Malaysia PM approves Gig Economy Commission, targets £9.8bn industry
The Malaysian Prime Minister, Datuk Seri Anwar Ibrahim, has agreed to the establishment of the Gig Economy Commission Malaysia (SEGiM) as recommended by Umno, according to Deputy Prime Minister and Umno president Datuk Seri Ahmad Zahid Hamidi. The main objectives of SEGiM are to regulate the gig industry’s ecosystem and ensure the welfare of all involved, including service providers, suppliers, workers, and consumers.
Ahmad Zahid highlighted that around 1.12 million people are currently participating in the gig economy, with an annual growth rate of 23%. He also mentioned that more than 80% of gig economy users are young individuals. The digital economy market in Malaysia has been rapidly expanding, with transactions reaching US$12.6 billion in 2020 and an expected annual growth rate of 23%.
“It will also enable the government to structure a gig economy taxation system that will see a large flow of cash flow through this service abroad,” he said.
Ahmad Zahid explained that the establishment of SEGiM will give new light on gig economy participants, including those in the delivery sector such as Grab, Lalamove, and Foodpanda, among others.
