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Thank you Mr Speaker for the opportunity to join the debate.
News platform, TODAY reported that, 13 per cent of 1,000-plus Singapore workers surveyed by job portal Indeed.com were actively moonlighting in 2023. They had done so because they feared being stranded should they be retrenched. In the same TODAY report, one such individual, Mr Wong, aptly summed up this sentiment. I quote - “Nothing is certain. Businesses fail and people get retrenched,” he said. “If one job doesn’t work out, the other hopefully will.” <end quote>
Unlike employees who have a stable job and moonlight as a ‘backup’, freelancers have no back-up plans. Their work embodies a continual series of gigs, without assurance of job and income security.
Budget 2024 made significant policy shifts to better position our people and workers for the future. How might we, as a society, pave the way forward for our freelancers who may not fit into traditional employment and progression pathways? After all, own account workers make up close to 10% of the local workforce, with nearly 200,000 doing this as their main job.
Mr Speaker, we need to do more to strengthen the lattices that empower and support our freelance workers. This matters most where freelancing is the dominant mode of work such as the creative, media, coaching, and platform work sectors. Allow me to outline to the House three precarities facing freelancers from these sectors and suggest five approaches in response.
First, given the prevalence of sub-contracting, it is important to reinforce fair norms to address the precarity of the freelancer.
In the post-pandemic economy, firms are increasingly turning to micro-firms and freelancers for operational needs. To achieve more with less, established firms in creative and media sectors would often parcel out work to micro-firms. Micro-firms would in turn rope in freelancers. This lean sourcing approach is also prevalent in the coaching sector – be it sport, art, enrichment, or wellness coaching.
This trend is concerning; some established firms that are main contractors have been passing on significant financial risks to micro-firms and freelancers through the sub-contracting model.
Allow me to share an actual case.
From late 2023, NTUC’s Visual, Audio, Creative Content Professionals Association (VICPA) that I serve has been helping a group of freelance creative and media professionals to recover a six-figure sum in total, from a production micro-firm, Company A.
These freelancers were owed fees for their work on the past two years’ projects, which Company A was a sub-contractor.
What was concerning were two terms imposed by a main contractor on Company A: one, Company A was to finance the project from the outset at a tune of $30-50,000 per project, and two, Company A could only collect all payment after project completion - this could be 3-6 months later. Payment was also subject to the main contractor and client’s full satisfaction with the project delivery.
Although such onerous terms had surfaced on occasions before the pandemic, Company A and fellow creative and media micro-firms shared that these terms became the norm post-pandemic as part of the de-risking strategy of established firms.
So how did this impact Company A and the freelancers it contracted?
Like other micro-firms, Company A was lean in staff and in cash. It tapped on freelancers for multiple concurrent projects and borrowed from banks and fin-tech firms to finance the projects. Company A started delaying payments to its freelancers to muster enough cash to cover pressing loan instalments and the exorbitant lending rates of Fin-Tech firms.
What alarmed me was that just some months earlier, NTUC’s National Instructors and Coaches Association (NICA), which I also serve, had handled a similar case but in the wellness coaching sector. In the case handled by NICA, those owed payments were freelance exercise instructors.
In both cases, the main contractors in question were adopters of the Tripartite Standards relevant to contracting and/or procuring services from freelancers. This meant that both firms, which were established and reputable for their works, had pledged to be progressive employers and service buyers. Although the relevant Tripartite Standards guide adopters to make part-payment to sub-contractors at project milestones, both main contractors did not do so. Fellow parliamentarian Mr Ang Wei Neng pointed out this same bugbear yesterday. Ultimately, the main contractors’ inaction impacted the most vulnerable party in the link – the freelance worker.
As firms continue their march to de-risk, could the government consider levelling up and validating the Tripartite Standards that guide businesses to be fair and ethical when contracting with freelancers and micro-firms?
