KUALA LUMPUR: The Deputy Prime Minister has called for the prompt setup of the Malaysian Gig Economy Commission (SEGiM) to look into the welfare of gig workers.
Datuk Seri Dr Ahmad Zahid Hamidi said towards this end, the proposed Gig Economy Workers’ Act would position Malaysia as one of the first countries to introduce an employment law specifically for the gig economy.
“The new law under the Human Resources Ministry is expected to be tabled before the Cabinet within the next two months, underscoring Malaysia’s commitment to protecting gig workers’ rights by focusing on social protection, contract disputes and career advancement.
“Recent data as of this month revealed that 25.1% of Malaysia’s workforce (3.15 million out of 12.56 million) is self-employed, including 1.5 million freelancers.
“We have made remarkable progress since 2017. The Social Security Organisation (Socso) has now recorded 679,830 self-employed individuals (with Socso coverage).
“Yet, as we celebrate this achievement, we must also recognise that there is still much work to be done since only 21.58% of self-employed individuals have active Socso coverage, with 32.78% (222,876) being gig workers,” he said.
Ahmad Zahid, who is also chair of the Supreme Committee on the Establishment of the Malaysian Gig Economy Commission, said this after launching the International Social Security Association (ISSA) Technical seminar at the World Trade Centre here yesterday.
A total of 1,667 participants from 25 countries attended the event.
Ahmad Zahid noted that the gig economy could be a “double-edged sword” which offers flexibility and opportunities for workers and businesses, while posing challenges in areas such as worker protection, job security and regulatory frameworks.
“It also exposes gaps in our traditional labour market and social security frameworks. Addressing these gaps with urgency and innovation is imperative,” he said, adding that it was gig workers who kept the economy alive during the Covid-19 pandemic.
“Recognising this, Malaysia introduced a contribution matching grant to protect these workers, administered by Socso.
“Under the Madani Budget 2024, the government continued this effort by allocating RM100mil to support the self-employed with the aim of protecting around 500,000 individuals.
“The programme has been further bolstered by the enforcement of mandatory contributions under Act 789, strategically targeting crucial sectors such as passenger transportation, as well as goods and food transportation,” he added.
Meanwhile, Human Resources Minister Steven Sim announced that the ehailing platform operator Grab Malaysia recently paid up the balance 10% Socso contributions for its 180,000 drivers nationwide.
The government had initially sponsored 90% of their contributions.
“The 10% amounted to about RM4.2mil. This means all Grab drivers get free social security coverage under Socso this year,” said Sim in his speech at the event.
He also said efforts were ongoing to finalise the Bill for the new Gig Economy Workers’ Act.
“The new law will have four main pillars: definition of a gig worker or a platform worker; minimum compensation in the form of earning for p-hailing and ehailing workers; grievance mechanism; and social security protection, especially in terms of social insurance and pension,” he added.
Sim said his ministry will continue to engage stakeholders before tabling the Bill by the end of the year.
During the welcoming speech earlier, ISSA president and Socso chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed said a gap in the lack of social protection is a gap in our collective humanity.
“While formal employees often have access to social protections like unemployment insurance, health benefits and pensions, self-employed and platform workers frequently find themselves excluded from these essential safeguards.
“The Covid-19 pandemic highlighted these gaps in the harshest light.
“Many workers were left without access to basic protections, such as unemployment insurance and sickness benefits.
“This discrepancy is not just a gap in policy, rather it is a gap in our collective humanity. It is a gap in justice,” said Mohammed Azman.
