Latest news with #Self-EmploymentSocialSecurityScheme
New Straits Times
2 days ago
- Business
- New Straits Times
Concerns raised ahead of Gig Workers Bill tabling in Dewan Rakyat
KUALA LUMPUR: Industry players have expressed concerns about the upcoming Gig Workers Bill, which is set to be tabled in Dewan Rakyat on Aug 14. The bill aims to provide a social protection network for Malaysia's estimated 1.5 million gig workers, safeguarding their rights and addressing vulnerabilities within the sector. The announcement was made by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi during the 'Sembang Santai Teh Tarik: Industri Gig' session alongside Human Resources Minister Steven Sim yesterday. A key focus of the proposed legislation is addressing the lack of Self-Employment Social Security Scheme deductions under the Social Security Organisation (Socso), which currently leaves gig workers unprotected in cases of workplace injuries. Speaking to media at the event, Kiddocare head of business development Rahman Hussin welcomed the bill's intent but highlighted unresolved issues. "While we appreciate the spirit of the bill and its efforts to support gig workers, there are still grey areas that need clarification before it is tabled," he said. Rahman raised concerns about the absence of a regulatory impact analysis, which he believes is essential before introducing new legislation. He also pointed out challenges related to setting a minimum wage for gig workers, noting that this would require defining minimum working hours which is a potential 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." The rising cost of living in Malaysia further compounds these concerns. According to recent data from the Department of Statistics Malaysia, the Consumer Price Index (CPI) rose by 3.2 per cent year-on-year in June 2025, driven by increases in transportation, food and utility costs. Industry players are worried that additional costs imposed by the bill, which ultimately be passed on to consumers, could exacerbate financial pressures on consumers already grappling with rising cost of living. Concerns were also voiced by an e-hailing driver, Abdul Halim Hapiz, who is a person with disability (PWD). "We have yet to see clear benefits for PWD gig workers, particularly in terms of upskilling opportunities or meaningful support under this bill. "Employment as an e-hailing driver has been a lifeline for many of us. But past regulations have already created barriers for us, and we fear the bill's implementation could further marginalise us and negatively impact our income," he said. Sim earlier revealed that to shape the bill, 40 engagement sessions involving 4,000 stakeholders, including gig workers, platform companies, employers' representatives, politicians and NGOs had been conducted.
Sinar Daily
2 days ago
- Business
- Sinar Daily
Gig Workers Bill sparks concerns over rising costs amid economic pressures
KUALA LUMPUR - The upcoming Gig Workers Bill, set to be tabled in Dewan Rakyat on Aug 14 has raised concerns among industry players and gig workers over its potential to drive up costs for consumers and disrupt the gig economy's balance of flexibility and affordability. The bill, aimed at safeguarding the rights of Malaysia's estimated 1.5 million gig workers, proposes mandatory contributions to the Self-Employment Social Security Scheme under the Social Security Organisation (Socso). The upcoming Gig Workers Bill, set to be tabled in Dewan Rakyat on Aug 14 has raised concerns among industry players and gig workers over its potential to drive up costs for consumers and disrupt the gig economy's balance of flexibility and affordability. - Bernama file photo While the move is seen as a step forward in protecting gig workers, stakeholders warn that the additional costs of compliance could ripple through the economy, ultimately impacting consumers. The concerns come at a time when Malaysians are already grappling with rising living costs. According to the Department of Statistics Malaysia (DOSM), the Consumer Price Index (CPI) increased by 3.2 per cent year-on-year in June 2025, driven by higher transportation, food and utility costs. The transportation sector alone saw a 5.1 per cent hike, reflecting the impact of global fuel price volatility and domestic policy shifts. Food prices, a major contributor to household expenses, rose by 4.7 per cent, putting further strain on consumers. Industry players fear that the operational costs stemming from the bill such as mandatory Socso contributions and potential wage regulations could exacerbate inflationary pressures. Platforms like e-hailing services and babysitting networks may need to increase their service fees to offset the costs, passing the burden onto consumers. An e-hailing driver, Abdul Halim Hapiz, who is a person with disability (PWD), shared concerns about the bill's potential impact on earnings and opportunities. 'We have not received confirmation from the Ministry on whether there are clear benefits for PWD gig workers, such as upskilling opportunities. "Employment as e-hailing drivers is vital for us, as past regulations have already posed challenges, and we worry the bill's implementation could further reduce our income,' he said. The driver also highlighted the risk of higher platform fees if companies are forced to absorb new costs. 