Abstract
The gig economy has become an important part of the modern labor market, particularly in countries like Malaysia which has gone through a series of technological developments and growth. This study intends to provide a significant understanding of the gig work in digital platforms including the role in the Malaysian economy. The study mainly aims at the gig workers’ demographic profiles to enhance the effective collection of information. Through a detailed literature review, the study provides for various challenges and opportunities that mainly face gig work in Malaysia. The study employs a comprehensive search strategy to enhance the collection of scholarly articles, journals, and reports that are mainly related to the gig economy in Malaysia. The study uses various online databases including; Scopus, Google Scholar, PubMed, and Web and Science. Additionally, the study focuses on Keywords like; “digital platforms in Malaysia,” “gig economy in Malaysia,” “online labor markets” and “gig workers in Malaysia” to collect information that is related to the study variables. The findings of the study show that there is a high prevalence of gig work among young adults hence is mainly influenced by factors like technological literacy, economic constraints, and preference for flexible employment. Various digital platforms like Lazada, Grab, and Foodpanda are of great significance in connecting gig workers to lucrative opportunities thereby enhancing the growth of the gig economy in the long run. The findings also show that gig workers face various challenges including lack of social protection, income instability, and regulatory gaps thereby giving the need to enhance effective policy interventions to protect the well-being and rights of workers.
Keywords: Digital Platforms, Gig Economy, Socio-economic Implication, Malaysia, Self Determination Theory (SDT), Crowdsourcing, Motivation, Technological advancements.
1.0 Introduction
The continuous growth of the gig economy within online platforms has led to increased opportunities for several people. The gig economy is of significance as it helps in providing flexible work arrangements that are mainly enhanced by digital platforms hence is beneficial to the contemporary labor market. In Malaysia, this issue has gained a lot of attention in recent years basically among the young people and the post-SPM graduates. According to Baharudin (2021), there is an increased flux in the post-SPM graduates into the food delivery and the e-hailing sector hence linking this trend to limited financial resources and employment opportunities.
Lack of proper economic opportunities has led many people to engage in gig work to be able to earn a living, with young adults becoming the majority. This change in employment preferences is further supported by the findings of the Malaysian Department of Statistics which mainly provides that young people mostly from the age of 15 to 30 are the majority in the e-hailing sector (Lee, 2022).
Gig work is appealing because it is easily accessible and flexible, allowing people to make money at their own pace. The younger generation, who value autonomy and work-life balance when making job decisions, find this flexibility especially appealing (Panda & Sahoo, 2021). Since the introduction of digital technology, gig economy trends have increased not only in Malaysia but also in other countries. According to the Global Gig-Economy Index, the two countries with the fastest-growing freelancing marketplaces are the United States and the United Kingdom. Gig labor has grown significantly in Asian nations like the Philippines and India, indicating the gig economy’s growing acceptance as a respectable source of income globally.
The gig economy consists of different service providers that tend to come from different sectors and are connected to the customers through various digital platforms. Some of the platforms that have continuously been used include Lazada, Grab, and Grab, FoodPanda, Lazada has become an important player in Malaysia, providing chances for people to work in jobs like food delivery and ride-hailing. The emergence of online platforms has led to easy accessibility of opportunities and services hence playing a significant role in the long run (Vallas & Schor, 2020).
The expansion of the gig economy has mainly led to increased social and economic consequences hence leading to effective income stability. Gig labor mainly provides flexibility and efficient access to the benefits that are available to people in regular employment. The workers tend to face financial constraints as they do not have access to social safety mechanisms like health insurance, retirement benefits, and unemployment benefits (Feldmann, 2023). The privileges provided to the workers are mainly affected by the legislation that classifies them as independent contractors rather than employees, hence leading to improved vulnerability issues (Lim, 2022).
The government of Malaysia has played a significant role in enhancing the growth of the gig economy through enhancing effective digital technology development. The government has gone further into the allocation of funding for digital economy initiatives with a legal framework that provides a favorable atmosphere for efficient entrepreneurship and innovation (Lim, 2022). The purpose of this study is therefore to provide a proper understanding of the gig economy of digital platforms in Malaysia. The study intends to provide a detailed analysis of the economic, social, and legal issues that enhance effective gig labor in Malaysia. Further, it aims to provide important information regarding the motives and obstacles related to gig employment in the Malaysian setting by synthesizing current literature and empirical findings.
