Better to fix job market than intervene in gig economy, says Rafizi

 

Economy minister Rafizi Ramli said a career in the gig economy should not be people’s ‘default’ choice.

PETALING JAYA: Fixing the job market’s structure would be more effective than the government intervening in the gig economy, says economy minister Rafizi Ramli.

In an episode of his “Yang Bakar Menteri” podcast, Rafizi said the government’s focus on salaries, upskilling, and job creation is more important than “grappling” with one or two companies in the gig sector.

“We need to rebalance supply and demand in the market so that university graduates can find employment that suits their qualifications,” he said.

Rafizi and economist Barjoyai Bardai of Universiti Tun Abdul Razak were discussing the trend of young Malaysians joining the informal sector for work.

Rafizi said while people cannot be criticised for pursuing a career in the gig economy as e-hailing drivers or p-hailing riders, it should not be a “default” career choice.

With that said, he acknowledged that “fixing” the job market will take a long time while people would expect issues to be resolved immediately.

“So that’s the part where I get criticised,” he said. “While the government can look at temporary measures, the solution is still long-term, it’s about fixing all of the issues at hand.”

On Friday, about 300 Grab delivery riders held a protest outside the tech giant’s headquarters, demanding that the company resolve several issues affecting them.

Their main demand was for Grab to reinstate the previous base fare of RM5 for deliveries within the Klang Valley, which had been reduced to RM4 recently.

They also urged the government to intervene in response to Grab’s decision to introduce a redesigned earnings scheme, claiming it was opaque and that the new rates would result in lower earnings.

Yesterday, in response to the delivery riders’ calls, deputy prime minister Ahmad Zahid Hamidi said he was dedicated to developing a gig economy commission.

Zahid said he would forward the proposal to the Cabinet given that more than 1.2 million Malaysians work in the gig economy. - FMT