After the COVID-19 pandemic, coworking spaces have emerged as a thriving trend, as highlighted in Nanyang Siang Pau’s recent article titled “Coworking Spaces are Booming Post-Pandemic” (共享工作空间疫后更红火), exclusively reported by Li Zhihong. Our very own Head of Real Estate and Product Development, Wong Chea Hao, shared his insights on the utilization of coworking spaces as an alternative workspace after the mass layoffs witnessed during the pandemic.
The Downside of Layoffs and the Need for Alternatives
While laying off employees may provide immediate cost savings, it may not necessarily be the best long-term strategy for a company. The impacts of layoffs can be far-reaching, including the loss of experienced and skilled workers, which directly impacts productivity and damages a company’s reputation. Moreover, layoffs inflict significant financial and emotional stress on the employees, making it harder for them to secure a new job.
It is crucial for companies to carefully consider alternative solutions and weigh the potential consequences before deciding to proceed with layoffs. One such alternative is the utilisation of coworking spaces to reduce unused office space, by offering flexible and agile solutions that allow companies to scale up or down quickly.
Transforming Vacant Spaces into Vibrant Coworking Space
According to a NAPIC (National Property Information Centre) report (2022), there are approximately 33 million square feet of vacant office spaces in the Klang Valley region. Transforming these vacant spaces into vibrant coworking spaces can potentially reduce the overhang by 20%. This strategic move not only optimises the utilisation of existing property but also saves an estimated RM2 billion in property appreciation.
The coworking space industry itself is expected to generate RM1.3 billion by 2030, and WORQ is aimed to capture 50% of that market share. Our mid-term plans include the development of 3 million square feet of coworking spaces in Malaysia alone, strengthening our position as a leading player in the industry.
The Benefits of Coworking Space for Companies
Companies opting for coworking spaces can enjoy a multitude of benefits. First, it allows them to reduce overhead costs by eliminating the need for long-term commitments and excessive office space. Additionally, coworking spaces provide access to a wide range of amenities, creating a conducive work environment that promotes productivity and innovation. Moreover, coworking spaces offer valuable networking opportunities, enabling founders to connect with like-minded professionals, potential partners, and clients.
By leveraging coworking spaces, companies can prioritise their core business objectives, such as growth, innovation, and capturing market share. The flexibility and convenience offered by coworking spaces allow founders and teams to focus on what truly matters, without being burdened by the logistical challenges of managing a conventional office setup.
In conclusion, coworking spaces have become a thriving trend post-pandemic, offering companies an alternative to layoffs while providing numerous benefits. With the transformation of vacant office spaces into vibrant coworking hubs, businesses can unlock significant value and accelerate their growth in an increasingly competitive landscape. As the coworking space industry continues to expand, WORQ remains committed to being at the forefront, driving innovation, and reshaping the way companies work.
To gain deeper insights into this topic, we invite you to read Wong Chea Hao’s complete article featured in Nanyang Siang Pau.
Nanyang Siang Pau is a Chinese financial daily in Malaysia, recently launching its renowned Chinese real estate think-tank, “Nanyang Real Estate Network.” This platform keeps a vigilant eye on the real estate market, curating a selection of the most popular and newly launched properties. Through comprehensive introductions, it aims to provide readers with an immersive experience. Moreover, Nanyang Real Estate Network reports the latest trends and developments in the real estate industry, offering a simplified analysis of the ever-growing industry.