Malaysia

Gig economy flourishes in 2025 following landmark worker legislation

The legislation officially recognises and protects the rights of over 1.2 million gig workers, signalling a major step in the evolution of Malaysia’s digital and informal labour markets

Updated 7 months ago · Published on 16 Dec 2025 11:24AM

Gig economy flourishes in 2025 following landmark worker legislation
“New law reduces discriminatory practices, enhances financial inclusion, and ensures safer working conditions,” Dr Nur Syazwani says - December 16, 2025

MALAYSIA'S gig economy has demonstrated remarkable growth in 2025, underpinned by favourable economic momentum, supportive policy measures, and the landmark passage of the Gig Workers Act 2025.

The legislation, formally enacted in Parliament in August, officially recognises and protects the rights of over 1.2 million gig workers, signalling a major step in the evolution of Malaysia’s digital and informal labour markets.

The Act mandates written contracts, establishes mechanisms for dispute resolution, and expands access to social protection, including contributions to the Social Security Organisation (Perkeso) and Employees Provident Fund (KWSP).

Non-compliance carries financial penalties. The law also lays the groundwork for labour tribunals and wage councils, as well as broader occupational health and safety coverage, providing a structured framework for both traditional and gig-based employment.

“This legislation reduces discriminatory practices, enhances financial inclusion, and ensures safer working conditions,” said Dr Nur Syazwani Mazlan, Senior Lecturer in Econometrics and Business Statistics at Monash University Malaysia. She emphasised the need for comprehensive implementation to ensure non-platform gig workers such as nannies, translators, musicians, and photographers are not excluded from protections.

The 2025 performance of Malaysia’s gig economy has also been shaped by the competitive expansion of platforms such as Bolt, which continues to grow nationwide, in contrast to inDrive and Maxim, whose operations were temporarily suspended due to regulatory non-compliance before being allowed to resume under a three-month monitoring period by the Land Public Transport Agency (APAD).

Jose Rizal, chief activist at the Malaysian e-Hailing Alliance, highlighted that the regulatory clarity and enforcement underpinning the Gig Workers Act has fostered investor confidence and strengthened the overall ecosystem.

“While short-term disruptions affected some workers, these measures promote a more stable and responsible market,” he said.

The legislation is expected to further enable specialised services, including women-only transportation and rural mobility options. Complementary initiatives such as skill development programs through MYFutureJobs, Global Online Workforce initiatives, TVET and GiatMARA, as well as formalised income documentation, are enhancing inclusivity and financial accessibility.

Looking ahead to 2026, Malaysia’s gig economy is projected to expand steadily, supported by full implementation of the Gig Workers Act and provisions under Budget 2026.

Improved wage councils, safety training, subsidised insurance for high-risk roles, and formalised income verification are expected to facilitate access to microloans, insurance, and housing for gig workers.

“Competition will become more structured, with compliance and worker welfare emerging as key differentiators,” Jose Rizal added. “As the sector matures, Malaysia is likely to attract innovative new entrants capable of meeting regulatory standards and investing in technology-driven solutions.” -  December 16, 2025

Spotlight

Malaysia

PRN Negeri Sembilan: The battlegrounds, big names and three-cornered fights to watch

By Alfian Z.M. Tahir

People

Woman ends up with RM500 over food bill after date with ‘doctor’

Malaysia

Love scam: Twelve China nationals arrested in Ipoh over suspected online call centres

Malaysia

ASLI to field female candidate in Jeram Padang DUN

Community

‘Furry officer’ laid to rest as Kuching traffic police mourn beloved stray cat (video)

By Alfian Z.M. Tahir

Malaysia

Father mauled by crocodile as son watches in horror in Sabah river (UPDATED)

Malaysia

Johor shuts down Forest City Network School premises

Malaysia

Singapore: Chief Justice Sundaresh Menon to retire in Feb 2027, succeeded by Justice Sushil Nair

You may be interested

Malaysia

Moderate 5.4-magnitude earthquake strikes Sulawesi Sea, no tsunami threat reported

Malaysia

No further delays for water tariff hike in Penang - CM

Malaysia

Malaysia's inflation eases to 1.9% in June

Malaysia

Najib to undergo heart procedure next week

Malaysia

Elderly man remanded in Tawau over alleged sexual assault of disabled teen

Malaysia

ASLI to field female candidate in Jeram Padang DUN

Malaysia

Negeri Sembilan voters called on to back PH for continuity of stable and integrity-based govt

Malaysia

MACC opens probe into KWAP'S RM200 million eFishery investment