Healthcare costs are a key concern for employers operating across Malaysia, with some firms seeing 5-10% annual benefits increases.
This according to Aon’s 2025 Malaysia Employee Benefits and Wellbeing Report which surveyed more than 130 companies and 507 employees and attributed the increases primarily to rising medical costs and increased benefits usage.
The report’s compilers also conclude financial pressure may lead employers to reconsider benefit levels, challenging employers to maintain or curate a competitive benefits package.
Impact of flexible working
The report also found 81% of employers and 77% of employees acknowledged that flexible working improved work-life balance and flexibility.
However, 73% of employers cited concerns about collaboration among teams and 57% of employees were concerned about reduced interaction.
Surendran Ramanathan, head of wealth solutions in Malaysia at Aon, said: “Wellbeing factors such as emotional, physical, work-life, social and financial are closely linked and interconnected to each other and contribute to the strength of a workforce.
“Improving one area can impact others,” Ramanathan continued. “Prioritising benefits and wellbeing are not merely a strategic choice; it is necessary for organisations to thrive in a competitive landscape.
“By investing in comprehensive benefits packages and robust wellbeing initiatives, companies can significantly enhance employee health, engagement and productivity, leading to a more motivated workforce which is crucial for driving the organisation’s success,” Ramanathan added.