This would introduce baseline protection for the thousands of freelance workers in the creative, media and coaching sectors, many of whom undertake work on fees and terms communicated through skimpy text messages. This is commonplace because buyers are reluctant to write down agreements and freelancers are hesitant to insist. The Tripartite Standards that guide contracting with freelancers state that contracting parties should ink proper written agreements. Proceeding without a proper written agreement means that freelancers would have a hard time pursuing payments should buyers default.
To uphold the relevant Tripartite Standards, the Government could take a step in the direction of the PW Mark . The Ministry of Manpower’s PW Mark ensures that accredited firms and their sub-contractors compensate low wage workers fairly. In the same vein, the government as a buyer could request its main contractors for creative, media or coaching work to adopt and uphold the Tripartite Standards’ terms on contracting with freelancers, regardless of whether freelancers were contracted directly or through sub-contractors. As in the case of the PW Mark, established firms that are the main contractors must in turn ensure the micro-firms that are their sub-contractors, adopt and institute the relevant Tripartite Standards.
By taking deliberate steps to reinforce fair norms, the government can take the lead to curb freelancer precariousness arising from prevalent post-pandemic sub-contracting.
Second, many freelancers are subject to power imbalance with service buyers, and face stagnated rates.
Even with the rising costs of business, freelancers in creative, media, and coaching sectors share that it is uphill battle to ensure their rates keep pace with costs. Indeed, many reported that their rates had stagnated or declined slightly. Why so?
Seasoned freelancers have observed that in recent years, project budgets have shrunk in tandem with intensified company restructuring and price competition. Those affected by layoffs are also competing for freelance assignments. Other freelancers noted that clients now expect them to do more work for the same rates. Despite the feelings of inequity, the power imbalance between buyer and freelancer means that freelancers have little choice but to oblige with buyer-dictated rates and terms.
These trends have led to eroding hourly rates for many freelancers in the creative, media, and coaching sectors, including those contracted directly or through sub-contractors for government-commissioned work. With fewer opportunities and unstable earnings, freelancers' decision-making for their finances can be hampered. Take for instance choosing between setting aside monies for emergency funds for unexpected life events and investing in the business.
Some may even deprioritise purchasing insurance against workplace injuries and work liabilities, although such expenditure is necessary for peace of mind.
If take-home earnings are unpredictable, freelancers would rather work than make time and effort to upskill or to market themselves. This in turn compromises freelancers’ ability to build a sustainable business model.
Freelancers have asked if the government could consider their predicament akin to the consideration by government to platform workers, including allowing platform workers to seek collective representation.
In the context of the creative, media, and coaching sectors, the government in its capacity of service buyer, could engage representative freelancer-centred associations such as NICA and VICPA on changes to the cost of business for coaches and creatives and to set guidelines and principles on fair remuneration.
This allows the less visible yet vulnerable group of workers to collectively address the market gap. It would also provide the relevant government bodies’ useful insights to update budgets for fair and equitable procurement of services from these freelancers and micro-firms.
Therefore, to build sustainable and viable freelancing livelihoods and careers, I propose that the Ministry of Manpower update the 2018 Tripartite Workgroup’s recommendations of support for self-employed persons.
Much has changed since 2018. Freelancers today must navigate perennial issues such as inadequate insurance coverage alongside new vulnerabilities such as onerous obligations and unfair terms of buyers or suppliers.
I hope that an updated set of recommendations would provide freelancers and freelancer-centred associations for coaches, creatives, and platform workers, with pathways for expedient and affordable recourse against unfair terms such as unreasonable leasing claims, and the lack of work insurance provision or clear articulation on work safety protection.
Third, without a stable income stream and entitlements that employees have, freelancers are doubtful about their readiness or financial ability to weather life events. Freelancers can gain from a boost in terms of support for upskilling and caregiving.
Budget 2024 is about uplifting workers and supporting workers with upskilling. These concepts apply to freelancers too - freelancers coping with ageing parents seek enhanced support, while those who seek to remain relevant in tandem with economic forces, seek funding support for agile upskilling. Allow me to elaborate.
