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Appoint the referee, then write the rulebook on gig workers

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From Wan Agyl Wan Hassan

The government is scheduled to table the Gig Workers Bill for first reading later this month.

The intention is right – to bring formal protections to the millions of Malaysians who now earn through platforms.

But the sequencing is wrong. Passing a complex law that cuts across so many ministries without having a capable steward in place is like drafting the rules of a game without appointing the referee.

The law may look elegant on paper, but it will be difficult to enforce, burdensome for smaller operators, and ultimately disappointing for the workers it is meant to protect.

Malaysia’s gig economy isn’t confined to one ministry’s jurisdiction. It cuts across labour rights, transport safety and licensing, social protection, taxation, competition, payments, and even data governance.

Without a single “systems owner”, conflicting directives are inevitable, data will remain fragmented, and enforcement will be inconsistent.

We have solved similarly cross-cutting policy challenges before by creating commissions – the Communications and Multimedia Commission is one example – where Parliament sets the broad objectives and the commission turns them into clear standards, codes, and directions that the entire industry follows.

International experience makes the case even stronger. The European Union’s Platform Work Directive requires transparency in how algorithms manage workers, human oversight of automated decisions, and better data rights – all enforced by empowered national authorities, not loose committees.

Singapore’s Platform Workers Act, which started in January 2025, phases in work-injury coverage, Central Provident Fund contributions, and representation rights while assigning regulator roles from the outset. These examples show that regulation works best when the enforcement machinery is built first.

Spain’s “Rider Law”, on the other hand, is a cautionary tale. Rushed through without a ready regulator, it suffered uneven enforcement, legal disputes, cost spikes for operators, and in some cases, service withdrawals.

Malaysia has already signalled the creation of the Malaysian Gig Economy Commission (SEGiM). This is the opportunity to put it in place before the bill is passed.

SEGiM could immediately set national data standards for working hours, earnings bands, deactivations, safety incidents, and algorithmic actions.

It could issue a Code of Practice on algorithmic due process, ensuring no “robo-firing” without notice, clear reasons, and a fair right to appeal.

It could launch a single-window dispute resolution system with a 21-day turnaround and start accrediting platforms that meet baseline transparency and safety standards. These protections can arrive in weeks, not years, while the bill is refined to match operational realities.

The cleanest way forward is simple: SEGiM runs the ecosystem, the bill sets the floor. SEGiM handles the technical standards, the codes, the dispute systems, the audits, and the cross-ministry coordination. The bill enshrines the minimum rights such as fair compensation, work-injury coverage, benefit portability, and representation and recognises SEGIM’s codes as binding instruments.

This approach mirrors what already works in Malaysia, and gives Parliament a bill that is ready to function from the moment it is passed.

Pausing the bill to establish SEGiM is not about denying protection to workers. In fact, it accelerates it. Workers would gain due-process protection and a dispute window in the short term, while more complex rights like minimum compensation and portability are phased in with proper cost buffers for small operators.

This sequencing also reduces the risk of hasty amendments on the floor of Parliament and lowers the chances of costly litigation.

Legislating without an implementer is a gamble; one that could backfire on workers, platforms, and consumers alike. Building the referee before writing the rulebook is both the responsible and  effective thing to do.

Let’s use this moment to set up SEGiM now, give it 90 days to deliver tangible protection and a cost implementation roadmap, and then return to Parliament with a bill that is not just aspirational but workable from day one.

Malaysia has one chance to get this right. Let’s legislate with our eyes open.

 

Wan Agyl Wan Hassan is the founder and CEO of MY Mobility Vision, a transport think tank.

The views expressed are those of the writer and do not necessarily reflect those of FMT.

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