MAY 10 — The gig economy has rapidly grown in Malaysia, providing flexible work opportunities to millions of individuals across various industries.
Gig workers, including ride-hailing drivers, food delivery riders, freelancers, and digital platform workers, play a crucial role in the country’s labour market.
However, despite their significant contributions to the economy, many gig workers face job insecurity, lack of social protections, and unfair treatment due to the absence of a legal framework governing their rights.
Recognising these challenges, the Malaysian government is set to introduce the Gig Workers’ Bill, a landmark piece of legislation aimed at safeguarding the welfare and rights of gig workers.
This Bill is essential for improving worker protection, strengthening Malaysia’s economy and promoting sustainable GDP growth.
Gig work offers flexibility and autonomy, allowing individuals to earn income outside the traditional employment model.
However, this flexibility often comes at a cost — many gig workers lack access to health benefits, retirement savings, job security, and protections against unfair dismissal.
The Gig Workers’ Bill addresses these concerns by defining gig workers as a separate labour category from full-time employees.
This distinction enables policymakers to introduce targeted regulations that suit the unique nature of gig work while ensuring fair treatment and labour protections.
By recognising gig workers within the legal framework, the Bill establishes minimum wage standards, reasonable working conditions, and mechanisms for dispute resolution between workers and platform providers.
Gig work offers flexibility and autonomy, allowing individuals to earn income outside the traditional employment model. — Unsplash pic
One of the most critical aspects of the Gig Workers’ Bill is the implementation of mandatory social security contributions. Under the proposed legislation, gig platforms must contribute to gig workers’ Employees Provident Fund (EPF) and Social Security Organisation (Socso) schemes.
This ensures that gig workers have financial security during unemployment, illness, or retirement, reducing their economic vulnerability.
Many gig workers currently do not have retirement savings, putting them at risk of financial instability in the future.
By mandating contributions to these social safety nets, the Bill provides long-term financial protection for millions of gig workers, ensuring they are not left behind in Malaysia’s evolving labour market.
Beyond protecting individual workers, the Gig Workers’ Bill is pivotal in driving Malaysia’s GDP growth. The gig economy is one of the fastest-growing sectors in Malaysia, with more than 2.2 million gig workers actively participating in various industries.
As demand for gig-based services continues to rise, stabilising the gig workforce through legal protections will contribute to higher productivity and economic sustainability.
Many gig workers face income fluctuations, exploitation, and sudden job losses, leading to low job retention rates. By introducing fair wage practices and social protections, the Bill encourages greater workforce stability, reducing turnover rates and ensuring that skilled gig workers remain in the industry.
A structured gig economy also facilitates better financial integration, allowing gig workers to access banking services, credit facilities, and investment opportunities.
With formal recognition, gig workers can secure loans to invest in housing, education, and personal development, contributing to greater economic participation.
Additionally, the Bill establishes taxation policies for gig platforms, ensuring that companies operating within Malaysia’s gig economy contribute fairly to national revenue.
The additional tax income can be reinvested into education, healthcare, and infrastructure projects, fostering long-term economic growth.
Apart from strengthening Malaysia’s economy, the Gig Workers’ Bill acknowledges gig workers’ vital contributions to national development.
Gig workers provide essential services that improve efficiency in multiple sectors, including transportation, food delivery, digital services, and creative industries.
Their efforts help bridge gaps in the labour market while catering to consumer demands for convenient, on-demand services. The Bill enhances gig workers’ job satisfaction, motivation, and long-term commitment by ensuring fair compensation, job stability, and career development opportunities.
When gig workers feel valued and protected, they are more likely to invest in skill development, improving overall service quality.
The Bill encourages skills development and vocational training programs to empower gig workers further.
By partnering with educational institutions and industry stakeholders, the government aims to provide gig workers with opportunities to upskill and transition into higher-paying roles.
Access to continuous learning will increase Malaysia’s human capital, allowing gig workers to participate in high-value industries such as technology, finance, and entrepreneurship.
A more skilled gig workforce will boost Malaysia’s competitiveness on a global scale, attracting investments and accelerating economic expansion.
In conclusion, the Gig Workers’ Bill is a crucial legislative development that will reshape Malaysia’s gig economy by establishing legal protections, stabilising the workforce, and promoting long-term GDP growth.
By addressing worker rights, social security, and fair compensation, the Bill creates a more sustainable and inclusive labour market that benefits not only gig workers but also the national economy.
As Malaysia continues to adapt to modern work trends, a balanced and well-regulated gig economy is key to ensuring economic resilience, innovation, and global competitiveness.
With stronger legal frameworks in place, gig workers will be able to thrive in a fair and equitable labour environment, ultimately contributing to Malaysia’s vision for a progressive and sustainable future.
* Dr Cheah Chan Fatt is a Research Fellow at the Ungku Aziz Centre for Development Studies (UAC), Universiti Malaya.
** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
