Gig Workers Bill Will Not Burden Consumers, Says Economists

By R. Vikneswaran

KUALA LUMPUR, Aug 27 (Bernama) — The Gig Workers Bill 2025, scheduled for second reading in the Dewan Rakyat tomorrow, will not lead to an increase in service prices or impose an additional burden on consumers, according to economist and policy specialist Dr Geoffrey Williams.

He said the bill, aimed at providing protection and recognising the role of workers in the gig sector, is primarily administrative in nature and does not introduce new costs to platforms or consumers despite claims to the contrary by certain quarters.

“The only additional cost is a small 1.25 per cent SOCSO (Social Security Organisation) levy, which will be paid by gig workers themselves after they receive payment for their jobs, just like other workers. This means consumers will not see any price hikes,” he told Bernama.

Williams, who is a former professor and director of the Research Management Centre at HELP University, described the tabling of the bill as a positive move, noting that it provides a much-needed legal definition and framework for gig workers, while also formalising SOCSO contributions.

“So it is not heavy-handed over-regulation and allows scope for the status quo to continue while addressing concerns about legal and social protection. This allows the gig economy to remain flexible and innovative and is in line with my earlier recommendations,” he said. 

Williams said the legislation was necessary to provide the gig economy with a proper legal foundation to function properly, like all other markets, something that had been absent until now.

When asked for his recommendations to further improve the bill, Williams suggested clarifying details on legal representation for gig workers during regulatory hearings, as well as expanding coverage to include all gig economy workers, such as professionals and high-income freelancers.

He also stressed the importance of oversight mechanisms.

“The Consultation Council should provide sufficient monitoring, but it is equally important to have an independent regulatory, economic and social impact assessment to ensure the process is working effectively without overburdening platform providers,” he said.

Meanwhile, another economist, Dr Nungsari Ahmad Radhi, also in the view that the implementation of the Gig Workers Bill 2025 will not affect service fees.

“The gig workers’ contribution to SOCSO is from the workers themselves; it has nothing to do with the prices of goods or services they handle,” he said.

Nungsari, who is the chairman of Khazanah Research Institute and Malaysia Airports Holdings Berhad (MAHB), also expressed confidence that the bill tabled by the Human Resources Ministry for first reading on Monday is the best version, taking all considerations into account.

Nevertheless, he noted that its implementation should be observed closely to determine if any improvements are needed.

Nungsari said the gig workers legislation is very much needed, given that the concept of ‘employment’ has changed, with many gig sector employees, such as delivery riders, remain unprotected despite facing a high risk of accidents on a daily basis. 

“How can we leave so many gig workers unprotected in the event of an accident or injury? Why aren’t their rights protected?

“Gig workers are not included as employed workers and are excluded from the scope of labour laws, but they need to be protected like other workers,” he said.

Nungsari said the bill is quite flexible and does not burden or complicate the operations of platform providers, while the human resources minister has the power to make regulations through gazettes, which will be supervised by the relevant Parliamentary Committee. 

Additionally, there is a tribunal that will serve as a platform where both workers and platform providers can have their voices heard in various ways, he said. 

Earlier, Human Resources Minister Steven Sim, who confirmed that the bill will be tabled for second reading tomorrow, said that although some quarters had called for the tabling to be postponed, the government remains committed to proceeding with it to safeguard the welfare of approximately 1.2 million gig workers in the country.

The Gig Workers Bill 2025 requires, among others, platform providers to make SOCSO contribution deductions from every transaction of gig workers’ earnings, in addition to setting clear terms and conditions in service agreements to protect workers’ rights.

A gig worker is an individual who earns income by providing services on a flexible, short-term or task-based basis rather than through traditional full-time or permanent employment.

 — BERNAMA

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