The freelance generation

Young people are finding typical nine-to-five office jobs less appealing, while companies are also realising the benefits of freelancers – more savings on office space and employee benefits.

Full-time jobs? Pfft. Who needs 'em when you can freelance at home in your jammies?

ONCE upon a time, it was only natural to seek and secure a stable job after you graduate, preferably with an established company where you can build your resume based on the reputation of the company.
But now, with the culture of the modern workforce, where demands are high and speed of work is essential, we are seeing the rise of “independent workers” – aka freelancers.

Malaysian Emoployers Federation executive director Shamsuddin Bardan said there has been a “rapid growth” in freelancing in Malaysia, especially with work that can be done online.

He said: “Freelancers have more freedom and flexibility. For some it is about following their passion and being their own boss, while at the same time earning some income.”

According to a PC.com article earlier this year, since Malaysians started using the Freelancer.com website in 2009, over 27,000 freelance jobs have been posted, and over US$851,000 earned by freelancers.

Most of the jobs originate from the Klang Valley, with Malaysian employers mainly hiring freelancers from South Asia. In line with the growth of ICT industries, the most popular projects are software architecture, MySQL and software testing.

The freelance generation

For graphic designer and videographer Zermi Ng, 25, being a freelancer had not only helped him become more productive, but also given him more free time.

“As a freelancer, I usually take about two to eight days to complete a film, and whatever time I have left is usually free for me to do what I want,” he said.

Ng said he could spend just a week to deliver a production and get the same monthly salary he would with a nine-to-five job with five days a week in the office. “The only problem is you might not get a job every month,” he said.

Shamsuddin said: “People who don’t want to be bound by the strict 9am to 5pm working hours would usually choose the freelancing path. But not all jobs can be done by freelancers.

“They usually are professions in the creative field like designers and copywriters, as well as IT or enginering professions.”

He pointed that more companies are now attracted to this new form of hiring and moving away from traditional employment.

The benefits for employers, he said, is they can “save on benefits and statutory payments” while maintaining a lean workforce and meeting bursts in demand.

“For example, a company who specialises in food and beverage will not need to hire a full-time web developer just to set up a website. In fact, the web developer doesn’t even need to show up to the office.

“By hiring full-time staff, there is space reduction, and more budget spent on benefits. If you hire a freelancer, it’s a win-win situation. Freelancers get the freedom they want and companies don’t need to spend on office space.”

According to Sam Haggar, the Malaysia country head of human resource consulting firm ManpowerGroup, freelancing is becoming a trend because more young people like the lifestyle that comes with it.

“The lifestyle of being able to be anywhere at any time while working is becoming more and more of a trend. There is also no geographical boundary when it comes to delivering their work.”

Fashion photographer Bibo Aswan, 24, started his freelance career in fashion photography and potraiture while studying in Form Two. Before he even graduated with his diploma in photography, he already had a handful of clients to start with.

Freelance fashion photographer Bibo Aswan hopes to work with a photography studio in the future to gain more professional experience and gain access to better equipment.

Even during his internship with a photography studio, he found that he preferred a more flexible working schedule. “I could actually continue to work with the studio full-time, but I chose not to. By freelancing, I don’t actually have to work everyday.”

A price to pay

It is important to note that there is a difference between freelance and part-time workers. Part-timers are employees who are entitled to all company benefits and social security like EPF and Socso, but with a lower level of commitment.

But of course, freelancers usually enjoy more freedom and flexibility. In the eyes of the law, however, they have very little leverage against their employers. And on top of that, their income is rarely as stable as that of a full-time or part-time employee.

“Freelancers are paid for their work but they have almost no benefits and have no rights of employment apart from a contract between the employer and the freelancer,” said Haggar.

According to Shamsuddin, there also have been cases where freelancers were scammed and cheated for their services. “There are ‘companies’ and ‘employers’ out there targeting freelancers. They ask for your services and then disappear without giving you payment.”

