FMM PRESS STATEMENT: FMM Hails Gig Workers Bill 2025 as a Balanced Step Towards Inclusive Worker Protection

August 29, 2025

Head Office, KL

Kuala Lumpur, August 29, 2025 — The Federation of Malaysian Manufacturing (FMM) welcomes the passing of the Gig Workers Bill 2025 by the Dewan Rakyat yesterday. FMM regards this as a balanced and progressive step towards formalising and protecting Malaysia’s significant gig workforce. Coming a few days before the Merdeka celebration, the passage of this landmark legislation is a timely gift to the nation, as it establishes a crucial dedicated framework that addresses a long-standing gap in the country’s labour laws.

FMM upon going thru the Bill and as presented by the Human Resources Minister YB Tuan Steven Sim Chee Keong in Parliament yesterday, is of the view that the Bill provides much-needed structure in key areas such as income security, social protection through PERKESO, and access to a dedicated dispute resolution mechanism. These measures are essential to safeguard the welfare of gig workers while recognising the unique nature of the gig economy.

However, while the employees in the manufacturing sector already operate under the protection of existing labour legislation, the Bill represents a forward-looking approach to the realities of the modern economy. It establishes an adaptable foundation that acknowledges the possibility of more flexible work arrangements, including gig-style models, that may emerge even within traditional industries in the future, including manufacturing.

For the manufacturing sector, the Bill also offers assurance as the economy transforms with digitalisation and the adoption of Industry 4.0. Manufacturers are increasingly engaging gig workers for specialised tasks such as data analytics, digital content, robotics support and project-based technical expertise. While such services are not explicitly included in the current definition of gig workers under the Bill, the establishment of this dedicated framework lays the groundwork for future enhancements to the legislation. Over time, this will provide much-needed clarity and certainty for manufacturers in engaging specialised flexible talent, ensuring that innovation and competitiveness can scale in tandem with fair treatment and protection for workers.

At the same time, FMM emphasised that the success of the Bill will depend on its balanced implementation. It is vital to strike the right equilibrium between safeguarding workers’ rights and maintaining the innovation, competitiveness, and growth potential of the platform economy. While this thoughtful initiative is very welcomed, FMM would like to caution any over-regulation could inadvertently stifle the very sector that the Bill seeks to protect.

FMM also stresses that any future extension of similar regulatory frameworks to other sectors of the economy must be undertaken only after extensive and meaningful consultation with all stakeholders, including industry representatives. This is to ensure clarity, avoid duplication, and prevent unintended burdens on existing employers who are already governed by established labour laws.

The Gig Workers Bill 2025 is a significant milestone for Malaysia. It reflects a mature understanding of the new economy and sets a precedent for inclusive worker protection. We would like to emphasise that focus must now be on ensuring the implementation is pragmatic, avoids placing unintended burdens on businesses, and ultimately fosters a fair and sustainable ecosystem for all parties involved. We hope that all relevant stakeholders will come together to ensure that the Bill achieves its intended objectives for gig workers while supporting the sustainability and competitiveness of Malaysian industries.

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Tan Sri Dato’ Soh Thian Lai

President, Federation of Malaysian Manufacturing

FMM Advocates Transparency, Integrity, Accountability and No Corruption

About FMM

The Federation of Malaysian Manufacturing (FMM) (formerly known as Federation of Malaysian Manufacturers) has been the voice of the Malaysian manufacturing sector since 1968, advocating policies and initiatives that drive industrial growth, competitiveness and workforce development. Representing over 13,100 member companies (4,100 direct and 9,000 indirect) from the manufacturing supply chain, FMM is actively engaged with government and its key agencies at Federal, State and local levels. FMM is also well-linked with international organisations, Malaysian businesses and civil society. Apart from benefitting from FMM’s advocacy, FMM members enjoy value-added services including training, business networking and trade opportunities as well as regular information updates.

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