Despite the fact that new developments and incoming foreign investments are taking place in Kuala Lumpur, more needs to be done to address various issues such as water supply, traffic jams, and the movement of corporations from old buildings.
Read on below to find out more in Dr. Daniele’s interview with Malaysia SME.
Challenges facing businesses in Kuala Lumpur
Malaysia, Oct 2: Rapid development in Kuala Lumpur has placed pressures on its natural resources and infrastructure. Businesses that operate in Kuala Lumpur face challenges such as heavy traffic and water shortages.
In recent months, water rationing exercises have impacted businesses not just in Kuala Lumpur, but also in other parts of the Klang Valley. Car wash and food & beverage businesses are among those that have been impacted by these developments.
In addition to this, major roads have been clogged with vehicles, particularly during peak hours, forcing employees and employers alike to either be at their workplaces early or to arrive late at work.
However, more businesses are beginning to adapt to this development by adopting flexible working arrangements, and allowing employees to arrive at work at different times.
SK Brothers general manager Chan Ai Cheng shared with MALAYSIA SME®, “Heavy traffic is no stranger to us who live and work in the Klang Valley. Businesses would have considered the traffic factors, which really translates to time matters and make adjustments to either avoid peak times or relocate offices and factories to more convenient locations.”
Chan added, “Water shortage is a serious problem for industries, not to mention the hardship on the people, the cleanliness factor amongst others. It is a disturbance to business and not something well prepared for.”
In the August 2014 issue of MALAYSIA SME®’s Business and Space, several issues were highlighted, illustrating positive growth and development for Kuala Lumpur. However, as a consequence of new developments emerging in Kuala Lumpur, this could have a negative impact on existing properties in the capital city.
The possible negative impact that we might have comes from all the old commercial purpose-built buildings (office towers) that corporations will slowly leave empty by moving their offices to more modern and attractive and suitable areas/buildings.
REI Group of Companies chief executive officer Daniele Gambero shared with MALAYSIA SME®, “The possible negative impact that we might have, comes from all the old commercial purpose-built buildings (office towers), that corporations will slowly leave empty, by moving their offices to more modern, attractive, and suitable areas and buildings.”
Gambero cited that Malaysia is fast moving within the top countries worldwide, based on the ‘Ease of Doing Business 2013’ report from the World Bank and International Finance Corporation. “Our economy is in the transition status between being efficiency-driven towards being innovation-driven. As we know, not everything here is working as planned and we still have open issues to be resolved.”
Gambero added, “From an international point of view, at the moment, there is no negative impact of these internal issues on the incoming flow of FDI and international businesses to Malaysia, but for sure our Government needs to perform a fast and efficient action to sort these problems as soon as possible.”
Gambero said, “We have so many new developments, rejuvenation projects such as the River of Life, re-developments and new infrastructures which will reshape the skyline and the lifestyle of Kuala Lumpur.”
Gambero commented, “The final result, estimated to be around 2017-2019, will be a modern and smart metropolis of really international standards, housing headquarters and regional offices of some of the biggest multi-national companies in the world, and the ‘centre of gravity’ for Islamic financial transactions worldwide.
As at 2013 Malaysia was already handling almost 70% of the world financial Islamic transactions.”
Chan said, “These redevelopment projects are all mega projects in their own right with unique modern features that’s set for the future each carrying their own special features. I believe the idea is to create more space within the city area for growth of businesses as well as more dwellings to cater to a segment of the population who work in the city and would like to live as close as possible to the city for convenience.”
Chan added, “For the expansion of businesses, companies that are expanding will need more space and it’ll be easier for them to expand into a new office tower, as quite often their existing office building may be well-occupied, but with not much room for additional space where they require.”
Chan commented, “Futuristic buildings will attract new businesses and also multinational companies for the establishment of their regional office amongst other considerations, such as economic factors, connectivity of Kuala Lumpur with Asia and ASEAN, as well as others.”
Gambero added that the completion of most of the infrastructure works in the next few years will ease the commute from the external fringes of Klang Valley towards KL central districts. This will bring a consistent growth in population and consequently, the property market in areas such as Rawang, Sungai Buloh, and Klang, as well as within the Southern Corridor of future growth, in areas extending from Kesas Highway and Bukit Jalil, down south to Seremban.
Source : Malaysia SME News Network