Is Working From Home Actually Costing You Money?

It sometimes feels surreal that it’s been 5 years since the pandemic. Back when the pandemic first hit, working from home in Malaysia—and across the globe—felt like a dream come true. No more fighting traffic jams, no more annoying workplace interruptions, and the joy of staying in comfy clothes all day was just the best feeling ever. But fast forward a few years, and as hybrid setups become more common, many Malaysians are starting to reflect: is remote work quietly draining our wallets?

It’s time to dig into the hidden price tags of WFH in Malaysia. Beyond the financial strain, the impact stretches into emotional well-being and career growth. Whether you’re employed remotely or juggling freelance jobs, understanding these trade-offs—and how to navigate them—can help you make smarter, more sustainable decisions.

Hidden costs of working from home in Malaysia

On the surface, remote work seems like a money-saver. You’re not forking out cash for fuel, tolls, parking, or those expensive midday meals anymore. But for many, those initial savings are gradually being offset by a different set of unexpected costs.

1. Rising utility bills

When your home becomes your office, your electricity and water usage naturally spike. Air conditioning, lighting, extra device usage, and frequent coffee breaks all add up. Tenaga Nasional Berhad (TNB) reported increased household energy consumption during lockdown periods—and the habit seems to have stuck for many remote workers.

Quick tip: Consider switching to energy-efficient lighting and using fans instead of air-conditioning when possible. It’s also worth exploring TNB’s energy-saving tools to monitor your usage.

2. Home office set-up means extra expenses

Your kitchen table might have worked as a temporary workstation, but long-term WFH needs more than a flat surface. Many Malaysians have had to spring for ergonomic chairs, external monitors, webcams, and upgraded routers—all essentials to stay productive.

Even “small” upgrades like a ring light for Zoom calls or a decent microphone for online presentations can quickly snowball into RM 500 or more in expenses.

3. Internet upgrades

Let’s face it: Malaysia’s basic broadband doesn’t always cut it when your entire workday depends on stable video calls, large file uploads, and real-time collaboration. Many households have had to upgrade to higher-speed plans, often paying RM100–RM300 monthly for more reliable service.

And if you’re freelancing or running your own business, you’re likely bearing this cost entirely on your own.

Working from home in Malaysia and career stagnation: The opportunity cost

While working from home (WFH) offers flexibility, it can quietly chip away at your career momentum. It’s not just a case of being “out of sight, out of mind”—in many companies, employees who aren’t regularly seen in the office risk missing out on promotions, mentorship, and high-impact projects that often go to more visible colleagues. A study found that WFH has its drawbacks, with 48% of employers reporting reduced productivity—highlighting a common perception that remote work negatively affects performance. Still, it’s not all bleak. 

JobStreet Malaysia’s Laws of Attraction study reveals that, with the right approach, remote work can be transformed into a rewarding and engaging experience for employees.

For freelancers: Are you undercharging?

If you’ve ventured into gig work or freelancing, WFH gives you flexibility—but it also comes with its own cost traps. Many freelancers in Malaysia undercharge, especially when starting out. 

They often forget to factor in:

• Time spent on revisions, client calls, and admin work
• Equipment, software subscriptions (like Canva Pro or Adobe Suite)
• Self-funded EPF contributions or insurance
• Burnout from taking on too many small, underpaid gigs

A good rule of thumb? Factor in at least 30–40% more than your ideal salary to cover overheads and downtime. For more in-depth freelancing tips in Malaysia, check out platforms like Malaysian Freelancers Hub or workshops run by local communities such as Digital Nomads Malaysia.

Read: How to set your rates as a freelancer

Tax time wake-up call

If you’re WFH as a full-time employee, your tax deductions are straightforward. But for freelancers and small business owners, WFH means you might have to play accountant too. Do you know what qualifies as a work-related expense in Malaysia? Did you know you could potentially deduct part of your rent, internet bills, or electricity costs under professional expenses?

Failure to document properly could mean losing out on savings—or worse, facing penalties from LHDN.

Freelancing Tip: Start tracking all work-related expenses from Day 1. Even better, use tools like Wave or Notion to keep monthly logs, and consult a local tax advisor come April.

Mental costs (that lead to financial ones)

When your home becomes your office, the boundaries start to blur—and burnout often follows. That mental fatigue can translate into poor productivity, missed deadlines, and even costly mistakes.

One survey from JobStreet Malaysia in 2024 showed that 32% of WFH employees reported struggling with motivation and time management, leading to either unpaid overtime or taking on fewer projects overall.

If you’re a freelancer, this can hurt your bottom line fast.

Simple fix: Build structure into your day. Use the Pomodoro technique, designate a physical workspace (even if it’s a corner of your room), and schedule “commutes”—like a walk around the block to mentally switch between home and work mode.

Making WFH work for your wallet

It’s not all bad news. WFH can still save you money—if you’re intentional about it. Here are a few practical ways to offset the hidden costs:

• Track your spending: Use apps like Money Lover or Wallet to see where your WFH budget is leaking.
• Get second-hand gear: Facebook Marketplace and Carousell often have quality office furniture at a fraction of the price.
• Charge what you’re worth: Especially in freelancing, factor in every cost—not just your time.
• Optimise your tax deductions: Don’t wait till the last minute to sort your receipts.
• Reinvest in learning: Use online courses (some HRDF-claimable!) to upskill and charge more for your services.

Final thoughts

WFH in Malaysia has undoubtedly reshaped how we live and earn. But while it offers freedom and flexibility, it’s not “free”—financially or otherwise. Whether you’re a full-time remote employee or a digital hustler juggling gigs, the key is awareness.

When you know what it’s really costing you, you can take smarter steps to make WFH work for you—not against your bank account.

Want help optimising your WFH expenses or setting better freelancing rates? Follow iMoney’s blog for more practical personal finance advice tailored to Malaysia.