'If service fees increase, customers may turn away from using e-hailing services, and this will directly affect our income," he said. Kiddocare's Head of Business Development, Rahman Hussin, highlighted the challenges of the bill for platforms during the 'Sembang Santai Teh Tarik: Industri Gig' session with Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi and Human Resources Minister Steven Sim. 'While we support the spirit of the bill and the desire to protect gig workers, the economic impact cannot be ignored. "If platforms are required to ensure mandatory PERKESO contributions, this will inevitably increase operational costs. 'These costs will likely be transferred to consumers, raising service prices for babysitting," he said. Rahman also questioned the absence of a Regulatory Impact Analysis, which he believes is crucial for understanding the broader implications of the bill. 'A minimum wage proposal is also included in the bill, but to implement that, we need to define minimum working hours. "This goes against the flexibility that gig workers value, and it could lead to additional administrative costs for platforms," he said. For gig workers themselves, Rahman stated challenges in convincing workers to open Socso accounts, as many view them as unnecessary. The gig economy in Malaysia has grown rapidly over the past decade, driven by platforms like Foodpanda, Lalamove, Grab and Kiddocare and others that offer flexible work opportunities. According to the World Bank, Malaysia's gig economy contributed approximately RM10 billion to the nation's GDP in 2024, highlighting its importance as a source of income for both workers and businesses. However, the sector has faced criticism for its lack of social protections, with gig workers often excluded from traditional employment benefits such as medical insurance, retirement savings and injury compensation. The Gig Workers Bill aims to address these gaps, but industry players are urging policymakers to consider its economic impact carefully. Human Resources Minister Steven Sim previously stated that 40 engagement sessions involving 4,000 stakeholders including gig workers, platform companies, employers' representatives, politicians and NGOs had been conducted to shape the bill. Despite these efforts, many stakeholders feel that critical questions regarding costs and implementation remain unanswered. As the tabling date approaches, the gig economy faces mounting concerns about how the bill will balance worker protection, platform sustainability and affordability for consumers. In an inflationary environment, the ripple effects of rising costs could be significant, impacting not only gig workers but also the millions of Malaysians who rely on their services daily.
The Sun
2 days ago
- Business
- The Sun
Gig Workers' Bill 2025 to be tabled in Dewan Rakyat on Aug 14
KUALA LUMPUR: The Gig Workers' Bill 2025 will be tabled in the Dewan Rakyat for its first reading on August 14. Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi confirmed the second reading will follow on August 26. He explained that the second reading will involve detailed discussions and debates by MPs from both government and opposition benches. A simple majority vote will be sufficient for the bill to pass, without requiring a two-thirds majority. Ahmad Zahid shared these updates during the *Sembang Santai Teh Tarik Industri Gig* session organised by the Human Resources Ministry (KESUMA). The event was attended by gig industry representatives and stakeholders, including Human Resources Minister Steven Sim Chee Keong and his deputy Datuk Seri Abdul Rahman Mohamad. At a press conference, Ahmad Zahid highlighted the need for greater awareness among gig workers regarding social security contributions. He noted that only 188,000 p-hailing and 132,000 e-hailing workers are currently contributing to the Self-Employment Social Security Scheme (SKSPS). This figure represents a small fraction of the 1.12 million workers in Malaysia's gig economy. Sim added that Malaysia will become the 16th country globally to enact legislation specifically protecting gig workers. The International Labour Organisation (ILO) has shown interest in Malaysia's approach, recognising its comprehensive yet balanced framework. Sim revealed that Malaysia's bill was developed after studying legal frameworks in 15 other countries, including Singapore, the Philippines, the US, and India. During his visit to the ILO in Geneva last June, Sim noted strong international interest in Malaysia's gig worker protections. The drafting process involved 40 engagement sessions with around 4,000 stakeholders, including workers, employers, and NGOs. Sim emphasised the government's efforts to balance worker protections with the gig economy's competitiveness. The bill aims to harmonise diverse interests while ensuring fair treatment for gig workers. - Bernama
The Star
7 days ago
- Business
- The Star
Sim: One million self-employed contributors target within reach
