With the right balance, the policy can achieve its objective of supporting working mothers while also ensuring that SMEs remain resilient and confident in their workforce planning.
KUCHING: Small and medium enterprises (SMEs) have welcomed the proposed post-maternity leave allowance, but say staffing pressures and operational disruptions remain key concerns.
Sarawak Business Federation (SBF) secretary-general Datuk Jonathan Chai described the proposal announced by Prime Minister Datuk Seri Anwar Ibrahim as a progressive and socially responsible measure in principle.
Under the proposal, working mothers would receive up to 30 days of additional financial support after completing the existing 98-day maternity leave period, with the allowance to be implemented under the Employment Insurance System (EIS) Act 2017.
Chai said the initiative reflected the government’s commitment to supporting working mothers while strengthening family institutions.
“From the perspective of SMEs, there is general support for policies that promote workforce inclusivity, maternal well-being and long-term talent retention, as these contribute to a more stable and productive labour force over time,” he told Sarawak Tribune.
However, he said the practical realities faced by smaller businesses could not be ignored, particularly for SMEs operating with tighter margins and lean manpower structures.
According to Chai, while the proposed allowance would cover the financial aspect of the extended period, it would not fully address the operational impact on businesses.
“Many SMEs rely on small teams where each employee plays a critical role, and a prolonged absence can disrupt workflow continuity.
“Employers may need to rely on existing staff to take on additional responsibilities, which could result in higher overtime costs and potential staff fatigue, while hiring temporary replacements often proves inefficient and costly due to training requirements and shortterm arrangements,” he said.
He also cautioned that, if not carefully managed, the policy could unintentionally influence hiring practices among businesses with limited workforce flexibility.
While responsible employers would not discriminate, he said some SMEs might become more cautious when filling positions that are difficult to temporarily backfill, especially in lean operational environments.
“This could, at the margins, affect the hiring and retention of women employees, and it is therefore important that appropriate safeguards and supporting measures are put in place to prevent any unintended disadvantage,” he said.
Chai noted that funding the allowance through the EIS was a positive move as it reduced the immediate direct financial burden on employers.
He said this reinforced the concept of a shared social protection mechanism rather than placing the full cost solely on businesses.
Nevertheless, he said SMEs were still concerned about indirect costs linked to manpower planning and productivity disruptions.
“At the same time, employers are likely to have legitimate concerns about the long-term sustainability of the Employment Insurance System if its scope is expanded beyond unemployment protection to include additional social benefits.
“In particular, there may be questions about whether contribution rates will need to be increased in the future, how the fund will be sustained over the long term, and whether SMEs will face higher statutory contributions at a time when many are already managing rising costs,” he said.
Chai added that greater transparency on the financial sustainability of the system would be important in maintaining employer confidence.
“It is important that the operational realities faced by SMEs are taken into account, and that complementary support measures, such as hiring incentives or temporary workforce support schemes, are considered.
“With the right balance, the policy can achieve its objective of
