Govt to establish gig economy authority soon


Deputy Prime Minister Ahmad Zahid Hamidi says a commission will be established to champion gig workers' social protection and welfare. – Facebook pic, July 17, 2023.

DEPUTY Prime Minister Ahmad Zahid Hamidi said the government will establish the Gig Economy Commission of Malaysia (Segim) as soon as possible to improve the social protection and welfare of gig workers.

Zahid said he has asked the Human Resources Ministry to submit a memorandum to the cabinet seeking approval for the establishment of the commission.

“Workers in the informal sector in Malaysia do not get any protection unless they contribute to Socso (Social Security Organisation) ... For several years, gig workers’ activities have been ongoing in this country, but they have been left behind.

“Service providers do not consider them their employees, and companies do not regard them employees in their respective industries. Such loopholes require the government’s attention,” he told a press conference after attending the Gig Industry Career Framework National Forum in Kuala Lumpur today.

Also present were Human Resources Minister V. Sivakumar and Youth and Sports Minister Hannah Yeoh.

Zahid said he hopes Prime Minister Anwar Ibrahim will announce the establishment of Segim at the tabling of Budget 2024, scheduled for October.

“I am confident the prime minister and the cabinet will approve the establishment of this commission,” said Ahmad Zahid, who is also rural and regional development minister.

In his speech, Zahid said Segim seeks to regulate the gig industry, resolve all issues, and generate initiatives that protect the welfare of gig industry users, traders, vendors, delivery riders and platform providers.

“One of Segim’s roles is to help regulate the gig industry with clear regulations to ensure compliance, protect workers’ rights, and promote a fair environment.

“It protects gig workers’ rights by providing social protection and job security, as well as specialised training and education programmes that will help improve their competitiveness,” he said.

Zahid said the government intends to increase the allocation for the gig industry to RM500 million in Budget 2024.

“Under Budget 2023, RM100 million has been set aside for the gig economy, and it is reasonable if this allocation is increased as the number of gig workers has reached 1.12 million,” he said. – Bernama, July 17, 2023.


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