Inside Malaysia's plan to protect gig workers
The Malaysian Parliament will discuss in July a new bill aimed at forming the Gig Workers Commission. The initiative is part of the government’s recognition of the gig economy’s growing influence, particularly among the youth.
Prime Minister Anwar Ibrahim revealed plans for the Gig Workers Commission Bill, which seeks to address the increasing participation of young Malaysians in freelance and contract-based employment.
Gig workers in Malaysia typically engage in non-traditional, short-term, and self-employed types of work, which differ markedly from conventional employment roles.
The legislation introduced by Prime Minister Anwar aims to formalise the sector and provide a structured framework for operations. The soon-to-be-created commission, meanwhile, is expected to bring better support to gig workers and align workforce standards with modern trends.
Limited protections for gig workers in Malaysia
In Malaysia, gig workers represent a significant portion of the labour market, comprising 26% of the workforce, or about 4 million people. This percentage is nearly twice the global average.
Despite the advantages of flexibility and autonomy, Malaysian gig workers face considerably fewer protections under the current legislative framework compared to their full-time counterparts. They are not adequately covered by the provisions of the Employment Act 1955 (Act 265), which offers extensive rights and protections to regular employees.
The substantial percentage of Malaysian gig workers highlights the need for tailored regulatory measures. This demographic represents a pivotal component of the national economy, necessitating adjustments in labour laws to safeguard their interests adequately. The current legislative gaps expose these workers to potential exploitation and instability, which could undermine the broader economic benefits of the gig economy.
6 critical factors for protecting workers in Malaysia’s gig economy
The Gig Workers Commission will serve as an official platform for tackling challenges in the gig sector, including disputes and wage concerns, according to Human Resources Minister Steven Sim.
Gig workers will thus have an avenue to voice and resolve their grievances and enhance their working conditions.
The creation of the commission is contingent on six factors for protecting the welfare of gig workers. These include:
- Relevant legislation
- A grievance mechanism
- The structure and functions of the Commission
- Financial implications
- Determination of wage rates, social protection, and occupational safety and health
- An integrated database for the registration of gig workers and platform providers
The database is designed to facilitate better regulation and oversight of the gig economy.
The importance of a Gig Workers Commission
All these efforts reflect the growing importance of the gig economy in Malaysia’s employment landscape.
Establishing the commission can help address long-standing issues faced by gig workers. It also highlights the government's commitment to improving job security and working conditions for gig workers, who often face precarious employment circumstances.
By addressing wage determinations and social protections, for example, the commission aims to ensure fair treatment and safety for all gig workers, bridging the gap between traditional and gig employment benefits.
Moreover, the integration of a detailed registration database for workers and platform providers will enhance transparency and accountability within the gig economy. This move not only supports better management but also aids in the precise tailoring of policies to meet the specific needs of gig workers, fostering a more sustainable and equitable employment sector.
The current lack of comprehensive protections for gig workers underscores a disparity in worker rights, impacting their social and economic security.
With the Gig Workers Commission, however, Malaysia can enhance the working conditions and welfare of a vital segment of its workforce, promoting a more inclusive and equitable labour market. This shift is essential not only for protecting gig workers but also for sustaining the health and growth of the gig economy in the long term.