Malaysia to establish tripartite council to address wages in gig economy

In a significant move to better protect the rights and welfare of Malaysia’s gig workers, a tripartite consultative council will be formed under the forthcoming Gig Workers Bill, Human Resources Minister Steven Sim announced.

The council is expected to serve as a platform for dialogue on wages in the gig economy, involving representatives from government, industry, and worker associations.

Sim made the announcement in response to queries about whether the government would consider implementing a minimum wage for gig workers to strengthen income security. While stopping short of confirming a set minimum wage, he emphasised the importance of creating a legal framework that balances protection with economic growth.

“We want to ensure that this bill is comprehensive and capable of protecting gig workers, while at the same time not hindering the economic growth of the sectors involved,” Sim said.

With more than 1.12 million Malaysians participating in gig work, the proposed bill is currently in its final stages of consultation. The Ministry of Human Resources has conducted 20 engagement sessions with over 3,000 participants, including platform providers, gig worker associations, employers, and both public and private agencies.

Key issues being addressed include social protection, fair wages, and access to upskilling opportunities. Sim highlighted the need to shift public perception of gig work beyond commonly referenced roles such as food delivery riders and e-hailing drivers.

The gig economy is much broader and includes professionals in areas like digital marketing, content development, graphic design, writing and online learning, he explained.

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As part of its broader support for the sector, the government—through agencies such as the Malaysia Digital Economy Corporation (MDEC)—has been organising seminars, workshops, and campaigns to raise awareness of digital business opportunities. These initiatives aim to equip participants with the strategic and technical skills needed to thrive in the evolving digital economy.

Sim noted that many workers are drawn to gig work for its flexibility and income potential. However, he cautioned against gig work becoming a fallback due to a lack of quality full-time employment options.

To address this, the government is also rolling out a progressive wage policy designed to align income growth with skills development and experience. Sim said the policy aims to ensure salaries increase in tandem with workers’ skills, experience, and productivity. It is also intended to encourage upskilling and support more sustainable incomes in the long term, reported New Straits Times.