly referred to as "taska," is not mandated by law for private sector employers. However, should the entity - be it government or private sector wanted to have it, they are governed by Child Care Centre Act 1984 (Act 308) which applies to child care centers, which are establishments that provide care and supervision for children under the age of four. The act aims to ensure the safety, health, and welfare of children in these centers.
The government has introduced various initiatives to encourage the establishment of such facilities, recognizing their importance in supporting working parents, particularly women.
1. Current State of Workplace Childcare in Malaysia
As of 2024, there are 265 registered workplace nurseries across the country, with 221 in the public sector and 44 in the private sector. This indicates a growing awareness and implementation of childcare support within workplaces, though the majority remain within government agencies
2. Government Incentives and Support
To promote the establishment of childcare centers at workplaces, the Malaysian government has implemented several incentives:
a) Tax Exemptions and Allowances
Childcare operators have been granted a five-year tax exemption since the 2013 assessment year. Additionally, private sector entities operating childcare centers have been eligible for an industrial building allowance at a rate of 10% starting from the 2010 assessment year.
b) Financial Grants
The government allocated grants to establish childcare centers at workplaces, approving 167 centers in government agencies nationwide since 2019
c) State-Level Initiatives
e.g. The Selangor State Government proposed offering special incentives to companies that set up childcare centers within their office premises, aiming to reduce the number of employees leaving their jobs due to childcare responsibilities
3. Challenges in Implementation
Despite these incentives, I noticed there are several challenges that may hinder the widespread establishment of workplace childcare centers.
a) Financial Constraints
Many private sector employers find the cost of setting up and maintaining childcare facilities prohibitive. The Malaysian Employers Federation (MEF) highlighted that, historically, the number of such centers in private sector offices has declined due to limited financial resources and insufficient government incentives.
b) Health and Safety Concerns
Employers express concerns about the health and safety implications of operating childcare centers, especially in environments like factories or heavy industrial areas where the setting may not be conducive for children.
I firmly believe that Department of Social Welfare ( Jabatan Kebajikan Masyarakat Malaysia - JKM) should also be assisted by Department of Occupational Safety Health Malaysia (DOSH/JKKP Malaysia) can collaborate on this issue.
c) Cost Implications for Employees
When workplace childcare facilities are available, the cost to employees varies:
a) Employer-Sponsored Models
Some companies fully subsidize childcare services as part of their employee benefits, allowing staff to utilize the facilities at no additional cost.
b) Partial Subsidies
Other employers may offer childcare services with partial subsidies, requiring employees to pay a portion of the fees.
b) Full Employee Payment
In instances where employers provide the facility but do not subsidize the operational costs, employees bear the full expense of the childcare services.
The specific arrangement depends on the employer's policies and the agreements in place.
c) Community-Based Alternatives
Given the challenges associated with establishing on-site childcare centers, some organizations advocate for community-based childcare solutions. These centers, located within residential areas, can serve employees from multiple companies, potentially reducing costs and logistical complexities. This approach aims to provide accessible childcare services without placing the entire financial and operational burden on individual employers.
Conclusion
While Malaysia does not legally require major corporations to provide daily childcare units, there is a concerted effort through various incentives and initiatives to encourage their establishment. The effectiveness of these measures varies, influenced by financial considerations, health and safety concerns, and the specific policies of individual employers. For working parents, particularly women, the availability and affordability of workplace childcare depend largely on their employer's commitment to supporting such facilities and the broader governmental and community support structures in place.
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