Being in a strategic location in Southeast Asia, Kuala Lumpur, the capital of Malaysia, is the best place to locate the office as it has more than one CBDs. In addition, the issue of choosing and finding a fit place for your office in Kuala Lumpur greatly affects the firm and its success. Diverse landscapes that constitute the city offer various choices all with unique benefits.
In this discussion, we shall provide a chart containing information that will help you locate and secure the most suitable office in Kuala Lumpur, beginning with recognising key office locations, rental fee, the various kinds of office spaces, among other essential details. In addition, we will discuss the rules of documenting and renting an office space in Kuala Lumpur.
Why Kuala Lumpur?
Kuala Lumpur has become a popular location to set up business for small to medium-sized business owners, entrepreneurs, and international companies, thanks to its many advantages, and here's why:
Strong economic growth: Malaysia's economy is expected to grow by 4.4% in 2023, making it the second fastest-growing economies in the region, allowing businesses to take advantage of this thriving economic environment.
Strategic location in Asia: Kuala Lumpur is centrally located in Southeast Asia, offering businesses effortless connections to major regional markets. This prime location acts as central hub, making it ideal for businesses seeking opportunities across Asia.
Business-friendly environment: The Malaysian government has implemented a number of pro-business policies, such as low taxes and a liberal foreign investment regime. This has made Kuala Lumpur an attractive destination for foreign businesses.
What are the key districts for offices in Kuala Lumpur
There are multiple Central Business Districts (CBDs) in Kuala Lumpur, each offering a unique ambiance and combination of office units. Some districts, like KLCC, also feature premium serviced office providers like Compass Offices, catering to various business preferences. Here are some of the popular office districts in Kuala Lumpur:
KLCC: Located in the centre of the Petro basal twin towers, KLCC serves as the main financial and business district comprising many first-class office blocks that house MMCs and other significant corporations. Petronas Twin Towers, Menara Maxis, Menara ExxonMobil, Menara Telekom, Menara UOA Bangsar and many others.
Bangsar South: Bangsar South is a new CBD that is rapidly gaining popularity as an office destination in KL. Some well-known multinationals and start-ups call this place their home in addition to several other office space options including The Vertical Towers, Avenue 7 Horizon Tower, etc.
Damansara Heights: The affluent suburb of Kuala Lumpur, Malaysia, hosts grandiose estates, expensive shopping centres, and Class A offices as exemplified by Guoco Tower and Pavilion Damansara Heights Corporate Office. Many international organisations and banks prefer using it as their business place with the aim of having an upscale address.
Mont Kiara: An international community that has many expats, Mont Kiara is home to some of the world’s biggest companies that provide the option of traditional offices, serviced offices or even coworking places. Some of these notable office buildings are Solaris Dutamas, Wisma Mont Kiara, 1 Mont Kiara, Menara Hartamas, Plaza Mont Kiara, Arcoris Mont Kiara, and Kiara 163.
Understanding rental rates in Kuala Lumpur
However, the average rental rate of an office space depends on the location, kind of office space and its size in Kuala Lumpur. Nevertheless, for a CBD general guideline, you should be willing to pay not less than RM5 to RM10 per square foot per month.
The district: In these areas like prime CBD areas of KLCC and Damansara Heights, there are very high rents because of the amenities, the prestigious address and the opportunities for network which they provide.
The type of office space: The choice of office space also affects rental costs. Cost of traditional offices is higher due to their exclusiveness whereas co-working spaces and serviced offices are usually cheaper.
The size of the space: The more space an office offers, the higher its price tag will be. Smaller spaces can be affordable for a small business, second location, or so.
It is vital that one goes in with an open mind concerning rental rates when negotiating. Remember, you should also be ready to abandon the deal if you do not feel that you are being offered a fair price.
Types of office spaces available in Kuala Lumpur
Explore diverse office solutions in Kuala Lumpur, including traditional offices for stability, co-working spaces for flexibility, and serviced offices for seamless, ready-to-use setups
Traditional Offices
Long-term stability: Long-term leases are needed for traditional offices in Kuala Lumpur, which is why they are suitable for companies that need a fixed and well established head office. The leases may run for several years making sure of a constant workplace.
Customisation and flexibility: Traditional office tenants have many options in how their space is laid out, decorated, and equipped – the extent of personalisation offered depends on their needs as well as preferences, including the company’s identity. This gives them flexible working conditions for purposes of customising an appropriate milieu for their specific business requirements.
Amenities: Traditional offices could provide many facilities subject to the structure of the building and lease conditions. This may involve access to meeting rooms suitable for client presentations and team meetings, with utilitarian infrastructure such as car park areas for staff and customers.
Co-Working Spaces
Flexibility for smaller teams: Small teams, start-ups, freelancers, or even remote workers will find the co-working spaces available in Kuala Lumpur to their liking because they offer flexible workplaces which are usually shared. They are a preferred option especially by companies looking at the short-term rental alternatives.
Affordability: Cost effective solutions have been offered by co-working spaces, which include hiring workstations or private offices on short lease. The affordability enables businesses to scale the space they require as they expand, thus paying as per requirement.
Community and services: Most co-working spaces develop a common feeling of unity which encourages communication and co-operation between each other as well as different firms situated in the same working place. Modern office furniture, high-speed internet and basic office services are offered to provide a conducive work area for maximum productivity.
Serviced Offices
Turnkey solutions: The service office in Kuala Lumpur is a solution for ready-to-move furniture and equipment. Such flexibility, in particular, attracts companies looking for easy installation but minus the intricacies associated with fresh start-ups.
Comprehensive amenities: There are fully equipped serviced offices that have excellent reception desks to welcome clients and guests at arrival. They also offer administrative support for daily chores like correspondence, photocopying services, among others. Besides, these premises have modernly equipped conference rooms with state-of-the-art facilities where
Flexibility in lease duration: Serviced office generally have an option of leasing for short period (depends on space requirement). They are advantageous to enterprises whose workforce fluctuates and for those who are in a new market where they can obtain flexible terms for temporary lease.
Legalities and Documentation
When taking an office space in Kuala Lumpur, one should understand well about the legal documentation involved.In Malaysia, lease is regulated under Contracts Act 1950 Contracts Act 1950. It is essential that you seek legal assistance on understanding your lease contract and sign the document once clarified.
During the agreement period of renting an office space in Kuala Lumpur, there are a few documents required:
Company registration certificate
Business address
Landlord's contact information
Lease agreement
To sum it up, companies looking for a location where to open an office should include Kuala Lumpur, the capital of Malaysia, as a strong argument. Due to its favourable legislation towards doing business, convenient geographical position within South East Asia, rapid development and stable economy, it attracts foreign corporations and individual players.
The availability of various central business districts in Kuala Lumpur enables firms to tailor specific office locating patterns that suit them. Understanding all available types of offices, prices of renting, and document requirements is paramount for a successful movement.
Business flourishes in Kuala Lumpur as the Malaysian economy continues to develop rapidly. Its ideal location and role as the liveliest business hub in Asia for that matter.
This article is provided by Compass Offices
The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
