More young Malaysians opting for gig services

PETALING JAYA: Technology advancement has changed the landscape of labour in the country, as many young Malaysians shun routine jobs and opt for gig services, says the Socio-Economic Research Centre (SERC).

“Data from the Work Bank showed that 26% of our country’s workers are freelancers and the number is expected to grow in the future.

“The Employee Provident Fund (EPF) also said that the number of freelancers has increased by 31% since 2017, and estimated that it will likely exceed the conventional workforce, ” said its executive director Lee Heng Guie.

SERC is an independent think-tank under the Associated Chinese Chambers of Commerce and Industry Malaysia.

Given the flexibility in the gig economy, Lee cautioned of its flip side that could result in long and irregular working hours, apart from concerns on workers’ protection.

“Gig workers do not enjoy what conventional workers have such as pension, social protection, overtime and sick leave.

“This could lead to work stress and other health problems, including the workers’ financial safety net in the future, provided they do self contribution to EPF and Socso, ” he said.

Lee also said regulating the gig economy with a legal framework in terms of social security, insurance and contract was something Malaysia could explore and develop.

“For example, California passed a Bill last year requiring tech companies to pay minimum wages, overtime, unemployment insurance, paid leave, sick leave and health insurance to gig workers.

“In Germany, a temporary worker will automatically become a regular staff after 18 months.

“These are some steps that we can look into, ” he said.