TIME TO ADAPT TO THE ‘NEW NORMAL’
Q: What is the outlook for jobs and employment in the medium term? And how should the authorities address the prospect of rising unemployment?
A: I believe the outlook for jobs and employment in the medium term will change, with better prospects for those who can adapt to the ‘new normal’ in the economy and job market, which is expected to follow the COVID-19 outbreak.
With remote working becoming part of the new normal, the profile of jobs in the medium term will change from working full-time for one employer in its office to independent contractors offering their skills and services to several employers at the same time. This will offer employers greater flexibility in getting their work done from varied resources without being stuck with one individual who may not have the skills to meet the different needs of a business.
This indicates a shift to more lean and mean organisations paying higher salaries for the specific services they need to conduct business. With the increasing importance of digitalisation however, issues such as maintaining confidentiality and data privacy are matters that businesses may need to address.
Q: What lessons have we – the business community – learnt from this crisis?
A: The coronavirus crisis has exposed the lack of preparedness of some of the world’s major business entities. While many of us in the business community draw up business continuity and disaster recovery plans, it is rare for these plans to be pressure tested to see if they can withstand a crisis of this magnitude.
The online platform and supply chain logistics of most organisations have failed miserably although several of the larger businesses have made remarkable progress in getting their act together subsequently. The crisis may be a blessing in disguise for corporate houses to leapfrog their business practices using technology to cater to the new normal.
Q: How do you see the ‘new normal’ for business panning out?
A: I see the new normal incorporating many new business practices and ways of working, which were screaming to be adopted but weren’t resorted to because of a lack of clear incentive to do so. Quit often, events such as the COVID 19 pandemic become drivers of change and shape the way businesses operate in the future. I foresee a huge increase in online activity and platforms for most needs, and a major push towards a cashless economy.
Remote working will become a norm with less demand and lower costs for office space. The demand for apartments, driven by the need to reduce commute time, may become more elastic; and this could affect cities and consequently, the cost of living.
However, as online platforms are adopted, the horrors associated with hacking, ransomware and cyber security threats will become increasingly evident, and businesses should take the necessary steps to protect their operations.
ABOUT LMD’S A LISTERS
BOOST TO REAL ESTATE INVESTMENT
Q: What are your expectations of the business environment in the next 12 months or so? A: With the reduction in interest rates and increase in money circulation, people have a greater tendency to invest in real estate over the money market amidst the pandemic. We have seen similar patterns even in developed markets such…
EMERGENCE OF A NEW ECONOMY
Q: How did the pandemic necessitate a digital economy? A: Countries were not prepared for the COVID-19 pandemic’s impact on the economy and people, but it has resulted in the emergence of a new economy and way of life. It is technology, and the spirit of humans to survive and push past boundaries that have…
PRIORITISING CRUCIAL SECTORS
Q: What are your expectations of the business environment in the next 12 months or so? A: I believe that business is not likely to pick up until at least mid-next year for the hospitality sector. Business was nonexistent and as a measure to prevent exorbitant losses, we converted our hotel into a quarantine centre…
A POSITIVE AND FLEXIBLE PATHWAY
Q: Do you expect the national economy to pick up this year? A: If the third wave of the pandemic is brought under control as soon as possible, then we can expect the national economy to pick up towards the second half of the year. To ensure this happens, the vaccine must be sourced in…
RELIABLE PARTNERS IN A CRISIS
Q: In brief, what are the main challenges confronting corporates at this time? A: I think corporates today are besieged with a plethora of problems caused by the prevailing situation. First and foremost is the challenge in keeping their workers safe from COVID-19, and flowing from that is the inability to keep production cycles running…
IN A STATE OF DELEVERAGING
Q: How do you perceive the economic climate at present? A: I would like to really think about the state that the country’s economy is in. Our debt repayments are much higher than our income and this puts Sri Lanka in a state of deleveraging. This recently manifested itself in a 14.2 percent increase in…
EVER EVOLVING EXPECTATIONS
Q: What modern-day challenges do businesses face? A: Information overload – in the new world we live in, there’s never a lack of information. About 2.5 quintillion data bytes are added every day; more data is created in a single day than the combined amount generated over 99 percent of human history. Previous generations of…
EXPANDING CREDIT FACILITIES
Q: What is the bank’s corporate strategy for 2021/22? A: DFCC Bank’s 2021/22 plan is based on our five year strategy for 2020-2025 with the aim of making it one of the most customer centric and digitally enabled banks by 2025. Our lending plans will align with the government’s budget proposals to facilitate the growth…
REMAINING IN THE SPOTLIGHT
Q: What are Sri Lanka Tourism Development Authority’s (SLTDA) priorities for 2021/22? A: The global tourism industry will continue to experience a huge shift in the way of doing business. Our innovative bio-bubble concept launch in January was recognised at ITB Berlin. We hope this will boost traveller confidence. Therapeutic destinations and experiential travelling are…
