Platform for protection

Fair treatment

On suggestions by MPs to police or audit platform algorithms to weed out any discriminatory practices, Koh said the dynamic nature of these algorithms means any audit will be reactive and have limited utility.

He said forcing platforms to reveal proprietary information like how their algorithms work may drive them away from Singapore and lead to a loss of platform worker jobs. Regulating the use of such algorithms will also impose significant compliance costs and deter potential entrants.

Instead, the new union-like platform work associations will be empowered to take up issues such as discrimination with the relevant operators, he said.

He added that it is also in the interest of platform operators to treat workers fairly, since all younger platform workers will be required to make higher CPF contributions over time, and those who feel they are being treated unfairly can switch platforms.

On work injury compensation, Koh turned down a suggestion to set up a centralized insurance system to minimize disputes, saying an open and competitive insurance market will facilitate sustainable insurance premiums.

He said these premiums will account for the risks in the respective sectors, and be based on indicators such as payroll size and number of workers.

The current estimate by insurers is that premiums for platform work injury insurance will not be much higher than those for employees in the same sector, he added.

"Today, there's no actuarial data, so everyone is pricing a little bit more conservatively … I think we should probably give the market some time to come to equilibrium," he said.

On suggestions to regulate working hours and incentive structures, or impose minimum earnings, Koh said being too heavy-handed with regulation could stifle the innovation and sustainability of the platform economy.

"Instead of the blunt tool of regulation, it is better to focus on the outcomes, and empower stakeholders to negotiate for their interests," he added.

In an online post, Singaporean Prime Minister Lawrence Wong said the landmark Bill is the result of Singapore's strong tripartite partnership involving unions, employers and the government.

"Together, we have crafted a solution that benefits both workers and businesses, ensuring fair treatment while preserving the flexibility that gig work offers. It's another meaningful step forward in our ongoing efforts to renew and strengthen our social compact," he said.