The information provided in the study will be beneficial to various stakeholders and legislators as it provides valuable insights related to the complex dynamics of the gig economy.
2.0 Literature review
The literature review mainly provides for the past studies that are mainly related to the gig economy and various challenges and implications that are associated with gig work basically in the digital platforms. Over the years, the gig economy has gained massive attention from various policymakers, scholars, and practitioners hence they provide for different dimensions of the gig economy.
According to Dunn (2020), the gig economy has been steadily growing since its start thanks to changes in job preferences and technology improvements. Debatable topics include algorithmic management, worker protections, and employment norms. These discussions have coincided with this expansion. The gig economy nevertheless draws a varied workforce from a range of industries and geographical areas despite these obstacles (Woodcock, 2021).
The advent of digital platforms such as Grab, FoodPanda, and Lazada has contributed to a notable surge in the gig economy in Malaysia in recent times. According to Fadzil (2020), young people between the ages of 25 and 29 are increasingly working for themselves, which highlights the popularity of gig labor among Malaysia’s youth population. The gig economy is acknowledged as a driver of economic growth by government initiatives including the 2020 Malaysian Budget and the 12th Malaysia Plan (Khalid, 2023). Nonetheless, issues with worker rights, social protections, and legal frameworks continue to be raised (Devereux, 2021).
Earlier studies on Malaysia’s gig economy have clarified several issues regarding gig labor and its effects on both employees and society at large. According to Tolba (2021), social protections for gig workers must be strengthened, especially in the wake of COVID-19. In their examination of the legal safeguards afforded to gig workers in Malaysia, the study points out regulatory inadequacies. The registered associations should be established to safeguard the rights of gig workers in Malaysia.
This study is mainly supported by the Self-Determination Theory (SDT) which gives a significant understanding of the motivation and behaviors of gig workers. The theory intends to provide for the level to which individuals are motivated both internally and externally hence providing for a detailed understanding of the difference that exists between the intrinsic and extrinsic motivations (Yue & Lu, 2022). The theory is mainly essential to the gig economy hence it describes competence, relatedness, and autonomy as significant characteristics that affect the engagement of the gig workers (Wu & Zhou, 2023). To examine the motivations of crowd workers in online crowdsourcing platforms. Ryan & Deci (2020) suggest modifying the SDT model and emphasizing the significance of both intrinsic and extrinsic rewards. According to Anwar & Graham (2021), the gig workers’ motives regarding crowdsourcing platforms consist of various elements like recognition and financial compensation hence playing a significant role in the engagement at work.
The study of the past literature regarding the growth of the gig economy provides valuable insights into various growth patterns and legal obstacles that are faced including the theoretical models. The literature review provides for a comprehensive foundation providing a thorough understanding of the gig work in digital platforms. It is of significance for future researchers to investigate the significance of gig work on the society and economy hence they should push for laws that would support proper handling of workers.
3.0 Methods
This study employs a variety of methods to enhance the effective completion and achievement of the objectives. It provides a detailed review and synthesis of the past literature that was mainly provided by the previous researchers including empirical studies and official reports that are mainly related to the gig economy basically in Malaysia.
The study employs a comprehensive search strategy to enhance the collection of scholarly articles, journals, and reports that are mainly related to the gig economy in Malaysia. The study uses various online databases including; Scopus, Google Scholar, PubMed, and Web and Science. Additionally, the study focuses on Keywords like; “digital platforms in Malaysia,” “gig economy in Malaysia,” “online labor markets” and “gig workers in Malaysia” to collect information that is related to the study variables. The study further conducted a manual search to provide for the reference list which mainly ensures inclusivity in the selection of the articles. This method provided for easy collection of data from a wide variety of articles and academic publications. The resources that are mainly retrieved are of significance in enhancing a better understanding of the complex issues related to gig work and digital platforms basically in Malaysia. The literature review provided various secondary data on the gig economy in Malaysia by employing a variety of search methodologies and sources, which helped to inform the conceptual framework’s development.
