This article is contributed by Lim Paik Wan, Country Manager of Wise Malaysia
As the world rekindles its wanderlust post-pandemic, a silent revolution has begun beneath the surface—a digital renaissance reshaping every aspect of our travels.
Recent data reveals that 7 out of 10 Malaysians use digital tools to meticulously plan their travels. They rely on websites and apps to arrange nearly every aspect of their journeys, from booking flights and accommodations to planning activities. This isn’t just a fleeting trend, from the moment plans are conceived to the final steps of the journey, technology is shaping every aspect of travel, including birthing a new era of digital nomads who work remotely and simultaneously travel whenever, wherever they want.
This paradigm shift reflects a desire to maximise time off, achieve greater work-life balance, and redefine the conventional boundaries of traditional employment.
Rise of the Digital Nomad Lifestyle
The term ‘digital nomad’ is not a new concept, but the pandemic has certainly flipped the way that employees work. As organisations become more accepting of where, when and how people work – we’re seeing an influx of digital nomads heading to getaways with only a laptop, a backpack, a smartphone, and a sense of adventure. There’s a noticeable surge in demand for places that cater to remote work, beyond traditional tourist hotspots. Typically, these places offer travellers the opportunity to go exploring after work hours or set up their workspace at desirable locations, like the beach.
Several countries are proactively responding to this shift by introducing digital nomad visas, including Portugal, which has issued 2,600 such visas, and Greece, with 1,693 granted. Closer to home, Bali recently announced a collaboration with Airbnb, allowing visitors to work remotely for six months, without paying income tax. Not to be left behind – even Malaysia has introduced its version of the visa called De Rantau which allows foreign and local talents to work and live in the country for three to 12 months. Employers are also offering flexible, work-from-anywhere options. Wise, for example, has a Mobile Wiser programme that lets employees work remotely from almost anywhere in the world for up to 90 days.
However, the possibility of all this freedom presents challenges for businesses and employers, including payments, legal, tax and cultural issues. Any first step requires businesses to restructure themselves around roles, employee locations, travel durations and employee education. A well-designed global mobility plan is essential for employers to navigate complexities and avoid unintended payments and tax issues – and business leaders must stay updated on global tax and compliance laws.
The Power of Technology
Despite these considerations, it appears that remote work is here to stay, with one study of 3,000 remote workers revealing that 90% of them would like to continue working remotely. In the face of technological advancements, this is entirely possible today – tools like Google Drive, Figma, Zoom, and Microsoft Teams give workers remote access to data and files to complete their tasks and collaborate across different functions.
Traditionally, managing money across borders has been challenging because there isn’t a truly international bank account in place. But now, with strong digital payment solutions like Wise, remote workers can receive and send money all over the world, without any hassle. Furthermore, freelancing platforms like Fiverr and Upwork provide tools and features that allow them to manage their work, including invoicing.
When it comes to handling currency differences, Wise stands out by offering low, transparent fees and using the fair, mid-market exchange rate. Digital nomads can access account details in 10 different currencies via their Wise account, enabling them to receive funds in these currencies from any location and send funds to over 160 countries – an ideal solution for individuals constantly on the move. Additionally, they can hold over 40 currencies & transact in the local currency with the Wise multi-currency account and prepaid card, allowing users to move, spend and manage money in different currencies within one platform.
As digital nomads lead increasingly borderless lives, the need for faster, cheaper and more transparent solutions that transcend geographical boundaries becomes paramount, especially when it comes to payments. Businesses need to prepare for this shift by actively harnessing the available technology that enables it and putting in place cultures and processes to adeptly meet the ever-growing demands of a digital-nomad workforce. Ultimately, business leaders need to recognise that the digital nomad trend is here to stay and to obtain the best talent, one needs to open their horizons to new ways of working.