Gig work offers the freedom to choose when, where and how much you work.-123rf.com
IN recent years, the gig economy has emerged as a significant force in Malaysia, redefining traditional employment and offering new opportunities for millions.
Characterised by short-term, flexible and often freelance work, the gig economy has become an attractive alternative for those seeking more control over their professional lives.
As highlighted by Nurul Syifaa Mohd Shakil (2024) in her article Gig Economy in Malaysia: Current, Present and Future, a survey by the Malaysian Institute of Economic Research shows that a staggering 45% of Malaysians have participated in gig work at some point, reflecting the widespread acceptance and adoption of this new employment model.
Recognising the importance of this sector, MyDIGITAL Corporation, in collaboration with Ipsos and the World Economic Forum, produced a comprehensive white paper titled What Gig Workers Really Want: Understanding Gig Workers' Work and Welfare Preferences in Malaysia.
This white paper provides an in-depth look at the gig economy, exploring the demographics, motivations and financial realities of gig workers in Malaysia.
Through a survey of 1,500 gig workers, the report sheds light on how these individuals navigate the delicate balance between the flexibility that gig work offers and the differences in financial aspects.
Deliver on your schedule with gig food delivery.-123rf.com
The essence of the gig economy
The gig economy encompasses a wide array of job types and industries, from ride-hailing and food delivery to freelance writing, translating, coaching and programming.
What unites these diverse roles is their flexibility and the fact that they are often facilitated through digital platforms, which emphasises their accessibility.
Gig work is defined by its temporary nature, offering workers the freedom to choose when, where and how much they work.
This level of autonomy is particularly appealing in today’s fast-paced world, where many people seek to balance multiple responsibilities.
In Malaysia, the gig economy is not limited to just e-hailing or food delivery services. It spans a broad spectrum of industries, including knowledge-based sectors like graphic design, writing and programming.
The Ipsos survey categorises gig workers into two categories: location-based platform gig workers, who perform tasks at specific physical locations and non-location-based gig workers, who work remotely or in-person without being tied to a particular location.
The majority of gig workers in Malaysia fall into the location-based category, reflecting the prevalent trend of service-oriented gigs in the local market, which are enabled by digital labour platforms.
Diversity of Malaysian gig workers
One of the key insights from the white paper is the diversity among gig workers in Malaysia.
Contrary to the common misconception that gig work is primarily for the young and uneducated, the data shows that gig workers come from various age groups and educational backgrounds.
The largest age group of gig workers is between 25-34 years old, accounting for 39% of the total. This suggests that younger adults are particularly drawn to the flexibility and autonomy that gig work provides.
However, gig work is not exclusive to the younger generation; 28% of gig workers are aged 35-44, indicating that it also appeals to more experienced individuals.
Nearly 80% of gig workers are over the age of 25, further emphasising that gig work attracts a wide range of age groups.
Education levels among gig workers are also higher than one might expect. Over 60% of gig workers have at least a diploma, with many holding even higher qualifications.
This challenges the stereotype that gig work is a last resort for those with limited education or job prospects. Instead, it highlights that gig work can be a strategic choice for educated individuals seeking flexible employment that fits around other commitments, such as further studies or family responsibilities.
In fact, the report shares that gig work serves as the most flexible part time work a ‘working student’ can optimise to support their living.
Gig work as a financial supplement
While gig work offers many benefits, such as flexibility and autonomy, it is often seen as a supplement to traditional employment rather than a replacement.
The white paper reveals that 70% of gig workers in Malaysia are part-time, frequently balancing gig work with full-time jobs.
For these workers, gig work contributes an average of 37% to their total income, providing a substantial boost that can help them achieve financial goals like paying off loans, making significant purchases, or increasing their savings.
This supplemental income is vital for many Malaysians, particularly in a time of economic uncertainty.
Gig work provides a financial safety net, allowing individuals to earn extra income when needed, without the long-term commitment of traditional employment.
This flexibility is especially important for those who may be facing job insecurity or are in between jobs, offering them a way to maintain financial stability and improved quality of life.
The appeal of flexibility and accessibility
Flexibility is the hallmark of the gig economy, and it is the primary reason why many individuals choose gig work.
The ability to set their own schedules and decide where they work allows gig workers to tailor their professional lives to suit their personal needs.
This is particularly important for full-time gig workers, with 68% valuing the freedom to choose when they work and 49% appreciating the ability to work from different locations.
In addition to flexibility, the accessibility of gig work is another significant factor driving its popularity.
The gig economy offers low barriers to entry, making it an attractive option for individuals from a wide range of backgrounds, skill levels and experiences.
Whether someone is a student looking to earn extra money while studying or a professional in need of interim work, the gig economy provides opportunities that are both accessible and adaptable.
For many, gig work serves as a crucial bridge, helping them transition between jobs or supplement their income during challenging times.
The gig economy’s impact on Malaysia’s economy
Beyond individual benefits, the gig economy plays a vital role in Malaysia’s economic landscape. It fosters financial inclusion and resilience by providing opportunities for people to earn income in non-traditional ways.
With its flexibility, accessibility and ability to supplement income, gig work has become integral to the Malaysian employment landscape.
As of the third quarter of 2023, the local gig economy is valued at RM1.33bil, with over 100,000 new workers joining, according to the Malaysia Digital Economy Corporation (MDEC).
This local growth reflects the broader global trend, where the gig economy's gross volume is expected to increase from US$200bil to US$455bil by 2023.
The significant expansion of the gig economy highlights its growing importance and impact on both global and national scales.
The insights provided by the white paper emphasise the need for greater support of gig workers to ensure the sector’s continued success and its benefits to both workers and the economy.
It is crucial for all stakeholders—including policymakers, businesses, and society—to understand and support gig workers to sustain this sector and provide meaningful opportunities for millions of Malaysians.
* For further information on the white paper titled What Gig Workers Really Want: Understanding Gig Workers' Work and Welfare Preferences in Malaysia, refer here.
