Accelerating Gender Equality, Ending Workplace Discrimination

Prepared by    Nur Sakinah Alzian & Claudia Ng 7th March 2025 Photo by Miguel Bruna Gender discrimination is not always blatant. Sometimes, it operates in plain sight, while other times, it lurks beneath neutral policies and programmes. Overt gender discrimination happens when someone is being treated unfavourably due to their gender, which includes unequal pay for the same work, denial of promotions or opportunities, sexist remarks or harassment, and discriminatory hiring or firing practices(1).  This form of discrimination is easier to identify – though not necessarily easier to seek justice for – but because it is visible, laws can be readily developed to address this issue.  Indirect gender discrimination, on the other hand, is much harder to tackle due to its subtle, perceived neutrality and often ingrained nature. This includes biased workplace policies that disproportionately disadvantage one gender, expectations around caregiving roles that limit career advancement, programs that favor masculine characteristics, and unconscious biases in hiring, promotions, and performance evaluations (2) . A 2020 study by the Women’s Aid Organisation (WAO) underscored the severity of workplace gender discrimination in Malaysia. Some alarming findings revealed that 56% of Malaysian women had experienced at least one form of gender discrimination at work, 62% had encountered some form of sexual harassment, and 31% were denied new projects or opportunities upon returning from maternity leave. Gender discrimination creates significant barriers to women’s participation in the labor market as studies have shown that many women leave their jobs due to challenging workplace dynamics (3) . If these issues persist, Malaysia’s goal of increasing the female labor force participation rate (FLFPR) to 60% within the next decade will be difficult to achieve. Failing to do so will hinder the nation’s overall socio-economic progress as half of the population remains underrepresented in the workforce.  The Economic Cost of Gender Discrimination Eliminating gender discrimination in the workplace is not only a moral imperative; when fully realized, empowering women delivers a cascade of economic benefits. According to studies, dismantling economic barriers for women could potentially   elevate Malaysia’s per capita income by 26.2%, equivalent to an average of RM9,400 gain per individual (4) . When women are granted equal access to economic opportunities, they would be more likely to invest in education and health, enhancing human capital and driving future economic progress. For some women who are struggling with persistent economic disadvantage, this opportunity could translate into a pathway to upward mobility.  Conversely, gender inequality hampers this virtuous cycle, stifling long-term growth (5) .  The World Bank estimates that gender-based earning disparities result in global wealth loss of $23,620 per person , with developed economies experiencing amplified loss due to their accumulated human capital wealth (6) . Moreover, gender discrimination in managerial roles weakens firm productivity by limiting diverse leadership, resulting in the loss of financial performance and social responsibility typically achieved with diverse labor pools. The compounding of these factors reinforces the systemic barrier, leading to the underrepresentation of women in higher-paying decision-making roles and undermining the creation of diverse perspectives and wage parity.  In contrast, research indicates that increasing female managerial representation significantly boosts employee per capita output ​ (7) . Psychologically, a workplace environment that tolerates discriminatory behaviors can lead to increased stress and anxiety among employees, ultimately resulting in higher absenteeism and turnover rates (8) . The importance of ensuring equal practices in the workplace provides Malaysia with unparalleled opportunities to fully tap into its economic potential.  How Does Malaysia Protect Women From Gender Discrimination (and What’s Missing?) Malaysia's accession to The Convention on the Elimination of all Forms of Discrimination Against Women (CEDAW)   in 1995  signaled a commitment to advancing women’s rights. In line with this, Article 8(2) of the Federal Constitution was amended to explicitly outlaw discrimination based on gender. However, enforcement has been inconsistent, as seen in Beatrice Fernandez v. Sistem Penerbangan Malaysia , where the court ruled that this protection applies only to government entities (9) . Other legal provisions to combat discrimination include the Penal Code which criminalizes various forms of sexual harassment and violence.  