Financial Challenges Faced by Platform Workers in Singapore: Study Findings and Recommendations

The gig economy in Singapore is booming, but a recent study has shed light on the financial challenges faced by platform workers in the country. The ‘Financial Freedom for Platform Workers and the Self-Employed’ report, a collaboration between Singlife, PwC Singapore, and the Singapore Fintech Association, will be unveiled at the upcoming Singapore Fintech Festival 2023.

The study surveyed 500 platform workers and conducted interviews with major platform owners like Deliveroo, Foodpanda, Gojek, and Grab. Shockingly, only 17% of platform workers felt financially free, compared to 29% of the average Singaporean consumer. The average platform worker rated their financial freedom at 50 out of 100, lower than the self-rating of the average consumer.

Furthermore, the study revealed that platform workers struggle to meet monthly savings targets, cope with rising costs and inflation, and prioritize retirement planning. Only one in 10 platform workers felt confident in handling financial challenges, while just two in 10 could consistently save after covering expenses.

On the other hand, platform companies expressed support for the recommendations of the Advisory Committee on Platform Workers but raised concerns about the challenges in implementing them. Mandating Central Provident Fund (CPF) contributions in the platform industry could lead to increased operating costs and fewer job opportunities for platform workers, according to the companies.

The report will be available for download at the Singapore Fintech Festival 2023, where key findings will be presented by Varun Mittal, Head of Innovation and Ecosystem at Singlife, and Wong Wanyi, Fintech Leader at PwC Singapore. The study aims to provide insights into the perspectives and challenges faced by platform workers in the gig economy, highlighting the need for inclusive success for all stakeholders.