Govt told to draw up ‘exit plan’ for gig workers
Published on: Wednesday, December 27, 2023
By:
FMT, Robin Augustin
.jpg "Govt told to draw up ‘exit plan’ for gig workers")
Concerns have been raised over full-time gig workers, including fresh graduates, who are dependent on the gig economy. (Bernama pic)
PETALING JAYA: The government has been urged to develop an “exit plan” for full-time gig workers over concerns that many youths are being lured by the prospect of “easy money” instead of building their careers.
Public policy consultant Wan Agyl Wan Hassan said Malaysia’s gig economy, valued at RM1.33 billion, was attractive to youths, many of whom are Bumiputeras.
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“The gig economy is great for people looking to supplement their income, and for many, especially during the pandemic, it was a lifesaver,” Wan Agyl told FMT.
“But what is worrying is that there are many who are, by choice or otherwise, dependent on the gig economy, and this includes many fresh graduates who are not working in jobs they studied for,” the Agyl & Partners managing partner said.
He said there were even youths who had opted to jump into the gig economy after secondary school instead of furthering their studies.
“But numerous case studies have highlighted the grim realities of the gig economy, including instability, the lack of social security, health coverage, retirement savings and the absence of any kind of career progression.”
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He said this was why it was important for the government to have a clear picture of the gig economy sector, including how many of the estimated 1.12 million gig workers in the country are fully dependent on gig jobs for their income.
“That is the crowd we are worried about, not those who join the gig economy to supplement their full-time income or retirees working gig jobs to pass their time and earn pocket money.
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“What happens if they (full-time gig workers) suddenly cannot do gig work, or if the big companies close? What will happen to these workers? What prospects do they have?”
In terms of social security, gig workers have the option of making Socso and EPF contributions. The government also funds training programmes to upskill gig workers while some gig economy platforms likewise have training programmes of their own.
Wan Agyl said while these initiatives were a good first step, there was a need for the government to educate youths and full-time gig workers on the importance of building a career.
“What the government needs to do is engage gig economy platforms to devise realistic and practical ‘exit plans’ for gig workers. It is important to avoid stringent regulations that could harm the flexibility, dynamics and growth of the gig economy.”
The “exit plans” should include targeted skills development programmes aligned with current market demands so they can find jobs in emerging sectors like e-commerce, electric vehicles, and other digital and tech-related sectors, he said.
These policies should be backed by funding support and the necessary legal framework adjustments, he added.
He said this was especially important given that the Malaysian Employers Federation has said that gig workers will comprise 50% of the workforce by 2030.
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