Platform workers in Singapore increasingly reliant on loans

In recent years, more platform workers in Singapore have found themselves taking on extra hours and relying on loans just to make ends meet. This trend has raised concerns among debt recovery agencies, which report an increase in workers seeking help. Mohammad Fadli, a private-hire car driver, explains his struggles. Once able to support his family with 10-hour shifts, he now works 12 hours a day but still faces financial challenges. To cover his family's expenses and car payments, he has taken out three loans in the past two years. A report by Lendela reveals that 12% more platform workers applied for personal loans due to rising living costs over the last eight quarters. These loans are often used for debt consolidation. Grab, a ride-hailing company, has introduced a loan program for its drivers, allowing them to borrow funds based on their earnings. Other drivers and delivery workers echo Fadli's experience. Many report needing loans to handle increasing costs while their incomes remain stagnant or even decline. Rising fuel prices and rental costs are common concerns, leading many to seek help for debt management. Debt counseling organizations note fluctuating requests for assistance among platform workers; some years see increases, while others show decreases. Many workers cite a drop in household income as their main reason for falling into debt. The financial situation of platform workers is often worsened by unplanned emergencies. One delivery rider, Mohamed Norfirdaus, shared that he struggled financially after being diagnosed with cancer and unable to work for months. He had to take loans to get through the difficult period. Experts indicate a broader trend of platform workers being caught in a cycle of debt. As they borrow money to cover living costs, their financial situations can worsen over time. Working longer hours to compensate is common but often leads to exhaustion and higher risks on the road. The Singapore government has enacted new regulations to support platform workers. Associations have been set up to help workers access benefits and improve their working conditions. Companies like Grab and Foodpanda are also implementing initiatives to provide better support. While some platform workers are eager to find full-time jobs, transitioning can be challenging. Health issues and family responsibilities often prevent them from pursuing traditional employment. As the demand for platform work continues to grow, workers stress the need for fair pay and better working conditions to sustain their livelihoods.