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Kuala Lumpur Structure Plan 2020

Preface

Acknowledgement

1 Introduction

2 International and National Context of Growth

3 Vision and Goals of Kuala Lumpur

4 Economic Base and Population

5 Income and Quality of Life

6 Land Use and Development Strategy

7 Commerce
  7.1 Introduction
  7.2 Existing situation and issue
    7.2.1 Commercial overview
    7.2.2 Office buildings
    7.2.3 Shopping
    7.2.4 Hotels and service apartments
    7.2.5 Other services
    7.2.6 Hawkers and petty traders
  7.3 Objective
  7.4 Policy and proposal
    7.4.1 Business and finance
    7.4.2 Shopping
    7.4.3 Hotels and service apartments
    7.4.4 Hawkers and petty traders
    7.4.5 Balanced Commercial Development
  7.5 Future Requirement

8 Tourism

9 Industry

10 Transportation

11 Infrastructure and Utilities

12 Housing

13 Community Facilities

14 Urban Design and Landscape

15 Environment

16 Special Areas

17 Strategic Zone

18 Implementation

Abbreviations

Glossary

FAQ
7.1 Introduction

214. An integral part of the vision to make Kuala Lumpur A World-Class City is to enhance its position as an international commercial and financial centre. Commerce is the driving force behind a city’s economy. It is the creator of wealth, the principal provider of jobs as well as a primary impetus for development and renewal. To be able to attract major multi-national companies to base their regional operations in Kuala Lumpur will bring great rewards to the City and to the nation as a whole.
215. In order to achieve its goal, Kuala Lumpur must first address the demands of the K-Economy, which is one where innovative ideas and new technologies are the key ingredients of wealth creation. Kuala Lumpur will benefit from the proximity of the MSC, by being able to draw on and complement its knowledge-based enterprises. The City will also be able to maximize the benefits of this relationship by providing complementary highend services in finance, shopping, entertainment, housing, education and recreation.
216. CHKL must also provide for an efficient and equitable city structure which best distributes commercial spaces so that all parts of the City have access to appropriate facilities according to their needs. The people of the City should be
properly served with conveniently accessible shopping facilities irrespective of their location. Similarly, CHKL will need to satisfy the needs of local businesses, as well as those of the multinational companies, so that they will be able to obtain affordable office space in areas which satisfy their organisational and staffing needs.

7.2 Existing situation and issue
 7.2.1  Commercial overview
 i.  Existing situation

217. The estimated total commercial floor space in Kuala Lumpur and its conurbation (KLC) is at 64 million square metres of which 66 percent is located within Kuala Lumpur.
218. There has been a trend towards the decentralisation of office space from Kuala Lumpur to the KLC. Between 1991 and 1997, the percentage share of purpose-built office spaces in Kuala Lumpur to that of the whole of the KLC declined from 95 percent to 80 percent. Similarly, between 1995 and 1998, the amount of commercial complex retail
floor space situated in Kuala Lumpur declined from 57 percent to 50 percent of the total for the KLC.
219. The major components of commercial floor space in Kuala Lumpur are offices, shopping, hotels and service apartments and other services. Figure 7.1 shows the existing and committed commercial floor space by status and components, while Table 7.1 shows the existing and committed floor space by status and strategic zone. Commercial
floor space increased by 277 percent between 1980 and 2000, while employment in the commercial sector increased by 82 percent over the same period to stand at 698,100 in 2000. On the whole, the major components of the commercial services sector have experienced substantial growth in recent years.
220. There has been a decline in the relative amount of commercial floor space in the City Centre compared to the whole of Kuala Lumpur, from 66.3 percent in 1980 to 47.2 percent in 2000.
 

Photo 7.1: The major components of commercial floor space in Kuala Lumpur are offices, shopping, hotels and service apartments and other services.
 

Figure 7.1: Commercial Floor Space by Status and Component, 2000
 

Table 7.1: Commercial Floor Space by Status, 2000

 ii.  Issue

221. Despite the growth of office and retail space outside the City and the City Centre, there is still an over-concentration of commercial floor space in the City Centre.

