Leading companies in Malaysia’s gig economy have raised concerns over the draft of the country's upcoming Gig Workers Bill, urging the government to refine key provisions before it is presented to Parliament.

In a joint statement released on Tuesday, companies including Bolt, FastGig, foodpanda, GoGet, Grab, Halo Delivery, Kiddocare, Lalamove, and ShopeeFood expressed appreciation for the government’s proactive approach to shaping the digital economy but highlighted potential challenges with the current draft.

The group, which represents over a million gig workers, emphasised the importance of ensuring the Bill’s provisions are clear, practical, and implementable.

"Before the Bill is presented to Parliament, it is crucial to ensure its provisions are clear, practical and implementable." 

“Without a clear, comprehensive implementation framework, there is a significant risk that the Bill could unintentionally disrupt gig work, increase barriers to entry, and stall the sector’s growth and innovation." the statement read.

The joint statement highlighted two key areas of concern: the proposed consultative council’s impact on industry operations and the ambiguity surrounding social protection contributions for gig workers.

The companies expressed concern that the Bill’s approach to setting minimum industry standards, including controls on fares and compensation, could stifle competition and innovation within the sector.

They also cautioned that a rigid, top-down approach might increase service costs and limit opportunities for gig workers.

“A flexible, market-driven approach is crucial to sustaining sector growth and ensuring gig workers can continue earning,” the statement added.

Another significant point of contention was the Bill's unclear framework for social protection contributions for gig workers who engage with multiple platforms.

The group raised the issue of workers who may perform different roles across various platforms – for example, working for one platform during the day and another at night – which could result in them being required to pay separate contributions for each role.

“Such a requirement could double their financial burden and deter participation in the gig economy,” the companies argued, adding that smaller industry players might face undue challenges, leading to reduced competition and fewer opportunities for workers.

In order to address these concerns, the group proposed two actionable steps to be carried out before the Bill is presented to Parliament.

First, they called for a nationwide feasibility and impact study that would engage both gig workers and platform operators through surveys and data collection.

This, they said, would provide valuable insights into the realities of gig work and ensure the Bill aligns with the needs of workers across different industries.

Second, they suggested the implementation of a "regulatory sandbox" to test key provisions of the Bill in a controlled environment which would allow for feedback, evaluation, and refinement of the provisions before they are rolled out on a larger scale.

The group reiterated its commitment to collaborating with the government, stressing their willingness to provide expertise and work together to create a balanced framework that supports both gig workers and industry players.

“We are confident that with additional time and collaboration, we can create a balanced and effective framework that meets the needs of both gig workers and the industry.

“With the right collaboration, we can craft a framework that protects workers, drives innovation, and cements Malaysia as a front-runner in the gig economy,” the statement concluded.

The Gig Workers Bill, which is part of the Malaysian government's broader efforts to regulate the growing gig economy, has been under development in consultation with industry players.

It is expected to be tabled in the Dewan Rakyat next month.