PETALING JAYA: The Malaysian Employers Federation (MEF) has hailed the passage of the Gig Workers Bill 2025 in the Dewan Rakyat as a landmark reform that will shape the future of work in Malaysia.
MEF president Datuk Dr Syed Hussain Syed Husman said the Bill comes at a crucial time as the labour market undergoes rapid transformation driven by technology and new business models.
“The gig economy has become a vital pillar of Malaysia’s workforce, providing income opportunities to millions, especially youth, women and retirees. MEF fully supports the government’s efforts to institutionalise fair protections for gig workers while preserving the flexibility that is central to the sector’s sustainability,” he said in a statement.
However, he cautioned that over-regulation could undermine the viability of the gig economy.
“High compliance costs and rigid definitions may deter businesses from engaging gig workers and limit opportunities for Malaysians seeking supplementary income. Safeguarding flexibility will keep the gig economy sustainable, competitive and attractive to both local and international investors.”
Syed Hussain added that the Bill also positions Malaysia as a regional leader in modernising labour laws, in line with International Labour Organisation (ILO) principles which call for fair protection for all workers, regardless of employment status.
The MEF also urged continuous consultation with stakeholders to ensure affordable social security coverage, clear dispute resolution mechanisms, recognition of the diversity of gig work and support for innovation in digital platforms.
The Dewan Rakyat passed the Gig Workers Bill 2025 yesterday after extensive debate on its second and third readings, with a voice vote on the final day of the Second Meeting of the Fourth Session of the 15th Parliament.
The Bill, tabled by Human Resources Minister Steven Sim, provides a long-awaited legislative framework to define the status of gig workers. It sets minimum compensation standards, regulates payment practices, establishes a complaints mechanism and mandates social security contributions to Socso.
The law will extend protection to more than 1.2 million Malaysians in platform-based services such as ride-hailing, food delivery and freelance digital work, addressing long-standing concerns over lack of social security, inconsistent pay terms and limited avenues for dispute resolution.
“MEF remains committed to working with the government, ILO and all stakeholders to strike the right balance between protection and flexibility,” added Syed Hussain.