Date: 14th November 2024
Location: Kuala Lumpur

As the Gig Workers Act 2024 nears presentation to the Dewan Rakyat, My Mobility Vision urges the Ministry of Human Resources to consider postponing its progress. While this bill represents a significant step towards recognizing and safeguarding gig workers’ rights in Malaysia, feedback from key industry players and stakeholders reveals crucial areas that need further discussion and clarification. Rushing this bill through without a robust engagement process may result in unintended challenges for both workers and platforms, ultimately impacting Malaysia’s gig economy.

At My Mobility Vision, we have engaged with diverse voices in the industry—including government bodies, platform operators, and gig worker groups—to understand perceptions of the bill and identify areas for improvement. Feedback indicates real gaps in the current draft and a general sentiment that the process has not included enough consultation with key stakeholders to effectively address the complexities of gig work.

Key Concerns Raised by Stakeholders

From our discussions with industry representatives, several specific concerns emerged:

1. Unclear Provisions: Stakeholders highlighted that the bill leaves certain key areas vague, such as the payback rate, repayment timeline, and a clear mechanism for determining responsibility for benefits payments in cases involving deductions. These ambiguities could lead to inconsistencies in how the bill is applied, creating challenges for both gig workers and platform operators.
2. Undefined Role of Platform Operators: The bill currently lacks a clear definition of what constitutes a “platform owner/operator.” This absence of clarity could lead to confusion around accountability for worker protections and enforcement of responsibilities, potentially leaving gig workers unsupported.
3. Limited Stakeholder Engagement: Some agencies, gig worker associations, and industry representatives have expressed concerns about the lack of inclusive and extensive engagement. Many feel that the draft does not fully consider the perspectives of those it aims to support, especially given the wide range of roles within the gig economy.

Recommendations for the Ministry of Human Resources

To ensure that the Gig Workers Act 2024 achieves its full potential, we believe there are critical steps the Ministry should take:

1. Delay the Bill Until 2025: Postponing the presentation of this bill would allow for deeper engagement and refinement. Introducing legislation with ambiguities or without sufficient buy-in risks creating more problems than it resolves.
2. Expand Stakeholder Consultations: Meaningful policies require input from those directly affected. We recommend that the Ministry engage in a more inclusive consultation process, involving gig workers across various sectors, platform representatives, unions, and labor experts. Establishing a collaborative working group could also help shape a well-rounded, balanced framework.
3. Consider Amendments to the Employment Act 1955: Rather than creating a standalone act, integrating protections for gig workers into the Employment Act could provide a unified framework, simplifying compliance and addressing gig work within the broader context of labor laws. This approach has been effective in countries like Spain, where gig work protections were incorporated into existing labor statutes.
4. Base Policy Decisions on Data: With additional time, the Ministry could gather valuable data on the economic impact of various provisions. By conducting pilot programs and reviewing empirical data, the Ministry could ensure that policies are both effective and practical.

Risks of Proceeding Prematurely

Pushing forward with the Gig Workers Act 2024 without more engagement and refinement could lead to unintended consequences:

• Compliance Issues: Without clarity around responsibilities and terms, platforms might struggle with compliance, leading to enforcement challenges and potential penalties that do not effectively address worker protections.
• Platform Withdrawals: Countries have seen platforms reduce or halt operations when faced with regulations that are overly restrictive or unclear. Malaysia risks facing similar outcomes, which could reduce opportunities for gig workers and impact service availability for consumers.
• Inconsistent Protections: By focusing on just a few gig economy sectors, such as e-hailing and food delivery, the bill risks creating uneven protections, leaving many gig workers without the support they need.

Take the Time to Build a Balanced Framework

The Gig Workers Act 2024 has the potential to set a high standard for gig worker protections in Malaysia, but only if it is built on solid consultation, practical insights, and thorough data. We urge the Ministry of Human Resources to pause, expand its engagement efforts, and ensure that the final legislation is clear, comprehensive, and adaptable to the varied nature of gig work.

Malaysia has a real opportunity to establish a balanced framework that upholds worker rights, supports industry growth, and sustains a vibrant gig economy. My Mobility Vision stands ready to support the Ministry in bringing stakeholders together to build a stronger foundation for the future of gig work in Malaysia.

For media inquiries, please contact:
My Mobility Vision
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