The government has no plans to introduce an algorithm for setting fair wages for gig economy workers, says Deputy Human Resources Minister Datuk Seri Abdul Rahman Mohamad.
Speaking during Minister Question Time in the Dewan Rakyat on Thursday (Feb 13), Abdul Rahman stated that the ministry will continue a balanced regulatory approach to maintain the gig industry's flexibility.
Addressing additional concerns, he reassured that while AI's impact on employment is a growing issue, advancements in artificial intelligence are expected to create new opportunities rather than reduce jobs.
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Speaking during Minister Question Time in the Dewan Rakyat on Thursday (Feb 13), Abdul Rahman stated that the ministry will continue a balanced regulatory approach to maintain the gig industry's flexibility.
Addressing additional concerns, he reassured that while AI's impact on employment is a growing issue, advancements in artificial intelligence are expected to create new opportunities rather than reduce jobs.
Read more at https://tinyurl.com/2czrwj7z
WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
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NewsTranscript
00:00At this time, the Ministry of Human Resources, Sumah,
00:04maintains a balanced approach in monitoring the GIP industry
00:09and has not planned to introduce a specific algorithm to determine the appropriate revenue.
00:17This is because the basic nature of the GIP industry, which is flexible,
00:21needs to be maintained.
00:23Meanwhile, the monitoring of the GIP industry is too tight,
00:26hindering the ecosystem of the GIP that is ready to operate with its own dynamics.
00:33For your information, Honourable Members of Parliament,
00:36on 22 November 2024,
00:40the Ministerial Council has agreed to Sumah
00:43to establish a balanced assembly as found in the GIP Employment Act.
00:48This assembly will serve as a platform for strategic discussions
00:53on issues related to GIP workers in an inclusive and constructive manner,
00:59including workers related to algorithm.
01:03Discussions will be held in a tripartite manner,
01:06involving the participation of GIP workers' representatives,
01:09representatives of entities, contracts, platform providers,
01:13representatives of governments, and other stakeholders.
01:16This assembly is responsible for presenting suggestions and views
01:21that are in accordance with the government on various aspects,
01:25such as the minimum income rate,
01:28the formula used in relation to the minimum income rate and standard.
01:33If the suggestion is accepted and approved,
01:37the strengthening will be carried out by the Minister of Human Resources.
01:40This approach aims to create a balance between the GIP workers
01:46and the entities, contracts, and platform providers
01:50to maintain the dynamic nature and flexibility of the GIP ecosystem in Malaysia.
01:57Thank you, Honourable Minister.
01:59Thank you, Honourable Minister.
02:03Based on the Ipsos Prediction 2025 survey,
02:07Malaysia is among the countries that recorded the highest concern
02:10about the loss of workers due to AI,
02:13where almost 73% of respondents believed that AI
02:16would cause a significant loss of job opportunities,
02:19compared to the global average of 65%.
02:23The question is, what is the government's approach
02:25to guarantee the continuity of more than 1.12 million workers in the GIP industry
02:30behind the development of AI,
02:32including the adjustment of GIP workers
02:35and the transition towards high-performance jobs in the future
02:39without changing the flexibility of GIP workers?
02:48Honourable Minister, Honourable Speaker,
02:50Thank you, Honourable Minister.
02:53In fact, in the field of AI,
02:55as stated by the Honourable Minister just now,
02:57that in the field of AI,
03:02it does not interfere with the flexibility in the field of work itself.
03:07Because it will be beneficial in terms of adding to new fields.
03:14And from the discussions that we have arranged through those things,
03:20what the Honourable Minister said is indeed a lot on that issue.
03:24But for that purpose,
03:28in the long term,
03:31as we have discussed,
03:32the Ministry has initiated an initiative to integrate GIP workers
03:37into the protection of the system of the state through the GIP law itself.
03:43Therefore, if we think that
03:46AI will lead to a reduction in the number of workers,
03:50but in fact,
03:52with the addition of matlamat,
03:58it will be a balance that will not reduce the number of workers.
04:03And in terms of GIP,
04:05in fact, in terms of the goodness of GIP workers,
04:08it is not neglected.
04:10We also discussed so that
04:13it will expand the scope of protection
04:16available to this group.
04:18Therefore, I stated just now,
04:21so that the first reading of this GIP law
04:25will be brought,
04:26if there is an opportunity,
04:28will be brought to the hearing this time.
04:30And I hope that
04:32this GIP law,
04:34which we have arranged for such a long time,
04:37to make this GIP law,
04:39so that they are protected.
04:41For example, as stated,
04:43through their own discussions,
04:45and there is also a discussion through KWSP
04:49so that they are also involved in KWSP,
04:53where KWSP is under the authority of the Ministry of Finance.
04:57And we will also start discussions
04:59through the Ministry of Finance.
05:01Thank you, Your Honour.
05:05Please, Your Honour.
05:09I understand the sincere and good intention of the Ministry
05:13to set a floor price
05:15that can help our GIP workers.
05:19However, I have two observations,
05:22with the permission of constructive criticism.
05:25Firstly, if the floor price is set
05:28with too high a rate,
05:30my concern is that it will overshadow the monopoly that Grab has.
05:34Why?
05:35Grab, which already has a lot of GIP workers,
05:38its advantage,
05:39is able to absorb the losses
05:42if compared to the new GIP companies
05:45that have just entered the market,
05:47which is very small.
05:48On the contrary,
05:50if the government intervenes in determining the floor price,
05:54it can cause a bigger monopoly of Grab
05:57and in the long run,
05:58it can kill other competitors.
06:00This has happened in other countries as well.
06:03The second observation,
06:05if we want to replace the floor price
06:08with the existing dynamic pricing system,
06:11we have to remember that the dynamic pricing
06:13carried out by GIP companies,
06:15the change happens every minute,
06:17every second, sometimes.
06:19Does the government or the ministry
06:21want to determine the floor price
06:23every day, every month, every week
06:26because it follows demand and supply,
06:28location, certain markets?
06:31With that, I hope that
06:33even though I know the sincere intention of the government
06:35to help GIP workers,
06:37but we need to take into account other factors
06:39and also look at the studies that have been used
06:42by other countries.
06:43Don't do it because you have a good intention
06:45but the result is bad.
06:47That's my suggestion to the ministry.
06:50Thank you, Minister, for your answer.
06:52Thank you, Honourable Moh.
06:55I know that Honourable Moh
06:57is very concerned about GIP.
06:59From the last session,
07:02we also raised the GIP issue
07:04and Honourable Moh
07:06did talk about the GIP issue
07:09for a long time.
07:10I am questioning him
07:12because I just want to answer briefly.
07:14We at the Ministry of Human Resources
07:16do not want to use the floor price.
07:19Thank you, Honourable Moh.
07:21Thank you, Honourable Minister.