‘Subsidy reform must not overlook gig workers'

The Star

3 days ago

PETALING JAYA: A specific mechanism for gig workers must be drawn up under the targeted subsidy scheme with the impending RON95 fuel price reduction, say industry players.
Grab Drivers Malaysia Association president Mohd Azril Ahmat said such a mechanism will enable the government to better support gig workers, who stand to benefit the most from the RON95 price drop to RM1.99 per litre.
'This way, better incentives or support programmes can also be provided to gig workers in the future using the same system.
'Once implemented, we expect gig workers to save at least RM100 a month on average, which will be of great help,' he said when contacted.
Malaysia E-Hailing Drivers Association (MeHDA) president Daryl Chong backed the view, saying the mechanism should be transparent and 'easy to navigate' for gig workers.
He said if the rollout mechanism of the targeted subsidy scheme is not structured properly, it could unintentionally burden the workers who rely on RON95 for a living.
'If properly executed, it can reduce fuel cost fluctuations and ensure continued affordability of gig services.
'This can help platforms maintain competitive fares and service availability, which will result in fewer price hikes and more consistent access to rides for customers.
'The key is to make it seamless, accountable and tied to real usage – not vague quotas or manual forms,' he said.
Malaysian eHailing Association (GEM) chief activist Jose Rizal said a hybrid approach, allowing for both digital and manual redemption, will be best for the riders.
'Digital methods can include the use of recognised government apps or certified e-wallets that are integrated with verified databases.
'The manual method of using MyKad at pumps should also be an option, especially for rural areas where smartphone access or Internet coverage is limited,' he said, adding that this will ensure that any digital rollout did not disadvantage gig workers who are tech-constrained.
He said the price change must also be in tandem with other reforms like gig worker protection and insurance coverage to ensure riders are fully supported.
Meanwhile, Carsome Group chief business officer Aaron Kee said the fuel price reduction will help vulnerable groups like gig workers and young drivers better financially plan for the future.
'By clarifying the petrol price now, it will help improve transparency around total cost of ownership, helping consumers make more informed decisions when buying or owning a vehicle.
'This offers greater predictability for road users and supports clearer mobility planning at a time when affordability and efficiency are key decision drivers,' he said.