KUALA LUMPUR: Co-working space providers are optimistic of bouncing back post Covid-19 as the impact on the business model is only short-term.
Some co-working space providers believe companies will flock to the flexible offices after the worst is over.
Common Ground Works Sdn Bhd co-founder Erman Akinci said while it had managed the cost of implementing the new standard operating procedures (SOP) with extra hygiene upkeep, there is loss in opportunity cost now that the capacity is affected for safe distancing.
"So, while technically capacity is less than before, we are still able to meet demand in the market. Plus, our many locations in suburban areas make it very convenient for everyone," he said.
Erman said workers still need a productive place to work, while bigger companies are looking to de-densify their own working spaces to accommodate the new normal of social distancing (with split-team operations for example), Common Ground is seeing more requests coming in.
"Companies are looking to stay liquid and retain flexibility rather than taking the risk of committing to a longer-term office lease.
"Large companies are not in the head-space of signing a fixed lease with fixed rental commitment over a long-term period, and then further investing in the fit-out, buying furniture, etc at the moment," he told the New Straits Times.
Found Works Sdn Bhd country general manager Ganesh Mahendranathan agrees that the Covid-19 pandemic will not bring an untimely end of the co-working space business in the country.
"For larger companies, flexibility will be of paramount importance. To effectively manage cash flows, business leaders will have to move away from a high fixed cost model.
"As a result, I anticipate a growing number of freelancers and the shift from traditional offices to more flexible solutions which will render co-working spaces as an essential service," he said.
WeWork Malaysia is already seeing companies taking on a more conservative approach when it comes to operations.
The space-as-a-service provider is opting for workplace solutions as opposed to traditional leases to better manage overheads and operational costs.
"We believe this trend will only continue as co-working spaces become a key recovery asset for companies facing economic challenges.
"We are also confident of continuing leading the conversation around the future of the workplace by offering the right support and solutions for companies of all sizes," WeWork head of growth for Southeast Asia Ray Tan said.
While working from home has been a norm in life the last couple months, Ray emphasised that this model is not sustainable in the long run as the economy rebuilds itself.
"Remote working as an option will be provided for more companies and from what WeWork is seeing, it is the empowerment of space and the support of professional distancing that will shape it.
"Physical workspace will continue to see a demand and need. More than ever, there will be a bigger emphasis on collaborations and community," he said.
Ray said when the workforce in Malaysia goes back to work, companies will be looking for ways to both help their employees manage the crisis and transition in the recovery, in addition to future-proofing their work environment.