KUALA LUMPUR – The Malaysia Digital Economy Corporation (MDEC) has urged the government to focus on the development of a gig economy framework or high-value partnerships in Budget 2023 to enable gig workers to receive appropriate guidance.
Digital Adoption Department, Ecosystem Development Division director Mohd Redzuan Affandi Abdul Rahim said MDEC hopes this will enable experienced gig workers and new graduates entering the field to better understand how to work online.
“MDEC also hopes that the government will provide tax incentives to encourage local businesses to use digital freelancers from within the country instead of from abroad,” he saud when asked about MDEC’s hopes for Budget 2023, which will be tabled on October 7.
Redzuan said incentives for users also need to be created to encourage the use of local platforms such as BungkusIt, MatDespatch, PantangPlus, MrWireman, GoCoach, and various other platforms.
He said MDEC believes the gig economy model enables the inclusive participation of the people in the digital economy, and is a contributor and new engine of economic generation if implemented appropriately.
“MDEC also wants the government to intensify the efforts that we are currently implementing, especially in terms of standards and verifying gig platforms to ensure that individuals who want to participate in this economic model are protected from job scams.
“This includes ensuring that all platforms that wish to offer services or operate in Malaysia must be registered with the government through MDEC to be verified, especially in terms of personal data management,” said Redzuan.
He said the government can also help the development of gig workers through a new method with financial institutions to identify credit scores to enable them to get microcredit financing to expand their business.
MDEC is the agency responsible for implementing several programmes that promote and encourage the use of the gig economy or shared economy model since 2015, such as the eRezeki and Global Online Workforce programmes.
Based on programme implementation data, it is estimated that as many as 1.12 million individuals are involved in the gig economy sphere for either their supplementary or primary income.
Redzuan said that based on MDEC programme data from 2016 until June 2020, gig workers earned a total of RM2.86 billion during that period.
Until 2021, a total of 137 platforms were confirmed and became strategic partners of the programme under MDEC with the overall market size for this industry in Malaysia estimated to be worth at least RM1.61 billion.
“MDEC estimates the growth of the gig economy, especially from the development aspect of local platforms, will continue to grow from approximately RM371.4 million in 2021 to at least RM650 million in 2025,” said Redzuan.
Meanwhile, Pickupp country manager Navin Kandapper said that since the gig economy gives people earning opportunities based on their personal choice and availability, the company hopes that Budget 2023 will create awareness of the gig economy as a flexible opportunity that brings value to the economy as a whole.
“We also wish for the government to give more support in the form of initiatives such as workshops for continuous skill development, to create awareness for earning opportunities or supplemental earnings based on their availability,” he said.
The tech logistics startup said technology helps by providing a platform to manage and support independent agents by providing clear earnings awareness, productivity tracking, and automating payments and feedback.
“As a society, we recognise that gig economy participants fulfil a crucial role in a fast-changing society that has adopted e-commerce, food delivery, and ad-hoc transport solutions,” he said.
Airasia Super App chief executive officer Amanda Woo said as the gig economy is gradually becoming more attractive, gig workers’ welfare contributions such as the Employees Provident Fund and Social Security Organisation are becoming more important and should be highlighted in Budget 2023.
She said that was why AirAsia recently announced full-time employment to all gig workers including its e-hailing drivers and delivery riders.
“There are 53,000 registered Airasia ride drivers in Malaysia. With the recent full-time employment announcement, we are targeting to have more full-time Allstars drivers by the end of the financial year to meet the increasing demand as all economic sectors have been reopened,” she said.
Full-time Allstars gig workers will receive basic income of RM2,500, fuel benefits of RM1,000, 90% off AirAsia flight (self and family), medical coverage (self and family), EPF contribution by AirAsia, and Socso coverage. – Bernama, September 25, 2022
