WFH Policy Could Hurt Restaurants, Cafes, And Entertainment Venues, Group Warns

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A leading family tourism group has urged the government to ensure that its upcoming work-from-home (WFH) policy does not affect domestic tourism, even as it seeks to address the global energy crisis

The Malaysian Association of Theme Parks & Family Attractions (MATFA) said the move, set to take effect on 15 April, may reduce travel and leisure spending, particularly among families, if implemented widely over a prolonged period.

"MATFA fully understands and supports the government's objective to reduce fuel consumption and protect the rakyat from rising energy costs. However, a widespread and prolonged WFH implementation may carry economic trade-offs that warrant careful review," said its president, Tan Sri Richard Koh, to The Star.

According to the group, less commuting could mean less spending

Koh said reduced weekday travel into city centres could directly affect businesses that depend on steady foot traffic.

"This policy may have an impact on restaurants, cafes, and entertainment venues in downtown areas. They will lose weekday revenue from commuters and business travellers."

He added that the knock-on effects could extend further across the tourism ecosystem.

A drop in footfall, Koh said, would also impact nearby hotels, resorts, and homestays that rely on tourism-driven traffic, potentially forcing operators to cut operating hours, reduce staff, or delay expansion plans.

"This will, in turn, affect suppliers, contractors, and service providers throughout the value chain," Koh said.

The WFH directive was announced by Prime Minister Datuk Seri Anwar Ibrahim during a special briefing on 1 April

The move will apply to the public sector and government-linked companies (GLCs) starting 15 April, as part of broader efforts to reduce fuel consumption amid ongoing global energy pressures linked to the Middle East conflict.

Anwar said the decision was aimed at safeguarding Malaysia's energy security and shielding the public from sudden price increases.

MATFA pointed out that many tourism-related businesses are still in recovery mode after the pandemic, when domestic travel played a key role in keeping operations afloat

The association warned that any slowdown in local travel could disrupt current momentum, especially with national campaigns like Visit Malaysia 2026 on the horizon.

"This shift could directly affect visitor numbers at theme parks, water parks, and family attractions, many of which depend heavily on domestic tourists," Koh said.

In response, MATFA is urging the government to take a more flexible approach in rolling out the policy.

Among its suggestions are targeted financial support for affected operators, including wage subsidies, rental rebates, and utility assistance.

It also proposed measures to boost domestic tourism demand, such as family travel incentives, tax relief extensions, and promotional campaigns.

The association further called for clearer implementation guidelines and a review of the policy's economic impact within the first 30 to 60 days.

MATFA said it is ready to work with the government to ensure policy decisions balance economic recovery with national priorities.

"We stand ready to engage in constructive dialogue to safeguard the recovery of Malaysia's domestic tourism sector."