SINGAPORE: The world is likely to see a hybrid work model post-COVID-19, Zoom Video Communications’ chief executive Eric Yuan said on Tuesday (Aug 25).

The founder of the video conferencing platform, which has become a household name since the start of the pandemic as workers telecommute and people socialise virtually, said that solely working from home is unlikely because the model is unsustainable. 

“It does bring us some other challenges like mental health,” said Mr Yuan, who was speaking at a virtual conference organised by the Singapore Institute of Directors. 

He was responding to a question on whether the world would see a hollowing out of central business districts – something which Mr Yuan said is still too early to tell, although he personally thinks that more organisations will embrace remote work. 

“I think a hybrid, I think that’s a future, and I think almost every organisation they got to embrace that – give employees flexibility,” he said.

“Meaning, some days, you work in office, some days you work at home, or maybe (you) give employees (a) choice; they can work from home if they want, because technology is ready.” 

Productivity also improves when people work from home, and such work arrangements are better for the climate, he added.

Zoom currently has a market capitalisation of around US$80 billion (S$109.5 billion) and offices or data centres in 18 cities worldwide, including one in Singapore. 

READ: Zoom opens new data centre in Singapore

Other speakers at the event shared the same sentiments as Mr Yuan. 

During a panel discussion, the Infocomm Development Authority of Singapore’s chief executive Lew Chuen Hong said that “working from the go” will be the trend going forward, especially as Singapore has invested heavily in its broadband capabilities. 

But some work will still require a certain amount of face-to-face time, he said. 

“There is a recognition (that for) creative aspects, human-to-human interactions are important,” Mr Lew said, adding that technology is still not at the level where it can provide “more high-touch ability to interact, to do these elements”. 

Minister in the Prime Minister’s Office Indranee Rajah, who was the event’s guest-of-honour, said businesses have no choice but to adapt to a hybrid work model going forward.

At the same time, companies must demonstrate empathy and understanding in managing their employees’ morale and mental health as such working arrangements are rolled out, she said.

BE READY TO CHANGE

Ms Indranee, who is also Second Minister for Finance and National Development, said that the pandemic has reminded companies they must remain nimble and ready to adapt to changes – from accepting that they must digitalise, to diversifying supply chains in view of COVID-19 disruptions.

“Be creative, and be open-minded, as you consider ways that your businesses can adapt or be reinvented to pivot into new markets and products,” she said.

COVID-19 has created some opportunities for companies to expand, said Mr Lew. There are new markets to explore through e-commerce, employees who work remotely they can hire, and projects from overseas they can work on in Singapore. 

Singapore Tourism Board’s chief executive Keith Tan said that COVID-19 has compelled tourism players to quickly offer virtual experiences – something they did in three months that would have taken them 10 years. 

“And they found that it’s actually not too difficult, and it has been very useful in helping them to engage a large audience, both locally as well as internationally,” Mr Tan said, citing the example of the Singapore Food Festival, which had online masterclasses with chefs and food deliveries from which participants could learn to put a dish together. 

But being adaptable is not just about going digital, Mr Tan added. 

“You can reimagine the way you deliver your product, you can reimagine the way you create experiences that appeal to people, maybe (be) minded to have smaller groups (or) much more concerned about health and safety and wellness,” he said. 

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SINGAPORE: In the first Mass Call held via Zoom in Singapore on Tuesday (Aug 25), the Chief Justice urged new lawyers to embrace technology and remote hearings in these “unprecedented times”.

The Mass Call usually takes place in the High Court, with new lawyers filing in with gowns, but it proceeded via Zoom on Tuesday morning, with solicitors and advocates dialling in from their respective locations and bowing while seated when their names were called.

“You are today playing a small role in the making of legal history as you participate in the first Mass Call in Singapore conducted using remote communication technology,” Chief Justice Sundaresh Menon told more than a hundred new lawyers over Zoom.

