Kuala lumpur: The Gig Workers Act 2025 (Act 872), which came into effect today, is a historic step towards recognising and protecting the gig community's welfare in the country, said the Malaysian E-Hailing Coalition (GEM). GEM chief activist Masrizal Mahidin highlighted that the act's implementation is a testament to the ongoing labour reforms, aligning with Prime Minister Datuk Seri Anwar Ibrahim's vision for a fairer and more inclusive employment ecosystem.

According to BERNAMA News Agency, Masrizal emphasized Malaysia's potential to become a model for gig economy regulations at both regional and global levels, provided the Act is implemented effectively and consistently. He urged for collective efforts in shaping a future for gig workers that ensures better protection, sustainability, innovation, and competitiveness.

Masrizal also conveyed GEM's gratitude to Human Resources Minister Datuk Seri R. Ramanan for introducing the Act. The Act is seen as a proactive measure to address the needs of p-hailing and e-hailing workers. Passed in Parliament last year, the Act establishes a legal framework to safeguard individuals working on e-hailing platforms. It includes provisions for social protection, dispute resolution mechanisms, and fairer wage structures, aiming to benefit approximately 1.64 million workers in the gig economy.

Before this Act, gig workers were classified under a contract-for-service arrangement, categorizing them as self-employed and leaving them without protection under the Employment Act 1955. This classification excluded them from mandatory contributions to the Employees Provident Fund (EPF) and the Social Security Organisation (Perkeso) by e-hailing platform companies.