‘Sharing economy can be new revenue source’

GEORGE TOWN: Malaysia has an abundance of room for the sharing economy to grow, in view of the presence of companies such as Grab, Airbnb and Foodpanda.

The sector will become an increasingly essential piece of the overall economic pie in the digital era, says World Economic Forum independent adviser April Rinne.

She said the emergence of the modern sharing economy would create a new revenue source by utilising the nation’s underutilised assets coupled with today’s technology.

She said the effective use of under-utilised assets owned by individuals, ideally those with high cost and low-frequency of use such as vehicles, power tools, rooms and even baby clothes, could generate extra income.

“An average person uses a power drill for around 16 minutes in their life and leaving it idle seems to be such a waste, in terms of usage and money.

“Instead, if you treat it as a shared asset, such as a tool library, not only can the tool be used more efficiently, it can also save costs and help earn extra income,” she told Bernama.

Rinne said Malaysia had done fairly well in terms of growing a sharing economy but there was room for improvement.

She suggested that visionary leadership would be required to define what a sharing economy would be like for Malaysia.

“The definition of ‘sharing economy’ varies for different countries and is based on the benefits sought.

“The three common aspects of the sharing economy are economic, environmental and social.

“Sweden, for instance, is focusing on the environment, and thus, their businesses prioritise environmental sustainability.”