“The fact that we gather today in this way to admit new members to the Bar is a sign of the unprecedented times that we live in.”

While COVID-19 has impacted the economy, it has also dissolved resistance to greater use of technology in legal processes, with the notion of non-physical courts previously rejected by judges and lawyers alike, he said. 

The increased use of remote hearings means that litigation lawyers will have to adapt to new forms of advocacy and be proficient in arguing cases not just in person but virtually, said the Chief Justice. 

“To do so effectively, advocates will have to familiarise themselves rapidly with the features of remote hearing platforms, but more importantly learn to navigate the constraints of such platforms, as well as how to get around the limitations of having to argue a case remotely with various others in the hearing all dialing in from different locations.”

Chief Justice Menon said the new generation of lawyers “especially proficient with technology” has an opportunity to play in part “in paving the way towards greater efficiency in the delivery of legal services”.

He pointed to how law firms in the United States reported that giving younger attorneys leading roles in innovation efforts has been critical in facilitating their pivot towards working remotely.

“It has also been noted that younger lawyers are more likely than their more senior colleagues to request, learn and adopt technological tools that can reduce inefficiencies in legal practice,” he said.

He encouraged the new lawyers to actively consider how technology can improve efficiency in the delivery of legal services.

“You are well placed to offer fresh perspectives and creative ideas that may not occur to those of us accustomed to the old ways of practice,” he said. “So, be innovative in pursuing new ideas, collaborative in your approach to developing them, and bold in your efforts to actualise and publicise them.”

THE IMPACT OF COVID-19

A survey by the Singapore Academy of Law conducted on about 400 local practitioners and in-house counsel in April this year found that 83 per cent of respondents reported a decrease in new cases and in revenue, said the Chief Justice.

Several law firms responded initially by freezing increments, reducing hiring and cutting partner salaries, but many have since enhanced cost-saving measures by implementing firm-wide wage cuts affecting partners, junior associates and other employees, he said.

The pandemic may also have had an adverse effect on employment prospects of recent law graduates, said Chief Justice Menon, pointing to an anonymous survey conducted at the current Mass Call’s rehearsal.

About 19 per cent of 373 respondents, representing about 70 per cent of those entering the profession through Mass Call 2020, said they were still looking for work, while 62 per cent of this segment said they have been doing so since the pandemic began.

While the figures are “concerning”, COVID-19 has had an uneven impact, with some in-house lawyers reporting an increase in work, with “clear signs that there are opportunities for legal professionals even in the midst of crisis”.

“Perhaps the most enduring legacy of COVID-19 for the courts and the legal profession will be the dissolution of long-held resistance in some quarters to the greater use of technology in legal processes, and a renewed appreciation of how technology can be harnessed to sustain and enhance access to justice,” said the Chief Justice. 

“Today, it is safe to say that remote hearings have by and large proven to be a feasible, convenient and effective solution that has helped those courts that embraced it to maintain a good level of access to justice during the pandemic.”

The Mass Call will be completed over Tuesday and Wednesday in four sessions, with more than 500 advocates and solicitors called to the Bar over two days.

SINGAPORE: Forced to work from home over the past few months, companies and organisations are set to embrace remote work as a permanent management strategy for some functions within organisations.

COVID-19 has demonstrated that for many companies, working from home can be almost as productive as being in the office, especially carrying out operational functions. 

It is now viewed as being a prudent way of mitigating risks and ensuring business continuity even after the pandemic ends.

Many CBD office workers, liberated from the long commute times to and from the city centre, suddenly discovered that the flexible work schedules have enabled them to unlock precious hours to spend on family and new hobbies.

READ: Commentary: Why do you not feel like working from home? You’re probably procrastinating more

READ: Commentary: Please don’t end work from home. It’s not that bad

With ever improving technology and most companies going paperless, working from home could potentially be adopted for an average of 30 per cent of typical office functions, according to Showsuite Consultancy’s assessment.

