Singapore's work environment is changing at such a quick rate that the way we work will experience an essential shift over the next decade. Despite the difficulty of keeping up, certain facts shed light on the future direction of Singapore workplaces.
Rise in Startups and SMEs Propels Growth of Flexible Office Market
According to Facts and Factors' 2023 research study, the Flexible Office market is projected to grow at a CAGR of around 20.34% from 2022 to 2030. With a market size of approximately US$55.20 billion in 2021, it is expected to reach around US$201.28 billion by 2030, driven by various factors.
The rise of small and medium-scale firms, coupled with the growth of startups in key cities, is a significant driver for market ex- pansion. The increasing demand for flexible workplaces, particularly among startups in both developed and developing regions, will further boost market growth during the forecast period.
Surging Demand for Flexible Workspaces in Singapore
In 2022, Singapore witnessed a remarkable 25% surge in demand for flexible workspaces, according to a report by a global workspace specialist. The city-state led the Asia-Pacific region in flexible workspace inquiries, closely trailing Sydney in 2023. The report highlights a substantial 53% increase in demand for larger flexible workspaces (more than 10 desks) in 2022, with notable participation from larger companies entering the Singapore market.
Despite the surge in demand, the supply of flexible workspaces grew at a slower rate, rising only by 3% compared to 2021. This trend was observed across the Asia-Pacific region, where markets with high demand growth faced comparatively modest supply increases.
Tripartite Workgroup Pioneers Flexible Work Arrangement Guidelines
A new tripartite workgroup, consisting of representatives from the government, NTUC, SNEF, and various bodies, has been convened to develop the Tripartite Guidelines on Flexible Work Arrangements (FWAs). Set for a 2024 launch, these guidelines aim to ensure fair consideration of FWA requests, promoting work-life balance and addressing caregiving needs.
Building on the voluntary Tripartite Standard on FWAs, the guidelines seek to enhance employee engagement and productivity while acknowledging Singapore's evolving societal dynamics. The workgroup emphasizes an enabling approach for effective and responsible FWA implementation.
More Demand for Co-working Spaces in Singapore As Hybrid work arrangements Flourish
Post-COVID-19, co-working spaces in Singapore are experiencing a resurgence, driven by the growing demand for flexible work arrangements. Operators report increased occupancy rates, reaching 95-100% in 2023 across their Singapore locations. Start-ups, attracted by the flexibility of co-working spaces, are significant contributors to this revival.
Employee Preferences Transform Post-Pandemic
In the aftermath of the COVID-19 pandemic, a survey conducted by UOB's ASEAN Consumer Sentiment Study reveals significant changes in workplace preferences among Singaporean employees. Over 80% now seek flexible working arrangements, and mental health support from employers has emerged as a top priority. Approximately 50% have returned to full-time office work, 7% work exclusively from home, and 45% adopt mixed office or remote setups, reflecting the evolving landscape of work in Singapore.
As the future of work unfolds in Singapore, the convergence of technological advancements, changing work preferences, and innovative business models is paving the way for a dynamic and flexible professional landscape.