KUALA LUMPUR – MY Mobility Vision has warned that the government’s proposed Gig Workers Bill 2025 could harm the very people it is meant to protect if pushed through in its current form.
The policy research group focusing on Malaysia’s transport, labour, and digital economy sectors said the draft law takes a “one-size-fits-all” approach by grouping together e-hailing drivers, delivery riders, freelancers and caregivers under a single framework, a move it described as impractical and confusing to enforce.
It added that countries such as Singapore had chosen to phase in gig economy rules gradually, starting with ride-hailing and delivery, before extending them to other sectors.
The centrepiece of the Bill — mandatory contributions to Malaysia’s social security system, SOCSO — would shift the financial burden onto workers, the group argued.
They said that, for part-time riders, who make up a large share of the workforce, this requirement is especially punishing.
“A FoodPanda rider earning RM8–12 per job would need to complete between 92 and 138 jobs a month just to qualify for protection. Nearly 40% of riders may end up paying in without coverage. This is not protection; it is a tax on precarious work,” their statement read.
The group also warned of duplication with existing frameworks, noting that SOCSO coverage already applies to gig workers under the Self-Employment Social Security Act 2017.
Other measures in the Bill, including the establishment of a Tribunal and a Consultative Council, were described as structurally weak.
MY Mobility Vision said barring workers from legal representation in the Tribunal, while allowing platforms to retain full legal teams, created an uneven playing field.
The council, it added, risked being tokenistic due to ministerial appointments and a lack of guaranteed worker majority.
While acknowledging that the Bill touches on issues such as deactivation and earnings transparency, the group said protections offered were “vague, procedural, and insufficient”, with key concerns like high commissions and income volatility left unaddressed.
Citing international examples, MY Mobility Vision said Spain’s “Rider Law” had led to Deliveroo’s exit from the market, while India’s Rajasthan Gig Workers Act 2023 was facing pushback from smaller platforms over its transaction tax, with analysts calling it “bound for failure”.
“Malaysia risks repeating these mistakes. The reality is this Bill will not weaken large players like Grab; it will strengthen their dominance while driving small platforms out of the market,” the group said.
The statement urged Parliament not to rush the legislation and to first conduct a full Regulatory Impact Assessment.
It also called for the planned Gig Economy Commission (SEGiM) to be empowered to provide oversight, and for any law to start with high-risk sectors such as e-hailing and delivery.
“Good intentions alone are not enough,” the group concluded. “Regulation must be realistic, evidence-based, and sector-sensitive. If passed in its current form, this Bill risks cannibalising the very people it seeks to protect.” — August 25, 2025
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