KUALA LUMPUR - The upcoming Gig Workers Bill, set to be tabled in Dewan Rakyat on Aug 14 has raised concerns among industry players and gig workers over its potential to drive up costs for consumers and disrupt the gig economy’s balance of flexibility and affordability.
The bill, aimed at safeguarding the rights of Malaysia’s estimated 1.5 million gig workers, proposes mandatory contributions to the Self-Employment Social Security Scheme under the Social Security Organisation (Socso).
While the move is seen as a step forward in protecting gig workers, stakeholders warn that the additional costs of compliance could ripple through the economy, ultimately impacting consumers.
The concerns come at a time when Malaysians are already grappling with rising living costs.
According to the Department of Statistics Malaysia (DOSM), the Consumer Price Index (CPI) increased by 3.2 per cent year-on-year in June 2025, driven by higher transportation, food and utility costs.
The transportation sector alone saw a 5.1 per cent hike, reflecting the impact of global fuel price volatility and domestic policy shifts.
Food prices, a major contributor to household expenses, rose by 4.7 per cent, putting further strain on consumers.
Industry players fear that the operational costs stemming from the bill such as mandatory Socso contributions and potential wage regulations could exacerbate inflationary pressures.
Platforms like e-hailing services and babysitting networks may need to increase their service fees to offset the costs, passing the burden onto consumers.
An e-hailing driver, Abdul Halim Hapiz, who is a person with disability (PWD), shared concerns about the bill’s potential impact on earnings and opportunities.
“We have not received confirmation from the Ministry on whether there are clear benefits for PWD gig workers, such as upskilling opportunities.
"Employment as e-hailing drivers is vital for us, as past regulations have already posed challenges, and we worry the bill's implementation could further reduce our income,” he said.
The driver also highlighted the risk of higher platform fees if companies are forced to absorb new costs.
“If service fees increase, customers may turn away from using e-hailing services, and this will directly affect our income," he said.
Kiddocare’s Head of Business Development, Rahman Hussin, highlighted the challenges of the bill for platforms during the ‘Sembang Santai Teh Tarik: Industri Gig’ session with Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi and Human Resources Minister Steven Sim.
“While we support the spirit of the bill and the desire to protect gig workers, the economic impact cannot be ignored.
"If platforms are required to ensure mandatory PERKESO contributions, this will inevitably increase operational costs.
“These costs will likely be transferred to consumers, raising service prices for babysitting," he said.
Rahman also questioned the absence of a Regulatory Impact Analysis, which he believes is crucial for understanding the broader implications of the bill.
“A minimum wage proposal is also included in the bill, but to implement that, we need to define minimum working hours.
"This goes against the flexibility that gig workers value, and it could lead to additional administrative costs for platforms," he said.
For gig workers themselves, Rahman stated challenges in convincing workers to open Socso accounts, as many view them as unnecessary.
The gig economy in Malaysia has grown rapidly over the past decade, driven by platforms like Foodpanda, Lalamove, Grab and Kiddocare and others that offer flexible work opportunities.
According to the World Bank, Malaysia’s gig economy contributed approximately RM10 billion to the nation’s GDP in 2024, highlighting its importance as a source of income for both workers and businesses.
However, the sector has faced criticism for its lack of social protections, with gig workers often excluded from traditional employment benefits such as medical insurance, retirement savings and injury compensation.
The Gig Workers Bill aims to address these gaps, but industry players are urging policymakers to consider its economic impact carefully.
Human Resources Minister Steven Sim previously stated that 40 engagement sessions involving 4,000 stakeholders including gig workers, platform companies, employers’ representatives, politicians and NGOs had been conducted to shape the bill.
Despite these efforts, many stakeholders feel that critical questions regarding costs and implementation remain unanswered.
As the tabling date approaches, the gig economy faces mounting concerns about how the bill will balance worker protection, platform sustainability and affordability for consumers.
In an inflationary environment, the ripple effects of rising costs could be significant, impacting not only gig workers but also the millions of Malaysians who rely on their services daily.