• Over-concentration of commercial development in the City Centre.
222. The supply of commercial floor space in 2000 exceeded demand with vacancy rates in the office and retail sectors running at 23 percent and 30 percent respectively. Based on the demand trend for commercial floor space over the last two decades the current overhang and incoming supply of office and retail floor space are expected to be fully utilised by 2005.

• Overhang of office and retail floor space

 7.2.2  Office buildings
 i.  Existing situation

223. Figure 7.2 shows the distribution of existing office areas in Kuala Lumpur. CHKL has been implementing Intelligent Building Guidelines which are applied to all new office buildings in Kuala Lumpur. Included in the guidelines are requirements for Building Management Systems, incorporation of ICT infrastructure and energy conservation measures. Consequently, there is already a sizeable stock of office buildings in Kuala Lumpur of a very high standard.

 ii.  Issue

224. There is a significant quantity of older office buildings, including those vacated by the relocation of government offices to Putrajaya, which are deficient in basic ICT facilities.

• Many of the older office buildings in Kuala Lumpur are obsolete and lacking basic ICT facilities.
 

Photo 7.2: There is a significant quantity of older office buildings which are deficient in basic ICT facilities.

 7.2.3  Shopping
 i.  Existing situation

225. Figure 7.3 shows the distribution of existing shopping areas in Kuala Lumpur. The emergence of hypermarkets for convenience shopping and mega malls for general and recreational shopping on the outskirts of the City has started to change the pattern of retail development in Kuala Lumpur. Shop houses, the more traditional form of local shopping, are becoming less relevant as people prefer the convenience, air-conditioned comfort and wider variety of goods available in the large shopping complexes.

 ii.  Issue

226. There is a phenomenon of unsuccessful shopping complexes in Kuala Lumpur. The failure of some complexes is principally due to poor accessibility, insufficient catchment, unattractive design and the lack of proper market and financial studies.

• Failure of some shopping complexes.
227. The traditional shopping areas in the City Centre have largely been superseded by the emergence of large-scale shopping malls in various parts of the City. As a consequence, there is no longer a clearly defined major shopping area or spine within the City Centre.

• Lack of a dominant shopping spine.
 

Photo 7.3: ...emergence of hypermarkets for convenience shopping and mega malls for general and recreational shopping on the outskirts of the City has started to change the pattern of retail development.
 

Figure 7.2: Distribution of office buildings by status, 2000
 

Figure 7.3: Distribution of shopping floor space by status, 2000

 7.2.4  Hotels and service apartments
 i.  Existing situation

228. The existing situation and issues pertaining to hotels is covered in Chapter 8: Tourism.
229. With the recent growth of the expatriate community in Kuala Lumpur, service apartments have gained in popularity. The majority of these are located in the City Centre, Seputeh, Bukit Indah and Sentul. As Kuala Lumpur develops as
an international commercial and financial centre, it is anticipated that more expatriate businessmen will be living in the City and that there will consequently be an increased demand for service apartments.

 ii.  Issue

  • Increasing demand for service apartments.

 7.2.5  Other services
 i.  Existing situation

230. ‘Other services’ consist of mainly institutional, recreational, MICE and storage facilities as well as exhibition halls, auditoriums, theatres, restaurants, gymnasiums, cinemas and concert halls. Most of these services are located in office and hotel buildings and shopping complexes. The distribution of these facilities is still very much centralized with about 44 percent of the floor space located in the City Centre. The rest are distributed almost evenly across the other strategic zones.

