Budget 2025: Gig Economy Players Want SEGiM Established Soon

By MUHAMMAD SAUFEE ROSMAN DAN AHMAD AIDIL SYUKRI HAMZAH

KUALA LUMPUR, Oct 3 (Bernama) -- The government is urged to expedite the establishment of the Malaysian Gig Economy Commission (SEGiM) to ensure better organisation and regulation of the gig industry ecosystem.

 Malaysian Gig Community Secretariat chairman Datuk Seri Mohd Sharkar Shamsudin, expressed hope that the initiative will be announced during the 2025 Budget presentation by Prime Minister Datuk Seri Anwar Ibrahim on Oct 18.

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He said this initiative is crucial for securing the future of individuals in the gig economy including e-hailing drivers, p-hailing dispatchers and freelancers.

"There are weaknesses in the current laws, particularly regarding enforcement, safety guarantees, welfare, income and the future of these gig workers.

"For example, in the e-hailing sector, how can the government help drivers who are struggling with the sudden rise in e-hailing insurance premiums, which has affected their job costs?" he told Bernama recently.

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Mohd Sharkar added that the establishment of the commission will empower the government to tackle the oversaturation of e-hailing (EHO) and p-hailing (PHO) service providers, which has led to unhealthy competition and negatively impacted the incomes of e-hailing drivers and p-hailing dispatchers.

In addition, he expressed hopes for Budget 2025, suggesting that the government review and improve the i-Saraan scheme under the Employees Provident Fund (EPF) to safeguard the livelihoods of gig workers, especially as they approach retirement.

"The government could broaden access to a comprehensive social protection scheme, allowing for voluntary or mandatory contributions to the EPF and the Social Security Organisation (SOCSO). This would help establish long-term financial security, including benefits such as accident insurance, medical insurance, and disability support," he said.

He also called on the government to introduce more financial initiatives and tax incentives for gig workers, such as targeted assistance to improve access to vehicle financing, skills training, and capital to start or expand small businesses.

"It is essential that Budget 2025 also considers introducing more flexible laws and regulations that protect workers' rights while ensuring that employers in the gig economy are held accountable for providing basic benefits to their workers," he added.

Meanwhile Malaysian P-Hailing Riders’ Association (Penghantar) vice-president Abdul Hakim Abdul Rani, proposed that the SOCSO Self-Employment Social Security Scheme (SKSPS) for 2024 be retained in the upcoming budget.

"Previously, the government introduced the Mobileprenuer Interest-Free Motorcycle Loan Scheme for p-hailing dispatchers through the National Entrepreneurial Group Economic Fund. We hope the government will consider continuing this initiative," he said.

He also urged the government to enhance and expand upskilling and reskilling programmes for gig workers to help them secure better employment opportunities.

-- BERNAMA