Gig workers’ welfare: Commission to be set up in 2 months

The establishment of the Malaysian Gig Economy Commission (Segim) will serve as a comprehensive centre to oversee the safety, welfare and retirement provisions for gig workers, as well as regulate digital capitalism within the industry.

Adviser to the Malaysian P-Hailing Dispatchers Association (Penghantar) Fairuz Jamaludin stressed the necessity of Segim as there is no regulatory body at this juncture, and this gap has resulted in some p-hailing and e-hailing workers receiving inadequate pay.

“The government needs to manage price competition among service providers to prevent the downward pressure on fares that ultimately squeeze drivers and riders.

“For example, recently, when a new competitor entered the market and lowered prices, the existing companies followed suit, lowering their prices to match the new operator. This directly affects the drivers and riders,” he said.

Fairuz said this at a press conference on the establishment of Segim, which was also attended by Malaysian Gig Community Secretariat chairperson Mohd Sharkar Shamsudin at Menara Dato' Onn in Kuala Lumpur today.

In addition, Fairuz emphasised the need for stricter enforcement of the Self-Employment Social Security Scheme (SKSPS) by the Social Security Organisation (Perkeso).

“According to Act 789 Section 11, SKSPS mandates contributions from e-hailing drivers, p-hailing riders and school bus drivers. The government has offered a significant discount of 90 percent, reducing the payment from RM232.80 to approximately RM23.

"However, the issue persists as many still do not contribute, and some remain unaware of their obligation to do so,” he said, underscoring the necessity for stricter enforcement to safeguard gig workers.

Network of 19 ministries, agencies

Sharkar added that the secretariat would engage with industry stakeholders to collect feedback, ensuring the thorough and effective establishment of Segim.

“We have engaged 19 ministries and agencies in this effort. This commission will act as a centralised authority for enforcement, vested with the power to regulate all facets of the gig economy, including part-time media practitioners (stringers) and tour guides.

“The network will be extensive because the future forms of economy and employment are unpredictable, and our goal is to establish a robust safety and welfare network for all participants,” he said.

Yesterday, Deputy Prime Minister Ahmad Zahid Hamidi announced that the formal establishment of Segim, under the Prime Minister’s Department, will commence within two months.

The commission will cover not only e-hailing and p-hailing workers but also part-time and semi-professional workers, as stipulated under the Self-Employment Social Security Act 2017 (Act 789).

- Bernama

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