Shamsuddin said freelancers ought to be careful in dealing with their employers as they might encounter bogus companies or scams. It is vital for a freelancer to request for a civil contract, and also to check the employer and company’s background before committing to a job.

Through both freelancing and working as an employee, filmmaker Joshua Chay, 27, discovered what he wanted to achieve in his career.

Filmmaker Joshua Chay took his freelance career to the next level by starting his own production company called The Spacemen.

“I didn’t see myself working for a company because I wanted to be my own person. In that way I’m able to produce the kind of work I like and I’m passionate about,” said Chay.

Although Chay pursued a freelance career in filmmaking, he was working with many types of clients – including some he didn’t particularly enjoy working with.

“The biggest thing about my freelance career was that it was growing, and fast. But through the jobs, I realised what kind of work I didn’t want to do. So from there, I began to pick my clients and produce the type of work I enjoy and am actually good at,” said Chay.

Haggar added: “That’s one of the great advantages freelancers have – they get to choose their clients and enjoy their work.”

The path to entrepreneurship

Eventually, freelancing became a stepping stone for Chay to venture into something bigger – starting his very own company. He realised the importance of expanding his services, as well as presenting a higher credibility to clients, which is why he founded his own company, The Spacemen, with two other friends.

Ng had also taken steps to expand his services by starting his own company, Mime Studio. “Starting a company will attract more clients, and it makes it easier for us to convince them,” he said.

But on the flipside, despite the liberty freelancers have, Haggar said they often lose out on the mentorship you get from having a superior, and learning from other colleagues. “This form of working may cause young freelancers to be less business-savvy and structured, because they are without guidance.”

Because of this, Bibo plans to work with a professional photography studio in the near future. “I want to do that so I can learn the business side of things. Plus, a professional studeio would also have better resources, like proper production equipment.”

That’s one of the reasons why Chay spent around three years freelancing before he started his own company. He wanted to learn everything from scratch, from the top to the bottom of the production industry.

“Because I started out doing everything on my own, I had to learn everything. And I realised after a while that starting a company was the right move. Multi-national companies may not work with freelancers, but they might if you’re a legit company,” he said.

Freelancers may have the liberty to work when, where and how they want,but they lose out on full-time benefits and social security.

Contributed by  by Kevin Tan The Star/Asia News Network

Malaysia's property market to take a breather in 2014 and 2015

PETALING JAYA: The property market might need at least two years to digest and recover from the various cooling measures that came into effect this month, but expect it to surge again in 2016, say industry officials.

According to Malaysian Institute of Estate Agents president Siva Shanker, 2014 is expected to be a tough year for sales, but the market will find its footing next year and catch the next upcycle in 2016.

“The market ground to a standstill after Budget 2014. There was a knee-jerk reaction in sales.

“It will probably stay in the doldrums for the first half of 2014. The second half may be better,” Shanker, who is also CEO-Agency of property consultancy PPC International Sdn Bhd, told StarBiz by phone.

Shanker believes that speculation over the past few years in the primary market, resulting in “far more properties bought than needed”, had been put to a stop by the new curbs.

“The days of 20%-40% appreciation in property prices after only a few years is over, ” he said.

Even so, Shanker sees the secondary market, which he said had languished for years, regaining its lustre.

“A new launch in Bangsar could set you back RM1,500 per sq ft, compared to RM800-RM1,000 per sq ft for an existing property. The discount goes up to 50% in some prime areas,” he said.

An analyst with TA Research said that unlike previous years, many listed developers have held back on their 2014 sales targets – a departure from their usual forward guidance in December – until a clearer picture emerges from the effects of Budget 2014 and other tightening measures.

The exception is Mah Sing Group Bhd, which is aiming for a 20% increase in sales this year to RM3.6bil.

According to the analyst, policy uncertainty on several fronts – such as whether Iskandar Malaysia’s Medini is exempt from real property gains tax, or the pricing of bank loans using the net selling price of a property – remains an overhang on the market.

