Unresolved issues cloud Gig Workers Bill

New Straits Times

a day ago

KUALA LUMPUR: The delay in the tabling of the Gig Workers Bill has raised critical questions about its preparedness to address the complexities of the gig economy and its economic impact, experts said.
The bill, which is aimed at regulating Malaysia's growing gig economy, has been delayed again for the third time.
Initially scheduled for its first reading in Parliament on Aug 14 this year, the postponement follows earlier delays.
Despite assurances from Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi and Human Resources Minister Steven Sim during the 'Sembang Santai Teh Tarik: Industri Gig' event on Aug 7, no official explanation has been provided, leaving gig workers and industry players frustrated.
The bill, heralded as the first of its kind globally, aims to provide protections for gig workers while fostering a fair and inclusive economy.
A cornerstone of the bill is the establishment of the Malaysian Gig Economy Commission, which will act as the sector's primary regulatory body.
While the bill has received widespread support, particularly from e-hailing associations, stakeholders have raised concerns about unresolved issues.
Child care services provider Kiddocare head of business development Rahman Hussin emphasised the need for a regulatory impact analysis before introducing new legislation.
He also raised concerns about setting a minimum wage for gig workers, noting that defining minimum working hours could conflict with the flexible nature of gig work.
"The essence of gig work is flexibility. Workers decide their own schedules, and imposing minimum hours could undermine this," Rahman said.
The Malaysian Bar Council has also weighed in, recommending clearer provisions on Social Security Organisation (Socso) contributions for gig workers engaged across multiple platforms.
They called for further clarification on the consultative council's powers, warning that limitations on competition and innovation could lead to higher service costs for consumers.
The council, in a statement, also flagged the bill's strict prohibition on deductions from gig workers' incomes, tips and rewards, and urged flexibility for scenarios such as overcharging consumers or loans with platform providers.
Additionally, it cautioned against regulatory overlaps between the Human Resource Ministry and Transport Ministry in regulating e-hailing and p-hailing drivers, which could create inconsistencies.
The gig economy's rapid growth highlights the importance of addressing these concerns, exeprts said.
Policymakers face challenges in balancing worker protections with platform providers' operational needs, they added.
While the delay is a setback, experts argue that thorough legislation is necessary to avoid loopholes or unintended consequences.
Economist specialising in Southeast Asian development Doris Liew told Business Times that a key concern of the gig worker bill is the risk of additional costs being transferred to consumers.
She added that for drivers, stricter rules and the potential introduction of mandatory minimum working hours could further strain their already slim margins.
"The delay in tabling the bill could be due to many reasons, such as parliamentary scheduling, or even how the public might react once the details are revealed.
"Still, with more than 4,000 stakeholders already consulted, the first reading should not come as much of a surprise if it truly takes their views into account," she added.
Liew pointed out that the larger issue is whether the country is truly ready to implement the bill.
She highlighted that while the gig economy is now deeply embedded in daily life and the wider economy, it has long functioned without proper regulation.
"This has left workers facing persistent problems, including weak workers protection, little social security and limited pathways for upward mobility.
"Whether the first version of the bill can fix all these gaps is uncertain. But it is at least a step in the right direction that the government is finally moving to address them," Liew said.
She emphasised that what is important now is ensuring policies are flexible enough to address real on-the-ground needs, rather than being tied to rigid rules that could soon become outdated.
As Malaysia seeks to position itself as a global leader in gig economy regulation, the successful passage of the Gig Workers Bill must be approached with careful consideration and time, only then it could serve as a model for other nations, experts said.
For now, they added, gig workers and industry players await updates, hopeful that the legislation will deliver the clarity and protections they need.