Shift towards flexible work creates new innovation opportunities: Chan Chun Sing

THE changing nature of workspace demand has created new opportunities for Singapore businesses to innovate, Minister for Trade and Industry Chan Chun Sing said on Wednesday.

He was speaking to reporters at JustCo's outlet at The Centrepoint, where the co-working firm launched digital solutions addressing the future of work.

While the jury is still out on the impact of Covid-19 on the nature of work, the market sense is that many companies are likely to move towards flexible arrangements, Mr Chan said.

In addition, with the fast technological cycle, many companies are "increasingly less willing to commit to long leases for office space", he noted.

"And in fact, many of the companies may also want to be able to scale up very quickly, (for) which the traditional business model of taking long leases for huge office spaces may not be the most appropriate," Mr Chan said.

Moreover, e-commerce has disrupted traditional retail, meaning that landlords will have to think about how to optimise space to maximise value for shareholders. On this front, Singapore firms can innovate on new workspace and retail solutions to respond to the fast-changing situation, the minister noted.

"There is a new market created by this new demand from both the individuals'...and also the companies' perspective. So this is how we must continue to innovate, try out new ideas, have some new ideas (and) see whether they can respond to the market demand," Mr Chan said.

At Wednesday's event, JustCo announced that it plans to expand its on-demand workspace service Switch in Singapore and other regional cities where the co-working firm operates.

Switch is an on-demand workspace app that allows users to book work cubicles located in several malls, such as Causeway Point and Century Square. It is developed by JustCo's proptech innovation outfit Reinvent.

Switch is part of JustCo's new suite of smart workspace technologies, called the Digital Future of Work Platform. Another solution under the platform is SixSense, an AI-powered app that taps sensors to monitor crowds for workspace design and safe-distancing purposes. JustCo has rolled out SixSense at 10 of its Singapore centres.

JustCo's chief executive Kong Wan Sing told reporters that the firm recognises the future of work will require a variety of solutions, from hub-and-spoke office models to flexible workspaces.

The Covid-19 pandemic has accelerated demand for its flexible work solutions, with The Centrepoint outlet already garnering "significant" occupancy since opening in October. JustCo is on track to announce more new locations next year, Mr Kong said.

"Not only that, the technology product that we announced today is pretty exciting. We are looking to roll it out in all the regions that we have a presence, for example, Australia, South Korea, Taiwan, Thailand, Jakarta (and) China, by the end of next year," he added.

Founded in 2011 and most recently valued at about US$1 billion, JustCo has over 40 locations across nine cities. Its upcoming outlets will be at Razer's South-east Asia headquarters in Singapore, as well as in Collins Street in Melbourne, Australia.