THE Malaysia E-Hailing & Delivery Organisation (MEDO) has welcomed key provisions in Budget 2026 aimed at supporting the gig economy, while urging the government to focus beyond short-term subsidies and towards building long-term resilience, social protection, and skills development for e-hailing and p-hailing workers.
In a statement, MEDO president Masrizal Mahidin, also known as Jose Rizal, said that the nation’s next chapter must go “beyond short-term aid — towards building resilience, skills, and social security that lasts”.
Among the measures acknowledged in the budget is the Budi95 subsidy, which is reported to be benefiting more than 52,000 active drivers.
However, Masrizal urged the government to clarify how the term “active drivers” is defined and called for a “soft landing” approach during the early implementation phase.
“We encourage the government to extend quota eligibility to all verified e-hailing and p-hailing drivers who can produce valid PSV or eVP licences, along with app activity records,” he said. “This would allow the Land Public Transport Agency (APAD) more time to improve data management and service delivery systems.”
Another key initiative welcomed by MEDO is the RM600 annual incentive for EPF contributors, capped at RM6,000 over a lifetime, aimed at encouraging savings among gig workers. “This is a crucial injection for strengthening social protection in a sector that has historically lacked formal security nets,” said Masrizal.
The group also praised the RM3 billion allocation via HRD Corp, which is expected to fund 3 million training opportunities. MEDO expressed hope that “a clear and fair quota” would be earmarked for gig workers, particularly from the e-hailing and p-hailing sectors, to ensure the benefits are equitably distributed.
On social security, the statement noted that while the PERKESO Self-Employment Social Security Scheme (SKSPS) currently mandates coverage for e-hailing and p-hailing workers, Budget 2026 places greater emphasis on extending protection to other unregistered sectors, with government subsidies of up to 70 percent.
“Although the new subsidies exclude sectors already mandated, we remain optimistic,” said Masrizal. “Some platform companies have voluntarily contributed to social protection in previous years, based on their own criteria and funding allocations. This spirit of shared responsibility must continue.”
He added that Budget 2026 could represent a “turning point” in assessing the sustainability of Malaysia’s growing gig workforce, particularly as the country begins implementing the Gig Workers Bill 2025.
“Malaysia’s gig workers — the backbone of everyday digital services — deserve clear recognition, transparent policies, and a structured path to long-term economic security,” he added. - October11, 2025
