Categories: News

Economic Recovery Plan: Govt allocates RM75 million to stimulate gig economy

The Malaysian Government has allocated RM75 million to support the growth of the gig economy and the welfare of its workers as part of its RM35 billion short-term economic recovery plan.

Prime Minister Muhyiddin Yassin said RM50 million in matching grants will be allocated to gig economy platforms. These funds will be contributed to a gig worker’s Social Security Organisation (SOSCO) employment injury scheme (up to RM162) and the Employees Provident Fund’s (EPF) i-Saraan scheme (up to RM250 yearly).

Also, the Malaysia Digital Economy Corporation (MDEC) will be provided with RM25 million to execute the Global Online Workforce (GLOW) programme to encourage Malaysians to earn an income by freelancing. This would include serving international clients while working online from home.

The government and the private sector are also said to co-finance the effort to encourage micro-enterprises as well as Small -Medium Enterprises (SMEs) to accelerate their efforts to digitise their business with matching grants totaling RM140 million. These allocations will be used for MDEC-led training, subsidies and sales assistance sessions with selected e-commerce platforms.

The government aims to enact these policies starting August 2020. Malaysia has an estimated 30,000 gig economy workers and these new policies will greatly benefit them as many do not have any social security.

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