Gig economy commission may create unnecessary bureaucratic burdens, govt told

Gig economy commission may create unnecessary bureaucratic burdens, govt told

A transportation and urban planning consultant firm says Putrajaya should focus on enhancing existing frameworks to prevent the creation of 'redundant' regulatory bodies.

Agyl & Partners said the gig economy thrived on minimal regulatory interference, which allows individuals to work flexibly and businesses to innovate rapidly. (Bernama pic)
PETALING JAYA:
A transportation and urban planning consultant firm today warned that the setting up of a gig economy commission risks introducing unnecessary bureaucratic burdens that could stifle growth in the sector.

In a statement, Agyl & Partners also said that the creation of such a commission was not a priority.

It said the gig economy thrived on minimal regulatory interference, which allows individuals to work flexibly and businesses to innovate rapidly.

The establishment of a commission risks adding another layer of bureaucracy, which would lessen its appeal, especially for those who prefer autonomy and flexibility, it said.

It added that a commission would overlap with the existing responsibilities of the human resources ministry and the Social Security Organisation.

“This duplication not only leads to inefficiencies but also creates confusion about regulatory compliance,” it said, adding that operating the commission would require substantial financial and human resources.

It suggested that Putrajaya instead focus on enhancing existing frameworks to prevent the creation of “redundant” regulatory bodies and ensure a more streamlined process.

It said that the government should also boost inter-ministerial coordination in gig economy regulation.

It urged the government to develop policies that can evolve with the changing nature of gig work, adding that flexible regulations can be adjusted as the gig economy continues to grow and change to ensure continued relevance and effectiveness.

“By addressing these strategic considerations, Malaysia can provide the necessary protection for gig workers while preserving the flexibility and informality that define the gig economy.

“This balanced approach will help ensure that the gig economy continues to thrive, benefitting workers and the broader economy alike.”

Yesterday, human resources minister Steven Sim said that the first interim report on a study to establish the gig economy commission would be tabled at a Cabinet meeting today.

Sim said that the report was prepared by the ministry in collaboration with Universiti Malaya.

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