Registrar of Societies Malaysia DG, Datuk Mohd Zulfikar Ahmad, presents Certificate of Registration for the Malaysian Gig Economy Council, to Secretariat Representative Datuk Seri Jailani Johari, witnessed by DPM Datuk Seri Dr. Ahmad Zahid Hamidi.
By TENGKU NOOR SHAMSIAH TENGKU ABDULLAH
BANGI, July 2 – Malaysia is moving to redefine the future of work with a pioneering legal framework that may position the country as a global reference point in gig economy regulation. At a high-level roundtable (on July 1) chaired by Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi, the government unveiled plans to introduce the Gig Workers Bill 2025 and establish a dedicated regulatory body — the Malaysian Gig Economy Commission (SEGiM) — in what could be the world’s most comprehensive response to the needs of digital-age workers.
“The gig economy can no longer operate in a grey zone. Our goal is to empower workers without stifling innovation,” Zahid said. “With the Gig Workers Bill, Malaysia will not only protect its people but offer a global model for fair, inclusive and sustainable digital employment.”
What Is the Gig Workers Bill?
For the millions unfamiliar with the term: gig workers are individuals who earn income from short-term, flexible jobs — such as ride-hailing, delivery services, freelance creative work, online tutoring, and on-demand home services. They often work for digital platforms like Grab, Foodpanda, or Upwork, but many also operate independently.
The proposed Gig Workers Bill 2025 seeks to provide legal protections to both platform-based and non-platform-based gig workers. Key provisions include:
- Mandatory written agreements between gig workers and companies, detailing income, working terms, and benefits;
- Creation of a Gig Workers Tribunal to resolve disputes cheaply and fairly;
- Access to social security through mandatory contributions under Malaysia’s Self-Employment Social Security Act (Act 789);
- Prohibition of unfair contract terms or arbitrary deactivation from platforms;
- Rights to transparency in algorithmic decisions used by digital platforms.
In short, it is a bill designed to grant workers legal standing, fair pay, and basic protections, while still respecting the flexible nature of gig work.
Deputy Prime Minister Dato’ Seri Dr. Ahmad Zahid Hamidi chairs the Roundtable Session on the Sharing Economy and Gig Industry, held in Bangi on July 1, 2025
MDEC: Data-Driven Strategy for a Disruptive Sector
Chairman of the Malaysia Digital Economy Corporation (MDEC), Syed Ibrahim Syed Noh, stressed the economic relevance of the gig sector.
“From 2016 to 2025, Malaysia’s sharing and gig economy has generated RM18.8 billion in value. Over 1.6 million Malaysians now rely on it for income,” he said, citing MDEC data. “This is no longer a fringe sector. It is a central pillar of our digital economy.”
MDEC has long spearheaded gig initiatives like eRezeki and GLOW (Global Online Workforce) to boost digital income, particularly for women and rural communities. Syed Ibrahim also highlighted Malaysia’s recognition in the World Bank’s 2023 report Working Without Borders, which praised the country’s inclusive digital employment model.
To support the new law, MDEC is pushing for a regulatory sandbox — a framework to test new rules, definitions and enforcement models before full-scale rollout.
A Commission to Govern the Digital Labour Frontier
In tandem with the bill, the proposed Malaysian Gig Economy Commission (SEGiM) will function as:
- A coordinating body across ministries;
- An oversight and enforcement entity;
- A standards-setter to promote self-regulation among platforms.
Located under the Prime Minister’s Department, SEGiM will integrate policymaking at the national level — a unique institutional innovation not yet seen in other countries.
“With SEGiM and the Gig Workers Bill, Malaysia is building not just regulation, but an ecosystem of trust between workers, platforms and government,” Zahid stated.
Global Comparison: How Malaysia Stands Out
Countries worldwide are grappling with the rise of gig work, but few have succeeded in creating robust frameworks:
- Spain passed the Rider Law in 2021, reclassifying delivery workers as employees—but enforcement is patchy and limited to food platforms.
- In the United Kingdom, Uber drivers won rights in court, but there is still no comprehensive gig worker legislation.
- California’s AB5 law attempted full reclassification in 2019 but was weakened by Proposition 22 after heavy industry pushback.
- India’s Social Security Code (2020) includes gig workers, but implementation has stalled due to vague definitions and lack of funding.
- Singapore and South Korea are exploring models but remain in consultative stages.
Malaysia’s model is unique for combining a legal act, social security, dispute resolution, and a central commission — all in one integrated framework.
Stakeholder Convergence: Legal, Labour, Digital
The roundtable also featured high-level figures such as:
- Dato’ Sri Azalina Othman Said, Minister in the Prime Minister’s Department (Law and Institutional Reform);
- Dato’ Sri Abdul Rahman Mohamad, Deputy Minister of Human Resources;
- Datuk Azman Mohd Yusof, Secretary-General of the Ministry of Human Resources;
- Datuk Khair Razman Mohamed Annuar, Secretary-General of the Ministry of Rural Development;
- Anuar Fariz Fadzil, CEO of MDEC.
Together, these stakeholders reflected a “whole-of-government” approach, signalling that gig economy reform is not just a labour issue—but one tied to digitalisation, rural development, legal reform, and national economic planning.
Over 100 stakeholders from government, regulatory bodies, and more than 80 digital platforms participated in the consultative session.
A First-in-the-World Attempt—If It Delivers
“If Malaysia pulls this off, it won’t just lead Southeast Asia — it could become a global pioneer in protecting gig workers without dismantling the flexibility that defines this sector,” said one policy analyst observing the session.
With the bill expected to be tabled in Parliament by August or September 2025, the next few months will test the government’s ability to balance competing interests — industry flexibility, worker welfare, and legal enforceability.
What’s at stake is not just a law, but a new social contract for the digital age.
- TNS News