The challenging global economy and the increase in operating costs in traditional markets have prompted many multinational companies (MNCs) to explore Southeast Asia, particularly Malaysia, as a strategic alternative.
According to Tan Ka Leong, Managing Director of CBRE Group | WTW said Malaysia offers an attractive balance of cost-effectiveness and quality infrastructure that is attractive to companies looking to manage risk and improve efficiency.
Tan noted a significant increase in inquiries from MNCs especially for shared services and business process outsourcing (BPO) operations in Malaysia.
Compared to other Southeast Asian countries, Malaysia stands out with its highly skilled and English-speaking workforce which is essential for MNCs aiming for effective operations.
In addition, rental rates for office space in Kuala Lumpur have different rates according to location.
In the suburbs of KL, there has been a slight increase in rental rates and densely populated areas are expected to experience significant rental increases due to strong demand in the market.
Co-founder and CEO of Juwai IQI Group, Kashif Ansari said Kuala Lumpur has seen a significant influx of MNCs this year.
He said companies from all over the world are opening operations in Malaysia to take advantage of the country's strategic location and favorable business environment.
However, competition may increase for high-quality office space and land suitable for manufacturing especially in sectors such as semiconductors
