Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi suggested that the allocation for the gig economy be increased to RM500 million from RM100 million in Budget 2024.
He was quoted by Utusan Malaysia saying that the existing provisions are not sufficient to deal with the issues facing the gig industry at the moment.
I’ve instructed the Minister of Human Resources that the existing allocation is not enough, we recommend that RM500 million be given. We know that gig operators are rich people who are getting richer, but gig workers are only given very low wages. This is what we should be fighting for.
Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi
Ahmad Zahid added that large allocations are needed because informal workers including gig workers do not get any proper protection.
For several years, the activities of gig workers have been going on, but they are not cared for, especially the service provider companies who do not consider them as employees and they also do not consider them as employers. We know the gig payment rate is also too low and we also don’t want to pressure the company, but we ask that the issue of welfare and protection must be coordinated.
Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi
A number of steps will be taken by the government to alleviate the situation, among which is by establishing a special Technical and Vocational Education and Training (TVET) program by Majlis Amanah Rakyat (Mara) for gig workers.
He said that the Ministry of Youth and Sports will also be involved in helping gig workers from an entrepreneurial point of view.
This means that for next year, the allocation for informal workers will be increased from RM100 million to a higher amount, to take care of their welfare and protection. So, it is very reasonable if this allocation is increased because there are more than 1.16 million gig workers involved and social protection is only given to the Social Security Organization (Socso).
Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi
A Commission For Gig Workers To be established soon
Ahmad Zahid mentioned that he has informed the Ministry of Human Resources to submit a memorandum to the Cabinet including the establishment of the Malaysian Gig Economy Commission (SEGiM) for approval.
I am confident that the Prime Minister will approve this commission when the minister brings this memorandum, God willing, it will be approved immediately and officially announced at the 2024 Budget meeting this October.
Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi
He was quoted by The Sun saying that this is to improve social protection and the welfare of workers in the industry and it will be established as soon as possible.
