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- Malaysia establishes SEGIM ahead of the Gig Workers Act 2025 enforcement on 31 March 2026.
- Act 872 introduces stronger protections, including contract transparency, dispute resolution, and SOCSO coverage.
- Gig Consultative Council and Tribunal to support governance and dispute resolution.
Malaysia has established the Malaysian Gig Economy Commission (SEGIM) to strengthen governance of the country’s gig economy ecosystem ahead of the enforcement of the Gig Workers Act 2025 (Act 872).
In a media statement, the Ministry of Human Resources (KESUMA) said it welcomes the government’s decision to set up SEGIM as the main coordinating body to coordinate and strengthen the gig sector. The move comes as Act 872 is scheduled to come into full force on 31 March 2026.
At this stage, SEGIM will focus on gig workers operating through digital platforms. However, the Act under KESUMA introduces broader protection that covers both platform and non-platform gig workers.
According to the Ministry, the legislation aims to provide a clearer legal framework to safeguard the welfare of gig workers while ensuring the gig economy develops in a sustainable, orderly and fair manner.
Under Act 872, several mechanisms will be introduced to strengthen worker protection. These include contract transparency, clearer dispute resolution mechanisms, and stronger social security protection.
KESUMA said these measures are intended to ensure that working relationships between gig workers and platform providers are implemented in a more transparent, balanced, and responsible way.
It added that preparations for the enforcement of the Act are currently in the final phase.
Among the key steps is the establishment of the Gig Consultative Council, a tripartite platform bringing together government representatives, gig worker representatives, and contract entity representatives.
The council will advise the government and submit recommendations on matters such as minimum income rates, formulas and minimum standards for the gig sector. It will also serve as a platform for dialogue, negotiation and policy advice on issues within the gig economy ecosystem.
KESUMA will chair the council as the lead ministry responsible for policy development and implementation of Act 872.
To strengthen coordination and avoid duplication of roles between SEGIM and the council, KESUMA has also nominated a public officer representative through the Office of the Deputy Prime Minister to sit on the council.
Act 872 also enhances social security protection for gig workers. Under the provisions, platform providers are required to ensure gig workers are registered under the Self-Employment Social Security Act 2017 (Act 789).
Platform providers must also make deductions from gig workers’ income for contributions to the social security scheme administered by the Social Security Organisation (SOCSO). This is expected to increase participation in the scheme and ensure gig workers receive protection in the event of accidents while performing their services.
As part of the preparations ahead of the Act’s enforcement, KESUMA has also introduced several supporting mechanisms, including the establishment of a Gig Workers Tribunal. The aim of the tribunal will be to provide a faster, more transparent and accessible dispute resolution channel for gig workers. At the same time, implementation guidelines are being issued to platform providers to help ensure compliance with the provisions of Act 872.
Moving forward, KESUMA said it will continue working closely with SEGIM and stakeholders, including industry players, gig worker representatives and government agencies, to ensure the smooth implementation of the Act.
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