‘Gig economy will flourish’
Trend of using online services will continue after MCO ends, say economists
PETALING JAYA: The gig economy is more important now than ever, playing a crucial role in providing services during the movement control order (MCO).
This is particularly true for services such as food and product delivery, and online businesses, as demand continues to increase.
Economists are now predicting that this trend will continue to pick up even after the MCO ends, as the Covid-19 pandemic forces people around the globe to change the way they live.
And they believe this can have a positive impact all-round, providing convenience to Malaysians, allowing for more job opportunities for prospective job-seekers,
while simultaneously contributing to the country’s economy.
Economics professor Dr Yeah Kim Leng said many who were previously not accustomed to making purchases online will find it more convenient to do so now, as they are asked to stay home during the MCO period.
“I can see online and delivery services picking up after this as it is convenient for people, and it provides consumers with more choices at the tip of their fingers.
“These are key factors that will see a sustained growth in the gig economy,” he told theSun yesterday, adding that behavioural changes are bound to happen due to the pandemic.
The Sunway University Business School academician said as more companies embrace the “working from home” culture after the MCO period, this would also contribute to the expansion of the gig economy.
“Having been forced to practise workfrom-home, many companies are likely to move towards this permanently, and this could see increased transactions in food delivery, among others,” he said.
Leng also pointed out that as many Malaysians become unemployed during this crisis period, the gig economy will provide them an opportunity for a new source of income.
He noted that this (unemployment) was a natural consequence of a global crisis in the current scale, and that it would force people to explore new ways of earning a living.
“The gig economy could not have provided a better opportunity for the rakyat,” he said.
Universiti Tun Abdul Razak economist Prof Dr Barjoyai Bardai said while the country has been slow in adopting digital economy previously, the coronavirus outbreak will provide an opportunity for this economy to be expedited.
“We have been trying to persuade Malaysians to adopt the digital economy, and now they will see it as a convenience,” he told theSun.
“Take food delivery for instance, many have not used this service before but the MCO has forced them to utilise it. If this becomes a habit, we can see the gig economy expanding further,” he added.
Barjoyai noted that beside the typical food delivery services, other more creative ideas are also being put to practise by Malaysians, including serving as a personal shopping assistant.