Kuala lumpur: The Gig Workers Bill 2025, scheduled for second reading in the Dewan Rakyat tomorrow, will not lead to an increase in service prices or impose an additional burden on consumers, according to economist and policy specialist Dr Geoffrey Williams. He stated that the bill, aimed at providing protection and recognising the role of workers in the gig sector, is primarily administrative in nature and does not introduce new costs to platforms or consumers despite claims to the contrary by certain quarters.
According to BERNAMA News Agency, Dr Geoffrey Williams explained that the only additional cost is a small 1.25 per cent SOCSO (Social Security Organisation) levy, which will be paid by gig workers themselves after they receive payment for their jobs, akin to other workers. This structure ensures consumers will not witness any price hikes. Williams, a former professor and director of the Research Management Centre at HELP University, described the tabling of the bill as a positive move. He emphasized that it provides a much-needed legal definition and framework for gig workers while formalizing SOCSO contributions.
Williams elaborated that the bill is not heavy-handed over-regulation and allows the status quo to continue while addressing concerns about legal and social protection. This approach permits the gig economy to remain flexible and innovative, aligning with his earlier recommendations. He highlighted that the legislation was necessary to supply the gig economy with a proper legal foundation to function effectively, akin to other markets, something that had been absent until now.
In terms of recommendations to improve the bill, Williams suggested detailing legal representation for gig workers during regulatory hearings and expanding coverage to include all gig economy workers, such as professionals and high-income freelancers. He also emphasized the importance of oversight mechanisms, recommending that the Consultation Council provide sufficient monitoring and advocating for an independent regulatory, economic, and social impact assessment to ensure the process is effective without overburdening platform providers.
Dr Nungsari Ahmad Radhi, another economist, also believes that the implementation of the Gig Workers Bill 2025 will not affect service fees. He asserted that gig workers’ contribution to SOCSO is from the workers themselves, unrelated to the prices of goods or services they handle. Nungsari, chairman of Khazanah Research Institute and Malaysia Airports Holdings Berhad (MAHB), expressed confidence that the bill, tabled by the Human Resources Ministry for first reading on Monday, is the best version, considering all aspects. However, he noted that its implementation should be closely observed to determine if improvements are necessary.
Nungsari emphasized the need for gig workers’ legislation, noting that the concept of ’employment’ has evolved, with many gig sector employees, such as delivery riders, remaining unprotected despite facing high risks of accidents daily. He questioned the lack of protection for gig workers in the event of accidents or injuries and advocated for their rights to be safeguarded similarly to other workers. He mentioned that gig workers are not included as employed workers and are excluded from the scope of labor laws, yet they need protection like other workers.
He further explained that the bill is flexible and does not complicate platform providers’ operations. The human resources minister has the power to make regulations through gazettes, supervised by the relevant Parliamentary Committee. Additionally, a tribunal will serve as a platform where both workers and platform providers can have their voices heard in various ways.
Earlier, Human Resources Minister Steven Sim confirmed that the bill would be tabled for second reading tomorrow. Despite calls for postponement by some quarters, the government remains committed to proceeding with it to safeguard the welfare of approximately 1.2 million gig workers in the country. The Gig Workers Bill 2025 mandates platform providers to make SOCSO contribution deductions from every transaction of gig workers’ earnings and sets clear terms and conditions in service agreements to protect workers’ rights. A gig worker is defined as an individual earning income by providing services on a flexible, short-term, or task-based basis rather than through traditional full-time or permanent employment.