GENERATION Z is reshaping the labour landscape in Malaysia, with many young workers entering the workforce no longer prioritising job security or prestigious positions.
Instead, they are gravitating towards the gig economy, drawn by flexible hours, the freedom to choose their work environment, incentives, and technology-enabled opportunities.
The rise of digital platforms has also expanded avenues for economic participation, offering the younger generation greater employment opportunities and income streams.
Gen Z is increasingly influential in redefining how people work and interact professionally.
According to the Malaysia Labour Statistics report for August 2025 by Maybank Investment Bank, the number of own-account workers—those operating independently—has shown consistent growth since 2021, reflecting a broader national trend toward flexible employment.
The August 2025 figures revealed a slight increase over the 3.21 million recorded in the previous month.
This cohort spans a range of sectors, including gig work, underscoring the growing economic significance of non-traditional employment.
The Malaysian Fourth Industrial Revolution Centre (Pusat 4IR) White Paper, titled “What Gig Workers Want,” found that 19 per cent of gig workers intend to pursue it as a long-term career.
Individuals are attracted to both location-based and non-location-based gig work due to the flexibility and additional income opportunities it offers.
A nationwide survey conducted last year with 1,500 gig workers revealed that approximately 65 per cent hold diplomas or higher qualifications, and 39 per cent are aged between 25 and 34.
The study highlighted that gig workers value flexibility, accessibility, and supplementary income. However, it also noted widespread dissatisfaction among full-time gig workers regarding the lack of employment benefits compared to traditional employment.
“While flexibility is highly valued, traditional employment benefits remain important for gig workers, especially those working full-time,” the report observed.
Recognising these challenges, the Malaysian government has emphasised the need to provide gig workers with access to social protection and ensure that the needs of all gig workers, including those not tied to a specific location, are addressed.
In response, the government has introduced the Gig Workers Bill 2025, aimed at providing legal safeguards for over 1.2 million gig workers and marking the end of an era in which gig workers lacked statutory protection.
The bill contains 112 clauses across ten sections, focusing on four core areas: defining gig workers, establishing a tripartite council to determine wages and work conditions, creating mechanisms for dispute resolution, and ensuring social security coverage.
The 2026 Budget complements these efforts by offering matching contribution incentives of up to RM600 per year, or RM6,000 over a lifetime, under the i-Saraan Plus scheme.
This initiative is designed to enhance social protection and encourage contributions to the Employees Provident Fund (EPF).
The government has also agreed to cover 70 per cent of gig workers’ contributions under the Self-Employment Social Security Scheme (SKSPS), with the incentive set to continue into the second year at 50 per cent funding.
These measures reflect a broader recognition of the need to adapt retirement and social protection systems to the realities of modern, flexible employment. - November 21, 2025
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