“The sector’s fundamentals are intact, but in terms of share prices, the catalysts are lacking,” she said.
Property players have noticed a marked slowdown in sales since the various curbs were put in place, although it is unclear by how much.

A number of high-end launches were also shelved, as developers switch their focus to the affordable segment of the market, where demand is more resilient.

Some of the projects launched post-Budget 2014 include block B of YTL Land & Development Bhd’s Fennel@Sentul East condominiums, which saw a take-up of 80% soon after it was opened for sale in mid-November, while tower A and B of Sunway Bhd’s Geo Residences were 85% sold within two weeks, HwangDBS Vickers Research noted.

In Iskandar Malaysia, however, the response to UEM Sunrise Bhd’s Almas Suites and WCT Holdings Bhd’s Medini Signature Tower 2 have been lukewarm, Maybank Research said in a report last week.

The brokerage’s only “buy” call is Glomac Bhd, even though the firm has cut its own sales target for the year ending April 30, 2014 by 18%.

CIMB Research is more upbeat. It expects buying interest to return in the first half of this year, albeit gradually, when potential homeowners realise that prices are unlikely to fall, and that inflationary pressure from the impending goods and services tax, along with other subsidy cuts, leads to higher prices.

“As these macro prudential and policy measures are meant to curb speculation and not restrain genuine demand, the impact (though negative in the short term) should be positive over the longer run because they should help to remove froth from some segments of the market.

“Also, affordability remains close to its highest ever. Robust sales by developers should provide impetus for a re-rating of property stocks,” the research house told clients earlier this month.

Hong Leong Investment Bank Research, which believes the market will stage a recovery in the second half of the year, advocates a buy-on-weakness strategy for shares amid trough valuations.

Contributed by John Loh The Star/Asia News Network

TPPA negotiations hot up in early 2014

Due to the United States political calendar and congressional politics, the TPPA negotiations will heat up the first few months of the new year. 

ONE of the major developments in the new year will be the negotiations and in fact the fate of the Trans Pacific Partnership Agreement (TPPA), which has stirred a lot of interest and controversy not only in Malaysia but also in the United States, whose government is its prime mover.

The first half of 2014 will be decisive because the US will hold mid-term congressional elections in November, and that nation’s attention will focus on that after mid-year.

Since free trade agreements are so controversial and in fact unpopular among the public in that country, the TPPA and other FTAs will be hard for the US president and his administration to champion near the election period.

This may explain why the US is in such a hurry to finish the TPPA negotiations as soon as possible. It had placed a deadline of end of 2013, but that has passed without success.
Indeed, the ministerial meeting in Singapore in the first half of December revealed many outstanding differences.

So, the negotiations will become even more intense in the next few months, with a possible ministerial meeting in February.

Malaysia is one of the significant countries that have raised several concerns about the proposals by the US.

Prime Minister Datuk Seri Najib Tun Razak himself, at a meeting in Bali last October, highlighted government procurement, state owned enterprises, investor-state dispute system and intellectual property as some of the issues that may infringe on sovereignty, implying that there should be careful consideration and caution during negotiations.

The US Trade Representative Michael Froman visited Malaysia a number of times to meet with some ministers and parliamentarians. He reportedly assured them of the United States’ understanding of Malaysia’s concerns, which he implied would be taken into account.

Malaysians are thus waiting to see how much flexibility will be given to accommodate the concerns of the public and the Government.

For instance, Malaysia formally proposed a comprehensive “carve-out” (exclusion from disciplines in the TPPA chapters) for tobacco control measures, a move that was advocated by health groups and the Health Ministry, and which has won warm congratulations from the public and media around the world, including in a New York Times editorial.

According to media reports, Malaysia has also opposed proposals for tight intellectual property rules that for instance extend the present terms for patents for medicines and asked for high thresholds for government procurement, and exemption for its bumiputra policies, while also challenging the proposed disciplines on state owned enterprises and the investor-state dispute system.

On goods market access, Malaysia will also find difficulties with the proposed ban on export duties. Recently the association of palm oil refining companies warned that their operations would be threatened if the TPPA forces the country to abolish its long-standing export tax on crude palm oil.

