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Grab Takes The Lead In Co-Funding Initiatives To Boost Gig Worker Earnings and Reduce Operating Costs Under Budget 2027

In response to Budget 2027 Grab is taking the lead in co-funding a series of initiatives to boost earning opportunities and reduce the costs

PETALING JAYA, 9 October 2026 – Grab Malaysia welcomes the announcement of Budget 2027 and thanks the Government for its continued support and constructive collaboration.

In response to Budget 2027, Grab is taking the lead in co-funding a series of initiatives alongside the Government aimed at boosting earning opportunities, reducing the costs of working, and strengthening social protection for its driver- and delivery-partners. The initiatives build on Grab’s long-standing investment in its driver- and delivery-partners.

Grab has worked closely with the Government on practical measures to ease the financial pressures faced by driver- and delivery-partners, and will continue to support its partner community as these initiatives are developed. Under the package, median e-hailing driver-partners’ monthly net income is expected to increase by up to RM227, while p-hailing delivery-partners’ income is expected to 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 build on Grab’s ongoing efforts to support its partner community through programmes focused on uplifting earning opportunities, safety, and welfare. By combining industry expertise with Government support, Grab aims to extend these efforts and deliver practical improvements that benefit partners in their daily work.

As the initiatives progress towards implementation, Grab remains committed to working closely with the Government and relevant stakeholders to ensure that the measures deliver meaningful benefits for gig workers while supporting the continued growth of Malaysia’s digital economy.

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