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
