Funding mechanism for gig workers being finalised, says HR Minister


PUTRAJAYA: The government is finalising a funding mechanism for skills training and social protection for e-hailing and p-hailing gig workers, which will be announced in due course, says Datuk Seri R. Ramanan.

The Human Resources Minister said the move is in line with Prime Minister Datuk Seri Anwar Ibrahim's 2026 New Year Address, which stressed the need to ensure national economic development translates into direct benefits for the people, particularly workers.

Ramanan said the additional RM100mil allocation for this purpose through the Skills Development Fund Corporation reflects the Madani government's attention to new economic realities.

"This measure clearly recognises the significant contribution of the gig sector, which forms the backbone of daily mobility and the broader economy," he said in a statement Monday (Jan 5).

Furthermore, Ramanan said the Ministry supports the temporary relaxation of procedures related to the CP500 Instalment Payment Order for genuine errors in income declaration, while emphasising that tax compliance remains the responsibility of all parties.

"The responsibility to pay taxes must be maintained to fund and strengthen government aid programmes, such as Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA), to enhance overall public welfare," he said.

Ramanan also affirmed the Ministry's commitment to implementing the other welfare initiatives outlined in the address.

These include the disbursement of SARA beginning Feb 9, the first-phase payment of STR 2026 starting Jan 20, allocations for upgrading educational facilities, and a reduction in the service tax rate to 6%.

He said the Ministry will fulfil the Madani government's mandate by ensuring each initiative has a tangible, positive impact on workers, their families and the wider public.

"This ministry remains committed to advancing policies grounded in welfare, inclusivity, and social justice, to ensure that no one is left behind in the nation's progress," he concluded. - Bernama

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