Gig economy should be temporary income source, says Economy Minister

PUTRAJAYA: The gig economy should be viewed as a temporary source of income rather than a comprehensive solution to the challenges of jobs and wages, says Economy Minister Akmal Nasrullah Mohd Nasir.

He said gig work helped individuals earn an income and make ends meet, particularly when they faced difficulties securing permanent employment.

However, prolonged reliance on such work did not necessarily offer income stability, opportunities to develop skills or clearer career progression, he said.

Akmal Nasrullah said the success of the gig economy should not be measured solely by the number of people entering the sector, but also by how long they remained in it, their earnings, level of social protection and opportunities to transition to more stable jobs or careers.

"Participation in the gig economy may help someone earn an income immediately, but it must not become a dead end for young people and workers seeking to improve their standard of living," he told Berita Harian.

He said the country's real challenge was to create more quality jobs that enabled workers to improve their skills and income over time.

This, he said, could not rely solely on setting or enforcing minimum wages, but must also involve changes to the types and composition of jobs available in the economy.

"The government also needs to direct investments and incentives towards industries with the potential to create more high-value jobs," he said.

At the same time, traditionally labour-intensive sectors such as agriculture, agri-food, halal and manufacturing still had the potential to provide better jobs if supported by technology, digitalisation and targeted investments.

"Increases in productivity resulting from these changes must translate into higher incomes for workers.

"If productivity rises but wages do not keep pace, the country risks losing skilled workers and remaining trapped in a low-cost labour model," he said.

He said the creation of high-value jobs must therefore go hand in hand with efforts to improve skills, productivity and wages.

"The ultimate goal is to ensure that the jobs created do not merely reduce unemployment, but provide decent incomes and clearer career prospects," he said.

His remarks come as Malaysia's labour market continues to show strength in terms of employment levels, although skills mismatches and job quality remain challenges.

According to the Department of Statistics Malaysia (DOSM), the unemployment rate remained low at 3.0 per cent in the second quarter of 2026, with 16.77 million people employed.

However, the rate of skills-related underemployment among tertiary-educated workers remained high at 35.2 per cent.

DOSM also reported that the economy grew 6.0 per cent in the second quarter, while labour productivity, measured by value added per worker, increased 4.9 per cent.

Despite this, the number of new jobs created across economic sectors fell 1.2 per cent year-on-year to 31,500.

The figures suggest that economic and productivity growth alone do not resolve questions over the type, skills requirements and quality of jobs being created.

The policy challenge, therefore, is not simply to expand income opportunities through the gig economy, but to ensure workers have opportunities to upgrade their skills, access social protection and move into jobs offering more sustainable incomes and career prospects.