By Joelle Pang, General Manager, FastJobs Malaysia
By creating new opportunities, increasing flexibility, and promoting decent work, the gig economy is transforming Malaysia’s labour market. Freelancers or independent contractors perform short-term jobs as part of the gig economy. The gig economy has seen an increase in freelance jobs in Malaysia, such as ride-hailing, e-commerce delivery, and computer programming.
The benefits of the gig economy in Malaysia
Beyond its general benefits, the gig economy has several specific advantages for the Malaysian context.
In the first place, it has the potential to reduce income inequality. The gig economy is likely to provide Malaysian workers with more regular and stable incomes over the long term. It is especially true for women, who currently make up a small percentage of gig workers, but who may grow as the industry matures.
The challenges of the gig economy in Malaysia
Although the gig economy has the potential to resolve many of Malaysia’s underemployment problems, several challenges still remain.
In order to maximise the benefits of this program, the nation must first be informed and educated about it. There are still many workers and employers who are unfamiliar with this type of employment arrangement. However, the situation can and should be improved through greater public awareness campaigns and efforts to inform both employers and employees.
Policy Recommendations
In Malaysia, policymakers can support the growth and development of the gig economy in a number of ways.
They can begin by improving the regulatory framework for the gig economy. In order to ensure a level playing field for all workers, regardless of the type of work they perform, Malaysian labour law, regulations, and policies must be updated to reflect the new realities of the Malaysian labour market.
To achieve this goal, there should be social dialogues regarding the gig economy in order to gain a shared understanding among stakeholders. As a result of these engagements, future policy discussions will be based on the results of these engagements, and regulatory frameworks will be informed by the results of these engagements.
