Business keeps hiring, despite dip in confidence

Malaysian businesses still taking on employees, though outlook not as bright, finds Regus Business Confidence Index

MALAYSIA, 5 October 2011 | Malaysian businesses are still taking on staff, even though their views on economic growth are not as positive as they were a year ago, as almost three quarters (70%) of Malaysian companies report that they plan to increase headcount in the next two years. This is despite a downturn in the Regus Business Confidence Index, in which Malaysia has slipped thirty-seven points from April 2011, to 117 this autumn. As an indicator of the changing structure of employment, hiring intentions show a particular emphasis on freelancers, graduates and remote workers – as firms seek competitive advantage now and growth in the months to come.

· In Malaysia, a fifth (21%) of companies have pushed back their expectations for recovery to the second half of 2012;

· The proportion of Malaysian companies revenue growth (52%) has fallen twenty two percent compared with six months ago, those reporting profit growth (32%) has fallen thirty two percentage points over the period;

· Nevertheless, almost three quarters (70%) of companies plan to hire more employees over the next two years. Signaling a clear move toward more flexible working practices, 57% of Malaysian companies say they plan to hire more freelance staff and 43% will employ more remote workers in 2011/12.

William Willems, Regional Vice-President, for Regus Australia, New Zealand and South-East Asia comments, “The report finds that, six months on from a rosy start to 2011, the global outlook has suffered a clear reverse. The proportion of companies reporting revenues and profit growth has close to stalled and expectations for the full momentum of recovery have slipped yet again and are now set for the second half of 2012. However, national business sentiment and activity does not seem to be unduly affected, with businesses actively investing in their most valuable asset: people power.

“In Malaysia, freelance and remote working are becoming an increasingly popular solution to increase headcount while remaining flexible and rapidly scalable. In addition to this, by taking advantage of solutions already available on the market it is possible for even very small operations to establish a low-risk presence in their target markets without making lengthy premises or equipment commitments and allowing them to expand or withdraw depending on volatile market conditions.”

Demand for Virtual Offices surges in Malaysia

Growing numbers of small companies and home businesses seeking greater support and a better image

Regus, the world’s largest provider of flexible workspace, has reported a 163 percent increase in demand for virtual office services in the last year, from August 2010 to August 2011.

With hundreds of customers in Malaysia, the company attributes rising demand for virtual offices to home-based and small businesses looking for workspace support that is low cost, low risk, and can dramatically increase productivity.

Customers see clear benefits from having a virtual office. Mr. Tran Dinh Dung – CEO of Khue Van Academy, a 2-year client of Regus shared, “Using a Regus virtual office gives a prestigious, city-centre business address, without the inconvenience of setting up an office there. We can work on the move, wherever we need to be, or take the day off, secure that someone will answer the phone and take mail deliveries.”

William Willems, Regional Vice-President, for Regus Australia, New Zealand and South-East Asia, adds, “Even though the economy in Malaysia is recovering, small businesses are acutely aware of the need to control spending. Virtual offices offer home businesses, start-ups and companies entering the Malaysian market, the benefits of a staffed office – such as a professional business address, and a professional receptionist to answer the phone – without the expense, risk and management time of setting up a physical presence.”

Regus offers a range of virtual office services, including business address to use on company stationery, dedicated local phone number and receptionist to answer calls, mail collection and handling, and access to private offices or meeting rooms.

All those services allow businesses to project an impressive image to clients and customers, without the expense of leasing professional workspace, or hiring their own administrative staff. Some use their virtual office as a permanent arrangement; others use it as a staging post, before they expand to a physical presence – often at the same Regus business address.

For more information visit www.regus.com/workanywhere

Regus invests to meet soaring global demand for flexible workspace

Market leader to top 2,000 business centres by 2014

MALAYSIA, 21 September 2011 | Regus, the world’s largest provider of flexible workplaces, is set to make major investments to capitalise on the accelerating global trend toward flexible working. Research data from the last 18 months has shown remarkable strengthening in flexible work policies, not just in mature markets, but also in emerging economies.

Over the next three years Regus will invest to increase its global network by at least 75%, equating to over 800 additional business centres. The majority of growth will take place across the USA and emerging markets such as Brazil, China and India. This move will also take the company into an additional 30 new countries – those in the pipeline include Slovenia, Uruguay, Nepal and Madagascar. Even in the current market, Regus is experiencing record levels of enquiries and in its last set of financial reports documented an all-time occupancy high of 86.7%.

There is a wide-ranging body of research data evidencing the mainstream trend towards flexible working, and underpinning accelerating demand for flexible workspace, including:-
60% of businesses state that flexible working costs less than fixed office working, saving tens of thousands of dollars per employee per year
41% also say that flexible working increases staff productivity
80% of companies state that flexible working policies attract and retain skilled staff
60%of employees say flexible working creates a better work-life balance
25% of firms think business centres provide access to better communications technology
81% of all companies now offer part of their workforce some form of flexible working
Today there are over 1bn mobile workers, predicted to rise rapidly to 1.2bn by 2013

Mark Dixon, Regus CEO, says: “Demand for flexible workplaces is clearly burgeoning, the main driver of which is growing awareness of cost savings to be made by converting to flexible working, enabled by developments in cloud and ‘work anywhere’ technology. Looking at the research we have commissioned across the globe over the last 18 months, together with independent third party sources, it is clear that flexible, mobile working is the new normal.”

Regus customers include more than half of the Fortune 500 including Starbucks, Google, Accenture and GlaxoSmithKline. In the last three years its customer base has quadrupled to more than 900,000 as business people have embraced the multiple benefits of flexible working.