KUALA LUMPUR: Malaysia’s gig economy will be regulated to ensure that the welfare of workers is protected.
Prime Minister Tun Dr Mahathir Mohamad said those who were currently employed in the gig economy were not able to enjoy benefits such as those who were in permanent positions and were at risk of being mistreated by their employers.
“The government is concerned about those working in the gig economy.
“Usually, for permanent workers, there are rules and regulations pertaining to their savings and pensions, including the Employees Provident Fund (EPF).
“But, there are no such regulations yet in the gig economy.
“It is the government’s responsibility to put in place provisions and regulations to ensure everyone is protected.
“We will come up with provisions where if employers break the rules, then action will be taken against them.
“At the moment, there’s no such rules and regulations,” he said in the Dewan Rakyat during the Ministers Question Time.
He was responding to questions from lawmakers on whether the government intended to regulate the gig sector and what measures were being taken to protect employees.
Dr Mahathir, who is the Langkawi MP, also explained that due to the legal gray area that the gig sector operated in, there was a need to protect the workers.
“This is a new way for them to work, and we found that many have benefited from this gig economy.
“So, that’s why we have to maintain this system, but we want rules to protect workers’ rights,” he said.
The prime minister also identified gig economy as a new source of economic growth and will be made part of the 12th Malaysia Plan and is currently in the early stages of regulating the sector for the welfare of gig economy workers.
“As a new trend, where now jobs are now more flexible, the government is faced with a challenge to find ways to protect the welfare of the workers involved in this gig economy.
“Therefore the government has taken a few initiatives with the objective of leveraging on the gig economy and, at the same time, ensuring the interests of workers and employers remain protected to focus on the gig economy as the new source of growth, sustainable and inclusive in the drafting of the 12th Malaysia Plan 2021-2025,” he said.