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Is remote work the end of office life in Singapore?

Dr Biz • Nov 02, 2020

Remote work has taken-off in Singapore, in a big way. According to a survey conducted by polling agency YouGov, this year Singapore saw the biggest move to remote working in the Asia Pacific region and the second highest in the world. The data showed a 59% uptick in the number of Singapore companies that have more than half of their employees working remotely compared with before the Covid-19 pandemic hit. Only the UK had more staff working from home, which is yet to get a grip on the outbreak.

The growth in remote work in Singapore is also reflected in job postings across Asia Pacific, where again Singapore shows dominance with the largest growth in the share of applications for remote work positions. Indeed, such is the strong trend towards working remotely that Morgan Stanley has predicted that office rents will decline by around 10% over the next three years as more and more workers begin to connect to their corporate networks outside traditional office environments.

Notably, Morgan Stanley also observed that desk space per person has been declining across Asia for some time, suggesting that the remote working trend is not just related to the Covid-19 pandemic. This is also reflected globally, with some of the world’s biggest tech companies recently announcing permanent moves to remote working including Twitter and Facebook, which will allow employees to work from home indefinitely. US-based outdoor retailer REI has gone one step further, announcing a plan to sell its new, unused 8-acre campus and have staff work remotely for good.

Remote work pluses and pitfalls

The benefits of remote work are manifold. For workers, a greater work-life balance is among them, with studies showing that workers are collectively saving millions of hours per month by cutting out the daily commute. As a chief source of unhappiness, this has a positive impact on mental health, while also relieving overburdened public infrastructure in cities that struggle to cope with the demand on their road and rail networks. With this also comes a drastic decline in carbon emissions, which is positive for the environment and the urgent battle against climate change.

Of course, the move to remote working is not all good news. Firstly, the trend favours higher paid workers that can work from a computer, with lower paid manual and service workers unable to work from home. Moreover, the absence of office workers in traditional commercial areas is hurting the many restaurants, cafes and bars that have established themselves in these districts to serve them over the years. There is also a greater cyber security risk, with 60% of Singaporean businesses surveyed by American tech giant Cisco reporting at least a 25% increase in cyber threats since the beginning of the Covid-19 pandemic. Some CEOs are also concerned that a lack of interaction with colleagues could harm corporate culture and dynamism.

Making remote work work

There are potential solutions to these pitfalls, however. According to Noah Smith, former assistant professor of finance at Stony Brook University, governments could help to ease the transition to remote work by changing zoning areas to facilitate the conversion of commercial areas into residential areas. This would help commercial real estate owners to recoup losses, while proving citizens with greater access to housing. Governments could also help service companies and retailers to move to new neighbourhoods where high income workers reside and perhaps even provide retraining for those working in industries in systemic decline, like cinemas.

Workers and companies missing the activity and vivacity of office life could also look to co-working spaces for regular meetings or team working sessions. In Singapore, Dr Biz client Workbuddy boasts over 30 locations for co-working in the city, with rolling monthly contracts allowing for five monthly visits or unlimited access, offering total flexibility. This is a potential solution for lonely remote workers and small businesses alike, the latter able to save significant sums on renting office space while still maintaining regular team interaction.

The world of work, business and trade will likely see more change in coming months and years, with the trend toward remote working set to continue. This presents challenges, especially for small retailers and food and beverage companies. However it also presents opportunities, and with the right government support the shift to working from home and communal areas like co-working spaces could be a net benefit for society and the environment. We are entering exciting new times.

At Dr Biz, we provide tailored and comprehensive solutions for our client's business needs. From incorporation to accountancy, tax and payroll, to professional advisory services, we help businesses in Singapore assess potential risks and become more cost effective and efficient.

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