Voluntary Contract, Structural Dependency

Every morning at half past six he rides out across Kuala Lumpur, delivering meals until ten at night. He does not clock in. No one draws up his schedule.

He is an "independent contractor."

In law, that status means: if he is injured, no SOCSO; if he falls sick, no paid medical leave; if he dies, the platform bears no employer liability. ^1,2

The 23.39% Figure#

In 2022, DOSM conducted the most systematic survey of the gig economy to date, drawing on a sample of 6,657 gig workers. ^1,3

One figure in the findings stands out: 23.39% of riders earn less than RM1,500 a month — Malaysia's statutory minimum wage. ^1,4

Another: 97.71% of riders are between 15 and 30 years old.

This is the cohort with the least capacity to absorb risk: no savings, no family assets, no accumulated career capital to fall back on, and no statutory social safety net. They became riders because this is the lowest-barrier entry point into the labour market. ^1,2

Between 2018 and May 2022, 112 food delivery riders died in road accidents across 1,242 incidents. The figure comes from Transport Minister Anthony Loke's reply in Parliament. ^5,3

One Law, Two Purposes#

In 1955, the British colonial government enacted the Employment Act 1955, formally abolishing the Kangani system.

Kangani was a historical middleman arrangement used to manage Indian plantation labour: a foreman called a "Kangani" recruited workers from India, advancing the cost of their passage, food, and tools, thereby creating a debt. Until that debt was cleared, workers could not leave. Contracts were nominally voluntary; in practice, debt held workers in place. ^2,6

In 1955, the Employment Act ended the system. ^2,6

In July 2024, the Federal Court dismissed the leave-to-appeal application of former Grab driver Loh Guet Ching on procedural grounds — she had sought to challenge a court ruling that classified riders as non-employees. The Federal Court's dismissal was of the leave application, not a substantive ruling; the substantive finding that riders are not employees had been made earlier by the Court of Appeal. The current legal framework remains: riders are independent contractors. ^7,8

Platforms cite the definition of "employee" in the Employment Act 1955 to demonstrate that riders fall outside it — and therefore that EPF and SOCSO contributions need not be made on their behalf. ^2,7

The law that dismantled Kangani is the same law platforms use today to disclaim responsibility for rider protections.

Kangani and the Algorithm#

The parallels between the two systems do not lie in their brutality — no one is physically shackled today. They lie in structure:

Kangani workers nominally "chose" to sign contracts; there was, in practice, no alternative. Riders nominally "choose" to accept jobs; the price per job is set by an algorithm they have no power to negotiate.

Kangani maintained dependency through debt. Platforms maintain dependency through rating systems: lower-rated riders receive fewer jobs, with no formal avenue for appeal.

The difference is this: the Kangani system concealed debt inside written contracts; the platform system conceals algorithmic control inside the language of flexibility and autonomy. ^2,9

Throughout history, labour protections have never been volunteered by platforms or capital — they have been extracted by organised labour. This was true of plantation workers, steelworkers, and dockworkers alike. The particular problem for gig workers is: when there is no geographical concentration of a "workplace," how does organisation take hold? ^2,6

The Bill#

On 28 August 2025, Dewan Rakyat passed the Gig Workers Bill 2025 — standalone legislation separate from the Employment Act 1955, driven by Human Resources Minister Steven Sim. ^4,3

According to reports, the bill introduces new protections including SOCSO coverage. The specific implementation details are to be announced following parliamentary deliberation. ^4,3

This marks the first time Malaysia has responded to the legal status of gig workers through dedicated legislation. The bill's full text and enforcement regulations, as of this writing, are still awaiting formal gazettement.

The 1.25 Sen per Ringgit#

SOCSO official Edmund Cheong, speaking to the media, described a specific mechanism: for every ringgit a rider earns, 1.25% is deducted into SOCSO as an occupational injury protection fund. ^9,4

How this mechanism interfaces with platforms' algorithmic pricing, who is responsible for withholding the deduction, and whether platforms share the contribution — as of this writing, no complete implementation framework has appeared in the public record.

Related debates and historical chapters: Debate Hall · Who Became a Citizen · The "Advice" That Must Be Followed