ILO Impressed With Malaysia’s Gig Worker Act To Champion Gig Workers’ Welfare 

KUALA LUMPUR, Oct 22 (Bernama) -- The International Labour Organisation (ILO) has commended Malaysia’s proactive measures in safeguarding the welfare of gig workers through the recently passed Gig Workers Bill 2025 in Parliament. 

Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman said ILO Director-General Gilbert F. Houngbo was impressed with Malaysia's efforts to strengthen labour protection, particularly through what is considered the world’s first comprehensive legislation directly addressing gig workers.

“We briefed the ILO Director-General (Houngbo) on Malaysia’s Gig Workers Bill, which was passed by Dewan Negara on Sept 9 and he was very pleased with how both employers and unions supported the initiative,” he told Bernama. 

Yesterday, Human Resources Minister Steven Sim Chee Keong hosted a luncheon meeting for Houngbo with Malaysian tripartite leaders, comprising government representatives, employers, and trade unions.

The Gig Workers Act 2025, which was approved by Dewan Rakyat on Aug 28 and passed by the Dewan Negara on Sept 9, will extend welfare protection to more than 1.2 million Malaysians who earn their livelihoods through the gig economy.

Sim said on Oct 11 that, the bill is now awaiting royal assent from His Majesty Sultan Ibrahim, King of Malaysia, before it is gazetted and becomes law.

Elaborating further, Syed Hussain said the Gig Workers Act, to be implemented upon gazetting, reflects Malaysia’s commitment to ensuring fair treatment and protection for all segments of the workforce, including those outside traditional employment structures.

“The Act ensures that gig workers are no longer left out of the basic protection offered by labour laws. It provides a framework for social security, minimum wages, and compensation for illness and injury,” he said.

Syed Hussain added that the strong cooperation between the government, employers and unions under Sim’s leadership has been instrumental in making such progressive policies possible.

“We are fortunate to have a minister who is open, approachable and committed to stakeholder engagement. Under his leadership, tripartite discussions between the government, employers and unions have been effective in resolving issues and advancing worker welfare,” he added.

He said MEF also updated the ILO on other recent developments, including the introduction of a two per cent social security contribution for foreign workers and the government’s 24-hour protection coverage for work-related accidents demonstrate Malaysia's seriousness in ensuring no worker, whether local, foreign, or gig-based, is left behind.

He added that the ILO’s positive feedback reflects the success of Malaysia’s tripartite framework and institutions such as the National Labour Advisory Council and the National Wages Consultative Council, which play vital roles in maintaining industrial harmony.

Meanwhile, Malaysian Trades Union Congress (MTUC) president Datuk Abdul Halim Mansor said his party hoped that the ILO would provide more support in the form of capacity building, leadership and technical funding to strengthen the implementation of laws and social protection at all levels.

He said Malaysia is now on the right track to become an example of a developing country that prioritises the welfare of workers in line with international norms which included comprehensive protection regardless of status including contributions to the Employment Provident Fund (EPF) and other social protection.

"The Minister (Sim) also made an effort to go to the ground by visiting 34 unions in 22 months, which proves the government's concern for the welfare of workers.

"In addition, the introduction of new initiatives including the Gig Workers Act 2025 and 24-hour social protection shows the government's concern for the welfare of workers, but for the implementation of contribution and protection schemes, it needs to be shared fairly between the government, employers and workers so as not to burden low-income workers," he said.

Abdul Halim said equality of protection between local and foreign workers including equal contribution rates and old age savings rights also needed to be given attention.

"Local workers contribute 13 per cent to the EPF, so foreign workers should also be contributed at the same rate so that both have fair old age savings, in line with Social Security Convention 102," he said.

-- BERNAMA