Steven Sim launching the workshop on Empowering Job Seekers Digital Platform Best Practices from OIC Member Countries at Hotel Royale Chulan in Kuala Lumpur on July 8. — LOW BOON TAT/The Star GEORGE TOWN: The Human Resources Ministry is confident that the target of one million active contributors under the Self-Employment Social Security Scheme (SKSPS) by the end of this year will be reached. Its minister Steven Sim (pic) said the ministry hopes to reach the target thanks to various efforts and awareness campaigns currently running nationwide. He said as of now, there are more than 800,000 active contributors nationwide under the scheme, and that number is expected to increase in the near future. 'The goal is for it to reach more people especially those who are self-employed. 'It is a social benefit offered by the government. 'If there is any accident or any incident, contributors can claim and have coverage in the form of compensation, pension, medical and rehabilitation care. 'It is important and that is why we want to promote it,' he told the press after attending the briefing session for representatives from various non-Islamic houses of worship in Penang, about the SKSPS benefits under the Social Security Organisation (PERKESO) at the Penang Harmony Centre here yesterday. Sim said that PERKESO has been carrying out programmes for those who fall under Islamic institutions and it was now reaching out to non-Islamic places of worship. He said last year there were 348 individuals from non-Islamic houses of worship who had started contributing to the scheme. 'This year, from January to June, we have 342 new individuals contributing to it. Earlier during the event, Sim under his ministerial portfolio, sponsored contributions for 200 individuals (RM46,560) from several non-Islamic places of worship in Penang. 'We hope this will spur more people under this sector to come forward to contribute. 'It comes up to RM232 a year, which is about 60sen a day. 'It is important that they know they can be protected under this scheme,' he said. Sim then shared in his speech that mutual respect for each other's cultures and using our diversity as our strength is of utmost importance. 'What is special about Malaysians is that we can work together. Our diversity is our strength. 'Regardless of our religious beliefs and differences, we are united. As the leaders of non-Islamic places of worship here you have a role to play to ensure that our community can live in peace with each other,' he said.
The Star
11-07-2025
- Business
- The Star
Perkeso benefits aid hawker after accident disrupts income
S. Vijayaletchime, 40, (centre) receiving the mock cheque from Bukit Mertajam MP Steven Sim (in red cap) as others look on at her flat in Machang Bubok, Penang. BUKIT MERTAJAM: Bringing in around RM100 or more a day selling Indian economy rice, S. Vijayaletchime's life took a turn when she met with an accident and had to sit out a few months of work. As the sole breadwinner in the family, with her husband helping her man the stall, the accident posed a significant challenge. "In August last year (2024), my husband and I were heading home on his motorcycle after buying a new blender needed for the stall when a car struck us. "We were hit by a car near a petrol station. "My husband was unharmed but I had injuries to my knee and hip, requiring three months of bed rest. "This derailed our income as I need to cook and was told not to do strenuous activities," she said when met at her flat during the handing over ceremony of the Social Security Organisation (Perkeso) benefits under its Self-Employment Social Security Scheme (SKSPS) in Machang Bubok on Thursday (July 10). The 40-year-old received RM13,354.29 in benefits in lieu of three months' medical leave. The mother of two said while her daughter is married, her son is only 17 years old and in school, which means there were monthly expenses they needed to meet. "I can make around RM7.50 per plate that I sell and on a good day can even take home RM150, so it was difficult for us. "My son-in-law and family members helped out with our finances but it was still difficult as we had to take money from others and it was not enough. "I am glad to be better and managed to resume work in December last year (2024)," she said. She found out that Perkeso covered such incidents through a friend and was grateful that it was an easy process to make the application. 'I did not sign up for Perkeso, but all registered hawkers (under the Seberang Perai City Council) here in Bukit Mertajam have been signed up for it by our MP Steven Sim for free. "I was unaware of the perks until someone told me I could claim for my loss of income. "The money came in handy and helped me settle some debts and manage my finances," she said. Sim, the Bukit Mertajam MP, who handed over the mock cheque to Vijayaletchime, said he had covered the annual contribution for some 3,000 traders last year. "This is the second year I am doing this. "We renewed 1,976 contributions this month, while 205 others opted to pay the RM70 on their own," he said. Sim, who is also the Human Resources minister, urged more self-employed individuals, part-timers, and hawkers to sign up, calling it an important safety net when the unexpected happens. "I urge everyone who is self-employed to contribute as it keeps you protected if anything untoward were to happen. "I want to remind people who are contributing that you are entitled to claim as well as many are unaware of the perks," he said.
