A flexible working environment raises productivity among small and medium enterprises (SMEs) and alters consumer spending geographically as people spend more near their homes, which helps small businesses and diversifies economic growth.

Design Thinker and Researcher Jesrina Ann said that based on research among SMEs in Kuala Lumpur, a flexible working environment has proven to increase productivity as it reduces absenteeism, attrition and the use of sick leave.

Higher productivity causes savings in marginal cost, which could then be invested into research and development which in turn would enhance...