World Bank urges stronger social safety net for gig workers, elderly

The World Bank has commended Malaysia's government for its efforts to broaden social welfare coverage and scale up assistance initiatives, but highlighted persistent gaps in the adequacy of benefits provided to at-risk populations.

In a fresh assessment of the country's social protection framework, the multilateral lender identified gig economy workers and senior citizens as groups requiring significantly improved safety nets. Current benefit structures fall short of meeting their essential needs, according to the institution's findings.

The observations come as policymakers prepare the 2027 budget, presenting an opportunity to address longstanding inequities in Malaysia's social assistance system. The World Bank's analysis suggests that expanding both the coverage and value of existing programmes would strengthen protections for these demographics.

Gig workers, increasingly prevalent across Malaysia's digital economy, currently lack adequate insurance and income stabilisation mechanisms comparable to traditionally employed workers. Elderly Malaysians, meanwhile, face insufficient pension and healthcare support to sustain basic living standards, the assessment indicated.

The World Bank's recommendations align with broader regional efforts to modernise social protection systems in response to economic transitions and demographic shifts. Malaysian authorities are expected to consider these findings when finalising next year's budgetary allocations.