The truth of informal entrepreneurs in Malaysia

Malaysia's economy heavily relies on informal entrepreneurship, particularly among marginalised people and in urban areas. During the past few years, particularly following the covid-19 pandemic, the informal sector comprises a significant portion of entrepreneurial activity in Malaysia, but there is a lack of comprehensive understanding of the relationship between entrepreneurial income and the well-being individuals involved in this sector. Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the higher employment in the informal sector was partly due to the impact of the Covid-19 pandemic (The Star, 2022). In details, about 57% or two million people were employed in the informal sector, whereas 42% or 1.5 million people were employed in the formal sector.