PUTRAJAYA is taking initiatives to regulate the gig economy to protect the interests of customers and workers in the sector, Prime Minister Dr Mahathir Mohamad told the Dewan Rakyat today. 

“With this new trend where jobs have become more flexible, the challenge for the government is having the welfare of gig economy workers taken care of, especially with the lack in clarity in the employment relationship,” he said. 

“However, the government is aware of the implication of the gig economy towards traditional economy and protecting workers welfare,” he said while adding that a few initiatives will be taken by the government to regulate the informal sector.

Dr Mahathir was responding to Fahmi Fadzil (Lembah Pantai-PH) during question time on how the government intends to regulate the gig economy. 

This includes the formation of a committee comprising of the Youth and Sports, Human Resources, and Domestic Trade and Consumer Affairs Ministries, which will be tasked with finding long-term resolutions for problems related to the gig economy. 

In addition, the government will also be looking at the gig economy as a source for sustainable and inclusive economic growth in the 12th Malaysia Plan 2021-2025, he said. 

A regulatory sandbox involving various regulators, including Bank Negara Malaysia, will be implemented as a step towards embracing future trends and to encourage high-tech activities.

The Human Resources Ministry will carry out extensive research from the legal aspect, to draft the employment terms and conditions for the gig economy so that it is in line with the Industrial Revolution 4.0.

Responding to a supplementary question by Fahmi on whether the three ministerial committees will look into EPF and Socso contributions for gig workers, Dr Mahathir said the government is concerned about the fate of employees and will check on whether their welfare is protected. 

“We have found that many have benefitted from the gig economy, hence we will have to maintain this system but there needs to be regulation that will protect the rights of workers.” –  October 22, 2019.