SHAH ALAM - The proposed Gig Workers Bill, aimed at addressing the welfare of gig workers in Malaysia, has been postponed following calls for broader consultation.
Stakeholders emphasised the need for a collaborative and inclusive approach to ensure the law benefits all parties without causing unintended disruptions.
The gig economy has emerged as a growing trend in Malaysia, especially following the Covid-19 pandemic in 2020. Many businesses shut down during the Movement Control Order (MCO), leaving countless individuals unemployed.
In response, the gig economy provided flexible work opportunities facilitated through digital platforms, such as e-commerce, food delivery and logistics services.
This economic model allows companies to hire gig workers without classifying them as full-time employees under the Employment Act 1955.
In 2023, the gig economy’s market size reached RM1.33 billion by the third quarter, indicating robust demand, particularly from micro, small,and medium enterprises (MSMEs). To address the needs of gig workers, the Human Resources Ministry introduced the Gig Workers Bill.
The proposed law includes provisions for social security, Employees' Provident Fund (EPF) contributions, medical cost coverage and minimum compensation for p-hailing and e-hailing workers.
However, the government postponed the Bill's tabling in Parliament following industry feedback.
"The decision was based on feedback from stakeholders and the need to ensure the upcoming legislation addresses all angles comprehensively.
"This is an entirely new law, so we need more time as the drafting process, which was supposed to begin in August, is still ongoing,” Human Resources Minister Steven Sim said.
Companies such as Foodpanda, GoGet and Grab, in a joint statement, expressed concerns over limited consultation opportunities. They stressed the importance of comprehensive discussions involving all stakeholders, including gig workers, academics and industry experts.
The Malaysian P-Hailing Riders Association and its non-governmental organisation (NGO) partner, Rakan Penghantar, echoed these sentiments, advocating for more dialogue to address implementation mechanisms.
Stakeholders remain committed to engaging with the government to ensure the Bill supports gig workers while avoiding unintended consequences like compliance hurdles, increased business costs and consumer price hikes.
"We believe that engaging in dialogue with the government and extending the timeline will help realise efforts to provide benefits to gig economy workers,” the joint statement said.