After rapid growth over the last few years, flexible workplace players in Southeast Asia are now embracing their biggest challenge amid restrictions on activity to mitigate the spread of the coronavirus. The almost universal lockdown in urban centres across the region has brought business to a halt and is threatening workspace operators’ ability to stay in business.
The largest players have revised their revenue targets down, and startups in the space are bracing for the worst as rental rebates and early termination of leases become the order of the day. Industry insiders told DealStreetAsia that the sector is set for a wave of consolidation, as smaller players with cash flow issues may have to wind up as their small and medium enterprises (SMEs) customers teeter on the brink of default in the coming months.
