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Malasya's Experience in Crowd Labour and Sharing Economy

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Highlights on Malaysia's approach in growing the local crowd economy.

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Malasya's Experience in Crowd Labour and Sharing Economy

  1. 1. Malaysia’s Experience in Crowd Labour and Sharing Economy Crowdsourcing Week Global 2019 12 September 2019
  2. 2. 2 Develop, coordinate and promote Malaysia’s digital economy, information and communications technology (ICT) industry and the extensive use of ICT in Malaysia For Malaysia to be a vibrant digital economy Build a sustainable digital ecosystem that will drive Malaysia’s digital economy forward and benefit all Malaysians. Malaysia Digital Economy Corporation (MDEC) MDEC was incorporated on 5th June 1996 and was formerly known as ‘Multimedia Development Corporation’ (MDeC)
  3. 3. 3 CROWD ECONOMY / SHARING ECONOMY / DIGITAL PLATFORMS DISTRIBUTING JOBS TO INDEPENDENT WORKERS / FREELANCERS GLOBALLY Independent Workers / Freelancers increasingly dominating global workforce Freelancing is now the new form of employment First Class Grads in UK choose Freelancing Fortune 500 adopting on-demand talent approach US Workforce by 2020 50% US Citizens are Freelancers (2016) 1.4T Freelancing Economy in US (2016) USD57.3M 21% From people follow jobs to jobs follow people . . .
  4. 4. 4 A socio-economic system • Powered by digital platforms • Sharing of assets and resources between individuals (the crowd / community), governments and/or businesses • Allow increased utilization of assets and resource and promotes access over ownership Types of Sharing Economy Assets Access Sharing temporary access to owned physical assets Money Sharing enable sharing of funds for investments for entrepreneurs, artists, projects, etc. Intangible Assets Sharing collaborate or exchange less-tangible assets (e.g. time, skills) *As defined by Malaysia’s National Framework and Strategic Roadmap on Sharing Economy, 2017 by MDEC, EPU, BNM, PEMANDU, Monitor Deloitte​ Goods Sharing used or pre-owned goods (both durables & perishables) passed on, exchanged, or sold CROWDSOURCING; THE SHARING ECONOMY FocusedAreas People & Businesses as Provider of Services Sharing Economy Platforms – matching demand & supply of services, and managing distribution of tasks, transactions, quality, reviews, ratings etc. Market – Businesses and households (global and local market) Services
  5. 5. 5 KEY PROGRAMMES Opening up opportunities for Malaysian to perform work, leveraging on their idle time, underutilized physical assets or certain knowledge and skills Empowering local Malaysia Talent as global online freelancers, leveraging mostly on their knowledge, skills and abilities (intangible assets) Targeting Blue Collar Workers, Individuals from B40 Households, Unemployed, Pensioners, Veterans, Individuals with Disabilities etc. Targeting Unemployed Graduates, Underemployed, Retrenched Workers, Youth, Women, Pensioners, Individual with Disabilities etc.
  6. 6. 6 PROGRAMME KEY MILESTONES 2012 2013 2014 2015 2016 2017 2018 Digital Malaysia Microsourcing (Crowdsourcing) to Generate Additional Income project was approved DM Microsourcing Strategic Studies was completed eRezeki Programme was launched. The “eRezeki Programme” was announced at the 26th MSC ICM Meeting The ‘National Framework and Strategic Roadmap on Sharing Economy’ for Malaysia was completed WITSA Merit Award & ASOCIO Digital Government Award The Global Online Workforce (GLOW) was carved out from eRezeki as a separate programme
  7. 7. 7 Work-People Matching Engine Repository of Individual Profiles Online Learning Modules Crowd Management PROGRAMME ECOSYSTEM & KEY COMPONENTS Platform Partner 1 Platform Partner n ... DEMAND FOR SERVICES SUPPLY OF SERVICES Platform Partner 2 Market (Demand) Systems, Database, Learning Modules Training & On-boarding Outreach, Engagement Community Task/Jobs from Local & Global Markets Platform Partner 3 Validated Sharing Economy Platforms MDEC’s Interventions
  8. 8. 8 TASKS PERFORMED BY MALAYSIAN CROWD WORKERS Simple online task requiring no- specific skill to perform and can be completed in minutes. Domain specific and professional works that require skills and qualifications to perform. Offline/on-site works, mostly physical, which are distributed online and may require specific skills. Started as part of eRezeki but carved out as a separate programme in 2018 Examples: • Programming/coding • Developing mobile-apps • Creative works • Content writing • Accounting • Virtual assistants Examples: • Download-install • Image Moderation • Sentiment Analysis • Data Extraction • Website review Examples: • Running errands • Delivery services • Cleaning & housekeeping • Cooking • Traditional therapist • Event crew • Product compare • Data Entry • Referrals • Cataloging • Dropshipping • Plumbing • Electrical services • E-Hailing/Ride-sharing • Repairing cars • Marketing/promoter • Experience host
  9. 9. 9 MARKETPLACE PLATFORM PARTNERS CLEANING SERVICES PART-TIME CREW CONTENT REVIEW RIDE & TRANSPORTATION LOGISTICS & DELIVERY SERIVES DROPSHIP & REFERRAL SALES & MARKETER PERSONAL HELPER & CAREGIVER ADS, PROMOTION & MARKETING BUSINESS PROCESS & CREATIVE WORKS FOOD DELIVERY & HOMECHEF SERVICES DIGITAL & PROFESSIONAL WORK HEALTHCARE, LIFESTYLE & WELLNESS SERVICES TOURISM RELATED SERVICES REPAIR, INSTALL & MAINTENANCE SERVICES EDUCATION & TRAINING CONTENT CREATION Total : 112 Local Platform : 87 As of 1st July 2019
  10. 10. 10 COMMUNITY TRAINING AND ENGAGEMENT 496 Pusat and Wakil eRezeki • MDEC offers to support existing training and engagement by marketplace platform partners • Leveraging on existing infrastructure (telecentres, universities and colleges) nationwide
  11. 11. 11 EDUCATING GOVERNMENT & INDUSTRY STAKEHOLDERS Conference, Seminar, Workshop and targeted co-creation programme to promote adoption of Crowd-based Models and Sharing Economy services and solutions
  12. 12. 13 110 M 250 M 304 M 380 M 137 M 188 M 319 M Market Size of Programme Partners* Grab & Uber (est) Airbnb (est) 2016 2017 2018 237 M 394 M 602 M 949 M * Notes 1. Based on platform reports to MDEC – direct impact to participants 2. Inclusive of 15% of platform revenues (based on global average) 3. Excludes market size of big platforms such as Freelancer, Upwork, 123RF, Grab, Uber and Airbnb 3% 70% 27% Market Size based on Category of Work Data in Malaysian Ringgit (RM) Source: Sharing Economy Ecosystem Division (SEED), MDEC Internal Analysis ESTIMATED MARKET SIZE OF CROWD ECONOMY; THE SHARING ECONOMY IN MALAYSIA
  13. 13. 14 Darzy Norhalim Director Sharing Economy Ecosystem Division nordarzy@mdec.com.my Thank You!

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