Workplace stress could cost Malaysia RM34bil by 2030
KUALA LUMPUR: Unmanaged workplace stress and health-related presenteeism could cost the Malaysian economy RM34 billion annually by 2030, equivalent to about 1.4 per cent of gross domestic product (GDP), according to financial wellness platform and earned wage access provider Paywatch.
Malaysia's economy could face a financial loss of RM34 billion annually by 2030 due to unmanaged workplace stress and health-related presenteeism, the financial wellness platform Paywatch has warned. The loss is equivalent to around 1.4% of the nation's gross domestic product (GDP). Businesses are estimated to lose an average of 73.1 productive days per employee each year to absenteeism and presenteeism, with mid-sized and large enterprises incurring an average yearly cost of RM2.27 million.
Financial strain on Malaysian workers, with 70.2% of the workforce in the formal sector earning RM5,000 or less a month by December 2025, could exacerbate the issue as family of four in Kuala Lumpur require about RM6,183 a month to meet basic living expenses, compared to RM3,845 in Kuala Terengganu. The income gap could lead to employees postponing out-of-pocket medical treatment, which could affect their health, productivity, and financial wellbeing.
Richard Kim, co-founder and CEO of Paywatch, stated that an unexpected medical expense can push an employee into serious financial distress when 80% of working Malaysians live paycheck to paycheck.
In response to this financial strain, Paywatch has teamed up with IMU Healthcare to launch MediPay. The new feature will allow employees to use wages they have already earned to pay for healthcare and wellness packages, aiming to help workers manage unexpected healthcare expenses without resorting to credit or loans. MediPay will be available from September and is designed to tackle financial stress among employees, especially those living from one pay cheque to another.
IMU Healthcare's medical director and consultant obstetrics and gynaecology Professor Dr Nazimah Idris said affordability remains a significant barrier to timely healthcare. By enabling employees to access necessary care using wages they've already earned, Paywatch and IMU Healthcare hope to encourage more Malaysians to seek care when needed rather than when they can afford it.
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