Abstract
Gig workers are part-time workers or freelancers offering their jobs and services via platform economy. The recent Covid-19 pandemic has highlighted the plight of gig workers, in which in most cases, they do not receive similar benefits and perks associated with permanent jobs. This study explores the future direction of the gig economy in Malaysia. A survey questionnaire was distributed to 200 respondents from Universiti Sains Islam Malaysia in August 2020 based on purposive sampling. The results suggest that most of the respondents have at one point, during the movement control order (MCO), involved in gig jobs such as dropship, courier services, and food delivery. They feel that gig jobs have a good prospect and contribution to the economy. For the employers, benefits such as social security contributions and medical benefits received by permanent staff should be made available for gig workers subject to negotiated terms. For gig workers, they need to continue the process of upskilling and reskilling to remain competitive in the job market. Policymakers may utilize the information of the market structure and demand for the gig jobs labor market and devise appropriate strategies to support the gig economy as a new source of growth.
Highlights
The gig economy is identified as a new source of economic growth and would be made part of the 12th Malaysia Plan as announced by Tun Dr Mahathir Mohamad in early 2019
Gig jobs are prevalent among younger generations because they can offer their services through apps and websites worldwide and not be hindered by geographical locations
Most of them think that part-time jobs help them navigate through the difficult period of the Covid-19 pandemic and they perceive that gig jobs will contribute to the economy in the future
Summary
The gig economy is identified as a new source of economic growth and would be made part of the 12th Malaysia Plan as announced by Tun Dr Mahathir Mohamad in early 2019. The word 'gig' used to be associated with performing artists hired for short-term engagements. The word gig later was identified with any job that is on an ad hoc or temporary basis. Examples of gig jobs are freelancers, project-based workers, independent contractors, and part-time hires. The gig economy flourishes because remote working, technology advancement such as virtual meetings and co-working spaces, makes hiring freelancers a norm in the human resources industry. In Malaysia, according to the World Bank data, about 26 percent of the total of 15.3 million Malaysian workforces are freelancers and the trend is increasing.
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