By Zarina Zakaria and Jeya Santhini Appannan

When Parliament passed the Gig Workers Bill in September, it was celebrated as a breakthrough for the millions of Malaysians who make their living through e-hailing, food delivery, freelancing, and other gig platforms.

But the Bill isn’t just about better pay and safety nets – it could also be one of the most important steps Malaysia has taken in its effort to meet the United Nations Sustainable Development Goals (SDGs) by 2030.

The numbers show just how important this law could be.

As of late 2024, Malaysia had over three million own-account workers, many of them gig workers. That is nearly one in five people in the labour force.

At the same time, 3.45 million Malaysians were in informal jobs, often without stable contracts, insurance, or legal protection. Without regulation, gig workers have long been left vulnerable to sudden income loss, accidents, and unfair treatment.

The Gig Workers Bill formally recognises gig workers as a category under the law, giving them new rights and protections.

Among its main features are social security contributions for retirement and injury coverage, timely payment requirements to stop platforms from delaying wages, minimum service standards to prevent exploitation, and the creation of a dedicated Gig Worker Tribunal to handle disputes quickly and fairly.

These changes mean more stability for workers who have long been excluded from Malaysia’s social protection net.

Gig Workers Bill supports SDG goals

The reforms also matter for Malaysia’s pursuit of the SDGs. By directly strengthening protections for a vulnerable group, the Bill supports several goals at once.

It advances SDG 8 on Decent Work and Economic Growth by making gig work more dignified; SDG 1 on No Poverty, by reducing the risk of workers falling into financial hardship; and SDG 10 on Reduced Inequalities, by helping lower-income workers in states with higher poverty rates such as Sabah (19.7 per cent in 2022) and Kelantan (13.2 per cent).

It also links to SDG 3 on Good Health and Well-being, since workplace injury coverage shields families from financial disaster, and SDG 5 on Gender Equality, given that many women rely on gig work for its flexibility.

Finally, by setting up a specialised tribunal, Malaysia demonstrates progress on SDG 16, which emphasises strong institutions and access to justice.

Malaysia has already made significant progress on sustainable development. Electricity access is near universal, unemployment fell to 3.4 per cent in 2023, and the government now tracks over 80 per cent of SDG indicators.

Additionally, gig workers covered under Act 789, by Socso (Social Security Organisation), the same organisation that protects regular employees.

Yet challenges remain: urban poverty has crept up to 4.5 per cent, and inequality between states is still stark.

This is why the Gig Workers Bill is so timely.

By closing protection gaps in a rapidly expanding part of the labour market, Malaysia strengthens its case that growth in the digital age can be both innovative and inclusive.

Malaysia a policy innovator in the digital labour market

The law also carries weight beyond Malaysia’s borders. Gig work is booming across Southeast Asia – from Jakarta’s GoJek riders to Grab drivers in Bangkok and Manila freelancers on global digital platforms.

Yet, few ASEAN countries have put in place comprehensive legislation to protect these workers.

By being one of the first in the region to legislate a clear framework, Malaysia positions itself as a policy innovator in the digital labour market.

This strengthens Malaysia’s relevance in ASEAN in three ways: it allows the country to showcase the Bill as a model of how national policies can directly accelerate SDG progress; it makes Malaysia more attractive to international investors who increasingly factor labour standards into ESG benchmarks; and it lays the foundation for ASEAN cooperation on labour mobility and cross-border platform regulation.

In short, the Bill is not just about protecting Malaysian workers – it could help set the tone for the region.

Of course, laws on paper are only as strong as their enforcement. Civil society groups have already called for strict monitoring of platform companies, affordable contribution rates for workers, and education campaigns so gig workers understand their rights.

If these challenges are met, the Gig Workers Bill could become more than just a labour law.

It could be remembered as the reform that helped Malaysia keep its promise to the world – and to its own people – to achieve the SDGs by 2030, while also cementing its role as a leader in shaping fairer digital work across ASEAN.

-- BERNAMA

Assoc Prof Dr Zarina Zakaria and Dr Jeya Santhini Appannan are affiliated with the Department of Accounting, Faculty of Business and Economics, Universiti Malaya. They may be reached at zarinaz@um.edu.my