Pinning their hopes on work-from-home ‘refugees’

Companies offering shared-office space are hopeful of new business after the Covid-19 shutdown ends.

PETALING JAYA: With business activities allowed to resume after seven weeks of the Covid-19 shutdown, several owners of “co-working spaces” – or shared-office centres – are pinning their hopes on people seeking flexible ways of working.

Tan Sung Lin, who owns Nomad Malaysia, expected renewed demand for shared office space, especially from those in digital businesses, as more startups had been established during the movement control order “such as e-commerce, tech startups, micro F&B and logistics”.

Tan said the work-from-home culture would not lead to a collapse of demand for office space because the people could not take to work from home over a long period of time, according to many studies.

“I have yet to meet anyone who has successfully been able to work from home. Even those with their own home office are finding it difficult to be in the same house for lengths of time,” he said.

In the meantime, while waiting for business to pick up again, two owners of shared-offices are hoping their landlords will provide them relief.

Qayyum Jumadi of Creatorspace said there had already been a few bookings but is fearful he would not be able to maintain his premises.

“We tried to negotiate for a discount or waiver of rental but the building owner has not given a decision,” he said.

Co-working space provider WORQ said the landlords had not responded to requests to waive rental or to give them a discount.

“We foresee that the new norm of working will benefit coworking space as well. Companies will opt for more flexible workspace arrangements for their team members, and also look into more flexible leases rather than a long-term commitment,” the company owners said.

Nestspace said revenue had dropped by almost 80% during the MCO period, but is hopeful of new business.

Nestspace’s Albert Chee said SME companies, especially those in information technology, had recently decided to cut office expenses and move to co-working space instead.

“We have received a few requests for meeting space for two days a week. Most of these companies are cutting expenses or ending their office contracts and moving to coworking space,” he said. - FMT