Why is Kuala Lumpur - Malaysia’s top office space location?
MALAYSIA - Kuala Lumpur, capital city of Malaysia, is arguably the Southeast Asian City with one of the best infrastructure. Home to more than 7 million people, the metropolis city is known as one of the biggest financial hubs in Southeast Asia and one of the biggest financial centres in the world for Islamic banking. Kuala Lumpur’s disposable income per household is greater than the average for the rest of Malaysia. This is mainly driven by productive and more profitable service sectors concentrating in the country’s capital city than in the rest of Malaysia. With this, we will highlight the reasons why Kuala Lumpur is Malaysia’s top office space location.
Strong economic growth
One of the fastest growing metropolitan regions in Malaysia, Kuala Lumpur is the wealthiest city in Malaysia accounting for 16% of the country’s total GDP. It is a major tourist destination and ranked in the top 10 most visited cities in the world in 2019. The city has long been a favorite of tech startups due to its high speed internet connection, strategic location and comfortable standards of living. The city’s economy is performing strongly, driven by outsized oil profits and strong global demand for electronics. Kuala Lumpur is the pillar and engine of the nation’s economic growth.
There are several factors to consider when seeking an ideal location for establishing a regional base of operations or simply renting an office space. Among these factors include accessibility, global connectivity, and cost competitiveness. Kuala Lumpur is a premium location being in the heart of one of the fastest growing ASEAN countries, with a GDP growth rate of 5 to 7 percent, and a global connectivity made possible by superior infrastructure. The city is an ideal location for companies because of the high level of local and foreign banks, and organizations that go to show that the city is a hub of activity for business. Kuala Lumpur, as a city, is home to numerous businesses, retail and residential centers that makes it an all in one location for both work and leisure.
Commercial office space
Kuala Lumpur has a large supply when it comes to commercial office spaces with a total office stock of 128,800,000 sq f. It is in a unique position in Southeast Asia given its low rental rates compared to neighboring countries. The central business district in the city is the Kuala Lumpur City Centre and Kuala Lumpur Sentral. These districts provide addresses that are close to major players in the industry such as oil, gas, and technology companies.
Kuala Lumpur City Centre is home to the largest companies in Malaysia with its centerpiece — the Petronas Twin Towers. Some other office buildings that dominate the area are: KLCC Convention Center, The Maxis Tower, Carigali Tower, and Exxonmobil Tower. Kuala Lumpur Sentral is Malaysia’s largest commercial development. More than 50% of its land area is dedicated to office zones with CIMB Bank already headquartered there. Other tenants in the area include British Telecom and Maxis Communications, and UEM Group.
Kuala Lumpur is rated as an alpha world city. There is a growing opportunity in Kuala Lumpur for companies that are looking for a permanent business address or simply lease an office space at comparatively affordable rates.