A ban would also cause the Government to lose around RM2bil annually in revenue, which would be a serious blow to efforts to reduce the budget deficit.

The question is whether Malaysia’s demands will be met. Even if compromise or flexibility is offered, it is crucial to examine how genuine or adequate they are. Often, the only “flexibility” is a longer period granted to implement the specific rule in question. That is not really much use.

Even if an exemption is given, it may be limited or useless. For example, in an early version of the investment chapter, available on the Internet, there is a clause that nothing in the chapter prevents the countries from undertaking health and environmental policies. But it also says provided those policies are consistent with the chapter, thereby negating the apparent space provided for exclusion.

Thus the devil is really in the details, as the saying goes. And the details have to be carefully scrutinised, because it is an old negotiating tactic to show a spirit of understanding and compromise politically but remain steadfast and uncompromising in the legal texts, and it is the latter that counts.

Another key point is that the US negotiators and government have little room to provide compromises, even if they want to. That is because it is the congress that has the real power over trade matters, including the TPPA.

Last week, some members of Congress introduced a Bill to provide the US President with fast-track authority, which means that a trade agreement like the TPPA can only be adopted or rejected by congress, but cannot be amended by it.

Without this fast-track authority, there is no confidence among other countries that what the US negotiators agree to or sign will be agreed to by congress, which can reject certain parts of the TPPA and demand changes.

As a condition for giving the fast-track authority, advocates are asking the US government to take a strong stand on issues.

This puts pressure on the US negotiators not to compromise, even if they wanted to.

For example, the Bill says that on state owned enterprises the US should seek commitments that eliminate unfair competition favouring SOEs doing commercial activity and ensure that their practices are based solely on commercial considerations.

Government policies and the SOE practices would have to abide by eliminating discrimination and market-distorting subsidies.

The US is already proposing that SOEs cannot discriminate when they buy and sell goods and services, and that they cannot receive any advantages such as cheaper loans or land and business from the government.

This would, for instance, imply SOEs being prohibited from giving preferences for bumiputra companies in their procurement.

If the definition of SOEs also include private companies in which government agencies have a share, the net will be cast very wide.

It is however still unlikely that the proposed Bill will pass, as many Democrats are opposed to fast track and some Republicans just don’t want to give President Obama anything he wants.

But here’s the problem. If fast track is given with the conditions attached, the US negotiators will have to abide by them and can’t show required flexibilities. If there is no fast track, the proposed texts agreed to by the US can more easily be rejected by congress.

Either way, there is only so much the negotiators can give in response to demands made by Malaysia or other countries, and even then the compromises can be rejected by congress.

Which goes to show how difficult FTAs are to negotiate or conclude when the US is involved, for commerce and politics are all mixed up in the pot.

Global Trends by Martin Khor

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2. Looming danger on contrast and competition of economic models
3. An eventful week on the TPPA
4. TPP affecting health policies?
5. ASEAN plans world's largest trading bloc in Asia, RCEP ...

Singapore may tighten finance rules, monitoring new forms of illicit financing

Move to curb money laundering, terror financing activities

The Monetary Authority of Singapore may step up regulations to curb money laundering and terrorism financing risks posed by remittance agents, money changers and some Internet-based payment systems. 

Controls on pawnbrokers and corporate service providers such as lawyers and accountants can also be improved, according to a government risk study released today. Singapore authorities are closely monitoring virtual currencies such as Bitcoins that may be used for illegal activities and will consider regulation if needed, according to the report.

“Singapore’s openness as an international transport hub and financial center exposes it to inherent cross-border” money laundering or terrorism financing risks, according to the study. MAS “has put in place a robust preventive regime. Nonetheless, there are areas for further enhancement.”

The risk assessment study comes seven weeks after Singapore police and the bank association urged residents to be wary of fraudsters seeking to use their bank accounts to funnel illegal funds after an increase of reported cases last year.

