KUALA LUMPUR - In a major win for Malaysia’s gig economy under Budget 2027, Grab Malaysia is spearheading a co-funded relief package with the federal government that will boost e-hailing drivers' monthly net income by up to RM227 and p-hailing delivery workers' pay by up to RM100.
The unprecedented deal targets the daily operating costs of workers while setting the foundation for guaranteed baseline rates across the sector starting in 2027.
“Improving the livelihoods of our driver- and delivery-partners has always been an important priority for Grab,” said Rashid Shukor, Executive Director of Grab Malaysia.
“We understand that every ringgit matters, whether it comes from additional earning opportunities or savings on the everyday costs of working. In collaboration with the Government, we are taking the lead in the industry to advance measures that can make a meaningful difference to our partners.”
The framework balances worker earnings with consumer affordability, ensuring passenger fares remain stable while baseline earnings increase.
The Gig Consultative Council is finalizing the exact rate structures.
Key pillars of the Grab-Government relief agreement include:
Slashed Maintenance Costs: The government will co-fund vehicle maintenance, beginning with engine lubricants, cutting drivers’ operational expenses by up to 35%.
Insurance Incentives: Grab is rolling out an interim safety incentive cutting regulatory insurance costs by up to 25% for high-rated, responsible drivers.
100% Free PERKESO Coverage: Under the upcoming Gig Workers Act transition, Grab and the government will fully cover PERKESO social protection contributions for active gig workers, with secondary partners receiving up to 50% subsidies.
First-and-Last-Mile Transit Pass: A new joint monthly transit pass in the Klang Valley will offer discounted rides to and from train stations, boosting commuter access while funneling consistent job demand to drivers.
The joint effort signals a structural shift in how Malaysia protects and incentivizes its flexible workforce, creating a more sustainable foundation for the broader digital economy. - October 10, 2026
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