4 Million Malaysians Worked as Full-Time Gig Workers as of 2020

More people are ordering food or hailing rides online, which significantly boosted the gig economy to unprecedented heights. The Covid-19 pandemic has only provided the gig economy with an extra boost. 

Independent think-tank Emir Research said that about 26% of this country's labour force (equivalent to 4 million people) had already worked as full-time gig workers as of 2020. 

These numbers are consistent with the Department of Statistics Malaysia's (DOSM) figures indicating there already were about 4 million freelance workers in Malaysia by 2020. 

The gig economy

Widely defined as "platform economy", "sharing economy", or "on-demand company", the gig economy refers to the supply and demand of task-based or short-term work activities. 

University Malaysia's Economics professor Datuk Dr Rajah Rasiah defined the gig economy as a component of the economy where freelancers use digital platforms to take part in the economy, including connecting with formal businesses. 

However, Rajah said that the gig economy is not a new phenomenon, and it was already known as a growing sector at the turn of the millennium. The constant lockdowns, required as a step to stop the Covid-19 spread since early 2020, has only accelerated its growth.

Food delivery services have grown exponentially since the last few years.

 The future of gig economy

Data by DOSM shows that as of 2018, the gig economy covered 18.5% of the country's gross domestic product (GDP) and has been estimated to grow to 30% as of 2020. 

Rajah said that provided by the increasing growth of digitisation and digitalisation, the gig economy is projected to grow into a major contributor to GDP for the next five years. 

He added that the economic synergy via digitalisation and the development of Fourth Industrial Revolution technologies have merged to enhance the use of digital platforms in economic activities.

Individuals, organisations and businesses are only seeking to benefit from this synergy.

Rajah stated that the younger generation would drive the gig economy as they are more digitally savvy, thanks to higher exposure to digital platforms.

In a post on Facebook, Prime Minister Datuk Seri Ismail Sabri said more young people should be involved in the digital and gig economy, pointing out its potential to produce good income. 

Boosting job opportunities

Under the National Employment Council (NEC), companies whose businesses depend mainly on gig workers have worked with the government to increase job opportunities. 

For example, Grab Malaysia, which concentrates on ride-hailing and food delivery, now has over 10,000 gig workers. Under the #TechUntukSemua initiative that Grab presented to the NEC in May, there are three main thrusts:

• Enable equal access for Persons With Disabilities (PWD),

• Empower traditional businesses to participate in the digital economy, and

• Simplify regulatory requirements to access flexible and supplementary income.

Grab managing director Sean Goh said that the company believes these initiatives would create access to flexible and supplementary income opportunities and allow traditional small businesses to thrive and benefit from the digital economy. 

Pushing for greater digitalisation in the post-Covid-19 world, the company has introduced its Grab Digital Small-Biz (GDS) programme to assist small businesses in adapting to the new normal. 

Goh explained that the programme includes initiatives and tools to help offline businesses make the transition to online. The programme also helps those already on the Grab platform expand their visibility and adapt their operations to an increasingly digital world. 

He said micro-entrepreneurs and small business owners have also seen a 25% growth in their online revenue via Grab.

However, Goh recognised that the gig economy success is also dependent on the broader economy's health. He said that a weakening wider economy might decrease the income for gig economy workers. 

Source: The Sun Daily

Articles that might interest you 
CIMS Letter No Longer Necessary for Distribution Trade Sector
Employers Can Now Get COVID-19 Self-Test Kits From SOCSO 
Clinic Assistant Unfairly Dismissed After 37 Years of Service