Why P-Hailing Isn’t a Long-Term Plan: 5 Major Downsides You Should Know

By: Mymuslimin.com

According to the Malaysian Department of Statistics, 72.1% of school leavers in 2022 chose not to pursue higher education.¹ In that same year, 3.9 million Malaysians—around 25.8% of the 15.1 million-strong workforce—were gig workers, primarily in the p-hailing sector.² Many young people believe that further education no longer guarantees a better future or job security. This belief is not entirely unfounded, especially when more than two million Malaysians in the formal sector still earn less than RM2,000 a month (Q1 2023).³

P-hailing offers fast cash and flexible hours, making it attractive to youth. A 2023 survey by the Department of Statistics involving 6,657 p-hailing workers showed that 97.7% were aged 15–30, while 73.98% considered it their main source of income.⁴

In terms of education, 39.54% held SPM/SPMV qualifications, 23.24% had Diplomas or equivalent, and 11.79% had Bachelor’s degrees. A smaller portion—0.21%—never attended school, while 0.99% held no academic qualifications at all.⁵

While joining the p-hailing gig economy is not inherently wrong, relying on it as a long-term career path may be shortsighted. The ease of entry masks some serious long-term drawbacks.

1. Lack of Commitment

P-hailing work typically fosters little commitment from both workers and companies. With a “do the job and go” culture, workers feel no loyalty, and companies offer minimal benefits. Stats show that most p-hailing workers earn RM1,501–RM2,499 (26.78%), followed by RM1,500 or less (23.39%), despite working 49–84 hours per week.⁶ This high turnover limits career growth for workers and stability for businesses.

2. Self-Financed Equipment

As independent contractors, p-hailing workers bear all work-related costs—including smartphones, fuel, vehicle upkeep, and meals. There’s no employer-provided support or compensation for breakdowns or damage, leaving workers vulnerable to financial strain.

3. No Retirement Contributions

Unlike traditional employment, gig employers are not obligated to contribute to EPF or SOCSO. In January 2023, only 22.05% of p-hailing workers made EPF contributions; 77.95% did not.⁷ Without employer-matched savings or retirement planning, many will face financial hardship in old age.

4. Reduced Social Interaction

P-hailing lacks a structured workplace, making meaningful social interaction and team bonding rare. Isolation and loneliness are common, which can impact mental health. Workers also face income instability, with pay dependent on performance and availability. Only the most resilient can sustain a consistent income.

5. High Risk Exposure

P-hailing workers spend long hours on the road, exposing them to physical and safety risks: accidents, extreme weather, pollution, and crime. Between Jan 2020 and July 2021, 347 p-hailing accidents were reported, including 48 deaths.⁸ Alarmingly, only 36.61% of workers have savings, and just 45.07% own personal insurance.⁹⁹ Many remain dangerously unprotected.

Conclusion

P-hailing may offer quick income and flexible hours, but it should not be seen as a sustainable career path. The absence of job security, retirement support, and safety nets—combined with long-term health and financial risks—makes gig work a risky choice for the future. For lasting success, young people should treat gig jobs as a temporary solution and focus on developing education and career skills for a more secure and fulfilling life.

Sources: