The co-working industry has been experiencing a surge of consumers in recent years, but why aren't Malaysian companies fully utilising it?

Tech Collective

May 16

Co-working spaces are workspaces created for workers from various organisations to join together to work. This space allows for flexibility and convenience, catering to remote workers as well as smaller companies to utilise as an office space. They are also viewed as an alternative working space for a change in environment, avoiding unnecessary trouble like office politics or potential distractions at home. The co-working industry has seen a variety of users during the pandemic. In recent years, users have consisted primarily of digital nomads and freelancers.

However, due to the shifting nature of workspaces, SMEs and startup businesses have been the majority of users in co-working spaces, highlighting the need for bigger co-working spaces with more desks and private offices. It is estimated that the number of individuals working in co-working spaces globally is expected to reach 5 million by the year 2024 showing an upward trend of remote workers and an increase in the number of newer companies. In Malaysia, there are currently 337 co-working spaces. The number of coworking spaces has increased due to the growth of remote work. Although the current market penetration for coworking spaces in Kuala Lumpur is at just 1%, JLL Research reports that it is expected to reach a 30% penetration rate by 2030.

The rise of coworking spaces in Malaysia: A trend driven by flexibility, affordability, and community

Despite the increase in demand for co-working spaces, Malaysia is still not in a position to fully utilise them due to its working culture. In this article, we will delve into reasons why Malaysian companies are still not utilising co-working spaces as effectively as possible.

The inefficiencies of the Malaysian working culture

It is well documented that Asian countries have heavily adopted and accepted a culture of overworking. Naturally, Malaysia is susceptible to this as well, ranking as one of the top overworked cities in the world. On average, Malaysians work 15 hours more than their contracted hours each week, stressing the negligence of work-life balance and ignoring the aftermath of overworking, leading to mismanagement of work-life balance. Additionally, the dangers of overworking should not be overlooked. Malaysia has a cultural expectation of working via a physical presence, placing a strong emphasis on face-to-face interaction as an indicator of commitment and hard work. This cultural expectation can create pressure for employees to prioritize work over personal time, leading to imbalances in life domains.

Due to the pandemic, companies in Malaysia have seen an increase in temporary hybrid work to cater to strict pandemic regulations. However, as the pandemic dissipated, more and more companies are returning to working in the office calling for the comeback of office workers. This is mostly due to the incapability of Malaysian companies to be flexible and cater to their employees. Furthermore, because Malaysian companies cannot offer this benefit to their employees, more Malaysians are opting for gig work, allowing them to be flexible with their working hours. This causes a concern for a shortage of skilled workers in the future.

In Malaysian culture, there is a prevalent belief in the value of hard work and dedication, often reflected in the practice of entering the office early and leaving late. Malaysians, like many other cultures, place a high value on a strong work ethic. This includes being punctual, dedicated, and committed to putting in the necessary time and effort to achieve professional goals.

Commuting through public transport for work is a common practice in Malaysia, especially in urban areas where traffic congestion and limited parking spaces are prevalent. Utilising public transport is exhaustive, waiting in queues for trains and buses causes unnecessary time loss resulting in unproductive actions.

The precedent of routine behaviour is shown when employees show up to work at the office every weekday, following the same habits and lifestyle choices to prepare for work. This resistance to change causes companies in Malaysia to be inflexible with the working environment. This causes dissatisfaction and discontent within the employee ranks unwilling to work, disrupting productive workflow. These cultures and policies must change if we as a society want to grow and evolve into an efficient working culture. So, how else can we change the stagnant culture of remaining in routine?

Co-working spaces act as an alternative environment for employees to thrive in, allowing flexibility and accessibility.

One of the biggest advantages of coworking spaces is the flexibility they offer. With flexible membership options and the ability to work from anywhere, you can easily fit work into your schedule, instead of the other way around. This means you can work on your own terms, without sacrificing your personal life. Co-working spaces also often prioritise work-life balance by offering amenities such as lounges, relaxation areas, and wellness programs. This holistic approach supports well-being and helps individuals maintain a healthy balance between work and personal life.

Employees especially in the tech field, can utilise co-working spaces if they wish to avoid distractions from home or office. Co-working spaces like us, Sandbox Space offer a professional environment, utilising high-speed internet, meeting rooms, and shared common areas for companies to interact and work together. Co-working spaces should also consider operating 24/7 to cater to working outside business hours. This allows for companies to work on odd hours not restricting themselves to the boundaries of official business hours.

Our co-working space also emphasises accessibility, aiming to allow ease of transport and convenience to the co-working space. Accessibility is also an important factor in the working environment, as convenience impacts the employees' productivity and time. By utilising co-working spaces, employees can avoid the pestering office politics and the trouble of commuting to work.

The solution that co-working spaces aim to offer

In conclusion, co-working spaces act as a solution to negate the negative working culture and the inflexible work-life balance by providing amenities and services that allow the employees to thrive.

At Sandbox Space, we aim to leverage this growth to create innovative solutions, foster community engagement, and meet the diverse needs of modern professionals and businesses. From strategic partnerships to enhanced amenities and tailored services, we believe co-working spaces are redefining the landscape of contemporary work environments.

The article titled "The co-working industry has been experiencing a surge of consumers in recent years, but why aren't Malaysian companies fully utilising it?" was contributed by Casper Foo, Co-founder of Sandbox Space

About the author

Casper Foo is the co-founder of Sandbox Coworking Space, a new entrant in Malaysia's emerging shared workspace market. He began his career as a financial planner right after graduation and has provided his advisory services for 9 years since then. Because of his passion in finance and thirst for knowledge, he pursued a professional qualification to become a Certified Financial Planner and has already completed his CFA level 1 examination. He also regularly talks on the subject at various conferences and workshops.

As an enterprising finance professional turned local entrepreneur, Casper is always open to brainstorm with individuals that share his entrepreneurial spirit. He believes that Malaysia's real estate is reaching an inflection point as more local businesses begin to emerge. That's why he & his co-founder strive to make Sandbox Coworking Space, a thriving breeding ground for local entrepreneurs.