KUALA LUMPUR, Oct 24 — The gig economy will be given emphasis in the preparation of the 12th Malaysia Plan (12MP) as one of the new sources of economic growth, Economic Affairs Minister Datuk Seri Mohamed Azmin Ali said.

He said the emergence of the gig economy opened up new jobs that could boost household income and reduce dependence on foreign labour.

"This shift will provide opportunities for young people, especially new graduates, housewives and those who are in the process of transitioning into new jobs, enabling them to contribute to the country’s economic growth,” he said.

Mohamed Azmin said this in his speech at the National Retail Symposium (Spark 2019) dinner hosted by Perbadanan Usahawan Nasional Bhd (PUNB) here tonight.

The gig economy is an economic activity conducted by individuals without an employer by providing their services to other people on a full-time or part-time basis.

Mohamed Azmin said the economic revolution is imperative to embrace new talent and open access to business sector growth.

"We are committed to developing the digital economy, in particular to provide skilled and knowledgeable human capital,” he said.

The government is allocating RM500 million under the 2020 Budget to digitalise the operations of small and medium enterprises, as well as empower the entrepreneurial community who subscribe to services such as e-POS, enterprise resource planning and electronic payroll.

In 2018, SMEs represented 98.5 per cent of total business establishments in the country.

Ironically, Mohamed Azmin said SMEs and micro businesses accounted for only 38.3 per cent of the country’s gross domestic product.

The contribution is still low compared to Indonesia (60.6 per cent), Japan (54.5 per cent) and Thailand (42.3 per cent), reflecting that there is still a lot of room for growth in the entrepreneurship sector.

"Hence, we must take this opportunity to inject new dynamism that will uplift the country’s economic growth,” he said.

At the event, Mohamed Azmin witnessed the exchange of a collaboration document between Palace Butcher Resources Sdn Bhd, a company assisted by PUNB, with South Africa’s Yumaliah Investment.

Palace Butcher Resource runs the Me’nate Steak Hub, a noted local steak house.

The collaboration enables the Me’nate brand to make forays into South Africa and enables Palace Butcher Resources to bring international brands to Malaysia. — Bernama