KUALA LUMPUR: The feedback on improving the welfare of informal workers, as outlined in the World Bank report on informal employment here, will be presented in the 13th Malaysia Plan, said Economy Ministry deputy secretary general of policy Datuk Dr Zunika Mohamed.
Informal employment encompasses gig-employment, which refers to employment that is typically facilitated through digital labour platforms.
"In moving forward, we should explore additional measures to support Malaysia's informal sector, especially considering the significant issues and challenges they face.
"It is imperative that we engage in further discussions with the World Bank to collectively propose strategic solutions for inclusion in our 13th Malaysia Plan," she told reporters after the launch of "Informal Employment in Malaysia: Trends, Challenges and Opportunities for Reform" report here today.
Zunika said the underemployment rate of formally employed workers had increased to 26.5 per cent in 2020 from 16.2 per cent in 2010, translating into 4.1 million workers.
The rate of informal employment is generally higher among the poorest households, and almost half of all informally employed workers are from B40 households.
"In sharp contrast, the underemployment rate of informally employed workers had increased to 73.2 per cent in 2020 from 23.7 per cent in 2010," she added.
She said this was due to the advent of digitalisation and the unforeseen consequences of the Covid-19 pandemic, the nature of employment have transformed and further fuelled the growth of gig work.
Zunika said the report also stated that existing provision for the informally employed workers in the context of retirement savings and protection against health and injury risks still falls short of meeting their needs.
The inability or unwillingness of workers towards making contributions in social insurance schemes further stresses the disparity in social protection for informal workers.
"The stark reality as we delve into the findings is that informally employed workers grapple with a higher prevalence of skills-related underemployment and time-related underemployment compared to their formally employed counterparts," she added.
The report was a collaborative effort between the Economy Ministry and the World Bank Group through the Reimbursable Advisory Services which delves into the analysis of the scale and trend of informal employment and deep dives into the regulations, policies and programs governing informal employment.
Improving the welfare of informal workers will continue to be one of the priorities for the government as highlighted in the mid-term review of the 12th Malaysia Plan.
Zunika said the government has allocated RM100 million in contribution matching grant for the self-employment social security scheme
provided by Social Security Organisation.
"The voluntary i-Saraan programme under the Employees Provident Fund is further boosted by increasing the matching contribution value to the maximum of RM500 per year for each individual," she added.