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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