01/04/2026

WEDNESDAY | APR 1, 2026

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Najib ordered to pay RM5b damages to SRC o Judge describes conduct as deliberate, calculated fraud for personal gain

Integration period issued for platform providers PUTRAJAYA: Gig platform providers will be given a three to six-month adjustment period to integrate the Social Security Organisation (Socso) system into their apps, the government announced yesterday. The move comes as concerns surfaced over tight timelines ahead of the enforcement of the Gig Workers Act 2025 yesterday. Human Resources Minister Datuk Seri R. Ramanan said platform operators had been given early notice and multiple engagement sessions to prepare for the transition. “We have given them notice since March 2025. We have also held numerous sessions with them to discuss the matter.” He acknowledged the technical challenges of the new requirements and emphasised the importance of a reasonable adaptation period. “In everything we do, when there is change, we need time to adapt. As long as you are taking the necessary steps, which we are monitoring closely, it is perfectly fine to take that three to six months moratorium.” He said authorities would not penalise companies immediately for incomplete compliance. “We are not going to go on a witch hunt and immediately go after you if you are not doing it tomorrow. The government has provided ample time. “We are being reasonable by allowing this period. But once the Act comes into play, it has to be enforced and taken seriously.” Industry players, from platform operators to gig workers, had previously expressed concerns that the Act was rushed through Parliament and could hinder, rather than support, the growth of the gig economy. Addressing claims that only major players were consulted, Ramanan added that Socso has been engaging a wide range of platform providers individually since March 2025. The sessions covered system integration, including app programming interfaces (APIs), technical processes and operational readiness, ensuring smooth compliance with the law. Under the new system, gig workers’ Socso contributions will be calculated automatically based on completed tasks, with platform providers deducting 1.25% from each assignment and channeling the contributions directly through integrated APIs. Workers can register across multiple platforms but all contributions will be consolidated under one account to ensure streamlined social security coverage. Gig workers will also have the option to select monthly income plans ranging between RM1,050 and RM3,950, providing protection suited to their earnings. Coverage includes medical benefits, temporary and permanent disability protection, dependent benefits, and funeral management assistance. – BY HARITH KAMAL

Ű BY THE SUN TEAM newsdesk@thesundaily.com

KUALA LUMPUR: Former prime minister Datuk Seri Najib Razak has been ordered by the High Court to pay US$1.3 billion (RM5.25 billion) in damages to SRC International Sdn Bhd in a landmark ruling that found him guilty of breach of trust and abuse of power. It was reported that judge Datuk Ahmad Fairuz Zainol Abidin delivered the ruling after allowing a civil suit filed by SRC, which is now under new management. Najib was also ordered to pay conspiracy damages, 5% interest per annum, legal costs and any other relief the court deemed appropriate. In a judgment lasting nearly four hours, Ahmad Fairuz said Najib, as emeritus adviser, wielded “absolute power” over SRC’s key decisions, from its creation to attempts to conceal misappropriated funds. “The defendant played a pivotal role in establishing SRC as a subsidiary of 1MDB in January 2011. “He directed the transfer of SRC’s ownership from 1MDB to the minister of Finance Incorporated in 2012, removing it from 1MDB board oversight and placing SRC directly under his control as prime minister and Finance minister. “He personally communicated with the chairman of Kumpulan Wang Persaraan in 2011 before any formal board resolution regarding the first loan, showing that it was his initiative.

Najib must repay US$1.18 billion in misappropriated company funds and an additional US$120 million in compensation. – ADIB RAWI YAHYA/THESUN

Abdullah @ Rashidi Che Omar, Datuk Shahrol Azral Ibrahim Halmi and Tan Sri Ismee Ismail, ruling that his claims were merely an attempt to shift liability onto them. SRC filed the suit on May 7, 2021, against Najib and six former directors, alleging that he had abused his position and obtained personal benefit while serving as emeritus adviser from May 1, 2012 to March 4, 2019. Najib, 72, has been serving his sentence at Kajang Prison since Aug 23, 2022, following his conviction for misappropriating RM42 million in SRC funds. agreements through an online portal at https://eaduan-gig.mohr.gov.my or via any ministry office under the ‘No Wrong Door’ policy. “Complaints will be reviewed and forwarded to relevant agencies, with a target resolution of 21 working days,” he said. For unresolved disputes, the Act establishes a Gig Workers Tribunal, which is an independent forum providing professional, impartial and speedy resolution. Hearings will be held at existing Human Resource Ministry facilities, including labour and industrial courts and Socso offices nationwide. “Through the enforcement of the Gig Workers Act 2025, the government demonstrates its commitment to legal protection for all workers, including those in the gig economy. “This legislation lays a strong foundation for a fairer, more inclusive future of work in Malaysia, and may serve as a model for the region and beyond.”

negligence or poor judgment, describing it as deliberate, calculated fraud for personal gain. The court held that Najib is liable as a constructive trustee over SRC’s misappropriated assets and must return the funds along with any profits derived. Najib must repay US$1.18 billion in misappropriated company funds and an additional US$120 million in compensation. The court also dismissed Najib’s third-party claims against former SRC directors Datuk Suboh Md Yassin, Datuk Mohammed Azhar Osman Khairuddin, Datuk Che allows for expansion of the gig workforce definition over time. “Under Section 110 of Act 872, we can add new categories of workers whenever needed. There is flexibility and no sector will be left out.” A cornerstone of the Act is the Gig Consultative Council, a tripartite platform bringing together government representatives, gig workers and contract entities. The first council meeting is scheduled for Friday, a week after the Act’s enforcement, with minimum income rates for gig workers as its inaugural agenda. The council will also advise the government on sectoral standards, policy matters and recommendations grounded in market research. Twenty-six members from diverse backgrounds have been appointed. Ramanan also outlined complaint and dispute resolution mechanisms. “Gig workers can now lodge complaints about pay, account suspensions or breaches of service

“He caused amendments to the company’s constitution requiring his own approval as shareholder. “He directed funds to SRC and its subsidiary, structures with no legitimate investment purpose, designed solely to facilitate misappropriation and received US$120 million from these misappropriated funds into his personal accounts.” SRC was represented by Datuk Lim Chee Wee while Najib’s defence was led by Tan Sri Muhammad Shafee Abdullah. Ahmad Fairuz emphasised that Najib’s conduct went beyond

Legal protection for gig workers officially enforced

Ű BY HARITH KAMAL newsdesk@thesundaily.com

“Today, Malaysia takes the lead in shaping the future of work in the region,” he said at a press conference. “Unlike Singapore, Indonesia and the Philippines, which are rolling out protections gradually or limiting them to specific sectors, Malaysia

PUTRAJAYA: Malaysia has officially rewritten the rules of the gig economy, with the enforcement of the Gig Workers Act 2025 (Act 872)

has introduced a legal framework spanning all gig industries.” Under the Act, gig workers are defined as Malaysian citizens or permanent residents who enter agreements with contract entities, whether platform-based or not, and are paid for services rendered.

yesterday, a landmark move that grants legal protection to gig workers and positions the country as a regional trailblazer in the digital workforce. Human Resources Minister Datuk Seri R. Ramanan (pic) noted that the Act provides essential safeguards while maintaining the flexibility that defines gig work.

“The Act is not confined to e-hailing or delivery workers alone. “It also protects non-platform gig workers across sectors such as performing arts, translation, journalism and personal care, ensuring alignment with government policies.” Ramanan addressed concerns on coverage, stressing that the Act

The legislation is expected to benefit about 1.64 million gig workers, offering clearer service agreements, structured dispute resolution, social security coverage via the Social Security Organisation (Socso), and occupational health and safety protections.