The world’s digital landscape is rapidly advancing, and with new innovations being introduced, the evolution of the digital economy is shaping the country’s future workforce industry. However, is Malaysia truly ready for the fast-paced changes that are coming?
The Evolving Landscape
This is the last part of a two-part series on understanding the gig economy in Malaysia
Since the gig economy emerged in the late 2010s, it has undergone significant transformation. Through digital integration, policymakers have refined regulations and introduced laws to manage gig workers. As a result of these protections and benefits, many now turn to gig work for supplementary income, with some viewing it as a full-time career.
A white paper “What gig workers really want: Understanding gig workers’ work and welfare preferences in Malaysia” released by MyCentre4IR recently highlights the rise of digital platforms within the gig economy that has expanded the country’s workforce landscape.
The paper states that gig work is instrumental in helping part-time gig workers achieve financial goals. Making up 70 per cent of the gig economy, this work contributes an average of 37 per cent to their total income. This substantial boost in income has enabled part-time gig workers to improve their quality of life and financial planning, allowing them to pay off loans, afford big purchases, and save extra money.
The analysis also examined the hours part-time gig workers spent on their jobs each week, showing that 22 per cent spent 31 hours or more on gig work, with this trend being more prevalent among location-based gig workers, such as drivers and food delivery riders.
Meanwhile, 42 per cent of full-time gig workers clock in at least 41 hours or more per week. Within this percentage, full-time location-based gig workers overwhelmingly work more than 41 hours per week (50 per cent), compared to only 14 per cent of non-location-based gig workers.
The analysis highlights three key points:
⦁ The prevalence of long working hours may indicate either inadequate compensation or financial instability in their overall income sources, or it could suggest greater opportunities for higher earnings.
⦁ Excessively long hours in gig work may hinder opportunities for personal and professional development, further entrenching individuals in a cycle of low-paying, low-skilled work without the prospect of upward mobility or improved financial security.
⦁ For location-based gig workers, prolonged shifts may raise safety concerns, as fatigue from extended hours could compromise workers’ alertness and attentiveness during tasks such as driving or operating machinery.
Turning to gig work as a means of earning
Having been a gig worker for seven years, Sharipah Mazenah started as an e-hailing driver in 2017. Despite being a 59-year-old in the industry, she continues to work because she believes it is better to be active than to live a sedentary lifestyle.
“By doing e-hailing, I can work flexible hours, and the earnings are great. I get to meet a lot of people while driving, and we have time to chat while doing our job, rather than sitting at home watching movies. I find that by being active, I can avoid or minimise the risk of Alzheimer’s or dementia.”
She added that, as a mother of a large family, gig work provides flexibility, allowing her to juggle household responsibilities as well. When asked whether working in the gig economy could provide stability, Sharipah mentioned that it really depends on the hours she invests in her work.
“I would say that as a retiree, the variability of income depends on my health and family needs,” she revealed.
As a full-time gig worker and a retired teacher, Sharipah feels that the innovations in technology and the introduction of digital platforms have given her the opportunity to earn an income. Furthermore, the development of these platforms over the years has seen tremendous improvements.
Sharing a comparison between then and now, she noted that the application now displays the route on the in-app map navigator.
“Furthermore, platforms like Grab provide a button to click for the police in case of any emergencies during a ride. Features like these contribute to our safety as gig workers,” she said.
Other benefits that the Grab platform provides include maintenance oil, pit stops for food and rest, financing for her gadgets, and more under “Grab Benefits”.
“Grab can even assist us financially if we need help. Everything is just a click away. Additionally, we also receive PERKESO and SOCSO benefits from the government despite our status as gig workers.”
Talking about her retirement plans, Sharipah noted that she would continue until she couldn’t drive anymore, as being a Grab driver requires fitness. This is why she starts saving from the rides she receives. However, with the rising cost of living in the country, she finds it difficult to balance her funds between maintaining her car, daily expenses, and savings.
Sharipah is just one of many gig workers reflecting the evolving landscape of Malaysia’s gig economy. While the gig economy offers flexibility and opportunities for financial independence, it also raises important questions about long-term stability and the wellbeing of its workers. As more Malaysians turn to gig work for income, it becomes essential for platforms, policymakers, and the workers themselves to advocate for better protections, benefits, and fair compensation.
Ultimately, the future of the gig economy will depend on how well it can adapt to the needs of workers while fostering innovation, safety, and sustainability in this rapidly transforming sector. With continued improvements and support, gig work can remain a viable option for many, offering more than just a means to an end, but also a path to personal growth and economic security.
