Accounting for the gig economy in Malaysia: challenges and opportunities / Salwa Muda ... [et al.]

The gig economy has emerged as a vital component of Malaysia’s labor market, driven by technological advancements and the increasing prevalence of digital platforms such as Grab, Foodpanda, and Shopee. These platforms offer flexible work opportunities, allowing individuals to earn income outside traditional employment structures. Between 2016 and 2021, Malaysia saw a substantial rise in gig workers and digital platforms, contributing not only to workforce dynamism but also to economic growth. The World Bank’s "Informal Employment in Malaysia" report (2024) highlights how gig platforms became a lifeline for many Malaysians during the COVID-19 pandemic. The number of workers using eRezeki, a platform for digital jobs, more than doubled from 333,130 in 2019 to 699,517 in 2020. This rapid growth, especially in location-based gig work, helped many people sustain their income during tough times. Physical gig activities, like food delivery services, dominate the market compared to digital gig tasks, such as freelance graphic design or online tutoring. The pandemic accelerated demand for online services, giving rise to local digital platforms and creating more earning opportunities. Despite these advancements, challenges remain. Gig workers often face issues such as the lack of social protection, the absence of formal employment contracts, and inadequate regulatory frameworks to safeguard their interests (Ahmad Nawawi et al., 2023). As more Malaysians turn to gig work for their livelihood, accounting practices must evolve to meet the unique demands of this growing workforce.