The number of young Malaysians choosing self-employment has surged, with the count of own-account workers aged 20 to 24 more than doubling over the past twelve years. Data from the Department of Statistics Malaysia shows this group grew from 128,000 in 2013 to 286,000 in 2025, marking a 123% increase. These individuals, who operate their own businesses or trades without hiring paid staff, now represent a significantly larger share of the self-employed workforce, rising from 5.6% to 11% during this period.
This shift reflects a broader change in how young people engage with the economy. While self-employment was once more evenly distributed, it has become increasingly urban and platform-based. Digital platforms now facilitate a wide variety of freelance roles, ranging from e-hailing and delivery services to professional tasks like copywriting, coding, and childcare. This transition is partly driven by the expansion of digital infrastructure and the flexibility that gig work offers to those seeking to be their own boss.
However, this trend also highlights structural challenges within the labor market. Many young graduates turn to self-employment due to limited opportunities in formal sectors or persistent skills mismatches. While this provides an immediate income source, it often lacks the stability and benefits associated with traditional employment, such as mandatory contributions to the Employees Provident Fund and social security protections. As more youths enter this space, the long-term impact on their financial security and career progression remains a key area of focus for policymakers and economic analysts.