Gig Workers Bill will be the 'grave' of e-hailing workers, group says

Summary

• Six associations representing e-hailing and p-hailing workers reject the Gig Workers Bill 2025, calling it a rushed legislation that will become the "grave" of gig workers.

• They argue the bill unfairly burdens workers with mandatory Socso contributions whilst only benefiting large companies, warning it will eliminate competition and force smaller platforms to shutter.

• In stark contrast, major trade unions, including the MTUC, Cuepacs, and the Malaysia e-hailing Alliance (Gem) have praised the bill as the way forward.

The Gig Workers Bill 2025 is rushed legislation that, if passed, will become the grave of e-hailing and p-hailing workers, six associations representing the two groups said today.

In a joint statement, the group said they vehemently reject the proposed law, labelling it as unjust, perverse, and one which would only protect the interests of large companies.

They warned that the bill would cut net income, force part-time gig workers in e-hailing and p-hailing sectors to quit, eliminate competition, and "surrender the ecosystem to monopolies".

"When the number of gig workers in these sectors decreases whilst customer demand remains or increases, travel and delivery costs will certainly rise. Consequently, consumers bear higher prices, small businesses lose logistical support, and Malaysia's digital economy competitiveness is threatened.

"When only one or two large companies remain, the government itself will become a corporate hostage. This is the reality awaiting if this bill continues; this is the real betrayal of workers and the nation's economy," they said in the strongly-worded statement.

The statement was issued by the Malaysian P-Hailing Couriers Association, the Malaysian United Courier Partners Association, Sabah E-Hailing Drivers and Couriers Association, Malacca Courier Partners Association, Perak Motorcycle Courier Services Welfare Association and the Kedah Courier Partners Association.

The group further said that the bill sweeps various gig sectors into one basket, which includes e-hailing, p-hailing, freelancers and hawkers.

"It appears as though all sectors face the same challenges. This is not protection; this is confusion. Neighbouring countries like Singapore are careful and begin with the ride-hailing/delivery sector first.

“Malaysia, however, wants to rush, and the consequence will be the destruction of drivers and couriers on the roads.

"We, comprising 10,000 members nationwide directly involved in the e-hailing and p-hailing sectors, firmly reject this bill as it is unrealistic and only benefits a select few major players," they said, calling on all MPs to do the same.

Balanced and forward-looking

The bill revolves around four main components – the definition of gig workers, a dispute resolution mechanism, addressing payment issues and social protection for gig workers under the Social Security Organisation (Socso).

Earlier today, the North South Initiative (NSI) lauded the bill, which was tabled for its first reading at the Dewan Rakyat yesterday, as offering a balanced and forward-looking framework that benefits workers and platform operators.

The NGO’s executive director and co-founder Adrian Pereira said that for the past two years, it had supported the Malaysia e-hailing Alliance (Gem) members to document their challenges and recommendations to the Madani government.

Adrian said that as the gig economy is dynamic in nature, the bill will empower social dialogue between all actors via the proposed consultative council, which will continuously monitor arising issues and propose improvements and amendments to the bill.

The group, however, questioned who would be sitting on the council.

"Who will comprise the consultative council? What guarantee is there that the majority voice of workers will be heard and considered, or will it merely appoint those who nod in agreement at all times?

“Worse still, real issues such as crippling commission rates and declining fare and wage rates are completely untouched.

"The perception that this is a shield for gig workers is merely cosmetic; rather, it will impact the livelihoods of tens of thousands of e-hailing and p-hailing drivers," they added.

Socso deduction a ‘betrayal’

The group said the proposed mandatory contribution deduction through Sosco for every transaction by e-hailing drivers and p-hailing couriers is a "betrayal", as they work independently and with flexible employment, unlike those who are covered under the Employment Act 1955.

"P-hailing courier colleagues earning approximately RM5-RM10 per order would be forced to obtain over 100 orders monthly just to qualify for minimum protection. This hasn't even considered current market conditions.

“Sometimes, they must wait by the roadside or vendor pavements due to a lack of orders. In reality, nearly 40 percent of courier colleagues will be forced to contribute but receive no benefits.

"This is not a social protection scheme; this is a robbery scheme from workers' pockets," they said.

The group added that the Work Accident Social Protection scheme for those who are self-employed has existed since 2017, and questioned the necessity for Socso deduction, which they say is trying to duplicate what already exists, and further burden workers.

The group cited international examples where similar laws backfired, pointing to Spain, where Deliveroo withdrew after the Rider Law was introduced, and India, where Rajasthan's gig law nearly killed small startups and pushed work underground.

They warned that Malaysia is repeating the same mistakes, arguing that while large companies like Grab will survive and become even more dominant, smaller platforms will shut down, ultimately harming workers through reduced competition.

"The alliance of over 20 e-hailing and p-hailing associations under Muslim Consumer Association Malaysia (PPIM), which fully supports the bill circulating on social media, is also of dubious authenticity," they said, referring to Gem.

The group demanded that MPs thoroughly examine the bill before passing it, warning it would be detrimental to gig workers, whilst questioning who comprised the Gig Workers Bill drafting working committee.

They also criticised the absence of Malaysian Trades Union Congress (MTUC) representatives from the policy development stakeholder engagement sessions, suggesting this raised concerns about whether the bill was drafted according to established practices.

Group's demand

The group set out five clear demands:

• Immediate halt to further parliamentary readings of the bill;

• Conduct a proper Regulatory Impact Assessment as required by the nation's own policy;

• Grant a full mandate to the Malaysia Gig Economy Commission (SEGiM) before any legislation is passed;

• Give initial focus to only e-hailing and p-hailing sectors, rather than sweeping all self-employment sectors together; and

• Implement a portable benefits scheme with costs shared between the government and platforms, instead of placing the entire burden on workers.

In a separate joint statement, several groups, including Gem and MTUC, lauded the Human Resources Ministry for introducing the bill and pledged their united support.

The statement was also signed by the Malaysian Sign Language Interpreters and Translators National Organisation, the Congress of Unions of Employees in the Public and Civil Services (Cuepacs) and the Malaysian International Trade Union Network Council.

"With the drafting of this bill, Malaysia is set to emerge as among the first 15 countries in the world to provide a clear definition for gig workers.

“This will not only strengthen the position of workers in the country, but will also elevate Malaysia's standing as a progressive nation on the international stage," they said, urging all MPs to vote in favour of the proposed law.

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