This article first appeared in Forum, The Edge Malaysia Weekly on June 22, 2026 - June 28, 2026

On March 31, the Gig Workers Act (Act 872) came into force, extending legal protections to about 1.6 million gig workers in Malaysia. The road to this Act was long. Discussions to formalise gig work began as early as 2020/21, well before the bill was tabled in Dewan Rakyat in August 2025. However, gazettement was very fast, only four months later, on Dec 31, 2025.

Act 872 covers three main areas. First, it gives gig workers a clear legal identity. Second, it provides automatic social security through the Social Security Organisation (Socso). Third, Act 872 creates clearer governance through two entities: the Gig Consultative Council, a tripartite body bringing together government, gig workers and platforms and the Gig Workers Tribunal to adjudicate disputes. Both institutions were appointed and became operational on April 1, 2026.

Act 872 requires platform providers to deduct Socso contributions automatically from task earnings to cover work-related accidents and occupational diseases. This replaces the previously voluntary contribution mechanism of the Lindung Kendiri scheme. By November 2025, some 298,827 gig workers were actively contributing to Lindung Kendiri. The government subsidised up to 70% of worker contributions (or up to RM 232.80 per person per year) in 2026, in a programme called Kendiri Padanan 70. It is unclear if Kendiri Padanan will continue beyond 2026.

Some gig platforms offer additional channels for protection from on-the-job accidents or damage of the vehicles. For instance, Grab provides complimentary group personal accident insurance for drivers and delivery partners during their work. It covers accidental death and permanent disability up to RM40,000. Grab also offers the Grab Daily Insurance, an optional usage-based motor insurance that costs between RM1 and RM5.50 per active day.

Socso’s Lindung Kendiri and gig platform insurance programmes mostly address workplace accidents and offer temporary financial security in case of accidents at work. The health coverage is at best partial.

For example, Lindung Kendiri only covers work-related injuries and occupational diseases. They do not cover clinic visits for flu or hospitalisations for surgery. If an underinsured gig worker falls ill off the job, whether flu or appendicitis, no private or supplementary scheme currently provides for them. The gig workers either pay out of pocket in the private sector or could be forced to delay treatment. There is the option of public clinics and hospitals but long waiting times often mean that gig workers will receive no income while they wait for healthcare.

What is worrying is that a 2024 study from Institut Sosial Malaysia found that six in 10 gig workers surveyed had no regular savings. According to Bank Negara Malaysia, only about 22% of people in Malaysia hold individual insurance (MHIT Plan) and the percentage for the gig workers is even lower. This puts the gig workers who have variable income and no financial safety net in a vulnerable position, especially if they require long-term medications for diseases like diabetes.

Malaysia is not alone in struggling with the problem of insufficient health coverage for gig workers. Across Southeast Asia (SEA) and beyond, health coverage for gig workers is one of the most commonly unaddressed gaps in social protection systems.

So far, Singapore offers the most substantive health-linked protection for gig workers. Under the Platform Workers Act, effective Jan 1, 2025, platform operators must deduct and submit Central Provident Fund contributions, including to each worker’s MediSave account (a personal “health savings account” for any healthcare spending). For workers born after Jan 1, 1995, operator contributions doubled to 7% in 2026 and will follow standard employer rates of 17% by 2029. Operators must also carry Work Injury Compensation insurance, capping medical expense coverage at S$53,000 per accident. The government is absorbing 100% of the worker’s contribution increase in 2025, tapering to 25% by 2028. The act stops short of mandating private health insurance, with coverage limited to platform workers — namely ride-hailing and delivery workers — and excluding other gig workers. (Malaysia has recognised nine subsectors of gig workers, for example, palliative and elderly care, translation and journalism).

Thailand has proposed amendments to Section 40 of the Social Security Act, effective October 2025, to improve benefits for over 500,000 informal and self-employed workers without raising contribution rates under the voluntary health plan. Under the lowest tier at THB70 per month, workers receive outpatient medical compensation of THB200 per visit, up from THB50, capped at three visits per year as well as inpatient compensation of THB300 per day. The scheme remains voluntary and self-initiated, however, leaving workers who are unaware or unable to contribute without any protection.

Today, Indonesia has no standalone gig worker law. The recently enacted Presidential Regulation 27/2026 targets only online transport drivers, requiring platforms to cap platform commissions at 8%. In theory, BPJS Kesehatan is a universal scheme covering 278 million people but coverage remains voluntary and self-financed and only about 33% of gig workers are enrolled in any social security scheme in Indonesia. A gig worker protection bill sits on Indonesia’s 2026 parliamentary priority list but has yet to be passed as at May 2026.