Additionally, the Employment Act 1955 , amended in 2012, include protections against workplace sexual harassment. However, the Act has significant shortcomings. It requires substantial evidence to succeed in the Industrial Court, which can be a major hurdle for victims. Additionally, the Industrial Court may lack gender sensitivity, making it even more challenging for women to pursue their cases. The Anti-Sexual Harassment Act 2022  was widely celebrated as a significant step forward for women’s rights in Malaysia. It established the Tribunal for Anti-Sexual Harassment, granting it the authority to handle complaints on sexual harassment from anyone in the workforce. However, its impact has been limited, with only three cases successfully ruled in favor of complainants (10) . A worrying example is a sexual harassment case at a well-known local bank, where the victim was suspended while the perpetrator remained employed (11) . This incident highlights the urgent need for stronger protections against sexual harassment. Deeper reforms to tackle the hidden forces of gender discrimination in the workplace are imperative. Unlike overt bias, indirect gender discrimination is harder to detect and often disguised as neutral policies or justified as standard practice. Yet it is precisely these subtle biases, unwritten rules, and workplace cultures that quietly drive women out of the workforce. Despite growing awareness of these systemic issues, concrete action from the government remains lacking in addressing indirect gender discrimination. Laws alone are insufficient without strict enforcement, policy interventions, and corporate accountability. Driving Change: SERI’s Commitment to Accelerating Action Recognizing the critical need to address gender discrimination and its impact on female labor participation, Social & Economic Research Initiative (SERI) is conducting an in-depth research to uncover the multifaceted barriers that hinder Malaysian women’s participation in the workforce, such as gender discrimination and childcare policy challenges. With International Women’s Day 2025 serving as a poignant reminder for the urgency to “ Accelerate Action ” towards gender equality, it becomes imperative for Malaysia to intensify efforts in creating inclusive and equitable work environments.  While it is evident that eliminating these barriers could support the nation’s overall economic growth, concrete governmental action remains lacking, highlighting that laws alone are insufficient without strict enforcement, corporate accountability, and awareness of the various forms of workplace discrimination .  Therefore, swift and decisive action is needed to translate policies into meaningful change, ensuring that gender equality is not just an aspiration but a reality in Malaysia’s labor market. Nur Sakinah Alzian is a senior researcher and Claudia Ng is a research associate at Social & Economic Research Initiative (SERI). SERI is a non-partisan think-tank dedicated to the promotion of evidence-based policies that address issues of inequality. Visit www.seri.my or email hello@seri.my for more information. References : Harlida Abdul Wahab, “The Legal Context of Employment Discrimination in Malaysia,” Journal for Studies on Children, Women, Elderly and Disabled 4 (2018): 119–24. Harlida, “The Legal Context of Employment Discrimination in Malaysia,” 2018.  Eliana Carranza, Smita Das, and Apichoke Kotikula, “Gender Based Employment Segregation: Understanding Causes and Policy Interventions” (Washington, DC: World Bank, 2018).  Achim Daniel Schmillen et al., “Breaking Barriers : Toward Better Economic Opportunities for Women in Malaysia” (World Bank, 2019).  IMF. “Gender Inequality and Economic Growth: Evidence from Industry-Level Data,” (July 3, 2020). Quentin Wodon, and Benedicte De Labriere. “Unrealized Potential: The High Cost of Gender Inequality in Earnings.” World Bank. World Bank Group, (July 16, 2018). Shrestha, Savitri. “Gender Discrimination and Its Impacts in Macro-Economic Development.” KMC Research Journal 3, no. 3 (June 13, 2019): 123–34.  Asif, Farwa, and Anam Rehman. “The Impact of Gender Discrimination on Workplace Environment and Job Satisfaction.” Research Journal for Societal Issues 3, no. 1 (December 31, 2021): 28–38. Harlida, “The Legal Context of Employment Discrimination in Malaysia,” 2018.  Jacqueline Raphael. “Nancy: Anti-Sexual Harassment Tribunal Awards Settlements in Three Cases to Date.” Borneo Post Online, September 19, 2024. The Malaysian Reserve, “Pickets to Continue against Maybank Alleged Sexual Harassment,” The Malaysian Reserve, August 30, 2024.