Hasten SEGiM’s establishment to protect gig workers, experts urge

PETALING JAYA: The proposed Malaysian Gig Economy Commission (SEGiM) should be set up without delay for the sake of the workers involved, say economists and stakeholders.

Socio-Economic Research Centre (SERC) executive director Lee Heng Guie said the initiative would protect these workers from unfair, deceptive and anti-competitive practices.

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He cited the World Bank’s recent findings, which showed Malaysia has a growing gig economy with 26% of its workforce, or four million people, being self-employed or independent.

He said this is driven by the demand for gig workers, especially in ride-hailing and food-delivery services as well as freelancing.

“While gig workers have flexible working hours and greater autonomy, operating in an environment that allows for independence, the short-term and non-binding nature of the relationship between the employers or platform operators and its employees (gig workers) can be challenging.

“The challenges come in the form of a lack of adequate social protection, workers’ safety, welfare and rights as well as health protection,” he said when contacted yesterday.

The proposed commission must also look into the aspects of consumer rights and food safety arising from gig-based delivery services as well as concerns of gig workers, he said.

This includes concerns about their welfare, rights and representations and the control of these workers by gig companies without concomitant responsibility to such workers.

In addition, the diminished bargaining of gig workers in labour negotiations such as earnings and incentives, benefits, and fees also serves as a major contention.

He said potential mergers and acquisitions of gig firms, which could result in anti-competitive market consolidation and enable pricing that hurts consumers and gig workers, are also concerning.

Grab Drivers Malaysia Association president Arif Asyraf Ali said the government should speed up the commission’s establishment, especially with the current dispute on the fare structure affecting e-hailing workers.

Arif said the commission must be empowered to take on a pivotal role of ensuring that e-hailing workers are not exploited.

“To stay competitive, the e-hailing companies lower fares to levels that are very unfair to drivers and riders.

“This is often done without proper study or research. It is the e-hailing workers who are on the receiving end.

“If they are single, they may survive but those with families can barely make ends meet,” he told The Star.

Economist Dr Baayah Baba said the commission should ensure gig workers are adequately insured and are accorded benefits such as paid leave and sick leave.

Another economist, Prof Emeritus Dr Barjoyai Bardai said while the proposed commission would benefit e-hailing drivers, riders and other gig workers in certain aspects, it will not resolve issues related to their income.

He said gig workers should expand their services beyond what they offer to increase their earnings.