MNCs, Large Firms Embrace Coworking Space In Singapore
SINGAPORE – Coworking space operators in the city-state revealed that their clients are increasingly being comprised by large companies and multinational corporations (MNCs), reported ChannelNewsAsia on Wednesday morning (21 September, SGT).
Michael Sim, Vice President and Head of JustCo in Singapore and Korea, shared that half of their customers are from MNCs, while the other half are a combination of start-ups as well as small and medium-sized enterprises (SMEs).
“Unlike a few years ago, nowadays we have observed more and more MNCs embracing flex space as a primary option for their office space usage.”
Meanwhile, IWG shared that its on-demand membership sales in Singapore surged by 85 percent from the Q4 2021 to Q1 2022. The coworking space operator said that there is growing interest for coworking spaces from firms of all sizes, whether they are SMEs, start-ups, or MNCs.
“In fact, 83 percent of the Fortune 500 companies use our services, and a fair share of them have multi-market presence that includes Singapore,” said IWG’s Country Manager Darren Rogers.
WeWork, which just cut the ribbon to a new 220,000 sq ft coworking centre at Collyer Quay, has also witnessed improved demand. In Q2 2022, it had nearly 90 percent occupancy in Singapore, a 25 percentage-point increase from the preceding quarter, said WeWork’s General Manager for Australia and Southeast Asia, Balder Tol.
Of the higher occupancy, enterprises account for over half its business in Singapore, noted Tol.
“What I have noticed is that companies of all sizes are still in the process of redefining their workplace strategies.”
“What we are seeing across all businesses is the preference for flexible leases to reduce their reliance on traditional real estate, driven by rising operational costs.”
Like IWG, its customers include SMEs, start-ups, MNCs, and large enterprises. Both coworking space operators also shared that there is higher demand for coworking space from the finance and tech industries.
Furthermore, Tol added that there is also interest from the pharmaceutical sector and even government agencies. For instance, the Ministry of Culture, Community and Youth is utilising flexible space at WeWork.