So what does that mean for the Central Business District? Is it still relevant, and if so, what changes could be expected? Let us first study the likely impact on CBD office rents. 

IMPACT ON CBD OFFICE RENTS

As an aggregate, occupier demand for business space is expected to weaken in the short-term due to a combination of factors – the current weak economy, the increased risk of business closures and the sustained adoption of remote work arrangements.

Some organisations may find it more economical to downsize their physical premises to reduce operating costs, or even surrender it entirely in favour of flexible work arrangements. 

Already, an increasing number of companies are adopting hot desking practices, staggering their workforce into separate teams, or moving into co-working spaces and serviced offices. 

High density and high-rise buildings would face practical bottlenecks and inconveniences in the lobbies, lifts and food and beverage areas, if safe distancing measures continue to be in force.

However, on the flip side, office space planning would now require more floor area per staff than before, with the floor area to employee ratio expected to increase by 20 per cent due to safe distancing measures. 

So in other words, if companies had catered 10 sqm of floor space per staff for space planning purposes, this would likely rise to 12 sqm or so in order to spread out the work tables, or have less staff work from the office.

Singapore office rents have eased due to the challenging business environment but are largely expected to remain stable, at least for the time being.

READ: Commentary: I made fun of office life – and then it disappeared

LISTEN: Disruption 101: How COVID-19 is revolutionising work

At the end of the second quarter of this year, vacancy rates of office space in the Downtown Core have risen by a marginal 1.4 per cent – from 9.3 per cent in the fourth quarter of 2019 and first quarter of 2020 to 10.7 per cent.

Mitigating the downside are four factors. Firstly, the higher space to worker ratio which means that companies still demand a large enough space to operate from.

Secondly, the limited supply of new CBD offices completing over the next one to two years, which prevents a supply glut from increasing vacancy rates.

Third, more than one million sq ft of office space have been or is due to be withdrawn for redevelopment, further reducing supply. These comprise of space from AXA Tower, Fuji Xerox Towers and Tower Fifteen. 

Lastly, while office rental rates had strengthened in the preceding two years prior to COVID-19, they are nowhere near lofty territory, suggesting that any drop in rentals may not be dramatic.

So the net effect of the two conflicting sets of factors would still inevitably spell challenges for the CBD office rental market in general in the short term. 

Notably, lease renewals are taking place at 5 per cent to 10 per cent lower in most office buildings, with the exception of premier grade CBD offices, which still commands a premium.

LONGER TERM IMPACT ON THE CBD

The working population in the Downtown Core area is estimated to be over 400,000. If 30 per cent of them were to work from home permanently or semi-permanently, that would mean some 120,000 fewer workers commuting into the city on a regular basis.

This would, undoubtedly, spell a drop in business for supporting food and retail outlets in the CBD but a relief from a town planner’s perspective.

Commercial activities can be decentralised, and the strain and congestion on public infrastructure during peak hours can be greatly alleviated.

For years, the government has encouraged offices to move into decentralised locations and for stakeholders to redevelop old office buildings into non-office uses.

The latest CBD Incentive Scheme announced last year offered higher plot ratios to encourage the conversion of existing office blocks to mixed-use buildings with predominant hotel or residential uses.

There are two main objectives in doing so – to inject life and vibrancy into the CBD during non-work hours in the evenings and weekends while gradually widening the gap in rents between prime and suburban workspace so as to improve the economics of decentralised offices.

READ: Commentary: Will COVID-19 spell the end of strata malls?

READ: Commentary: COVID-19 will reshape the Singapore office property market outlook

If occupier demand for office spaces weakens, we may see more building owners bringing forward redevelopment plans for their properties.

With tourism and business travel disrupted by recent travel restrictions, the feasibility of building more CBD hotels at this juncture may need to be re-examined as the road to recovery is expected to be long. 

On the other hand, although the residential property market has remained relatively resilient in general, the concept of inner-city living has failed to gain large-scale traction over the years, particularly due to its limited appeal.

