KUALA LUMPUR – A coalition of major gig economy platforms, including Bolt, FastGig, foodpanda, GoGet, Grab, Halo Delivery, Kiddocare, Lalamove, and ShopeeFood, has voiced concerns over the proposed Gig Workers Bill, warning that its current draft may have unintended consequences that could hinder both workers and industry growth.
In a joint statement following a town hall session on February 19, the platforms acknowledged the Malaysian government’s proactive efforts in shaping digital and gig economy policies but stressed that key provisions in the Bill require further refinement to ensure feasibility and effectiveness.
The group raised two primary concerns, which are the role of the Consultative Council and social protection contributions.
They cautioned that a top-down approach to setting industry-wide minimum standards, particularly concerning fares and compensation, could stifle competition, drive up service costs, and reduce earnings for gig workers. Instead, they advocated for a more flexible, market-driven approach to support sustainable industry growth.
Additionally, the statement highlighted ambiguities in the Bill regarding social protection contributions for workers engaged across multiple platforms.
The coalition questioned whether gig workers, who often juggle different roles across various platforms, would be required to make multiple contributions, potentially doubling their financial burden. The lack of clarity on how contributions should be divided among platforms could disproportionately impact smaller industry players, reducing competition and limiting income opportunities for workers.
Calls for further study and pilot testing
To address these concerns, the platforms proposed two key measures before the Bill is tabled in Parliament: a feasibility and impact study and a regulatory sandbox for key provisions.
They suggested conducting a nationwide study to gather input from gig workers and industry players to ensure that the Bill accurately reflects on-the-ground realities. Additionally, they recommended piloting certain regulations in a controlled environment before full implementation to identify and rectify potential challenges.
“As a group, we partner with more than a million gig workers in Malaysia, and we stand ready to offer our expertise to ensure the Bill is practical, sustainable, and worker-friendly,” the statement read.
Government’s stance on the Bill
Human Resources Minister Steven Sim recently announced that the Bill is expected to be tabled in Parliament within these few weeks, pending Cabinet approval. If passed, Malaysia would become one of the first countries in the world to introduce a dedicated law to protect gig workers.
Sim acknowledged the need for extensive engagement, stating that the government has conducted multiple consultations, including town halls attended by over 3,000 participants nationwide. He also noted that the Bill, initially scheduled for tabling in December last year, had been postponed to ensure a more comprehensive and well-rounded framework.
The draft Bill reportedly includes 10 Parts and 101 Clauses covering gig worker rights, contract obligations, dispute resolution, the establishment of a Consultative Council, and social security protection.
Push for more inclusive dialogue
This is not the first time industry players have called for greater consultation. In November last year, key gig economy platforms urged the government to delay the Bill’s tabling, citing insufficient engagement with stakeholders and the lack of access to a full draft of the proposed amendments.
They had also recommended broadening the definition of gig workers beyond e-hailing and p-hailing services to include a wider range of independent workers.
Meanwhile, the P-hailing riders’ association, Persatuan Penghantar P-Hailing Malaysia (Penghantar), has echoed similar concerns, emphasising the need for further clarity on how the Bill will be implemented before it is passed into law.
With the Bill now approaching its final stages, gig economy stakeholders continue to push for a balanced framework that protects workers while fostering industry innovation. They remain hopeful that ongoing discussions with the government will lead to a practical and sustainable legislative outcome. – February 27, 2025