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Bandar Malaysia’s 12 world-class towers starting in 2021. Positive?

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high rise buildings of kuala lumpur

There are more news about Bandar Malaysia recently. Hopefully it will go smoothly and let’s attract more Foreign Direct Investment (FDI) into Malaysia yeah. Of course, if we would like Bandar Malaysia to become successful even more faster, then we should also have the High Speed Rail (HSR) as well. For this one, we would need to wait for the year end meeting between the ministers from both countries yeah. Please do not delay that meeting any further yeah.

bandar malaysia
Image source: https://www.nst.com.my/property/2020/09/626299/bandar-malaysia-start-over-12-world-class-towers-worth-rm10-billion-2021

Article in nst.com.my Iskandar Waterfront Holdings Sdn Bhd (IWH) executive chairman Tan Sri Lim Kang Hoo was asked about the potential for a glut of office space if Bandar Malaysia builds 12 world-class towers with a gross floor area of over 12 million square feet in Phase 1. He said, ” We have done our homework and property boom-and-bust is a cycle. Statistics show that when there is a bust, the recovery comes within three years and the boom lasts much, much longer.”

Lim also explained that Bandar Malaysia will also contribute hundreds of thousands of job opportunities and economic spillovers across major industries. He said, “Thousands of people, including expatriates, will be working on this project in the next four to five years. They will require office space, and a home to stay and they will be looking at the KLCC area as Bandar Malaysia is not too far off from there.”

Lim explained further, “We need a massive project like Bandar Malaysia to attract FDIs and talent from around the world and reduce the glut in the property market. There must be large scale economic activities and the project itself must be attractive in terms of its product offerings. We are building a smart, intelligent city…a new CBD.” Do read the very comprehensive article here: Article in nst.com.my

No need for offices anymore? Stop joking yeah.

There has been many predictions that all the many MNCs which are based in office towers will be moving to smaller offices as they would get their staffs to work from home (WFH). I like to say that I disagree with this prediction. All the so-called efficiencies gained from WFH is unlikely to be for the long term. A short meeting which could help in decision making could have taken minutes within the same office may now be many hours away because the person we wanted to speak with happened to be ‘missing in action…’ Many more reasons but do feel free to disagree yeah.

Glut will NOT be due to new offices, it is due to lack of demand growth

As for the news about the potential of glut of offices, this will NOT be due to more new offices being built. It will be due to fewer MNCs coming in, due to fewer new startups, fewer corporate offices etc. So, as long as are able to attract more MNCs to come, encourage more businesses to set up, they will take up these new office space. Please do understand that not many MNCs would like to take up office space in some old and dilapidated office space (which is still within the office calculations today!)

Well, it’s always good to have another Central Business District (CBD) and I do wish Bandar Malaysia all the best. As for now, I do look forward to that meeting for HSR yeah. To me, that would greatly complement all these new MNCs because they could now have twin offices, one in KL and one in Singapore and truth is, they are just 1.5 hours apart! 🙂 Happy anticipating yeah.

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Next suggested article: New norm is FLEXIBILITY. New Norm is not about not needing offices

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