Residences located in the CBD cater to an affluent, but transient, category of residents such as investors, foreigners, expatriates, singles and young couples. 

Families, in particular those with children, tend to prefer locations outside the Downtown Core, where they can tap on supporting services such as schools, childcare centres, healthcare providers, supermarkets and recreational facilities – which are lacking in the CBD.

A thriving business and financial centre is integral to any developed country. It is therefore important to regularly rejuvenate the landscape of the CBD whilst improving efficiency. 

The current slowdown in the economy presents an opportune time for owners of neighbouring small, old buildings to band together and redevelop them into brand new offices that offer larger floor plates for better space planning and with smarter building specifications. 

READ: Commentary: E-commerce is set to boom, driven by COVID-19

READ: Commentary: Singapore’s steady seven-month plan to get the economy back on track

Doing so now, when business activity is low, may place them in a favourable position to coincide the completion of the new building with the eventual economic recovery. 

The planning authorities could help facilitate this by offering similar time-limited incentives for selected office development proposals.

In the meantime, it would be worthwhile to pause and rethink development plans for the Jurong Lake District, the second CBD, till new work cultures evolve and take root.

Irrespective, unlike the main CBD, the Jurong Lake District has the unique prospect of experimenting with new age business buildings side by side with homes.

CONTINUE RELEVANCE OF CBD AND CBD OFFICES

While flexible work arrangements are here to stay, the CBD and CBD offices will continue to remain relevant. 

Even with continued remote work, companies are likely to retain a head office in a central location while back-office functions could be carried out from homes or from branch offices located away from the city.  

Offices continue to play an irreplaceable role in facilitating face-to-face interactions which are essential in building relationships, trust and fostering collaboration. 

Countless new ideas and innovations have been birthed by impromptu team discussions over coffee – something that a scheduled Zoom meeting is unable to substitute.

With this is mind, workspaces and head offices would need to be redesigned to function differently from the traditional business space.

It can no longer be a mere space for work desks, cubicles and meeting rooms. Instead it would need to evolve into a destination for employees to meet, learn, brainstorm, interact and collaborate.

Karamjit Singh is CEO of Showsuite Consultancy and new homes portal, Showsuite.com

SINGAPORE: Cycling has become more popular in Singapore amid the COVID-19 pandemic, with sales of personal bicycles going up and bike-sharing companies reporting an increase in ridership.

Bike-sharing operator Anywheel said its ridership increased every month this year, with the exception of April when the “circuit breaker” started.

There was a 68 per cent rise in ridership in January compared to the previous month, 25 per cent increase in February and 20 per cent in March, said the firm’s chief executive Htay Aung. 

Ridership fell by about 23 per cent during the circuit breaker but demand has since rebounded, with a 39 per cent increase between June and July, he added. 

“We believe that the significant increase in ridership is mainly due to our growing fleet size as well as the shift in preference in mode of transport as members of the public are practising social responsibility by avoiding crowded areas during peak hours due to COVID-19,” said Mr Htay.

WATCH: COVID-19: Bicycle shops, bike-sharing services see more demand | Video

“Based on our trip data collected during this outbreak, our bicycles have been proven to be an alternative mode of first- and last-mile transportation and have the ability to replace short trips between one to two MRT stations or several bus stops,” he noted, adding that he believes the trend is likely to continue, speeding up Singapore’s “car-lite” ambitions. 

In July, the Land Transport Authority (LTA) granted Anywheel approval to expand its fleet from 10,000 to 15,000 bicycles. 

The largest player in Singapore’s bike-sharing market, SG Bike, said it has seen more trips as well as longer use per trip, although it did not provide details. 

“There is an increasing number of users using our bicycles as a means of outdoor exercise and activities,” said SG Bike marketing director Benjamin Oh. 

“We see increased usage around neighbourhoods and outdoor parks such as along East Coast Park, Gardens by the Bay and the Marina Bay area,” he said, adding that SG Bike’s bicycles are cleaned and disinfected before deployment. 

