The Malaysian Employers Federation says there is a need to avoid over-regulation following the passing of the Gig Workers Bill 2025, which it hails as a milestone in view of the country’s evolving labour market.
In a statement, MEF president Syed Hussain Syed Husman warned that over-regulation could undermine the viability of the gig model.
“Excessive compliance costs and rigid employment definitions could deter businesses from engaging gig workers and reduce opportunities for Malaysians seeking supplementary income.”
He went on to emphasise that flexibility was the hallmark of gig work, offering workers the freedom to choose when, where, and how they work, while enabling businesses to scale services efficiently.
“Safeguarding this flexibility will ensure that the gig economy remains sustainable, competitive, and attractive to both local and international investors.”
Syed Hussain called for further consultation between stakeholders to ensure affordable social security coverage for gig workers that would not overburden businesses as well as clear mechanism to resolve disputes unique to the industry.
He said the diversity of gig work must be recognised to ensure policies were not “one-size-fits-all” in nature.
However, he said, MEF welcomed the proposed law as it came at a time when Malaysia’s labour market was undergoing rapid transformation driven by technology, new business models, and evolving worker expectations.
“The Gig Workers Bill is a milestone towards building a more inclusive labour framework that recognises diverse work arrangements.”
Separately, e-hailing activist Jose Rizal thanked Prime Minister Anwar Ibrahim and human resources minister Steven Sim for standing firm on the matter.
Jose, of Gabungan E-hailing Malaysia, said the bill would protect gig workers from uncertainties related to the job.
“But we are aware there is still a long way to go and today is just the beginning.”
Earlier today, the Dewan Rakyat passed the bill which sets out rights for gig workers and rules for firms and platforms that hire them.
The bill, which is aimed at providing protection and recognition for workers in the sector, was tabled for its first reading on Monday by Sim. It was passed with a voice vote.
Key elements include an official definition of gig workers, setting minimum compensation, establishing a complaints mechanism, and ensuring social security protection through mandatory contributions to Perkeso.
