Grab forges ahead in co-funding initiatives to boost gig worker earnings and reduce operating costs under Budget 2027

Grab Malaysia is welcoming on the recent announcement of Budget 2027 and thanks the Government for its ongoing support and teamwork.

As part of Budget 2027, Grab will partner with the Government to fund new projects that will create better earning opportunities, lower working costs, and improve social protection for its driver- and delivery-partners. These efforts build on Grab’s commitment to supporting its partners.

Grab has been working closely with the Government to find ways to relieve the financial burdens faced by driver- and delivery-partners, and it will keep supporting its partner community as these projects move forward. Through these initiatives, the average monthly income of e-hailing driver-partners is expected to rise by up to RM227, while p-hailing delivery-partners may see their income increase by up to RM100.

The initiatives include:

1. Boosting partner earnings: In alignment with the Government’s proposed interim framework, starting in 2027, an agreement in-principle has been reached on a proposed minimum baseline rate for e-hailing and p-hailing workers. With Grab taking the lead in advancing this initiative, the proposed adjustment is intended to increase partner take-home earnings, from 2027, while ensuring that passenger fares remain stable while the framework is introduced. The Gig Consultative Council will continue its deliberations to determine the final rates.
2. Reducing vehicle maintenance expenses: To ease one of the heaviest operational expenses for gig workers, the Government will help co-fund a vehicle maintenance subsidy, starting with lubricants. Through a set mechanism, this subsidy will reduce operational costs for driver- and delivery-partners by up to 35%, thus promoting a more sustainable gig economy.
3. Easing insurance costs: Grab will introduce an interim safety incentive to help reduce regulatory e-hailing insurance costs by up to 25% for driver-partners with good safety scores. By rewarding responsible driving, this initiative aims to ease financial pressures while recognising responsible driving behaviour and contributing to safer roads. Moving forward, Grab will continue to work with the Government to explore long-term solutions to address regulatory insurance costs.
4. Strengthening social protection through PERKESO: Supporting the transition under the Gig Workers Act, Grab and the Government will support mandatory PERKESO contributions. Grab’s most active driver- and delivery-partners will receive 100% free coverage while the rest of the partners will receive up to 50% contribution subsidies, ensuring greater social protection without reducing its partners’ take-home earnings.
5. Generating demand through public transport connectivity: Grab will partner with the Government to introduce a dedicated first- and last-mile monthly transit pass, starting in the Klang Valley. By offering commuters discounted e-hailing rides to and from train stations, the initiative aims to improve access to fixed route public transportation while generating additional demand for driver-partners.

“Improving the livelihoods of our driver- and delivery-partners has always been an important priority for Grab. We understand that every ringgit matters, whether it comes from additional earning opportunities or savings on the everyday costs of working. In collaboration with the Government, we are taking the lead in the industry to advance measures that can make a meaningful difference to our partners, while building a stronger and more sustainable gig economy,” said Rashid Shukor, Executive Director of Grab Malaysia. 

These initiatives are part of Grab’s ongoing efforts to support its partner community by creating better earning opportunities, ensuring safety, and improving welfare. By teaming up with industry experts and the Government, Grab hopes to enhance these efforts and make practical improvements that help partners in their everyday work.

As these initiatives move forward, Grab is dedicated to closely collaborating with the Government and other key players to make sure that the measures provide real benefits for gig workers while helping Malaysia’s digital economy continue to grow.