Malaysia’s gig economy posted stronger results in 2025 compared to 2024, driven by positive economic momentum and new policy measures. While multiple factors contributed to this growth, the year’s defining milestone was the passing of the Gig Workers Bill in Parliament last August.

The landmark legislation formally recognises Malaysia’s 1.2 million gig workers, who have evolved from a temporary workforce into an essential part of the national economy. With this move, Malaysia now stands among the few countries with specific laws designed to protect gig workers. The Act paves the way for mandatory written contracts, clear dispute resolution mechanisms, and integrated contributions to Socso and the EPF, with strict penalties for platform operators who fail to comply.

A Year Of Growth And Setbacks

The industry’s improved performance comes after a year of both growth and setbacks. While the market remained resilient overall, it faced significant regulatory enforcement. In May 2025, the Land Public Transport Agency (APAD) issued cease-operation orders to e-hailing operators inDrive and Maxim for failing to meet licensing requirements. Many drivers on these platforms were found operating without valid e-hailing vehicle permits or public service vehicle licences.

Although both companies were eventually allowed to resume operations under a three-month monitoring period, the crackdown signalled a shift toward stricter compliance. According to the Malaysian eHailing Association, this regulatory scrutiny is forcing platforms to compete on worker welfare and safety rather than just price. Despite these hurdles, the market continued to expand, with Bolt’s nationwide rollout helping to maintain healthy competition and create new jobs.

Financial Access For 1.2 Million Workers

The legislative changes in 2025 addressed a major financial hurdle for gig workers, proving that their earnings should be classifed as income. The new framework introduces formal recognition through standardised income slips. This documentation is necessary for workers attempting to apply for housing loans, insurance, or bank financing, as they previously struggled to prove their income stability to financial institutions.

Dr Nur Syazwani Mazlan of Monash University Malaysia noted that this push for financial inclusion and the reduction of arbitrary practices by platforms have been among the most significant improvements for workers this year.

What To Expect In 2026

The outlook for 2026 remains steady as the full effects of the Gig Workers Act take hold. The government aims to extend protections to non-platform gig workers, with Budget 2026 emphasising support for independent professionals like caregivers, translators, musicians, and photographers.

With the establishment of new tribunals and wage consultation councils, the coming year promises a more structured environment where workers have clear avenues to resolve disputes. As the sector matures, we can expect to see more specialised services enter the market, potentially including women-only rides and rural-first options, turning gig work into a more secure and sustainable career path for Malaysians.

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