KUALA LUMPUR: Malaysia's employment landscape is changing with the rise of the gig economy, offering flexibility and new economic opportunities.
The traditional notion of stable, long-term employment is being replaced by a model where individuals take on multiple short-term jobs or projects, often facilitated by digital platforms.
However, the freedom that comes with freelance work is not without its drawbacks.
Last month, Human Resources Minister Steven Sim Chee Keong said the Gig Workers Bill, set to be tabled in Parliament in June, will offer essential social security protection for gig industry workers.
Gig workers told Business Times they face job insecurity, unpredictable income and the absence of benefits, such as paid leave.
"The flexibility is great, but the lack of job security and inconsistent income can be stressful. Some months are good, and some are not," said Reshvin Balasingham, a marketing executive who works on multiple freelance platforms.
He is among thousands of Malaysians who went into full-time freelancing after losing their jobs during the Covid-19 pandemic.
Statistics show the shift towards gig employment became more pronounced after the pandemic, which not only disrupted conventional jobs but also accelerated the adoption of remote and freelance work.
Sectors such as transportation, food delivery, education, and digital services have witnessed a surge in gig-based employment, reshaping how businesses and individuals approach work.
According to data from the Department of Statistics Malaysia (DOSM), the number of self-employed individuals, which includes gig workers, rose to three million as of December 2023.
KEY SECTORS DRIVING THE GIG ECONOMY BOOM
One of the most visible impacts of the gig economy can be seen in the transportation and delivery services sector.
Companies like Grab, Foodpanda and ShopeeFood have become household names, providing work opportunities to thousands of Malaysians.
During the pandemic, food delivery services became a lifeline for both consumers and businesses, and the reliance on these services has continued even after the country reopened.
The convenience and efficiency of gig-based delivery work have made it an attractive option for individuals seeking flexible income streams, but concerns over fair wages, job security, and working conditions remain ongoing topics of debate.
"I've been working as a Grab driver for three years now," said Ahmad Hafiz, a full-time e-hailing driver in Kuala Lumpur.
"I enjoy being my own boss, but the commission rates keep changing, and fuel prices are a big concern. If I do not work, I do not earn anything, so there is no paid leave or job security," he said.
The gig economy is also making its presence felt in the education sector. With the increasing popularity of online learning, many Malaysian educators have shifted towards freelancing, offering tutoring services through digital platforms.
This has allowed teachers to expand their reach beyond traditional classrooms and cater to a wider audience. Platforms like TutorKami and global ed-tech startups have made it possible for Malaysian educators to teach students not only in Malaysia but also internationally.
Another industry experiencing rapid changes due to the gig economy is the creative and digital sector. Graphic designers, video editors, writers, and digital marketers are now leveraging freelance platforms to find work opportunities both locally and globally.
Many businesses, especially startups and small enterprises, prefer hiring freelancers for short-term projects rather than committing to full-time staff.
This trend has allowed creative professionals to have greater control over their careers, but it has also made income stability a concern, as project-based work often comes with unpredictable earnings.
"I get to work with international clients, which was not possible in a traditional job," said Joanne Tan Sui Ling, a freelance graphic designer.
"But the competition is tough, and payments are not always guaranteed. Some clients delay payments, and there is little we can do about it," she noted.
ADAPTING TO A CHANGING WORKFORCE
In response to the rise of the gig economy, businesses and corporations in Malaysia are rethinking their workforce strategies.
Many companies have started adopting hybrid employment models that combine full-time employees with freelance or contract workers.
This approach enables businesses to remain agile and cost-efficient while still tapping into specialised skills when needed.
Large organisations such as Telekom Malaysia Bhd (TM) and major financial institutions like Maybank and CIMB have already integrated gig-based talent into their digital and technological initiatives, signalling a broader acceptance of this evolving work structure.
Despite its growing prominence, the gig economy still faces several challenges. The lack of job security and inconsistent income remain key concerns for many gig workers, particularly those who rely solely on this type of employment.
Unlike traditional employees who receive Employees Provident Fund (EPF) contributions and medical coverage, many gig workers have limited access to financial safety nets.
To address this issue, the government has introduced initiatives such as the self-employment social security scheme, which provides social protection for gig workers.
Additionally, discussions on mandatory EPF contributions for gig workers have been gaining momentum to ensure long-term financial security.
Recently, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi proposed the establishment of the Gig Economy Commission (SEGiM) as the primary regulatory body to oversee Malaysia's growing gig workforce.
This initiative aims to ensure sustainable development within the sector by addressing key concerns such as worker rights, job flexibility, and social security.
SEGiM is expected to serve as a central authority to regulate gig-based employment while aligning with national economic goals under the 12th Malaysia Plan (12MP).
According to Ahmad Zahid, the commission will play a crucial role in balancing the needs of gig workers and businesses, fostering a more structured and secure gig economy.
Universiti Malaya's Faculty of Law associate professor Dr Nurhidayah noted that SEGiM will face complex challenges as it must balance the flexibility that attracts workers to the gig economy with guarantees of basic rights such as insurance, retirement savings, and fixed wages.
She added that the lack of comprehensive data on gig workers' profiles hampers effective policy planning, while resistance from platform companies, which may view new regulations as threats to their business models, further complicates the issue.
She also emphasised that SEGiM's operational and funding costs must be managed wisely to avoid placing an additional burden on government expenditure.
To strengthen its regulatory framework, Nurhidayah suggested that SEGiM could learn from Australia's Fair Work Commission (FWC).
Through amendments to the Fair Work Act 2009, Australia classified gig workers as "employee-like workers," granting them social protections, unemployment insurance, and collective bargaining rights.
"This approach balanced worker and corporate needs without stifling industry flexibility.
"SEGiM should study this model while adapting it locally, particularly by enacting laws that recognise gig workers' status and address issues like data management and unclear contracts," she said in a recent opinion article.
With majority public support, Nurhidayah said SEGiM has the potential to position Malaysia as a global pioneer in gig economy regulation.
However, she noted that its success depends on close collaboration between the government, platform providers, and gig workers.
"If implemented transparently, the commission could not only protect workers but also enhance the country's economic competitiveness," she said.
Source: https://www.nst.com.my/business/economy/2025/04/1198178/gig-workers-remain-outside-safety-net