Malaysia’s gig economy gained fresh momentum in 2025 following the passage of the Gig Workers Bill 2025, a landmark piece of legislation that formally recognises and extends protection to 1.2 million gig workers nationwide.
According to Bernama, the bill places Malaysia among a small group of countries with laws designed specifically for gig workers, mandating written contracts, establishing dispute-resolution mechanisms and requiring integrated contributions to the Social Security Organisation (Perkeso) and the Employees Provident Fund (EPF), with penalties imposed for non-compliance.
The regulatory shift is expected to further strengthen the gig economy, including the potential expansion of niche services such as women-only transport and offerings tailored for rural areas, while improving financial inclusion through more structured income documentation.
Senior Lecturer in Econometrics and Business Statistics at Monash University Malaysia, Dr Nur Syazwani Mazlan, said the bill’s most significant impact lies in reducing discriminatory practices, enhancing financial inclusion and ensuring safer working conditions for gig workers.
However, she cautioned that effective implementation remains critical, particularly in ensuring that non-platform gig workers such as caregivers, translators, musicians and photographers are not excluded from the protection framework.
The e-hailing landscape also saw tighter regulatory enforcement in 2025.
The Land Public Transport Agency (APAD) issued cease-operation orders to inDrive and Maxim in May over licensing non-compliance, although both platforms were later allowed to resume operations under a three-month monitoring period.
In contrast, Bolt’s nationwide expansion signalled renewed investor confidence in Malaysia’s mobility market, reinforcing competition and contributing positively to job creation within a more regulated ecosystem.
Looking ahead, analysts expect the gig economy to grow at a steadier pace in 2026, supported by the full implementation of the Gig Workers Act 2025 and further measures under Budget 2026, including enhanced safety standards, income verification mechanisms and expanded social protection.
Gig Workers Bill Protects 1.2 Million Workers
