By: Dzuhailmi Dahalan

The gig economy is a branch of the digital-based economy. It is a labor market sector resulting from the 4th Industrial Revolution (IR 4.0) (Apandi et al., 2021). This labor sector is characterized by short-term and flexible employment, mediated by digital platforms or applications that aim to connect workers, employers and clients. The term gig itself means temporary employment. In the gig economy, individuals who engage in it are said to be "gig workers" or "independent contractors" who perform tasks or projects on a temporary, part-time or independent basis and are not permanent. In summary, the main characteristics of the gig economy are flexibility, based on digital platforms, short-term employment, various employment agreements and independent contractor status.

 

The country's economic development is growing rapidly through the gig economy. This labor market has spread and become a trend among Malaysians, especially the youth. Based on a survey on the website of Paul Hyper Page & Co. Malaysia (2023), a corporate service provider entity has a post under the title "Gig Economy in Malaysia: Pros, Cons & Regulation" which states that about 30% of the labor force in Malaysia (5 million people) work in the gig economy and this number is said to be increasing. Among the tasks of gig workers that are common in Malaysia are animation designers, application developers, travel trip consultants, delivery services, driving, translators, teaching and tutorials, creative arts, insurance agents and currency trading brokers.

 

A local news portal citing sources from the Department of Statistics Malaysia (DOSM) reports that the majority (97.71%) of gig workers in food and goods delivery services (p-hailing) in Malaysia are among youth aged 15 to 30 years, while the remaining 2.29% involve seniors who are over 60 years old (Fareez report, 2023). Mansor and Rahim (2020) stated that youth are important contributors to the country's labor market because they represent 40% of the total labor force in Malaysia. In Malaysia, 2018 statistics show that 5.45 million (35.7%) are youths aged between 15-30 years.

 

DOSM research sources (Fareez report, 2023) show that 70.35% of those involved as gig workers make p-hailing their main job and source of income. Only 29.65% of individuals do not make it their main occupation. The findings of the study also found that more than 26% of p-hailing workers earn between RM1,501-RM2,499. More than 23% have an income of less than RM1,500 and more than 11% have an income of RM2,500 to RM3,170. Of the 29.65% of individuals who do not make p-hailing their main job, more than 14% are private workers, 7.12% are government staff and 5.6% are self-employed.

 

This study also found that only 45.07% of respondents have their own insurance policy compared to 54.93% who do not have any insurance policy. A total of 72.25% contribute to the Self-Employment Social Security Scheme (SKSPS), the Social Security Organization (SOCSO), while another 27.75% do not make any contributions. Next, the majority (77.95%) do not contribute with the Employees Provident Fund (EPF), compared to 22.05% who contribute with the EPF. Meanwhile, p-hailing working hours show the three highest categories which are 49 hours - 84 hours a week (30.79%), followed by 30 hours - 48 hours a week (25.84%) and less than 30 hours (25.42%).

 

Other observations found that there are some concerns about gig workers that cannot be dismissed. This includes the right to get other benefits as enjoyed among conventional workers because companies operating with gig economy platforms do not offer these benefits to them in the absence of a formal employment contract between the company and the employee related to this (Jie & Peng, 2023). Working as a gig worker also has the potential to cause self-isolation which has a negative impact on the individual's mental health (Corporate Finance Institute, 2022). This happens due to disruptions in the routine of daily life among gig workers who work irregular (scheduled) shifts that have the potential to harm their psychological (mental) health (Shahzadi et al., 2022).

 

According to Bataineh (2019) since work is an activity that shapes the individual, but due to something boring, burdensome, uninteresting or too complicated, then a person may not be satisfied with the time they spend at work. Typically, a person will spend at least 30% of their life working which makes up most of the adult life. Thus, the experience that disappoints a person in his work environment plays an important role in the aspect of a person's well-being, especially from a psychological point of view.

 

Youth well-being is an important value for the country. It is true that they need to be helped to obtain quality jobs, in accordance with equivalent qualifications and have the potential to improve their well-being. However, human needs are unique, diverse and unequal. Some may already have a career equivalent to qualifications, but still need extra money for a specific purpose. Perhaps to cover the increase in the cost of living especially in the city or other needs that are felt to be appropriate. This can be proven from the DOSM study, of the 29.65% p-hailing workers who do not make it their main job, 14% of them are private workers, 7.12% government jobs and 5.60% self-employed (Report Fareez, 2023). Some others, according to Cheng (2020), did not successfully complete their education at school or successfully completed higher education but did not have the necessary skills to get a high-income job and were unemployed.

 

Whatever happens, the growth of the gig economy segment cannot stop individuals, especially the youth, from earning extra income either by making it their main job or otherwise. However, the question that arises in this context is what is the level of psychological well-being of gig workers in Malaysia especially among the youth? Therefore, the research group of the Institute of Social Science Studies (IPSAS), Universiti Putra Malaysia (UPM) is conducting a study to investigate this involving p-hailing gig workers. The process of refining the study instrument is currently underway and data collection activities will be carried out around November 2024. The results of the study are expected to provide important input to all the main players in the gig economy in Malaysia towards improving the level of psychological well-being among the nation's youth gig workers.   

 

Date of Input: 09/10/2024 | Updated: 20/01/2026 | nm_aini