THE Madani government is expected to table the Gig Workers Bill following its third postponement. While at first glance this may appear to reflect political indecision, in reality the delay may have prevented the government from hastily enacting legislation that could inadvertently destabilise, or even collapse, an entire industry.
The Bill’s stated intention is to provide protection for gig workers, especially those in e-hailing and delivery. Nobody disputes the need for safeguards. But history shows us that rushing legislation in this space can be catastrophic. Spain’s Rider Law forced riders to be reclassified as employees, and platforms simply pulled out, leaving thousands jobless. California’s AB5 caused widespread disruption until voters rolled back the rules via Proposition 22. If Malaysia follows this path without nuance, we risk destroying the very ecosystem that keeps our digital economy moving.
The challenge is even greater because most of the major platforms are not based in Malaysia. Grab, Foodpanda, Lalamove and Maxim operate with international corporate structures. Without a clear cross-border regulatory mechanism, a heavy-handed law would likely push platforms to scale back operations or exit the market. In that case, it is not the platforms that will suffer, but Malaysian gig workers and ordinary consumers who depend on these services.
Even more concerning is that the debate surrounding the Bill has been narrowly framed by voices from the e-hailing and p-hailing sectors, with NGOs representing these industries dominating the discourse when, in principle, it should encompass the entire gig economy. Other segments such as digital freelancing, online teaching, design, translation, and creative services have been largely excluded from the discussion. This results in a sectoral bias in which national legislation risks being shaped around the most vocal lobbyists rather than reflecting the needs of the full spectrum of gig workers.
This is not abstract. Malaysia’s economy is stagnant, and for many in the B40 and M40, gig work is the last reliable safety net. Platforms like Grab, Foodpanda, AirAsia Ride, Lalamove and Maxim sustain hundreds of thousands of livelihoods while solving first-mile and last-mile delivery challenges. If heavy-handed regulation is imposed without industry readiness, the result will not be protection but collapse. Prices will rise, smaller platforms will disappear and even major players will be forced to cut back. Gig workers will be the first casualties and consumers will ultimately face higher costs.
What Malaysia needs is not another rushed deadline, but an inclusive process. All stakeholders, government, platforms big and small, gig worker associations, consumer advocates, and academics should be brought into a National Gig Economy Policy Lab, similar to the National Postal & Courier Industry Lab (NPCIL) under MCMC. Only through structured dialogue and co-design can we avoid repeating global mistakes.
At the same time, Malaysia should innovate by creating a Universal Service Provision (USP) Fund for the gig economy. Just as telecoms contribute to national connectivity, platforms could contribute proportionally to a fund that provides portable benefits, social security, micro-pensions, insurance without removing the flexibility that makes gig work viable. This way, protection is real, but sustainability is preserved.
As someone who has worked across airlines, airports, logistics, hospitality, and e-commerce from Lazada and Lazada Logistics to AirAsia, Senai Airport, Marriott International, and now as a policy contributor to NPCIL under MCMC, I have seen firsthand how fragile our mobility and last-mile networks are. I have spoken at universities, at government forums and most recently at the Asean 2045 conference organised by Urbanice Malaysia, UN-Habitat and KPKT. Everywhere, one message is clear: regulation must be thoughtful, not political theatre.
Malaysia now stands at a crossroads. The Gig Workers Bill can either uplift millions, or it can be the legislative misstep that brings down an industry. We cannot afford to choose wrongly.
Dr Muhammad Afiq Redzuan is a policy contributor with NPCIL (MCMC), industry advisor at NMUC, Saito, Metropoint College and a chartered member of CILT. The views expressed in this article are his own and do not necessarily reflect those of Sinar Daily.