PETALING JAYA: Covid-19 has highlighted the need for businesses, particularly SMEs, to be scalable and flexible in challenging times, which can be achieved by having a lesser commitment on resources such as real estate and outsourcing services for cost efficiency, said co-working space operator WeWork.
WeWork Southeast Asia and Korea managing director Turochas Fuad (pix) said it is well positioned to respond to a company’s real estate needs with flexible space offerings, allowing businesses to scale with agility.
“In a time that’s led by disruptions and uncertainties, this will be more relevant for SMEs and enterprises as they look to adapt to economic conditions,” he told SunBiz in an email interview.
He said Malaysia, with the rest of Southeast Asia, will continue to see investments and interest from global and regional companies, but they will invest and grow in a more calculated and conservative manner.
“Companies will be more sensitive and savvy in how they operate to continue the growth trajectory and are likely to take on a more conservative approach when it comes to operational needs. WeWork sees this as an opportunity to provide enterprises with the speed to scale, flexibility in operations and consistent support across a diverse landscape.”
Turochas added one of WeWork’s key differences with other co-working players is the partnership it has with members – to operate, grow and innovate.
Companies can outsource and streamline sourcing, design, build and operational needs to WeWork, reduce committed costs by up to 50% and increase speed to market by being up to three times faster than traditional options.
WeWork currently has two existing spaces in Malaysia and its immediate plans is to focus on growth within WeWork Equatorial Plaza and WeWork Mercu 2 in terms of members and services.
“We continue to strategically grow in Malaysia and regionally, by optimising our current portfolio and to also evolve from a real estate services platform to a more member-centric business solution platform,” said Turochas, who is based in Singapore.
In Malaysia, an increasing number of corporations are showing a growing appetite for the flexible workspace model. Apart from startups and entrepreneurs, enterprise companies will also be a key driver for WeWork in Malaysia.
“We will continue to review buildings and locations for the next phase of growth and when the timing is right,” said Turochas.
Globally, struggling WeWork recently sued its Japan-based investor SoftBank after the latter backed out of a US$3 billion (RM13.2 billion) rescue plan for WeWork. Turochas said it has been business-as-usual for WeWork across all its operations in Southeast Asia, including Malaysia.
Since WeWork started in Southeast Asia three years ago, it has emphasised setting up its own operations and teams in the region.
“While we remain closely aligned with global operations, we have also been independent in our operations – from having our own team in Southeast Asia, to focusing and identifying members in this region and partnering with them to address their needs; to P&L (profit & loss).”
Meanwhile, in light of the Covid-19 pandemic and the movement control order, Turochas said WeWork’s locations in Malaysia are key card operational only for members within essential industries.
“The health and safety of our members and employees is paramount. We have strengthened on-site cleanliness and disinfection measures and are working closely with each location’s building management and members to align on hygiene and precautionary measures in line with government directives,” he explained.
Internal and member events have been suspended since early February, and it has implemented a work-from-home policy for its employees.
“This new normal means continuing to prioritise our members’ and employees’ health and safety, evolving the measures as the situation calls for it and ensuring the minimal impact to their daily operations. The co-working ecosystem is often identified by its speed and savviness. For WeWork, the emphasis on transparency, timeliness and communication thus becomes even more important for our members’ assurance,” said Turochas.
