Government will ensure SEGiM launch aligns with gig workers bill, says Fahmi

Communications Minister said Cabinet seeks to balance worker protections and industry sustainability amid regulatory overhaul

6:32 PM MYT

 

KUALA LUMPUR – The government aims to ensure that the establishment of the Malaysia Gig Economy Commission (SEGiM) aligns with the proposed Gig Workers Bill, said Communications Minister Datuk Fahmi Fadzil.

He said the Cabinet had previously discussed SEGiM’s role as the primary regulatory body to oversee the sustainable growth of the gig economy ecosystem.

“Perhaps what we are hoping for is compatibility between the objectives of establishing SEGiM and the Gig Workers Bill. The Cabinet had previously asked the Human Resources Minister (Steven Sim) to review the matter and conduct broader engagement sessions.

“So, we aim to ensure both are aligned,” he told a press conference after the Cabinet meeting today.

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who chairs the High-Level Committee (HLC) on SEGiM, had urged the Cabinet to approve the commission’s establishment to focus on key aspects of gig economy regulation.

“SEGiM will play a crucial role in balancing the interests of platform providers, gig workers, consumers, and all stakeholders. It will also ensure their rights are protected through transparent policy enforcement, service standards monitoring, and strengthened self-regulation within the industry,” he said in a statement on Tuesday.

Zahid added that the initiative is in line with the government’s goal of drafting a holistic and inclusive bill that considers the perspectives of industry players and millions of gig workers who rely on the digital economy for their livelihoods.

Cabinet delayed Gig Workers Bill for further review

The response to the SEGiM proposal follows the Cabinet’s decision on February 28 to put the much-anticipated Gig Workers Bill on hold for further deliberation.

Fahmi said the bill was discussed in a recent Cabinet meeting, where various viewpoints were considered.

“The Prime Minister has directed the Human Resources Minister to examine the feedback before resubmitting the draft Bill to the Cabinet,” Fahmi said at the time.

The draft bill, led by Sim, has undergone public engagement sessions, including a recent town hall with gig workers.

However, ministers raised concerns about financial implications, the feasibility of a dedicated tribunal, and potential overlaps with SEGiM’s regulatory role.

A government source told Scoop that while the bill aims to protect gig workers, it also needs refinements to ensure industry sustainability. “It should facilitate the development of the industry, which is evolving rapidly,” the source said.

The Cabinet has requested revisions to address these concerns before reconsidering the bill’s tabling in Parliament.

On February 19, a coalition of major gig economy platforms—including Bolt, FastGig, foodpanda, GoGet, Grab, Halo Delivery, Kiddocare, Lalamove, and ShopeeFood—acknowledged the government’s efforts but called for refinements to ensure long-term viability.

They raised concerns over the role of the Consultative Council and social protection contributions, stressing that flexibility in minimum fare standards is necessary to sustain worker earnings. They also urged clarity on social protection contributions for gig workers operating across multiple platforms.

To address these concerns, industry players have proposed an impact study and regulatory sandbox to test key provisions before full implementation.

“With over a million gig workers in Malaysia, we are committed to working alongside the Government to shape a Bill that benefits all,” the coalition said. – March 12, 2025

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