Grab Malaysia is stepping up its support for e-hailing drivers and delivery riders under Budget 2027, working alongside the Government on a series of initiatives designed to increase earnings, reduce operating expenses and strengthen social protection for gig workers. The initiatives are expected to raise median monthly net income by up to RM227 for e-hailing driver-partners and RM100 for p-hailing delivery-partners.
The package combines proposed minimum baseline rates, vehicle maintenance subsidies, insurance incentives, social protection contributions and measures to generate more demand for e-hailing services. Grab said the measures build on its ongoing investment in its partner community, with the company taking the lead in co-funding initiatives alongside the Government to address the financial pressures faced by workers in Malaysia’s gig economy.
A key component of the package is a proposed minimum baseline rate for e-hailing and p-hailing workers, aligned with the Government’s proposed interim framework. An agreement in principle has been reached on the proposal, with adjustments intended to improve partners’ take-home earnings from 2027. The framework is also designed to keep passenger fares stable during its introduction. However, the final rates have yet to be determined, with further deliberations to be carried out by the Gig Consultative Council.
Beyond earnings, the initiatives aim to address the everyday expenses that can significantly affect the income gig workers bring home. The Government will help co-fund a vehicle maintenance subsidy, starting with lubricants. Through an established mechanism, the subsidy is expected to reduce vehicle operating costs for driver- and delivery-partners by up to 35%, helping make their work more financially sustainable.
Grab will also introduce an interim safety incentive for e-hailing driver-partners with good safety scores. The initiative aims to help eligible drivers reduce their regulatory e-hailing insurance costs by up to 25%, while rewarding responsible driving and encouraging safer road behaviour. Grab added that it would continue working with the Government to explore longer-term solutions to address the cost of regulatory insurance.
Social protection is another major focus, particularly as the industry transitions under the Gig Workers Act. Grab and the Government will support mandatory contributions to the Social Security Organisation (PERKESO), with assistance structured according to partners’ activity levels. The most active Grab driver- and delivery-partners will receive fully subsidised coverage, while other partners will be eligible for contribution subsidies of up to 50%. The arrangement aims to expand access to social protection without cutting into partners’ take-home earnings.
The package also seeks to create additional earning opportunities by connecting e-hailing services more closely with public transport. Grab will work with the Government to introduce a dedicated monthly transit pass for first- and last-mile travel, beginning in the Klang Valley. The initiative will offer commuters discounted e-hailing rides to and from train stations, making public transport more accessible while potentially generating additional trips for driver-partners. By encouraging commuters to combine train journeys with e-hailing services, the programme aims to benefit both passengers and drivers through improved connectivity and new sources of demand.
Rashid Shukor, Executive Director of Grab Malaysia, said improving the livelihoods of driver- and delivery-partners remains a key priority for the company. He noted that even small changes to earnings and daily operating expenses could make a meaningful difference to workers, adding that collaboration with the Government would help deliver practical improvements while supporting a stronger and more sustainable gig economy.
The latest package brings together measures targeting several of the main financial pressures faced by gig workers, from vehicle upkeep and insurance to income opportunities and social security. As implementation plans take shape, Grab said it will continue engaging with the Government and relevant stakeholders to ensure the initiatives deliver meaningful benefits to its partners while supporting the growth of Malaysia’s digital economy.
