Government will establish SEGiM as soon as possible, assures Zahid

KUALA LUMPUR - Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi has given an assurance that the government will establish the Gig Economy Commission Malaysia (SEGiM) as soon as possible to improve social protection and the welfare of workers in the industry.

To materialise that, Ahmad Zahid said he had asked the Human Resources Ministry to submit a memorandum to the Cabinet seeking approval for the establishment of the commission.

"Workers in the informal sector in Malaysia do not get any protection unless they contribute to Socso (the Social Security Organisation)...in fact, for several years the activities of these gig economy workers have been going on in this country, but they (gig workers) have been left behind.

"Service providers do not consider them their employees, and the companies do not regard them as employers in this industry. Such loopholes require the government’s attention,” he told a press conference after attending the Gig Industry Career Framework National Forum here today.

Also present were Human Resources Minister V. Sivakumar and Youth and Sports Minister Hannah Yeoh.

Zahid also expressed hope that Prime Minister Datuk Seri Anwar Ibrahim would announce the establishment of SEGiM at the tabling of Budget 2024 scheduled for this October.

"I am confident that the Prime Minister and the Cabinet will approve the establishment of this commission," said Ahmad Zahid, who is also the Rural and Regional Development Minister.

Earlier in his speech, Ahmad Zahid said SEGiM seeks to regulate the industry, resolve all related issues, and generate initiatives that protect the welfare of gig industry users, traders, vendors, delivery riders and platform providers.

"One of SEGiM's roles is to help regulate the gig industry with clear regulations to ensure compliance, protect workers' rights, and promote a fair industry environment.

"It protects gig workers rights by providing social protection and job security, as well as specialised training and education programmes that will help improve their competitiveness," he said.

In addition, Ahmad Zahid said that the government intends to increase the allocation for the gig industry to RM500 million in Budget 2024.

"Under Budget 2023, RM100 million has been set aside for the gig economy, and it is reasonable if this allocation is increased as the number of gig workers has reached 1.12 million," he said. - Bernama