There are concerns about Malaysia’s gig economy and its long-term impact on the wider economy, despite its rise
One notable development is the growing interest of recent graduates in gig work, which may lead to missed opportunities for crucial skills development
More than 48% of Sijil Pelajaran Malaysia (SPM) graduates opted not to pursue further education in 2021
A UCSI Poll Research Centre study found that just half of recent SPM graduates are considering tertiary education, with 26% showing interest in the e-hailing sector
This shift could significantly impact Malaysia’s transition from a consumer-driven to a producer-driven economy, a necessary step to achieve high-income status
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Gig workers in Malaysia are facing job security, lack of benefits, and limited access to training and education
These challenges have not stopped the gig economy, with over 26% of the Malaysian workforce being comprised of freelancers, driven by the allure of flexible working hours
A study with 1118 working-age Malaysian respondents found that 38% of those currently in full-time employment are looking to enter the gig economy in the next 12 months
The Covid-19 pandemic has potentially accelerated this trend, especially among younger generations like Millennials and Gen Z
The government has allocated RM40mil in the 2023 budget for gig workers, and the Malaysia Digital Economy Corporation has established the Global Online Workforce programme to stimulate the gig economy
Efforts are being made to recognize the gig economy’s economic and social impact, emphasizing worker protections and skill development
For Malaysian companies, the rise of gig work requires a re-evaluation of human resource practices, including integrating gig workers more seamlessly and providing benefits traditionally reserved for full-time employees
The Human Resources Ministry is developing policies specifically for gig economy workers, anticipating more comprehensive legislation
The global gig economy, marked by the continued expansion of gig work, is reshaping the global labor market
The gig economy’s rise is driven by flexibility, potential for higher earnings, and autonomy; businesses are increasingly hiring independent workers to enhance flexibility and efficiency
The pandemic has fueled the gig economy’s growth, expanding the pool of self-employed contractors
The gig economy also presents challenges, particularly in regions such as South and South-East Asia, where young, unskilled laborers are employed without long-term benefits like health insurance and retirement plans
Self-motivation is crucial in the gig economy, though its inherent flexibility can lead to erratic work schedules and income
Payoneer’s 2023 Freelancer Report found that women freelancers earn slightly less than men, highlighting the need to bridge the gender pay gap
The gig economy also exacerbates the digital divide, with those lacking access to technology at a disadvantage
Efforts are needed to ensure fair treatment and comprehensive protection for gig workers in order for the gig economy to evolve into a sustainable and equitable employment model
Grace Hooi Yean Lee is the Head of the Department of Economics, School of Business, Monash University Malaysia. This article is part of a Special Report on the ‘Asian Gig Economy, produced in collaboration with the Asian Research Centre-University of Indonesia.
Originally published under Creative Commons by 360info™.
