PETALING JAYA: Facing shrinking earnings and escalating costs, the ehailing and p-hailing sectors are pushing for the government to implement policies that secure fair wages and safeguard the future of gig workers.
Malaysian P-hailing Riders Association deputy president Abdul Hakim Abdul Rani highlighted the sharp drop in income among ehailing drivers and p-hailing riders, followed by increasing financial pressures from rising operational costs.
“The current drop in passenger fares and wages for delivery services has been further worsened by increasing costs, especially for ehailing drivers dealing with higher insurance premiums.
“Our income is not only affected by work-related expenses but also by the rising cost of living,” he said when contacted.
Abdul Hakim added that prior to the Covid-19 pandemic in 2020, p-hailing riders could earn around RM150 a day by working 12-hour shifts and completing 20 deliveries.
However, currently, riders are forced to work 15 hours or more to earn just over RM100.
He expressed hope the government will expedite the establishment of the Malaysia Gig Economy Commission (SEGiM) to regulate the sector and ensure fair policies for gig workers.
“We hope the law introduced will be fair to all stakeholders, particularly in ensuring job security, safety, worker welfare and a sustainable future for drivers and riders,” he added.
Perak Motorcycle Delivery Workers’ Welfare Association chairman Mohd Azad Mohd Hussin stressed there is a need for legislation to improve the working conditions of gig workers.
He noted that previously, ehailing riders could make between RM2,000 and RM4,000 a month depending on factors like location and working hours.
“However, nowadays most riders have to work over 12 hours a day, especially during weekends and peak periods, to achieve their financial targets.
“We hope that the proposed gig economy Act will bring positive changes to the welfare of these workers.”
Mohd Azad also expressed hope that the new law will provide stability and protection for gig workers, such as the Social Security Organisation (Socso). contributions.
“Right now, the challenge for riders and drivers is that even if Socso is mandatory for service providers, some of the riders have to opt out because they don’t earn enough wages for that.
“The incentives provided are not as attractive as they used to be; we had to drive up to 28km one way just to secure comfortable earnings in a day. And that doesn’t guarantee we’ll get another trip when returning home,” he added.
Mohd Azad also proposed for the government to provide some form of incentive for the riders and drivers who are registered under an association.
“Through the associations, the government can identify the real data of those working full-time and part-time under p-hailing and ehailing sectors. And hopefully, with the new law, the authorities could identify what is the best kind of incentive that can be distributed to the group,” he said.
On Oct 4, Malaysian Gig Community Secretariat chairman Datuk Seri Mohd Sharkar Shamsudin urged the government to expedite the setting up of SEGiM to better regulate the gig industry.
He expressed hope that the initiative will be announced during the tabling of Budget 2025 by Prime Minister Datuk Seri Anwar Ibrahim on Oct 18.
SEGiM, he said, will empower the government to tackle the oversaturation of ehailing and p-hailing service providers, which has led to unhealthy competition and negatively affected the incomes of these workers.
On Aug 27, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said gig workers must be supported with a social security net that also allows them to upskill without having to lose their earnings.
Ahmad Zahid, who chairs the committee on establishing the commission, said that with only 222,876 gig workers currently making contributions to Socso, it is pertinent for the new law to come into place as soon as possible.