Remittance agents, who accept funds for transfer to individuals outside Singapore, and money changers operate in “cash-intensive” industries and offer greater risks of money laundering or terrorism financing, according to report.

Total outward remittance from Singapore amounted to S$24.1 billion ($19 billion) in 2012, while inward remittances were S$995 million, the government said in the study. Volumes in the money-changing business that year were S$36.8 billion. The implementation of controls in these industries isn’t as robust as in banks and MAS will ensure “enforcement efforts are further stepped up,” according to the report.

More Powers 

The pawnbroking industry had total loans outstanding at over S$1 billion in 2012, the study showed. The number of pawn shops in the city increased to 191 that year from 114 in 2008.

MAS is also considering additional supervisory powers and requirements to bolster “nascent” money laundering and terrorism financing controls for Internet payment companies such as PayPal Inc. or Alibaba Group Holding Ltd.’s Alipay.

Agencies involved in the study included MAS, the customs bureau, the casino regulator, the finance, home affairs and law ministries, and the Accounting and Corporate Regulatory Authority.

Accountants and other corporate service providers can be exposed to money laundering and terrorist financing activities if higher-risk customers hire them to set up complex structures that conceal ownership and reduce the transparency of transactions, according to the study.

Tax Evasion 

Singapore’s central bank is stepping up its anti-money laundering rules in line with global regulations following U.S. authorities’ investigation of several Swiss banks for their dealings on behalf of American clients. MAS made it a crime last July for clients to use financial institutions to evade tax.

UBS (UBSN) AG and Credit Suisse Group AG, Switzerland’s largest banks, are among firms implicated in a U.S. crackdown since 2008 on offshore tax evasion that led to charges against about 70 American taxpayers and 30 bankers, lawyers and advisers.

The U.S. charged UBS in 2009 with aiding tax evasion by thousands of American clients. The Zurich-based bank avoided prosecution by paying a $780 million penalty, admitting it fostered tax evasion and agreeing to hand over data on client accounts to U.S. tax officials.

Private Banking 

Risks for private banks operating in Singapore are lower than those for full banks because they have fewer clients, less physical cash transactions and more checks when customers open accounts, according to today’s report. Singapore is Asia’s largest private banking center with offshore assets of about $800 billion, Boston Consulting Group data show as of September.

In Singapore, the number of reported cases of illegitimate cash being given to so-called money mules to hand over to a third party increased to 133 in the first nine months of last year, up from 93 for all of 2012, local police, the bank association and the National Crime Prevention Council said in November. The amount of illegal monies in those cases fell to S$15.5 million from 2012’s S$24.6 million.

- Contributed by Darren Boey in Hong Kong at dboey@bloomberg.net; Sanat Vallikappen in Singapore at vallikappen@bloomberg.net

Singapore monitoring new forms of illicit financing

Asian financial hub Singapore on Friday said it was scrutinising trade in virtual currencies such as Bitcoin as well as precious stones and metals to forestall new forms of illicit financing by criminals and terrorists.

In an inaugural report on money laundering and terrorist financing risks, the city-state said these sectors were identified for further study "as technology evolves and criminals become more sophisticated".

"Authorities will seek to better understand how money laundering and terrorist financing can be carried out through these channels," said the joint report by the finance and home affairs ministries as well as the Monetary Authority of Singapore (MAS).

It said the government would "review international best practices, to determine whether any safeguards and mitigating measures are needed".

The report said virtual money and precious metal-backed currencies carry the risk of being abused due to their anonymity, cross-border nature and low transaction costs.

The MAS, which serves as the city-state's central bank, "is closely monitoring developments in this area and will consider the need for regulation if necessary", the report said.

Bitcoin, the world's most popular form of electronic money, made headlines last year when US authorities closed the Silk Road website when it was found the currency was being used to buy illegal drugs, forged documents, hacker tools and even the services of hitmen.

The report also said Singapore was monitoring the trade in precious stones and metals.

"There are international typologies on the use of precious stones and metals as a tool to launder money, particularly as a store-of-value to move illicit proceeds easily," it added.