Food delivery riders have also contributed to the demand for the two-wheelers, Mr Oh added. 

“Following the PMD ban and COVID-19 circuit breaker, we have continuously been working together with foodpanda to provide their riders to use our bicycles,” he said, adding that riders who work for other delivery companies also use their bicycles.  

READ: ‘We don’t want the hype’ : How homegrown operators aim to revive bike-sharing in Singapore

SG Bike operates a fleet of 25,000 bicycles here. It acquired Mobike’s bike-sharing licence last year, after the Beijing-based firm pulled out of the market. 

A third bike-sharing operator, Moov, closed shop during the circuit breaker. It had been licensed to operate 10,000 bicycles here.

Cycling shops meanwhile have had a “strong year”, said OCBC group customer analytics and decisioning head Donald MacDonald, noting that sales increased before the circuit breaker period. 

“People were rushing to get bikes before the lockdown so they could at least get out for fresh air,” he said. 

The sale of bicycles and related accessories increased in the first quarter of this year, with 8,740 transactions compared to 5,187 during the same period last year, added Mr MacDonald, noting that virtual cycling classes also did well during the circuit breaker period. 

For bicycle retailer Treknology3, sales for bicycles and accessories such as helmets and lights went up by about 20 to 25 per cent in the last few months, according to its marketing and distribution manager Azhar Abdullah.

He believes that the increased interest in cycling is because it allows people to head outdoors while maintaining safe distancing at the same time.

“They can exercise and maintain their health and wellness, and also have a bit of fun,” said Mr Azhar, adding he expects the uptick in sales to continue until the first quarter of next year. 

The growing interest in cycling is in line with the trend in other parts of the world as commuters turn to cycling to avoid crowded public transport.

Countries such as Britain and Italy, for example, have seen bicycle sales go up by 60 per cent during the pandemic. 

READ: Boost for bikes as Europeans gear up for COVID-19 commute

GROWING THE CYCLING INFRASTRUCTURE

Even before COVID-19, Singapore has been putting more resources into developing the cycling infrastructure as part of its “car-lite” ambitions. 

In March, then-Senior Minister of State for Transport Lam Pin Min announced that the Government expects to invest S$1 billion as part of plans to triple Singapore’s cycling path network to 1,320km by 2030. 

Most residents living in Housing Board flats would be within 250m of a cycling path by 2026, Dr Lam said then. 

In an interview with CNA938 on Aug 17, Member of Parliament for Tampines Baey Yam Keng added that the increase in cycling infrastructure would help discourage the use of cars, resulting in a positive impact on Singapore’s carbon emissions level. 

Tampines was identified in 2009 as Singapore’s first cycling town.

In a recent Facebook post, Mr Baey said that the housing estate has added more cycling paths and bicycle crossings over the years. He also noted that shared-bike trips went up by more than 50 per cent in July compared to March, just before the circuit breaker period.

Singapore University of Social Sciences urban transport expert Park Byung Joon said the cycling boom may continue as people choose to avoid crowded trains and buses. 

“I don’t think cycling is going to be the main choice for commuters. But definitely we will see growth in bike usage,” he said, adding that the pandemic may also affect other aspects of transportation.

As telecommuting becomes more commonplace, traffic demand and public transport plans may have to be reviewed, he said. 

“We may need a new, totally different approach,” said Associate Professor Park. “In my opinion, all mobility plans before COVID-19 need to be reviewed.”

BofA Securities analyst Rafe Jadrosich noted that the cycling boom amid COVID-19 has resulted in temporary supply chain inventory shortages for bicycle components.  

“It’s taking time for the supply chain to catch up,” he said.

This is likely to ease by next month, he said, with inventory levels for bicycles likely to return to normal by early next year. 

The cycling boom is still in its early stages and there is still a “long runway” for the trend, said Mr Jadrosich. 

“We don’t really see this peaking out anytime soon,” he added.