This article first appeared in The Edge Malaysia Weekly on November 6, 2017 - November 12, 2017

TECHNOLOGY has changed how we work, and there is evidence it has also begun to change where we work.

New technologies are enabling workplace innovations such as remote working or even co-working, transforming working life today by improving efficiency and making it easier to work flexibly, on the go and from home.

For example, the rise of co-working spaces globally, including in Malaysia, has been and continues to be driven by three main factors: (i) continued growth of the start-up culture; (ii) a more flexible globalised workforce fuelled by technology; and (iii) the millennial generation.

The increasing presence of co-working spaces in Malaysia has even garnered support from the government, which this year set up the Malaysia Digital Hub, an initiative by the Malaysia Digital Economy Corporation that supports technology and digital co-working spaces, their start-ups and communities.

What this means is that these start-up companies will be able to access certain “digital hubs” or co-working spaces as their place of business.

Not only does the initiative provide the incentive of a stable business-friendly environment at a low cost, it also provides high-speed broadband internet access, opportunities to obtain funding and even corporate tax exemptions.

Three digital hubs or co-working spaces have been identified and approved by the government for these companies. They are APW, The Co. and Common Ground, all located in the Klang Valley.

Evidently, providing for alternative work arrangements can have a positive effect on overall employment rates.

In its recent report titled “An Uneven Future? An Exploration of the Future of Work in Malaysia”, Khazanah Research Institute (KRI) highlights that in the US, all of the increases in net employment since 2005 can be accounted for by the growth in alternative work arrangements, particularly in contract work.

KRI cites that more than 40% of all US workers earn income through some form of freelance arrangement and this development has been driven in part by the emergence of digitally-enabled platforms.

This phenomenon is not unique to advanced economies.

“In Malaysia, there has been a steady increase in the share of self-employed workers in urban areas since 2010. From about 11% to 12% of urban employment since 1995, it increased to almost 16% in 2016. That is equivalent to 1.7 million people in urban Malaysia who are engaged in independent work, an increase of more than 760,000 since 2010,” says KRI in its report.

In addition, KRI’s report points out that the biggest change in urban self-employment is led by millennials. Between 2010 and 2016, the Statistics Department shows urban self-employment has more than tripled for the 25 to 29 age group.

While KRI notes that the factors influencing the rise of independent work vary, and are not necessarily limited to the emergence of digital platforms, it will nonetheless have significant implications for the landscape of the workforce.

This would erode the traditional employer-employee relationship, says KRI, adding that it would provide greater autonomy and flexibility to workers, but at the same time, remove the stability and security of more traditional full-time fixed employment.

“This, in turn, calls into question the relevance of the current design of benefits and safety nets for workers, which are still predominantly employer-centric and fashioned after the arrangement of full-time employment,” KRI says.

The questions to ask are what makes rising trends in workplace innovations so attractive and what can traditional offices learn from them? Are current employee package designs sustainable for the changing face of work in the future? As self-employment trends rise too, what will this mean for the traditional office and mode of working? What regulations will need to be set in place?

These important questions will be addressed by the first panel at the upcoming Future of Work, Workplace, Workforce Conference organised by TalentCorp Malaysia.

Themed “The Disappearing Office”, the first panel of the conference will feature Arne Gast, partner at McKinsey & Co Kuala Lumpur; Chong Chye Neo, managing director of IBM Malaysia; Nora Manaf, group chief human capital officer at Malayan Banking Bhd (Maybank) and Timothy Tiah, co-founder of Colony.

Nora says that while there is awareness about the future of work, there is not yet enough corresponding conviction to take action.

“We should look beyond technology, more into what opportunities technology opens up, and have a holistic picture of what the global workforce and customers really need — what the people need, want and expect in the world of new technologies,” she tells The Edge in an email response.

Maybank is a strategic partner of the Future of Work, Workplace, Workforce Conference. The one-day conference will be held on Nov 20 at the Shangri-La Hotel Kuala Lumpur. Visit futureofwork.my for more information and updates on the conference.

The Edge is the media partner of the Future of Work, Workplace, Workforce Conference

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