KUALA LUMPUR: Malaysia’s gig economy is experiencing robust growth, underpinned by strong market expansion and a more mature regulatory and operating environment.
With the transport and food delivery segment projected to reach about US$6 billion (RM24.5 billion) by 2030, on-demand services are expected to remain a key pillar of the country’s digital platform ecosystem, driving consumer engagement, employment opportunities and digital commerce.
Managing director of foodpanda Malaysia Kenneth Soh said this momentum is being supported by developments such as the Gig Workers Act 2025, which extends statutory protections to gig workers nationwide.
“Because of these improvements, we are seeing a shift in how gig work is viewed. It is no longer just a source of supplementary income, but is increasingly seen as a full-time career option for a highly diverse pool of talent.
“This includes students, retirees and parents seeking flexible schedules, and we are actively looking at opportunities to build an even more inclusive ecosystem by encouraging more women to ride with us,“ he told SunBiz.
Soh said one of the biggest structural opportunities for foodpanda Malaysia lies in the continued expansion of on-demand commerce beyond traditional food delivery, as the platform evolves into an everyday service that consumers increasingly rely on.
“Malaysians are increasingly turning to platforms not only for food delivery, but also for groceries, household essentials and other daily needs.
“In fact, we have seen a 15% increase in pandamart orders on our platform year-to-date as of May 2026, compared with the same period last year. This reflects a broader shift in consumer behaviour, where convenience, reliability and speed are becoming increasingly important in everyday life.”
Another key opportunity lies in technology, he said, with advances in demand forecasting and intelligent dispatch systems enabling foodpanda Malaysia to better match supply with demand. This helps delivery partners spend less time waiting and more time earning, while enabling merchants to serve customers more effectively.
“Ultimately, as the ecosystem matures, there is a growing opportunity to build a more resilient and sustainable delivery workforce,“ Soh said.
According to him, a sustainable gig economy is one that creates long-term value for everyone involved, ensuring consumers, merchants and delivery partners can grow together.
For delivery partners, sustainability means having the flexibility to work on their own terms while gaining access to support systems that help build financial resilience and improve road safety.
For merchants, it means having access to reliable logistics and a platform that helps them grow their businesses efficiently.
“Many small and medium-sized businesses today rely on delivery platforms to reach customers beyond their immediate neighbourhoods and create new revenue opportunities.
“For consumers, it means having access to a dependable service that remains affordable, convenient and trustworthy as foodpanda evolves into Malaysia’s most-loved food and groceries destination,“ Soh said.
On the key operational and regulatory challenges affecting the responsible scaling of gig platforms in Malaysia, he said sustainable growth requires balancing expansion with the needs of the broader ecosystem.
“Operationally, our priority is ensuring we can meet consumer demand while enabling delivery partners to work safely and complete deliveries efficiently.
“It is equally important to support merchant growth by helping local businesses digitalise without feeling overwhelmed, which we do through guided onboarding and a multi-layered support ecosystem, including our vendor Help Centre and dedicated agents for direct assistance,” Soh said.
“Regulating this space through the Gig Workers Act 2025 is an important step towards greater clarity. Continued collaboration between platforms, policymakers and industry stakeholders will be key to supporting both worker welfare and innovation.”
On automation, Soh said foodpanda Malaysia believes technology should support delivery partners rather than replace them.
Tools such as demand forecasting, route optimisation and intelligent dispatch systems are designed to reduce friction throughout the delivery journey by helping delivery partners spend less time waiting and more time completing deliveries, he said.
“Ultimately, delivery remains a people-driven business where service, reliability and customer experience depend entirely on the delivery partners on the ground every day. Our focus is simply on equipping them with better tools, stronger support systems and safer working environments.”
On balancing flexibility, often cited as the biggest attraction of gig work, Soh said the company relies on technology and operational improvements to provide greater earning consistency without compromising flexibility.
By leveraging tools such as demand forecasting and route optimisation, foodpanda Malaysia can improve order allocation and fulfilment, reducing waiting times while creating more consistent earning opportunities for delivery partners.
“This greater operational efficiency also supports safer working conditions on the road, while fully preserving the flexibility that allows delivery partners to decide when and how they work.
“Beyond day-to-day deliveries, our ‘panda hearts’ initiative provides more comprehensive support, including 24/7 insurance coverage and financial literacy programmes to support their long-term protection,“ Soh said.
