Malaysia

1) Gig Workers Act 2025 has been enacted (gazetted) — commencement expected in 2026

Malaysia’s Gig Workers Act 2025 (Act 872) was gazetted on 31 December 2025 and is expected to come into force by the end of March 2026.

What the Act is designed to do

In broad terms, the Act creates a dedicated legal framework for gig work by:

• requiring minimum standards in service agreements (the contract between the engager and the gig worker);
• introducing protections tied to fairness and due process (including constraints around “deactivation”/termination in certain contexts);
• establishing sector governance and enforcement infrastructure, including a consultative body and a tribunal-style dispute mechanism.

Who may be impacted

While many gig economy discussions focus on ride-hailing and delivery, commentary on the Bill/Act indicates that coverage can extend beyond “platform providers” to entities engaging individuals for defined services, depending on how the Act’s categories and implementing details are applied.

What employers and businesses should do now

If your organisation uses freelancers, one-off contractors, or platform-based workers in Malaysia, start preparing as if minimum contract standards will apply:

• Contract audit: review contractor/freelancer templates for pay terms, scope, performance expectations, dispute routes, and termination/deactivation language.
• Operational readiness: create a documented process for warnings, investigations, and appeal-like steps (where relevant) before ending engagements.
• Vendor/platform review: if you engage talent via intermediaries, clarify who is responsible for contract issuance, notices, recordkeeping, and disputes.

2) Employees’ Social Security (Amendment) Bill 2025 — expansion to cover non-employment injuries

The Employees’ Social Security (Amendment) Bill 2025 was passed by Malaysia’s Parliament in December 2025 and is progressing through formal steps (including royal assent) before taking effect.

What changes in practice

The Bill expands the scope of the Employees’ Social Security Act 1969 to introduce protection for “non-employment injuries”—i.e., accident injuries not arising out of and in the course of employment (as defined in the Bill).

Key points reflected in the Bill text and related commentary:

• Employees gain coverage outside work (subject to conditions and exclusions).
• Double benefits are restricted in certain scenarios for the same/related disablement within the same period.
• Proposed provisions include limits where the accident occurs outside Malaysia and other qualifying restrictions.

Payroll context you should not overlook

Malaysia’s wage ceiling for contributions under PERKESO/SOCSO was increased from RM5,000 to RM6,000 effective 1 October 2024, which affects contribution calculations and benefit-related ceilings.

Employer action checklist

• Budgeting: assess employee-side impacts and communications (particularly for mid-to-high earners approaching the contribution ceiling).
• Policies: align incident reporting protocols and claims assistance processes.
• Payroll readiness: validate that payroll engines correctly apply the RM6,000 ceiling and any new categories once the Bill is in force.

3) Employment Insurance System (Amendment) Bill 2025 — broader coverage and enhanced services

The Employment Insurance System (Amendment) Bill 2025 was passed in the House of Representatives on 2 December 2025, but its parliamentary progression has also been reported as continuing into 2026.

Why it matters

The Bill reflects a shift from “insurance-only” support toward a more active labour market model by expanding the role of Social Security Organisation (SOCSO) to provide employment services to broader groups (including casual, gig, and platform workers) and to implement labour market initiatives.

Additional changes highlighted in legal commentary include:

• new employer reporting obligations;
• enhanced allowances (with public discussion of new/expanded benefit types, including mobility-related support);
• explicit clarification that employers cannot recover the employer’s share of contributions from employees.

Employer action checklist

• HR operations: prepare for additional reporting and data requirements if adopted.
• Workforce strategy: if you use casual/gig talent, map how expanded services and protections may affect engagement models and cost assumptions.

4) Malaysia’s proposed AI legal framework — AI Governance Bill underway

Malaysia is developing its first AI governance legislation via the National Artificial Intelligence Office. Public reporting indicates a risk-based approach focusing on AI-related harms, incident reporting, and ethical principles, with the broader framework expected to be submitted to Cabinet around June 2026.

Why this belongs on an HR/compliance radar

Even before formal enforcement, risk-based AI laws typically raise expectations around:

• documented AI use cases in HR (screening, ranking, monitoring);
• incident reporting and accountability;
• vendor governance (what your tools do, how they were trained, and how outcomes are validated).

Practical “start now” steps

• AI inventory: list AI-enabled tools used in recruitment, performance management, scheduling, and employee monitoring.
• Controls: introduce a basic governance standard (human review, audit trails, escalation/incident handling).
• Vendor due diligence: ask for model documentation, bias testing practices, data retention rules, and security posture.

Hong Kong

Immigration Facilitation Scheme expands to 17 designated sectors (from 1 Nov 2025)

Hong Kong expanded its “Short-term Activities in Designated Sectors” visitor facilitation program (often referred to as the STV Scheme) so that, from 1 November 2025, it covers 17 sectors (up from 12).

Newly added sectors include Environment, Occupational Safety and Health, Maritime, Think Tanks, and “Others.”

Why employers care

For short assignments, invited/sponsored eligible visitors may participate in specified activities for up to 14 consecutive days without an employment visa/entry permit (subject to scheme rules and authorised host requirements).

Employer action checklist

• Mobility planning: identify scenarios where short-term invites can replace full visa pathways (events, speakers, technical briefings, short project work).
• Host authorisation: confirm whether the inviting organisation is recognised/authorised under the scheme and ensure documentation is consistent with the scheme’s requirements.
• Compliance guardrails: set internal guidance on what constitutes “short-term activities” vs. employment requiring a proper work authorisation route.

Singapore

Workplace Fairness (Dispute Resolution) Bill passed — new national discrimination dispute framework

On 4 November 2025, Singapore’s Parliament passed the Workplace Fairness (Dispute Resolution) Bill. Together with the earlier Workplace Fairness Bill, this forms the foundation of the Workplace Fairness Act, expected to take effect later (public guidance indicates late 2027).

What’s changing

The framework introduces a formal route for workplace discrimination disputes that generally follows a staged path:

1. internal grievance handling,
2. mandatory mediation, then
3. adjudication in the appropriate forum.

The Bill and related guidance also emphasize safeguards against frivolous claims (e.g., strike-out mechanisms and cost consequences in certain circumstances).

Dispute forums and claim values

Updates note that discrimination-related claims will be heard through:

• Employment Claims Tribunal for claims up to SGD 250,000, and
• High Court of Singapore for higher-value claims (per published commentary on the framework).

Employer action checklist (start preparing now)

Even with a later commencement date, employers can reduce risk by acting early:

Early legal triage: build a protocol for escalating high-risk matters quickly given the higher dispute-value ceiling.

Create/refresh grievance procedures: clear intake steps, timelines, confidentiality rules, and anti-retaliation protections.

Decision hygiene: strengthen documentation for hiring, performance management, promotions, and exits.

Manager training: consistent language and evidence standards when handling complaints.