Singapore’s recent Bill on Gig Economy and what Malaysia has done, and needs to do

• ​Embedding worker protections within the very fabric of the gig economy
• True measure of success will be to create a gig future that is fair, inclusive, and sustainable

The sharing economy was initially labeled “disruptive,” often evoking fears of dismantling existing industries. However, history shows that disruption often leads to transformation rather than destruction. Both the hospitality industry and traditional taxi services have not only survived the rise of platforms like Airbnb and ride-sharing apps but have evolved alongside them, proving that disruption can be additive.

Singapore’s recent legislative shift to enhance gig worker protection is a reflection of this evolution in thinking. The new law aims to strike a balance by providing greater rights and benefits to gig workers while maintaining the flexibility that characterizes this new economy. This move, like the earlier waves of technological change, brings about alterations that contribute positively to the system rather than take away from it.

In Malaysia, we’ve observed a similar phenomenon. By leveraging the potential of the gig economy and unlocking hidden inventory—whether it’s cars, homes, or the skills and time of individuals—we have created a net gain for the economy and society. This isn’t just about sharing; it’s about expanding the pie for everyone.

Malaysia ahead of the game in addressing gig worker needs

Malaysia, in fact, is ahead of the game when it comes to recognizing and addressing the needs of gig workers.

In 2020, Malaysia pioneered the PenjanaGig schemes to protect gig workers, making it mandatory for these workers to have insurance and safety nets, setting a benchmark for other nations.

Then, in 2022, our pension fund, the Employees Provident Fund (EPF) took a monumental step forward by integrating with gig platforms to support pension savings for gig workers. This initiative marked a critical point in the evolution of the gig economy, ensuring that workers, regardless of their employment status, have access to retirement savings.

And in 2023, the Malaysian government further demonstrated its commitment to the gig workforce by rolling out training and upskilling programs specifically tailored for gig workers, enabling them to adapt to the ever-changing market demands.

There’s more.

This year, Malaysia became the first country aiming to establish our own sharing economy guidelines. On July 17th, we, as a nation, took a significant step forward to becoming more familiar with new realities and finding comfort in them, reducing our fears: The Malaysian Standards Department (JSM) and the Malaysian Digital Economy Corporation (MDEC) organised a Sharing Economy Seminar and Public Consultation on Draft Malaysian Standard (DMS) 2754 – 2: General Trustworthiness and Safety Requirements for Digital Platforms. This reflects the mindsets and capabilities we have in Malaysia.

Can Gig Economy growth be equitable?

These initiatives show that Malaysia not only acknowledges the transformative potential of the sharing economy but is also actively shaping its trajectory. We are not merely responding to the global trend; we are leading it. However, as we navigate this evolving landscape, the question that confronts us is: How can we ensure that the benefits of this growth are equitably distributed, reaching all segments of society?

Malaysia has laid a solid foundation for gig worker protection, yet there is more to be done. What I envision is a future where programs and schemes are made available in a more bite-sized, integratable manner — just like what we achieved with the EPF.

This approach allows for seamless adoption across platforms and makes it easier for gig workers to access benefits. By developing similarly integratable schemes with SOCSO and the Human Resources Development Fund (HRDF), we can provide a comprehensive safety net for gig workers that addresses not only their immediate needs but also their long-term security. It is not just about offering protections; it’s about embedding these protections within the very fabric of the gig economy.

In Malaysia, we take pride in being pioneers of the future of the sharing economy. GoGet’s collaboration with EPF stands as a testament to what can be achieved when innovation and regulation work in tandem. By allowing gig workers to manage their pension contributions with a simple click, we have set a new standard for how technology can be used to facilitate financial security. This model should serve as a blueprint for other areas of worker protection and support, demonstrating that it is possible to preserve the flexibility of gig work while providing workers with the safety nets they need.

The gig economy has indeed unlocked unprecedented opportunities, allowing individuals to monetize their time, skills, and assets in ways that were previously unimaginable. But as we transition into the next phase of this economy, we must confront new and more complex challenges. These include ensuring fair labor practices, managing regulatory frameworks, and striking a delicate balance between fostering innovation and ensuring the welfare of workers. How might we achieve an evolution towards sustainable innovation—a model where the growth of the economy and the well-being of workers go hand in hand.

Ensure progress benefits the greater good

Our journey does not end here. As we move forward, we must think beyond mere efficiency and profitability. The real challenge lies in advocating and executing for genuine wage growth, financial incentives for businesses that implement technology to boost productivity, ultimately enabling them to increase workers’ wages and upskilling opportunities that will prepare Malaysia for its transition into a high-income nation.

Artificial Intelligence (AI) will undoubtedly play a significant role in shaping the future of the sharing economy, enhancing user experiences, optimizing resource allocation, and predicting market trends. Yet, amidst the rapid technological advancements, we must remain cognizant of the human element. With 63% of Malaysian youth currently learning digital skills, we need to track the pace at which our education syllabus is updated and develop mechanisms to make the process more agile and responsive.

   The speed at which we update and roll out our education syllabus should be a key metric, as it directly reflects our nation’s agility in building a skilled workforce. This agility ensures that our education system stays aligned with the latest industry developments, fostering talent that is both current and relevant. It is imperative that we build a gig economy that is not only technologically advanced but also equitable, inclusive, and socially responsible.

As we chart the course for the future, the challenge is not simply to maintain the status quo or disrupt for disruption’s sake. Instead, we must pioneer new ways of thinking across the education sector, social security organizations, government, and think tanks to drive sustainable innovation and ensure that progress benefits the greater good. We must remain vigilant against unintended consequences, harness the power of technology, and build systems designed to uplift everyone, not just a privileged few.

In the end, the true measure of our success will be in how we harness the potential of the gig economy to create a future that is fair, inclusive, and sustainable. It’s not just about disrupting industries; it’s about transforming lives. And that is a disruption worth striving for.