Can consumers afford potential cost increases from this law?

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Consumers May Struggle to Afford Potential Cost Increases from a "Right to Disconnect" Law

Experts suggest that implementing a "right to disconnect" law in Malaysia could lead to increased operational costs for businesses, which may then be passed on to consumers. This raises significant questions about the affordability of services for the average Malaysian consumer, particularly given the current economic landscape. While countries like Australia and several in Europe have enacted similar legislation, the unique economic structure of Malaysia, characterized by a labor-intensive workforce and a less developed automation sector, presents distinct challenges.
Increased Costs Due to Hiring More Staff

One of the primary concerns raised by experts is that Malaysian companies, especially smaller ones, may need to hire additional staff to manage workloads if employees are legally allowed to ignore communications outside of work hours. This necessity arises because many businesses currently rely on employees being available for tasks that require immediate attention, even after official working hours. The need to expand the workforce to cover these extended operational demands would inevitably lead to higher overall business expenses.
Impact on Service Prices and Consumer Affordability

The projected increase in business operational costs is expected to translate directly into higher prices for goods and services. If companies are compelled to hire more personnel to maintain productivity and client responsiveness, these additional labor expenditures would likely be reflected in the pricing of their offerings. This scenario prompts a critical question: are Malaysian consumers prepared to absorb these potential price hikes, especially considering the current economic pressures they might be facing?
Need to Address Flexible Work Arrangements First

Before considering a "right to disconnect," some experts argue that Malaysia should first fully implement and clarify flexible working arrangement procedures. The existing Employment Act (Amendment) 2022 allows employees to apply for flexible work, but the specific "form and manner" for these applications has not yet been detailed by the Labour Director-General. Establishing robust flexible work policies and embracing automation are seen as prerequisites for a successful transition to a "right to disconnect," ensuring that businesses can adapt without disproportionately burdening consumers.

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Can consumers afford potential cost increases from this law?

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