First, enhancing support.
Many freelancers want to do right by their ageing parents. Many hope to fulfill their ageing parents’ wish to “age in place”. To freelancers, supporting their parents to “age in place” means spending more time on caregiving and less time on income-earning. Over time, these freelancers might have to contend with depleted CPF and savings, reduced client base, and poorer financial resilience.
Caregivers who put in the hard work of caring for their loved ones at home should be recognised and supported, and not left alone to worry about their own future. Today, caregiving grants help families with caregiving expenses. We need to do more to take care of those who care for others. We need to assure them that their own retirement adequacy is assured even as they make hard trade-offs to forego work opportunities.
How might we help to alleviate the financial stress that arises when freelancers trade work - for time and mind-space for caregiving?
Next, how might we introduce funding for agile upskilling by freelancers? The World Economic Forum estimated that 1.1 billion jobs could be radically transformed by technology in this decade . This would include jobs done by freelancers. Many expect artificial intelligence to transform work in the creative, media, and coaching fields.
To employees, job scopes guide their work whereas to stay valuable, freelancers must quickly assimilate trends and technology to their methods.
Freelancers too are concerned about the pace of change and whether their business models can keep up. An agile approach to training is one that allows freelancers to right-skill just-in-time. This requires the government to allow and invite practitioners to take the lead in proposing what to train and how to train, especially if the know-how must be contextualised for the sector or profession.
Thus, I hope that the government, in particular the ministries and agencies overseeing the creative, media, and coaching sectors, could consider working closely with NICA and VICPA, NTUC’s affiliated associations for coaches and creatives, to develop freelancer-centred training support. Parties could proactively curate right-skill just-in-time training and tie in subsidies and credits.
This ensures that cash-tight freelancers can afford the out-of-pocket training costs. The SkillsFuture Level-Up programme is a step in the right direction and would be valuable to freelancers if it could be expanded to cater to their career fields.
NTUC cares because every freelancer matters. I therefore urge tripartite partners to step forward and take action together.
Mr Speaker, I will now conclude.
To recap, freelancers, particularly those in creative, media, and coaching sectors, are stressed by three precarities:
First, the post-pandemic sub-contracting model threatens freelancers’ income security.
Second, stagnated rates demoralise freelancers and erode their ability to sustain their livelihood.
Third, freelancers with less resources struggle to adapt to life stage needs and macroeconomic changes.
To address these three precarities, I hope the government could consider five approaches:
First - levelling up and validating the Tripartite Standards that guide businesses to be fair and ethical when contracting with freelancers and micro-firms.
In the same vein, could the government as a buyer request its main contractors and their sub-contractors for creative, media or coaching work, to adopt and uphold the Tripartite Standards’ terms on contracting with freelancers?
Second - in the government’s capacity of service buyer, engage the representative freelancer-centred associations such as NICA and VICPA, on changes to the cost of business for coaches and creatives. This allows a less visible yet vulnerable group of workers to collectively address the market gap.
Third – relook at and refresh the 2018 Tripartite Workgroup’s recommendations of support for self-employed persons. The updated set of recommendations could provide freelancers and freelancer-centred associations for coaches, creatives, and platform workers, with pathways for expedient and affordable recourse against unfair terms including unreasonable vehicle leasing claims.
Fourth - have caregiving grants go beyond defraying caregiving expenses; grants should recognise caregivers’ labour and provide assurance for their retirement adequacy.
Fifth - work with NICA and VICPA to help freelancers keep pace with industry changes and seize opportunities. For example, develop targeted training support for freelancers alongside subsidies, to cover both training and opportunity costs.
Freelancers make up close to 1 in 10 of Singapore’s resident workers. Budget 2024 charts a new chapter for workers. In step with tripartism and an inclusive vision of success, these five approaches would boost freelancers’ long-term capabilities and their confidence for the future.
Mr Speaker, notwithstanding the points raised, I support the Budget.