The study ensures efficient inclusion and exclusion criteria to enhance the selection of the literature hence leading to the collection of accurate and relevant data. The articles that were relevant to the variables of the study included gig work, digital platforms in Malaysia, and socio-economic issues, particularly about Malaysia. The study limited the publication to the previous 5 years to enhance the significant inclusion of the recent data that provides a real depiction of the condition of the gig economy in Malaysia. To further enhance reader accessibility and comprehension, only full-text articles written in English were considered. The study will mainly exclude studies that mainly focus on other places apart from Malaysia as Malaysia was the focal point of the study. This procedure is of significance as it provides an effective body of logical work that provides for a significant understanding of the dynamics of gig work in Malaysia basically among digital platforms (Anwar & Graham, 2022).
Based on the inclusion criteria of the study, the literature review consists of relevant studies that help in coming up with the conceptual framework and make a significant contribution to the comprehension of Malaysia’s gig economy phenomena. The information that was included in the study is mainly used directly. The data collected is mainly processed, through coding to enhance effective analysis and interpretation. A thematic analysis is then conducted to provide a significant understanding of the study objectives and literature search. Various themes and patterns are provided that are mainly related to past studies on gig work among Malaysian digital platforms.
Through a methodical coding process, similarities and differences among the many research were found, providing a thorough grasp of the subtleties related to the gig economy phenomenon in Malaysia. It was simpler to combine the data and develop a strong conceptual framework that would accurately capture the complex nature of gig employment in Malaysia because of the methodological rigor of this study. Throughout this process, the conceptual framework picked up insightful knowledge from a wide range of academic works, which enhanced its applicability and usefulness in achieving the study’s aims and expanded knowledge in the field of gig economy research. The theory of SDT which mainly provides that people tend to be motivated by both internal and external factors is of significance in the creation of the conceptual framework. Based on the framework, various incentives, challenges, and prospects are related to gig work. These included aspects like competence, relatedness, autonomy, external rewards, and social incentives. Iterative input and validation from specialists in the domains of labor economics, sociology, and digital technology were sought to guarantee the validity and dependability of the conceptual framework. Their opinions and thoughts were added to the framework, improving its analytical rigor and conceptual clarity.
Despite the efficient and complete selection of the criteria for data analysis, this study was subjected to various limitations. There might be potential biases in the selection of the literature as the search strategy mainly relies on the electronic databases as well as keyworks hence it could overlook the relevant studies that use different terminologies. The results that are obtained from the study could also be subjected to biases as the interpretations could be influenced by the perspectives and preconceptions of the researcher. Moreover, the study’s dependence on secondary data restricts access to nuanced insights that could be gained through primary research methods and limits the depth of analysis. These limitations, however, do not affect the significance of the study as it provides a significant understanding of the gig economy and digital platforms in Malaysia. These limitations can be improved by future researchers who consider examining related factors to enhance a detailed comprehension of the gig economy environment.
4.0 Results
The findings of the study provide a significant understanding of the overview of the gig work. The findings mainly show that there is continuous growth like the gig economy in Malaysia hence this has mainly been enhanced by the technological development that has led to changes in consumer preferences and choices. The study shows that there is an increase in the participation in the gig work among the Malaysians basically among the young people who recently graduated.
The study identifies various trends in the socio-economic trends and demographic profiles of the gig workers in Malaysia. The results mainly show that gig work is mainly undertaken by a variety of people including those seeking flexible work arrangements and opportunities for entrepreneurship. According to the government data, gig work is mainly undertaken by young individuals aged 25 to 34 and mainly have secondary and tertiary education qualifications (Fadzil, 2020). The gig economy also draws people from a wide range of socioeconomic backgrounds, such as those looking for chances to start their businesses, flexible work schedules, and extra cash (Woodcock, 2021).
The findings of the study provide an overview of the gig work. The findings provide that the gig economy in Malaysia is dynamic and propelled by technological development which has led to changes in consumer preference and choice. The findings of the study also show that there is an increase in participation in the gig work among the Malaysians basically among the young recent graduates. The study identifies different trends in the socioeconomic trends and demographic profiles of gig workers in Malaysia (Tolba, 2021),
. The findings of the study cover the profile of those interested in gig work as those seeking flexible work arrangements and opportunities for entrepreneurship, and young individuals with tertiary education qualifications according to government data. The economy also contains people from different backgrounds such as those looking for a chance to start their own business, those requiring flexible work schedules as wells those looking for extra cash. Besides the study also clarifies the goals, experiences as well as difficulties faced by gig workers in Malaysia (Wu & Zhou, 2023).
Findings from interviews with gig workers provide the basis for the reason for undertaking gig work by those interested in the need for extra cash the desire for flexible work schedules as well as the desire to pursue business prospects. Some of the difficulties faced by gig workers include inconsistent income, lack of job stability as well as restricted access to social safeguards like health insurance and retirement benefits. Therefore from these challenges, there arises a need for implementing new policies to protect the rights and welfare of gig workers in Malaysia.
The study also covers Malaysia’s legislative framework for gig work, highlighting both the benefits and drawbacks of changing the law. There exists a mixed approach to this as revealed by analysis of industries initiatives and government policies. While some efforts concentrate on addressing labor rights and social protection of gig workers others aim to expand the gig economy through support programs and incentives. The results also point to the necessity of comprehensive and flexible regulatory frameworks that consider the interest of the platform operators gig workers, as well as relevant parties (Anwar & Graham, 2021).
Conclusively the findings of the study provide an in-depth insight into the mechanics of Malaysia’s gig economy its growth trajectory, socioeconomic ramifications, and policy implications as well as policy implications (Dunn, 2020). There is therefore need for policymakers, industry stakeholders as well and researchers to collaborate to create struggles that support sustainable growth of the gig economy while defending the rights and welfare of gig workers by understanding their work environment that’s is their motivations, their experience in the economy of gig work as well s the challenges and difficult they face in the field of gig work
5.0 discussion
The discussion provides a better understanding of the results that are mainly related to the gig economy in Malaysia. From the findings, some of the factors behind the prevalence of gig work are technological advancements, economic conditions as well as changing labor market dynamics, and digital platforms that act as middlemen between job opportunities and gig workers as well as providing ease and flexibility to both consumers and workers. However, the economy has well-seen challenges such as unstable income, a lack of social security, and regulatory obstacles.
The population composition of those in the gig economy or work constitutes a heterogeneous character of this labor market with varying factors such as individuals with varying age ranges, educational backgrounds and job positions with the majority of gig workers found to be young adults between the age of 25 to 34. However, there are also several older age groups reported making gig work diverse targeting people looking for flexible work arrangements.
Additionally, there exists several gig workers who are diploma and degree holders indicating the need for policies and programs that support workers with a range of educational backgrounds and skill sets. Digital platforms play a vital role in the gig economy since they act as the middleman between gig workers and employers together as well as easing transactions. Examples of these platforms are Grab, Foodpanda, and Lazada. the study also highlights the difficulties faced by gig workers which include inconsistent income lack of social security as well as insecurities about their rights as employees. The difficulty therefore calls for the importance of the legislators to close regulatory loopholes and improve gig workers’ rights to social befits fair play and channels for dispute resolution. From the findings, the three urge for the authorities to enforce policies in place to enhance the social and financial security of gig workers such as enacting minimum wage laws, expanding social security coverage, and tightening enforcement of existing labor rules.
Efforts to improve the amount earned by one in the gig economy can be achieved by improving the level of education one has through training and advocating for education programs that increase their skills and capabilities. However, the study leaves a gap for future studies in the same area looking forward to investigating how gig work affects people’s overall well-being, career paths, and financial stability over the long run. Conclusively therefore this study advances knowledge of Malaysia’s gig economy environment while stressing the significance of resolving issues encountered by gig workers in an attempt to guarantee an equitable and welcoming labor market for all.
References
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