Gig workers in Malaysia face high living costs, urging pay transparency, minimum income protection and stronger regulations
PETALING JAYA: Malaysia’s booming gig economy is masking a growing income deficit crisis, with many e-hailing and delivery workers struggling to keep up with soaring living costs, prompting renewed calls for tougher regulations, transparent pay systems and minimum income protection.
Malaysia E-Hailing and Delivery Organisation president and Gabungan E-Hailing Malaysia chief activist Masrizal Mahidin said many gig workers in high-cost urban centres such as Kuala Lumpur and Penang are struggling to meet basic expenses, including rent, food and transport.
“While many gig workers are clearly feeling the pressure, it is important to recognise that the sector is highly diverse.”
He said this makes the industry dynamic but complex, and simplistic assumptions about earnings do not reflect reality.
Masrizal said accurately assessing income sufficiency requires a systematic, data-driven approach, including access to platform data and appropriate government oversight of pay-determining algorithms.
He added that without such measures, income sufficiency could not be properly evaluated or addressed.
Concerns have also been raised over frequent changes to platform pay structures, incentives and commission models.
Masrizal said such adjustments in recent years have often been implemented without prior notice or meaningful consultation with workers.
“Changes to pay structures may be justified if they respond to real economic conditions but they must be transparent, clearly communicated and agreed upon through proper engagement.”
He said most changes remain unilateral, directly affecting the take-home income of workers and undermining trust.
He added that this underscores the urgency of the proposed Gig Workers Act, which would set clearer rules, curb unilateral decisions and establish a tripartite council comprising the government, platforms and worker representatives.
On wages, Masrizal said gig workers value flexibility and independence but this should not come at the expense of income security.
He called for a reasonable and enforceable minimum floor rate to prevent exploitation.
“Without safeguards, gig workers risk becoming a modern-day labour force with little protection. A living income framework adapted to the realities of gig work is both realistic and necessary.”
Masrizal said gig workers are especially vulnerable during periods of high inflation, as rising costs hit immediately while earnings adjustments often lag.
He said legal protections under the Gig Workers Act could provide baseline income security, fairer payment mechanisms and avenues for redress when conditions become untenable.
Beyond wages, Masrizal said systemic reforms are needed, including stronger social security coverage, access to healthcare protection, safer working conditions, structured retirement savings and policies that support sustainable work-life balance.
“These challenges are no longer isolated. Addressing income security must go hand-in-hand with improving overall quality of life if the gig economy is to remain viable in the long term.”
Federation of Malaysian Consumers Associations CEO Saravanan Thambirajah said rising living costs are affecting not only gig workers but also urban households across the income spectrum.
He said based on consumer complaints and feedback, food prices remain the biggest cost pressure, followed by housing, transport and healthcare.
“Food costs are felt daily, and the situation is worsened by supply chain inefficiencies and heavy reliance on imports, especially in high-cost urban areas.”
Saravanan said in places such as Kuala Lumpur, Selangor and Penang, prices of essential goods and services have risen faster than wages, forcing households to spend a disproportionate share of their income on basic necessities.
He said wage growth must be paired with effective price controls.
“Without strong monitoring and enforcement, higher wages can be quickly eroded,” he said, adding that weak oversight and profiteering in the supply chain allow unjustified price hikes to reach consumers.
Saravanan said the government must act fast to strengthen price monitoring, implement a robust food security policy, boost local food production, reduce reliance on imports and maintain targeted subsidies while longer-term solutions such as a living wage continue to be debated.
