Malaysia, 16th Country In the World to Have Gig Economy Laws - Minister Sim

KUALA LUMPUR, Aug 28 (Bernama) -- Malaysia has become one of the first countries in the world to have special legislation for the gig economy sector after the Gig Workers Bill 2025 was passed by the Dewan Rakyat (Malaysian Senate) on Thursday, said Human Resources Minister Steven Sim.

“We are the 16th country in the world to have such legislation, which means we are at the forefront in empowering this sector.

“It will certainly give confidence to foreign investors because we respect labour practices with international standards,” he said at a press conference at the Parliament building after the bill was passed.

He said as a step forward, the Ministry of Human Resources (KESUMA) would hold a series of tours throughout the country to meet with stakeholders so that they truly understand and comply with the legal framework in the bill.

Earlier, when wrapping up the debate on the bill, Sim said the issue of wage and payment uncertainty among gig economy workers in this country would be addressed through the establishment of a Tripartite Consultative Council.

He said the council would involve three main parties, namely representatives of gig workers, representatives of platform providers or employers and government representatives as a platform for joint discussions on wage rates.

“In the council, it is not the government that determines the rate or formula, it is not the company that determines the rate or formula like now, but the workers and employers are sitting together on (one) platform," he said.

Sim said the approach is important because gig workers currently do not have any legal channel to negotiate their payment rates or salaries directly.

In addition, he said the bill would ensure that gig workers are protected from arbitrary termination, suspension or deactivation by contracting entities such as platform providers.

Regarding the status of gig workers, Sim said they remain freelancers and have the right to make job choices.

He said it is different from the status of traditional workers under the Employment Act 1955 where gig workers are on a 'contract for service' and not a 'contract of service'.

The Gig Workers Bill 2025 aims to protect the fate of 1.2 million gig workers in this country and has four basic components involving the definition of gig workers, the wage mechanism, the issue of payment rates and social security.

-- BERNAMA