The number of young Malaysians choosing self-employment has surged significantly over the past twelve years, according to data from the Department of Statistics Malaysia. Figures from the MyLabourHub portal show that the population of own-account workers aged 20 to 24 more than doubled between 2013 and 2025, rising from 128,000 to 286,000. This 123% increase represents the sharpest growth among any age group in the country, signaling a major shift in how young people enter the labor market.
Own-account workers are defined as individuals who operate their own business, trade, or farm without hiring paid staff. This category increasingly includes gig workers, such as e-hailing drivers and delivery riders, as well as freelancers providing services like copywriting, coding, and tutoring. The shift is also geographic; while self-employed workers were once evenly split between urban and rural areas, two out of three are now based in cities, reflecting the rise of digital platforms that facilitate on-demand work.
Experts suggest this trend is driven by a combination of factors, including the expansion of digital platforms and, in some cases, a lack of high-skilled job opportunities in the formal sector. While many graduates initially enter the freelance market, research indicates that a significant portion eventually seeks standard employment to gain the stability and benefits associated with traditional roles.
As this demographic continues to grow, the long-term impact on national social security remains a key point of discussion. Because self-employed individuals do not have automatic employer contributions to the Employees Provident Fund or the Social Security Organisation, they face different financial risks than salaried employees. Observers are now watching how policy frameworks, such as the Gig Workers Act 2025, will evolve to provide better protections for this expanding segment of the workforce.