KUALA LUMPUR: Employees’ mental health conditions may cost a whopping RM14.46 billion or more than one per cent of Malaysia’s total Gross Domestic Product (GDP).
This is according to a white paper released by Relate Mental Health Malaysia (Relate) at its’ forum on the Business Costs of Mental Health.
The study titled ‘Workplace mental health – The business costs’ estimates the total productivity and business costs of mental health problems in Malaysia according to absenteeism, presenteeism (working while unwell) and staff turnover attributable to mental health issues.
At an organisational level, the report approximates that there is a bill of RM123 million and RM13 million in productivity and business costs for the top two commercial employers in Malaysia, Petronas and Nestle respectively.
In terms of the civil service, with 1.6 million civil servants in Malaysia, the costs are proportionately higher with a total estimate of RM2.03 billion.
“On a national level, the cost of mental health issues in the workplace to the economy is conservatively estimated to be RM14.46 billion or one per cent of GDP in 2018 to employers with costs broken down into three categories.
“Absenteeism cost RM3.28 billion (0.23 per cent), presenteeism cost RM9.84 billion (0.68 per cent), and staff turnover cost RM1.34 billion (0.09 per cent).
“In spite of the high costs, only RM344.82 million (less than one per cent) is allocated to mental health issues in the national budget. Yet, the WHO estimates that effective treatment at a general cost of RM4 per person per annum, will increase productive workdays by 10 per cent,” the report stated.
Within the context of Malaysian companies, Relate Malaysia said the estimated cost per worker per annum was RM946 (or 31 per cent of the average monthly salary).
Dr Chua Sook Ning, a clinical psychologist and Relate founder, in a statement, said the key objective of this study is to spur employers and the government to pay attention to the real costs of leaving mental health conditions untreated.
“We want to highlight to employers the need and cost benefits of putting in place policies and programs for mental health interventions, and in so doing would also change the stigma towards mental health conditions in the workplace and even our society,” she said, stressing mental health conditions were very treatable.
Many studies, she added, had clearly shown the benefits of investing in educational programmes to improve mental health literacy as well as offering confidential workplace mental health support and interventions such as Employee Assistance Programmes (EAPs).
“In fact, the World Health Organisation estimated that investing RM2-RM4 for anxiety and depression alone can increase productive workdays by 10 per cent. Investing in mental health is one of the most financially sound investments a company can make.”
Women, Family and Community Development Deputy Minister Hannah Yeoh said the ministry had started work on improving support for mental health by training 10,000 volunteer counsellors under its programme.