Malaysia’s enactment of Act 872 is among the first dedicated legislation for gig workers in Southeast Asia, after Singapore and Thailand. Most Asean peers, including Vietnam and the Philippines, still primarily rely on voluntary opt-in or platform-driven protections without a legal framework. Expanding to health coverage would further strengthen the Malaysian Ministry of Human Resources as a regional leader in the gig economy.

We propose four additional mechanisms to expand healthcare protection for gig workers in Malaysia.

(i) Provide a two-year subsidy with flexible premium schedules in Year 3 onwards

A huge barrier to health insurance uptake is the upfront payment for premiums, which may be as high as RM1,440 annually for a gig worker aged 31-35 (according to Bank Negara’s Base MHIT White Paper). As gig workers’ incomes are not stable, it may take time to save up for the annual premium in a single transaction.

The government should introduce a start-up subsidy for the first two years of health premium contributions. This is akin to the model used for Lindung Kendiri, where the government covered a large share of contributions for new enrollees to incentivise gig workers to look beyond the upfront payment.

In Year 3 onwards, this subsidy can be provided on “day one” and then be repaid with a daily or weekly deduction option — managed either by the platform, by Socso or by gig associations or cooperatives. In this way, gig workers are eased into a contribution routine over time while the upfront cost becomes less daunting.

(ii) Introduce a platform co-contribution mandate

Act 872 requires platforms to administer Socso deductions. A similar mechanism can be applied to health contributions through a phased mandate. We propose this structure: platforms co-contribute a fixed amount of RM1 to RM3 per active working day. Based on an average of 20 working days per month, this translates into RM20–RM60 per month in platform contributions.

This is sufficient to co-fund a basic health plan when matched by the worker’s own daily contribution. The co-payment should be structured such that platforms bear a meaningful percentage of the total premium cost, with the remainder split between the worker and, where applicable, a government top-up. Mechanisms one and two are complementary and not mutually exclusive.

(iii) Offer “micro-health plans”

On an individual basis, Malaysia’s micro-insurance and micro-Takaful market already offers entry-level plans from as low as RM10 to RM75 per person per year with no medical check-up required. Separately, the Perlindungan Tenang Voucher Scheme gives low-income recipients RM30 to purchase basic insurance or takaful products. While we welcome the Base MHIT pilot in 2H2026, we also think that a “micro-Base MHIT” product may be needed for the lower purchasing power of gig workers.

One distribution channel is through gig worker associations. Gig workers can join associations like Gabungan E-Hailing Malaysia (GEM), which may move towards a “health plan by default” approach, whereby a portion of membership dues is channelled towards a collective health plan. This increases purchasing and bargaining power while keeping costs low, reducing adverse selection risk and reducing per-person premiums without requiring individual workers to navigate the insurance market alone.

(Disclosure: Angsana Health is in discussions with GEM to provide such health plans for gig workers).

(iv) Create a health subcommittee in the Gig Consultative Council

The Gig Consultative Council (MPGig) held its inaugural meeting on April 3, 2026, focusing on income floor rates and sector standards. MPGig is a tripartite forum covering government, workers and platforms. We propose that MPGig creates a dedicated health subcommittee, comprising insurers, takaful operators, Socso, Employees Provident Fund (EPF) and platforms, to advise on policy and implementation for comprehensive health coverage.

To minimise the duplication of coverage and to ensure coverage is complementary or supplementary, a critical first task is to produce a national gig health coverage map. First, it documents which health gaps require financing, such as hospitalisation, general practitioner visits or medication. Second, the map guides all stakeholders to discuss how to co-fund through mechanisms such as platform co-contribution, subsidies or association membership plans. The map can serve as a shared reference for policymakers, insurers and platforms so that financing schemes address a real gap in comprehensive health coverage, rather than duplicating existing cover.

Act 872 recognises gig workers as employees and provides a layer of legal protection. But legal recognition without health security is incomplete. The good news is that the infrastructure already exists. Socso’s deduction systems, EPF’s digital matching tools (for i-Saraan Plus), MPGig and the growing microinsurance and group takaful markets are all in place.

With basic social protections now being delivered through Act 872, the next step is to expand gig workers’ access to health coverage. Malaysia can lead the health and social protections for the gig economy using the four mechanisms proposed above to set the standards for the rest of the world.

Esther Chua is trained in public health and is consulting director at Angsana Health. Jose Rizal is chief activist and co-founder of Gabungan E-Hailing Malaysia and is a member of MPGig and the Socso board. Dr Khor Swee Kheng specialises in health systems and is CEO of Angsana Health.

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