As of September 2024, the number of gig economy workers in Malaysia reached over three million, reflecting the increasing acceptance and reliance of gig work as a viable source of income due to the flexibility it offers and the expanding digital economy.
According to the Labour Force Survey Report for the third quarter of last year (3Q24), the number of own-account workers had increased to 3.09 million during the quarter from 2.93 million in 1Q23.
With the growth reaching such a high number, it also resulted in calls for better protection as many of the gig workers still remain outside the coverage of labour laws, which is one of the many challenges that gig workers would have to face.
Human resource technology aggregator, Qwork Malaysia pointed out that some of the essential labour laws that gig workers miss out on includes minimum wage, working hours limits and paid leave.
Hence, given the market saturation and evolving legislative requirements, agile strategies are needed to maintain growth in the sector.
For example, the Malaysian government is in the process of introducing measures to support gig workers, including the proposed Gig Workers’ Economy Bill and the establishment of the Malaysian Gig Economy Commission (SEGiM) under the Prime Minister’s Department.
To this, Qwork chief executive officer Muna Munirah commended the government’s proactive stance, saying that the establishment of SEGiM and any upcoming legislation would help to ensure a more sustainable and inclusive gig economy.
He also highlighted that among some of the emerging sectors include online tutoring and digital marketing, which – along with increasing technological integration – are expected to fuel the gig economy’s growth even further.
At the same time, Grab Malaysia also welcomed the government’s decision to defer the tabling of the Gig Workers’ Economy Bill, believing that this would allow for more comprehensive consultations with stakeholders, including platform companies, gig workers, academics and industry experts.
“We believe that an inclusive and phased approach will ensure the diverse needs of the gig economy are addressed while minimising potential challenges such as difficulties in policy adoption, inefficiencies in implementation and compliance, higher entry barriers for gig workers, disruptions to businesses and increased costs for consumers,” it said.
Meanwhile, Monash University Malaysia’s Department of Econometrics and Business Statistics senior lecturer Dr Nur Syazwani Mazlan suggested for the government to expand social security schemes such as SOCSO and the Employees Provident Fund (EPF) to cover more gig workers.
This is apart from developing a clear regulatory framework to define the rights and responsibilities of gig workers and platforms, as well as easier access to financial services such as micro-loans and tailored insurance.
Nur Syazwani also said that as businesses continue to rely on digital solutions, demand for freelance roles in areas like content creation and information technology support is expecting to rise.
“Overall, while the gig economy in Malaysia is set for continued growth, addressing challenges such as job security, income stability and market saturation will be crucial for its sustainability.
“With the right policies in policies in place, the gig economy has the potential to significantly contribute to Malaysia’s growth while offering inclusive employment opportunities,” she said.
