Malaysia's gig economy has grown significantly in recent years, owing to technological improvements, shifting labor preferences, and economic situations. This sector of the economy includes short-term and freelance jobs, which are frequently enabled by digital platforms and provide flexibility and options for income generating.
Malaysia's gig economy has grown significantly in recent years, owing to technological improvements, shifting labor preferences, and economic situations. This sector of the economy includes short-term and freelance jobs, which are frequently enabled by digital platforms and provide flexibility and options for income generating.
The gig economy has experienced significant growth globally due to market digitization and the increasing use of digital devices, leading to the emergence of digital leisure (Subiah, 2023) and Malaysia is no exception. This growth has been facilitated by technological advancements, allowing easier access to gig opportunities, especially during the COVID-19 pandemic (Angelini et al, 2022). Gig workers, who are independent contractors or freelancers, contribute to this growth by engaging in temporary project-based work, particularly in the service industry (Bonvin et al., 2023). Despite expansion, difficulties such as insecure working conditions exist, necessitating structured social discourse among diverse stakeholders to improve social protection and achieve decent work in the gig economy.
One of the primary challenges faced by gig workers is job insecurity. With no traditional employment contracts, gig workers often lack job security and may face uncertainty regarding future income and employment opportunities. This instability can lead to financial stress and difficulty in planning for the future. Another significant challenge is income volatility. While gig work can provide flexibility, earnings can be unpredictable, fluctuating based on demand, competition, and other factors. This inconsistency in income can lead to financial instability for workers who rely on gig work as their primary source of income. Furthermore, gig workers often do not receive benefits like healthcare, retirement savings, or paid time off, which are prevalent among regular employees. This lack of benefits makes gig workers financially susceptible in times of need, such as illness or an emergency. The regulatory climate around gig employment also presents a hurdle. The laws and regulations governing the gig economy can be unclear or outdated, leading to challenges in terms of labor rights, taxation, and social protection for workers. This regulatory uncertainty can create confusion for both workers and businesses operating in the gig economy. Furthermore, access to social protection is limited for gig workers. Unlike traditional employees, gig workers often do not have access to social protection mechanisms such as unemployment insurance or worker's compensation. This lack of protection leaves gig workers vulnerable to financial hardship in the event of job loss or injury.
Addressing these issues will be critical to maintaining the gig economy's long-term growth and gig workers' well-being. Policymakers must seek to develop a regulatory framework that safeguards gig workers' rights and interests while fostering innovation and economic progress. The Malaysian government has been proactive in supporting and regulating the gig economy to ensure fair treatment and protection for gig workers. Recognizing the gig economy's significance in driving economic growth and employment, the government has implemented various initiatives to support its development. This includes establishing a regulatory framework covering areas such as labor rights, taxation, and business registration, aiming to create a conducive environment for the gig economy to thrive while protecting the interests of gig workers. Additionally, initiatives like promoting digital entrepreneurship and providing training and development programs for gig workers demonstrate the government's commitment to supporting this sector.
Moreover, the government has the option to provide incentives such as tax breaks, subsidies, and training programs to further support the growth of the gig economy. These incentives can help gig workers and platforms thrive, contributing to overall economic development. The planned establishment of the Gig Economy Commission of Malaysia (SEGiM) is also a significant step toward protecting the welfare and rights of gig economy workers. SEGiM is expected to oversee and improve social protection and well-being for the estimated 1.12 million gig workers in the country. Overall, the Malaysian government's role in supporting and regulating the gig economy is crucial for ensuring fair treatment, protection, and sustainable growth for gig workers and the economy as a whole.
Institutions such as universities, vocational training centres, and industry associations have played a role in developing the skills needed for gig work. These institutions offer programs and courses that equip individuals with the skills required for freelancing and entrepreneurship. Additionally, banks and fintech companies have introduced products and services that cater to the financial needs of gig workers, such as digital banking solutions and microloans, making it easier for them to manage their finances and access credit.
Looking ahead, Malaysia's gig economy is likely to grow further, fuelled by ongoing digitalization, shifting work preferences, and a demand for flexible employment options. Finally, technology developments, shifting job choices, and government assistance have all contributed to tremendous growth in Malaysia's gig economy. The government and institutions have played an important role in defining this growth, and resolving issues such as job security and income instability will be vital to maintaining the gig economy's long-term growth in Malaysia.
Angelini, F., Ballestra, L. V., & Castellani, M. (2022). Digital leisure and the gig economy: a two-sector model of growth. arXiv preprint arXiv:2212.02119 .
Bonvin, J. M., Cianferoni, N., & Mexi, M. (2023). Conclusion: The rise and growth of the gig economy. Challenges and opportunities for social dialogue and decent work. Social Dialogue in the Gig Economy , 144-158.
Subbiah, R . (2023). Gig Economy. International Journal For Multidisciplinary Research, doi: 10.36948/ijfmr.2023.v05i01.1638
