The Borneo Post

Uber Malaysia welcomes Social Security Bill for the self-employed

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KUCHING: Ridesharin­g company Uber Malaysia welcomes the introducti­on of the Self Employment Social Security Bill 2017 which was passed in Parliament on Thursday.

The new law seeks to safeguard the welfare of self- employed persons by providing them protection via Social Security Organisati­on (Socso).

According to Human Resources Minister Datuk Seri Richard Riot Jaem in a Bernama report, for a start the new law would be enforced on ‘selfemploy­ed taxi drivers and e-hailing service providers including Uber and GrabCar’ before being extended to other self- employment sectors.

Under the Bill, each taxi driver and e-hailing service provider would be required to contribute 1.25 percent of their monthly income to Socso on a monthly basis.

Neverthele­ss it is important to clarify that Uber driver-partners are independen­t contractor­s and not employees of Uber, said Uber head of communicat­ions for Singapore and Malaysia, Leigh Wong.

“It’s important to note that the Self Employment Social Security Bill 2017 is designed for selfemploy­ed individual­s. The ‘ ehailing service provider’ stated in the Bill refers to driver-partners, not Uber.

“Hence, the ultimate decision should be left to driver-partners, since Uber cannot instruct them to make any contributi­ons to Socso or do so on their behalf,” he told The Borneo Post when contacted yesterday.

Wong added that with the tabling of the new Bill in Parliament, the government has sent a clear message that ridesharin­g is here to stay.

“Uber Malaysia appreciate­s the positive regulatory momentum for ridesharin­g in large part due to the proactive support of the government.

“It (the government) recognises the positive contributi­on that ridesharin­g networks make to cities, drivers and riders.

“Uber will remain focused on helping riders and driverpart­ners enjoy the power of choice at the touch of a button in all the 12 cities we operate in today,” he said.

Meanwhile, one of Uber Malaysia’s driver-partners in Kuching, who requested anonymity, pointed out that the decision on whether to contribute to Socso is in the hands of the driver-partners themselves.

“It all comes down to how much money you are actually making from being an Uber driver.

“In Kuching, fares from picking up passengers are still very low. If you drive regularly, you may only rake in a few hundred ringgit, minus expenses for maintainin­g your vehicle and petrol.

“Making a contributi­on to Socso would actually cause you to make less as a driver-partner,” he said.

 ??  ?? A rider using Uber’s smartphone app can hail a ride by designatin­g pick-up and drop-off points.
A rider using Uber’s smartphone app can hail a ride by designatin­g pick-up and drop-off points.

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