The bank said of 22 sectors that were assessed, the city's vast financial sector remained among the most vulnerable to abuse owing to the large number of transactions that take place and its wide international reach.

Singapore houses the regional offices of some of the world's top financial institutions and its total assets under management are now around Sg$1.4 trillion ($1.02 trillion), according to the MAS.

The report said "relevant controls are in place" for financial institutions, including supervision by MAS, record keeping, transaction monitoring and rigorous customer due diligence measures.

It identified remittance agents, money-changers, Internet-based stored value facility holders, pawnbrokers as well as corporate service providers as sectors where "controls are relatively less robust".

"Relevant government agencies will be strengthening the legislative and supervisory framework through the year to address the risks in these sectors more effectively," it said.

"The possibility that terrorist elements may seek to direct funds from abroad to support terrorism activities in Singapore or use Singapore as a conduit for foreign (terrorist financing) cannot be discounted," the report said.

Singapore in 2001 said it crippled a cell of the Southeast Asia-based militant network Jemaah Islamiyah with the arrest of suspects linked to an alleged plot to bomb local and foreign targets including Changi Airport.

Officials say the island republic is a prime target for extremist groups because of its close ties with the United States and major role in global finance and business.- AFP

Internet addiction taking toll on health !

Internet addiction has become a new threat to healthy living for Malaysians, depriving them of sleep and exercise, a survey by a global insurance group has found.

A whopping 73% of Malaysian adults who took part in the 2013 AIA Healthy Living Index survey admitted that their online activities and social networking were getting addictive, putting the country a­­mongst those with the highest addiction rates in the Asia-Pacific region.

The poll by AIA Group covered over 10,000 adults in 15 Asia Pacific markets.

Of some 900 Malaysian respondents, 81% stated that spending time online prevented them from getting enough exercise or sleep while 80% claimed that their posture was affected.

The survey noted that this addictive trend would continue to be fuelled by children growing up with the Internet as an integral part of their lives.

On healthy living, 67% of adults in Malaysia felt that their health was not as good as it was five years ago.
Overall, Malaysia scored 61 out of 100 points in the survey.

Malaysia also fared poorly in the area of healthy habits, with 32% of adults admitting that they did not exercise regularly.

On average, Malaysians spent only 2.5 hours on exercise a week, below the regional average of three hours and below the ideal recommended by most experts.

Sufficient sleep was rated the most important driver of healthy living in Malaysia and the region.

While adults in Malaysia desired eight hours of sleep, they only had 6.4 hours on average, leading to a sleep gap of 1.6 hours, the third highest in the region.

Spending time online was listed as one of the causes of this sleep deprivation.

The survey mentioned that these not very positive health habits were aggravated by a preference for sedentary ways to relieve stress, such as watching TV or movies, playing computer or mobile games and spending time online.

Spending time with family and children or friends was also a popular way to de-stress for Malaysians.

Meanwhile, healthy food habits were still limited to the basics of drinking more water as well as eating more fruits and vegetables, although 56% of Malaysian adults were also trying to eat less sweets and snacks.

There was also much concern about obesity – 64% of Malaysian adults said they wanted to lose weight, above the regional average of 53%. Further, 93% agreed that obesity among younger people was a worrying trend.

Cancer, heart disease and being overweight were the top health concerns in Malaysia, with the former two being above regional averages.

Despite these concerns, only 50% of Malaysian adults had medical check-ups in the past 12 months.

The study found that 89% of adults in Malaysia felt that employers should help employees live a healthy lifestyle, mainly by providing free health checks, not subjecting em­­ployees to undue stress and ensuring workloads were not excessive.

AIA Bhd chief executive officer Bill Lisle said the company was committed to helping Malaysians live longer and healthier lives.

“Through this extensive survey, we are keen to identify and enhance awareness of the key trends that impact the health of adults so we can actively work with the community and our customers to promote more positive attitudes.”

Contributed  by Lim Ai Lee The Star/Asia News Network

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