Speaking at the International Social Security Association Technical Seminar in Kuala Lumpur on Tuesday (Aug 27), Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said gig workers must be supported with a social security net that also allows them to upskill without having to lose their earnings.
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NewsTranscript
00:00Today, our gathering is not merely about policy discussions, it is about
00:05international social security partners confronting the multi-faceted challenges
00:12and seizing the opportunities and gathering presented by the growing
00:20platform economy.
00:21In Malaysia, as in many other nations, we have witnessed a dramatic rise in
00:28the self-employed and platform-based world.
00:31The COVID pandemic has related this shift with many entering the gig economy
00:36out of necessity or choice.
00:39The fast-evolving gig economy offers unparalleled flexible and innovative
00:44revenue stream, yet it also exposes gaps in our traditional labor market
00:52and social security frameworks.
00:55A constant of this effort is the Self-Employment Social Security Act,
01:00also known as Act 789, that was established as early as 2017 by PECESO
01:09to protect the self-employed and gig workers.
01:13Workers in the informal sector now pay only 10% of their contributions for 12
01:21months of coverage.
01:23By July 2024, the success of this program was evident, having already achieved
01:31its target.
01:32This program, ladies and gentlemen, has been further bolstered by the enforcement
01:37of mandatory contributions under Act 789, strategically targeting crucial sectors
01:43such as passenger transportation and goods and food transportation.
01:49Recent data as of August revealed that 25.1% of Malaysian workforce, about 3.1
02:00million out of 12.5 million workers, is self-employed, including 1.5 million
02:08freelancers.
02:10We have made remarkable progress since 2017.
02:14From the humble beginning of our first self-employed registration on 2 June 2017,
02:21I am immensely proud to announce that PECESO has now recorded 679,830
02:32self-employed individuals.
02:36As we celebrate this achievement, we must also recognize that there is still much
02:40work to be done, since only about 21% of self-employed individuals have active
02:48PECESO coverage, with 32.78%, or about 222,000, being gig workers.
02:58These figures underscore the significant gap in social protection for a substantial
03:04portion of our workforce, highlighting the urgent need for expanded coverage
03:11and talent solutions for the gig economy.
03:15To address these issues, Malaysia is committed to enhancing the welfare and
03:21well-being of gig workers through a comprehensive strategy.
03:26One key initiative is the establishment of the Malaysian Gig Economy Commission,
03:34known as SEGIM, to regulate the gig economy in Malaysia.
03:40Additionally, the country is making significant progress toward establishing
03:46the Gig Economy Works Act as a groundbreaking move that positions
03:51Malaysia as one of the earliest countries in the world to introduce an Employment
03:56Act specifically for gig economy workers.
04:01This new Act, led by Kusuma, is expected to be tabled before the Cabinet within
04:06the next two months, underscoring Malaysia's commitment to protecting gig
04:11workers, right by the focusing on social protection and contract disputes and
04:16career advancement.
04:19In closing, I extend my best wishes for a productive and insightful seminar and
04:27officially declare the ISA Technical Seminar 2024 on Social Security for the
04:37Self-Employed and Platform Workers here in Kuala Lumpur open.