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Govt has to ensure there are job options, not to dictate which is best: Josephine Teo

SINGAPORE — Addressing the rise of the gig economy, Second Minister for Manpower Josephine Teo said that there is nothing to stop Singaporeans from becoming freelancers and it is not the business of the Government to tell people that one job is better than the other.

TODAY file photo of people waiting to enter a job fair at Changi Airport. Second Minister for Manpower Josephine Teo said that there is nothing to stop Singaporeans from becoming freelancers and it is not the business of the Government to tell people that one job is better than the other.

TODAY file photo of people waiting to enter a job fair at Changi Airport. Second Minister for Manpower Josephine Teo said that there is nothing to stop Singaporeans from becoming freelancers and it is not the business of the Government to tell people that one job is better than the other.

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SINGAPORE — Addressing the rise of the gig economy, Second Minister for Manpower Josephine Teo said that there is nothing to stop Singaporeans from becoming freelancers and it is not the business of the Government to tell people that one job is better than the other.

However, the key thing is to ensure that Singaporeans are not turning to freelance jobs because of a lack of regular work, as in the case of some other countries.

"In some countries, it is touted as a solution to unemployment and, in some cases, it is also sold as a work arrangement that offers great flexibility," she said. "There may be many people who choose to be self-employed for a variety of reasons. But what you want to do is to always provide the options of regular work, so they can exercise a choice."

Speaking to TODAY in a one-hour interview where she discussed manpower issues, Mrs Teo disclosed that the proportion of freelance workers remains "stable" at about 8 to 10 per cent of the country's workforce. There are about 200,000 freelancers in Singapore.

Maintaining a flexible labour market where freelance workers may switch to regular jobs is important, she said, adding that Singapore has very few barriers to employment, unlike other countries which impose a minimum wage requirement, preventing businesses from offering employment when they cannot support the wages.

With freelance work becoming more common, the Government set up a tripartite workgroup last March to examine the concerns faced by workers in the industry. The workgroup will unveil its recommendations in two months' time.

Among the concerns raised by freelancers include the lack of written contracts, which becomes an issue when a dispute on payments arise, Mrs Teo noted.

Since they are not covered under the Work Injury Compensation Act, another worry is the prolonged loss of income if they suffer significant work injury while doing freelance work.

LACK OF SAVINGS

The lack of retirement and healthcare savings is also another cause for concern.

Right now, self-employed Singaporeans may make voluntary cash top-ups into their retirement or special accounts with the Central Provident Fund (CPF).

Should this be made mandatory so that they can build up their retirement nest egg? Mrs Teo said that the tripartite workgroup is studying this.

Another area it is examining is how to ensure that freelancers also contribute to their CPF Medisave accounts because the default rates — of those who do not contribute — "can be quite high".

"So, should you not attempt to address the default rates first, before you even think about extending it to other contributions?" Mrs Teo asked.

In countries such as Australia, for example, its labour union in the state of New South Wales has proposed imposing minimum pay rates, as well as compensation insurance and pension fund contributions which will be provided by businesses offering freelance work.

When asked whether Singapore should consider such measures, Mrs Teo said: "I think our context is different from those other countries. In our case, the CPF system works very well.

"I think there is a general consensus that if there is anything you want to do, it should be more to help bring the freelancers within the CPF system."

'DESIRE FOR STABILITY' A HURDLE

Touching on the issue of job-skills mismatch, Mrs Teo's view is that there are some attitudes that Singapore employers and workers take that do not help the situation. Essentially, it is the "desire for stability" or a certain unwillingness to change.

"Maybe (they are thinking), we can hold out a little bit longer. (The companies may think), maybe we do not have to change the way we do our businesses yet. (The workers may think), maybe we do not have to move out of a particular job or sector yet," she illustrated.

To generate more awareness on the need to adapt to the volatile and disruptive labour force, Mrs Teo said that the Government has put in place the Industry Transformation Maps (ITMs), the nationwide SkillsFuture movement, as well as initiatives such as the Professional Conversion Programmes (PCPs).

Such initiatives do not work in silo but complement each other, Mrs Teo said. The goal of the ITMs is to create a culture where companies within the 23 sectors such as financial services and retail "are always transforming".

With companies restructuring, workers will be affected, and that is where the PCP comes in to enable workers to make mid-career switches to jobs that are in demand.

As for the SkillsFuture drive, it serves to encourage individuals to take ownership of their own learning and development, so that they can keep abreast of developments in the workforce.

HELPING INDIVIDUALS ADAPT

Mrs Teo said: "Companies are used to doing things or working a certain way, and changes do not come quite so quickly. So, the way for us to deal with it is that we want to put in place all the schemes and mechanisms that will help the individual adapt. So, when the change comes, you are able to make the transition more smoothly."

On a smaller scale, one government scheme that has been popular is the one that helps employers adopt flexi-work practices. About 1,500 companies had benefited from the Work-Life Grant as of last year, and Mrs Teo revealed that it would be extended based on feedback from most of the firms that their employees were "more productive and staff morale had improved".

The Work-Life Grant includes a one-off grant of up to S$40,000 for companies to implement flexible work arrangements. Mrs Teo said that new grant parameters would be announced at a later date.

Based on a 2016 survey, eight in 10 firms today are willing to provide unplanned time-off or ad-hoc teleworking arrangements so that their employees may attend to personal matters, with one in two companies preparing to offer at least one form of flexible work arrangement on a regular basis.

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