KUALA LUMPUR: The Gig Workers Act, which seeks to protect these workers on matters such as contracts and earnings, will not drive up costs for businesses or fuel inflation, says Human Resources Minister Steven Sim (pic).
“Over 10 years of data shows no clear link between minimum wage increases and inflation. In fact, better pay leads to higher productivity,” he said.
He explained that the move is not meant to burden businesses, but to promote fairness in a rapidly changing labour market.
Sim spoke of how small and medium-sized enterprises (SMEs) are bound by the Employment Act, but not gig work platforms.
“This Act balances that equation,” he noted.
The law, which was passed by Dewan Rakyat in August, seeks to ensure the welfare of an estimated 1.2 million gig workers in Malaysia.
Yesterday, Sim gave a talk in which he shared his insights on human resource and workforce-related topics.
He explained that gig workers deserve fair treatment, noting that many of them work up to 12 hours a day.
“Gig workers are human beings. They deserve protection like anyone else.
“We must move beyond a low-cost labour model and build a high-value, skilled economy,” he said.
The new law, he added, is part of the government’s wider effort to modernise Malaysia’s workforce and its ultimate goal is to create a fair, sustainable and future-ready labour framework.
“The gig economy is not going away – it’s the future of work. Our responsibility is to make sure that the future is fair and secure for all Malaysians,” Sim said.
The growing gig workforce had long operated without formal rights or recourse.
Sim said the legislation aims to “equalise the playing field” between traditional SMEs and online platforms that enjoy flexibility without labour obligations.
“There are companies with hundreds of thousands of gig workers working for them every day, but they are not recognised as employees.
“This Act ensures they receive basic protections and rights like any other worker,” he said.
Sim also said the new law would define who gig workers are, set clear employment standards and ensure they receive social security coverage and access to a proper grievance mechanism.
“For the first time, gig workers will have a proper process to lodge complaints, go for conciliation, or bring cases before a tribunal,” he said.
Meanwhile, effective this month, employers are required to contribute 2% of their foreign workers’ monthly wages to the Employees Provident Fund, while workers themselves will contribute 3% with the first payment deadline on Nov 15.
It applies to all non-Malaysian citizens holding valid work passes or permits, excluding domestic helpers.
Sim said the new measure would help formalise Malaysia’s foreign labour market and align the country’s labour standards with international norms.
“They come here to earn a living away from their families. It is only right that we do the right thing for them.
“Having both groups under the same system promotes fairness and accountability,” he added.
