Budget 2023: Govt should develop gig economy framework, says MDEC

Budget 2023: Government should develop gig economy framework, says MDEC

MDEC sees the gig economy model as a form that, if implemented appropriately, enables people to participate inclusively in the digital economy and also makes a contribution and is a new engine of economic development. — Picture by Yusof Mat Isa

Sunday, September 25, 2022 10:10 am MYT

KUALA LUMPUR, 25 September – The Malaysia Digital Economy Corporation (MDEC) has urged the government to focus on developing a gig economy framework or quality partnerships in Budget 2023 so that gig workers receive proper guidance.

Mohd Redzuan Affandi Abdul Rahim, director of the Digital Adoption Department, Ecosystem Development Division, said MDEC hoped this would give experienced gig workers and new graduates entering the field a better understanding of how to work online.

“MDEC also hopes the government will offer tax incentives to encourage local businesses to harness the power of domestically rather than overseas ‘digital freelancers,'” he told Bernama, speaking after MDEC’s hopes for the Budget 2023 was asked, which will be submitted October 7, 2022.

According to Mohd Redzuan, users must also be incentivized to encourage the use of local platforms such as BungkusIt, MatDespatch, PantangPlus, MrWireman, GoCoach and various other platforms.

He said MDEC sees the gig economy model as a form that enables people’s inclusive participation in the digital economy and, if implemented properly, is a contribution and a new engine of economic development.

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“MDEC also wants the government to step up the efforts we are currently implementing, particularly around standards and reviewing the gig platform, to ensure people who want to participate in this economic model are protected from job fraud.

“This also includes ensuring that all platforms wishing to provide services or operate in Malaysia must be registered with the government via MDEC to be vetted, particularly with regard to the management of personal data,” said Mohd Redzuan.

He said the government, through financial institutions, can also support the development of gig workers through a new method of identifying credit scores so they can get microcredit to expand their business.

MDEC is the agency responsible since 2015 for the implementation of several programs that encourage and encourage the use of the gig economy or sharing economy model, such as: B. the programs eRezeki and Global Online Workforce (GLOW).

Based on program implementation data, it is estimated that up to 1.12 million individuals are employed in the gig economy, taking advantage of the opportunity to earn either a secondary or primary income.

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Mohd Redzuan said that based on MDEC program data from 2016 to June 2020, gig workers earned a total of RM2.86 billion during that period.

As of 2021, a total of 137 platforms have been confirmed and become strategic partners of the program under MDEC, with the total market size for this industry in Malaysia estimated to be at least RM1.61 billion.

“MDEC estimates that the growth of the gig economy, especially with regard to the development aspect of local platforms, will continue to accelerate from about RM 371.4 million in 2021 to at least RM 650 million in 2025,” said Mohd Redzuan.

Meanwhile, Pickup Country Manager Navin Kandapper said that as the gig economy allows people to have earning opportunities based on their personal choice and availability, the company hopes Budget 2023 will create awareness of the gig economy as a flexible way that brings added value to the economy entirely.

“We would also like to see the government provide more support in the form of initiatives such as continuous skills development workshops to raise awareness of earning opportunities or extra earnings based on their availability,” he said.

According to the tech logistics startup, the technology helps by providing a platform to manage and support independent agents by providing clear income awareness, productivity tracking, and automating payments and feedback.

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“As a society, we recognize that participants in the gig economy play a critical role in a rapidly changing society that has embraced e-commerce, grocery delivery and ad hoc transportation solutions,” he said.

Amanda Woo, chief executive officer of Airasia Super App, said that as the gig economy gradually becomes more attractive, gig workers’ social contributions such as the Employees Provident Fund (EPF) and the Social Security Organization (Socso) are becoming more important and should be emphasized in the budget will be 2023.

She said that’s why AirAsia recently announced full-time employment for all gig workers, including its e-hailing drivers and delivery drivers.

“There are 53,000 registered AirAsia drivers in Malaysia. With the recent announcement of full-time employment, we are aiming to have more full-time Allstars drivers by the end of the fiscal year to meet increased demand as all sectors of the economy have reopened,” she said.

Allstars full-time employees receive a basic income (RM2,500), fuel allowance (RM1,000), 90% discount on AirAsia flights (self + family), health insurance (self + family), AirAsia EPF contribution, and Socso coverage . — Bernama

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