PETALING JAYA: New rules to regulate the gig economy must be done gradually to minimise cost increases as higher prices will ultimately impact the workers themselves and consumers, say industry players.

They point to the 2019 commercial vehicle licence that was mandated for all ehailing drivers as an example of how policies could inadvertently cause workers to drop out of platforms while prices increased for passengers.

“Introducing protections for gig workers will increase costs for all stakeholders involved, leading to higher prices for consumers, resulting in reduced demand and fewer earning opportunities for our partners,” Grab Malaysia told The Star.

“As such, any such policy must be introduced gradually to allow time for the market to adjust,” said the platform operator in response to reports that the gig economy Act will likely be tabled in the upcoming meeting of Parliament.

The platform added that any policy must balance the needs and interests of all members of the ecosystem so gig workers can be supported while businesses can grow, the company said.

“It should consider the diverse nature of gig work and ensure that gig workers have access to appropriate protections without imposing undue burdens on platforms or gig workers,” Grab Malaysia said.

Other countries have also faced the challenge of balancing these needs, it said, pointing out that policies that inadvertently increase costs lead to reduced gig work opportunities due to lower consumer demand.

“(These policies) ultimately harm the very gig workers they are trying to protect.”

In 2019, the government’s public service vehicle (PSV) licence rule for ehailing drivers led to 26%, or about 39,000, of Grab’s drivers dropping out due to the time it took to complete the process.

Grab Malaysia said the decrease in the number of drivers had caused dynamic fares to temporarily go up for passengers during peak hours and rainy days.

To prevent a similar impact from the new law, Grab Malaysia said the government must consult everyone involved in the sector, from companies to academia and the gig workers themselves.

“This is essential to ensure the framework is comprehensive, balanced, fair and beneficial for all stakeholders.

“The process should not be rushed as it risks overlooking important factors and trade-offs that could occur.”

Grab Malaysia added that the new legal framework should also emphasise flexibility and encourage innovation and collaboration.

“Any regulation should not impose traditional working models or categories onto gig workers.”

A recent study by government agency MyDigital among gig workers found that they had joined the sector due to its flexibility, ability to generate supplemental income and accessibility.

Given that the gig economy is broad and rapidly growing across many industries, including agriculture, manufacturing and services, close collaboration is needed to create innovative solutions, Grab Malaysia also said.

“In Malaysia alone, there are over 120 digital labour platforms today, compared with just 11 less than a decade ago.

“We believe that by fostering collaboration between regulators, platforms and gig workers, we can create innovative and sustainable solutions that meet everyone’s needs.”

Another big player in the sector, Foodpanda, said it is already working to provide its riders with better protections and benefits, through its Panda Hearts programme.

“The initiatives under Panda Hearts include providing protection for our delivery partners with an option for this to be extended to their families at a discounted rate via our insurance scheme,” it said.

Panda Hearts also runs financial literacy and upskilling programmes for its riders via partnerships with Manipal International and the Youth and Sports Ministry.

“We look forward to continuing to participate in ongoing discussions about the future of gig work with the goal of creating a more sustainable and supportive ecosystem for gig workers,” it added.

https://www.thestar.com.my/news/nation/2024/10/13/balancing-needs-of-platforms-and-workers