Malaysia’s new Gig Workers Bill 2025 provides legal recognition and social security for 1.2 million platform workers, setting a regional benchmark.
KUALA LUMPUR: Malaysia’s gig economy performed better in 2025 than in 2024, buoyed by positive economic momentum and supportive policy measures, but the highlight is undeniably the passing of the Gig Workers Bill 2025.
With this development, Malaysia may see the gig economy evolve even further — potentially expanding services such as women-only rides and rural-first options. There is also hope that non-platform gig workers, such as caregivers, translators, musicians, and photographers, will not be excluded from the protections provided under the bill.
A major policy milestone, the bill formally recognises and gives more protection to the 1.2 million gig workers who undoubtedly have emerged to become an essential part of the economy.
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Malaysia now stands among the few countries with legislation specifically designed for gig workers. Once enacted, the law will mandate written contracts, establish dispute-resolution mechanisms, and improve access to social protection.
This would provide safeguards to the workers who, now through Budget 2025, enjoy prioritised gig worker support through social security schemes, training programmes, and platform reforms.
Passed in Parliament in August 2025, the legislation also paves the way for the setting up of tribunals and wage consultation councils, extended occupational safety and health protection, and integrated contributions to the Social Security Organisation (Socso) and the Employees Provident Fund with penalties for non-compliance.
The key factors driving sectoral improvement included stronger legal clarity, expanded upskilling initiatives through MYFutureJobs, Malaysia Digital Economy Corporation’s Global Online Workforce, Technical and Vocational Education and Training (TVET), GiatMARA, and financial inclusion via income documentation.
Although the market saw platform exits such as inDrive and Maxim, the gig ecosystem remained resilient with Bolt’s nationwide expansion helping to maintain competition, supporting stability, and contributing positively to job creation.
The Land Public Transport Agency (APAD) issued cease-operations orders to both inDrive and Maxim in May 2025, citing non‑compliance with licensing requirements. In particular, many of their drivers were found operating without valid e-hailing vehicle permits and proper public service vehicle licences.
The orders were scheduled to take effect on July 24, 2025.
However, on that date, both inDrive and Maxim were allowed to resume operations under a three-month monitoring period imposed by APAD.
Dr Nur Syazwani Mazlan, senior lecturer of econometrics and business statistics at the School of Business, Monash University Malaysia, believes that the Gig Workers Bill’s most significant impact will be in reducing arbitrary practices, improving financial inclusion, and ensuring safer working conditions.
“The challenge lies in the implementation capacity and ensuring non-platform gig workers (caregivers, translators, musicians, photographers) are not excluded,” she told Bernama.
Malaysian eHailing Association chief activist Jose Rizal noted that stronger regulatory clarity, firmer enforcement, and renewed investor confidence—evident in the continued expansion of platforms in Malaysia—shaped the gig economy’s performance this year.
He views 2025 as a year of both consolidation and disruption within the e-hailing and delivery landscape, with the suspension and regulatory scrutiny of platforms such as inDrive and Maxim underscoring the government’s strengthened commitment to ensuring full compliance with Malaysian laws.
“This move, while challenging in the short term for affected workers, ultimately promotes a more stable and accountable ecosystem. In contrast, Bolt’s nationwide expansion signals renewed confidence in Malaysia’s mobility market and demonstrates that compliant, well-regulated players can thrive and contribute positively to job creation,” he said.
Meanwhile, Nur Syazwani emphasised that Bolt’s nationwide expansion in 2025 demonstrated confidence in Malaysia’s regulatory environment, while exits highlighted compliance pressures.
“Looking ahead, more e-hailing platforms may enter the market in 2026, particularly niche models (women-only rides, rural-first services), though compliance costs may deter smaller entrants.”
She said as ASEAN Chair in 2025, Malaysia advanced 12 ASEAN Priority Economic Deliverables, with a focus on digital economy integration and sustainability.
She highlighted that key initiatives included the development of skills recognition frameworks, aiming for portable certifications for gig workers across ASEAN, and efforts on payments interoperability, such as linking e-wallets and remittance systems to support multi-platform income streams for gig workers.
“These initiatives have positioned Malaysia as a benchmark for progressive gig-economy legislation and regional digital inclusivity,” she said.
Outlook for 2026
According to Nur Syazwani, Malaysia’s gig economy in 2026 is expected to grow at a steadier pace, supported by the full implementation of the Gig Workers Act 2025 and reinforced by allocations under Budget 2026.
She noted that the establishment of tribunals and wage consultation councils will give workers clearer avenues for dispute resolution and fairer wage-setting. Occupational safety and health protections are also set to expand through enhanced safety training, health screenings, and subsidised insurance for high-risk roles such as delivery riders.
“Budget 2026 also places strong emphasis on the inclusion of non-platform gig workers, such as caregivers, translators, musicians, and independent professionals, ensuring they are not excluded from formal protections.
“The introduction of formal income recognition through standardised income slips will improve financial access, allowing gig workers to qualify for microloans, insurance, and housing support,” she said.
However, Jose said the outlook for Malaysia’s gig economy in the coming year remains cautiously optimistic, noting that timely enforcement of the Gig Workers Act and supporting regulations by Socso, APAD, and the Ministry of Human Resources will be key determinants of progress.
“We anticipate more structured competition among platforms, with compliance and worker welfare emerging as core differentiators.
“As the sector matures, Malaysia is also expected to attract new and innovative players, particularly those capable of meeting regulatory requirements and investing in technology-driven solutions,” he added. – Bernama
