Reforming Social Protection for Gig Workers in Malaysia: An Institutional Approach

Abstract

The gig economy has transformed employment landscapes by offering flexible work opportunities but has also exposed workers to vulnerabilities due to limited access to social protections, such as health insurance and retirement benefits. This conceptual research adopts Scott’s Three Pillars of Institutions (regulative, normative, and cultural-cognitive) to comprehensively analyze the gaps in Malaysia's social protection system for gig workers and provides actionable recommendations. By reviewing academic publications, policy documents, and international best practices, the study identifies key challenges, including fragmented regulations, inconsistent industry norms, and negative cultural perceptions towards social protection. The research employs a literature-based methodology by drawing comparative insights from international practices like Singapore and the EU and demonstrate adaptable policy models for Malaysia’s socio-economic context. The paper offers broad recommendations, including gradual mandatory contributions and standardizing voluntary schemes. These findings aim to contribute to ongoing policy discussions and encourage collaborative efforts among policymakers, industry players, and civil society to develop an inclusive and resilient social protection framework for gig workers. Additionally, the study contributes to the field of business education by linking institutional theory with real-world labor market challenges, thereby enriching management and entrepreneurship curriculum with insights into inclusive workforce practices. While this study provides a theoretical and policy-based analysis, the primary limitation is the lack of empirical validation through primary data collection. Future research should incorporate qualitative insights from gig workers and industry stakeholders to assess the practical implementation of proposed policy recommendations.