KUALA LUMPUR: The government has no plan currently to introduce an algorithm to set fair wages for gig economy workers, says Deputy Human Resources Minister Datuk Seri Abdul Rahman Mohamad.
He said for now the ministry will maintain a balanced regulatory approach that preserves the gig industry's flexibility.
"The fundamental nature of the gig industry needs to be preserved.
"Overly stringent regulations could disrupt the dynamic ecosystem the industry enjoys," he said during the Minister Question Time at Dewan Rakyat here on Thursday (Feb 13).
Abdul Rahman was responding to a question from Bakri Jamaluddin (PN-Tangga Batu) on whether the government was going to introduce a special algorithm to set a minimum wage for gig workers in Malaysia.
Abdul Rahman noted that the Cabinet had approved the establishment of a consultative council for gig workers on Nov 22 last year.
"This council will serve as a strategic discussion platform to address gig worker issues inclusively and constructively, including wage-related algorithms.
"The discussions will involve representatives from gig workers, platform providers, government officials and other relevant stakeholders.
"The council will propose recommendations on various aspects, such as minimum income levels and the formulas used to determine them.
"Should these proposals be approved, they will be implemented by the Human Resources Ministry," he said.
To an additional question, Abdul Rahman assured that amid growing concerns over artificial intelligence's impact on employment, AI developments are expected to generate new opportunities rather than diminish jobs.
"AI will enhance and create new fields," he said.
He added that the ministry is working on integrating gig workers into the national protection system, with the Social Security Organisation (Socso) and the Finance Ministry involved in improving gig workers' welfare.
Syed Saddiq Syed Abdul Rahman (IND-Muar) also raised concerns about setting a wage floor, which he said could potentially reinforce monopolies like Grab and challenge the existing dynamic pricing models.
Abdul Rahman then clarified that the ministry does not plan to implement a wage floor, acknowledging the importance of maintaining market-driven dynamics.
