Malaysia and Grab fund RM160 million package to lift gig workers' pay
Representative image: ClickerHappy / Pixabay
Malaysia's Budget 2027, tabled on October 9, 2026, includes a RM160 million package with Grab to raise gig workers' income and savings from 2027.
What Happened
Malaysia's Prime Minister Anwar Ibrahim, presenting the country's Budget 2027 on Friday, October 9, 2026, announced a RM160 million package, funded jointly by the government and the ride-hailing and delivery company Grab, to raise the earnings of gig workers from 2027. The package covers e-hailing drivers, who carry passengers, and p-hailing riders, who deliver food and parcels. It includes higher minimum income rates, help with vehicle maintenance and insurance, and support for social security contributions. Anwar put the number of Malaysians working in the gig economy at about 600,000. A Gig Consultative Council is working out the minimum income rates, an income formula and basic social protection standards, with results expected in early 2027.
Key Facts
- Budget 2027 was tabled on October 9, 2026; the gig package is worth RM160 million and is jointly funded by the government and Grab.
- The package is expected to raise the median net monthly income of e-hailing drivers by up to RM227, and of p-hailing delivery riders by up to RM100.
- The government will match 35% of gig workers' contributions to Socso, the social security scheme, rising to 50% if platforms also contribute.
- A matching incentive for retirement savings in the EPF pays up to RM600 a year, with a lifetime cap of RM6,000.
- Lenders Bank Simpanan Nasional and Agrobank will provide RM270 million in financing for gig workers who want to start a business or buy a first home.
- Grab said it aims to lift its partners' earnings without raising passenger fares, including through a vehicle maintenance subsidy that starts with lubricants.
Why It Matters
Gig work, such as driving for a ride-hailing app or delivering food, is often the first paid job for young people, and for many it becomes a main source of income. The problem is that gig workers are usually treated as independent partners, not employees. That means no guaranteed minimum pay, no employer-paid pension and no automatic accident or health cover. When fuel prices rise or a platform cuts incentives, the worker absorbs the loss.
Malaysia's approach is notable because it does not try to turn gig workers into employees. Instead it sets minimum income rates through a consultative council, and uses public money to nudge workers to save for retirement and pay into social security. The platform shares the cost, and the government matches contributions to make saving more attractive. Financing for first homes and small businesses recognises that many riders want to move on to something more stable.
For young Indians, the story is a useful comparison. India also has many delivery and ride-hailing workers, and the government has been registering gig and platform workers on its e-Shram portal so they can be linked to social security schemes. Malaysia's package shows one way of combining minimum pay, savings incentives and platform funding. It will be worth watching whether the promised income gains actually reach riders once the council sets the rates in 2027.
| Measure | What Malaysia's Budget 2027 offers |
|---|---|
| Joint package | RM160 million from government and Grab |
| Income boost | up to RM227 a month for drivers, up to RM100 for riders |
| Social security | 35% match on Socso, 50% if platforms also pay |
| Retirement | EPF match up to RM600 a year, RM6,000 lifetime |
| Loans | RM270 million for businesses and first homes |
Impact
Short-term: Malaysian gig workers can plan for higher net income and government help with savings from 2027, once the consultative council finalises the minimum income rates.
Long-term: If it works, the model could become a reference for other countries, including India, looking for ways to protect gig workers without ending the flexibility of platform work.
Who is affected: About 600,000 gig workers in Malaysia, platforms such as Grab, passengers and food delivery customers, and policymakers elsewhere studying gig-worker protection.
Key Takeaway
Malaysia will spend RM160 million with Grab to lift gig workers' pay and savings from 2027, offering a model other countries, including India, may study.
Questions and Answers
What did Malaysia announce for gig workers on October 9, 2026?
Prime Minister Anwar Ibrahim announced a RM160 million package, jointly funded with Grab, to raise e-hailing and delivery workers' income and support their social security and retirement savings from 2027.
How much more will gig workers earn?
The package is expected to raise median net monthly income by up to RM227 for e-hailing drivers and up to RM100 for delivery riders.
Is Malaysia setting a minimum wage for gig workers?
Not a general statutory wage. A Gig Consultative Council is negotiating minimum income rates and an income formula, with results expected in early 2027.
Why should young people in India care?
Many young Indians work in delivery and ride-hailing too, and Malaysia's mix of minimum income rates, platform funding and savings incentives is one model India could compare with its own approach.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
Sourced and fact-checked by the Peepals Global Editorial Team
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