 7.2.6  Hawkers and petty traders
 i.  Existing situation

231. The informal sector plays an important role in the socio-economic life of the City. Hawkers and petty traders are effective and efficient economic agents in the distribution of goods and services. They help to keep the cost of living in the City by providing food and other consumer items at affordable prices and widen consumer choice. Besides being a source of livelihood for the thousands of people who are involved in the informal sector, hawkers and petty traders have also become parts of Malaysia’s cultural heritage.
232. CHKL has been successful in encouraging the development of hawker areas, small entrepreneurs and petty traders. In 2000, there were 35,120 licensed hawkers and petty traders operating in Kuala Lumpur mainly at markets, night markets, kiosks, secured stalls and ‘attachments outside buildings’. Most of them sell food and drinks, clothes, plastic items and books. Figure 7.4 shows the distribution of hawkers and petty traders.
 

Photo 7.4: Hawkers and petty traders are effective and efficient economic agents in the distribution of goods and services.
233. In addition, there are 6,000 unlicensed hawkers operating in various unsuitable locations such as road and river reserves and underneath road flyovers. This has an adverse effect on traffic movement and creates an unsightly appearance and unhygienic conditions.

 ii.  Issue

234. A few new permanent hawker centres have been established intended to relocate hawkers. However unsuitable relocation premises for hawkers in terms of accessibility, catchment, comfort and inadequate support facilities are factors that have contributed to the failure of some hawker centres, resulting in hawkers re-establishing their businesses in their original location.

• Unsuitable relocation premises for hawkers.
 

Figure 7.4: Distribution of hawking areas by status, 2000
235. There are still not enough designated areas and facilities to cater for the existing hawkers and petty traders in the City. This has resulted in hawkers and petty traders operating in places that are not suitable for hawking, which has given rise to sanitary problems and nuisance such as public hygiene and waste disposal and obstruction of traffic.

• Insufficient number of designated areas and facilities for hawkers and petty traders.
 

Photo 7.5: ...hawkers operating in places that are not suitable for hawking...
236. About 65 percent of the hawker centres are located in the City Centre. There is a lack of hawker centres in some high-density residential areas, for example, Pantai Dalam and Wangsa Maju as well as in industrial areas.

• Lack of hawker centres outside the City Centre.
237. The attitude of some hawkers and petty traders on neglecting aspects of personal hygiene, cleanliness of premises, quality of food, internal premise layout and courteous and friendly treatment reflects unsatisfactory level of service.

• The unsatisfactory level of services by hawkers and petty traders.

7.3 Objective

238. In order to enhance Kuala Lumpur’s role as an international commercial and financial centre, CHKL aims to:

• promote Kuala Lumpur as a choice location for international organisations and business entities to establish their regional offices and headquarters;

• create a technologically advanced city especially in the fields of building technology and design as well as information and communication technology; and

• enhance the City Centre as an international shopping and entertainment centre.
239. In order to create an efficient and equitable city structure, CHKL aims to:

• ensure the functional distribution of centres to facilitate the availability of commercial services and facilities in convenient locations for the population.

7.4 Policy and proposal
 7.4.1  Business and finance
 a)  An international commercial and financial centre

240. Based on ten cities in the Asia Pacific region (1995-1997), Kuala Lumpur ranked as the fifth cheapest location for establishing multi-national companies. The average annual costs of maintaining an office in Kuala Lumpur was about 24 percent of the costs in Singapore or 22 percent of those in Hong Kong. Net prime office space rental rates were also much lower than those in Singapore, Hong Kong, Bangkok and Sydney. In terms of price competitiveness, therefore, Kuala Lumpur is well placed to become an international commercial and financial centre and CHKL intends to capitalise on this potential.
241. Fostering and maintaining business links with other major cities in the region and worldwide is an important factor in expanding opportunities for local businessmen as well as helping to raise Kuala Lumpur’s profile and international awareness of its potential. Building business partnerships with other cities within Asia Pacific region and worldwide
will help to promote businesses in Kuala Lumpur.
242. To promote Kuala Lumpur overseas, a business development body shall be set up to coordinate the various aspects of commercial development in the City. The body will promote business activities and market Kuala Lumpur as an international commercial and financial centre by disseminating information on the facilities available, regulations and formalities for setting up businesses and the estimated operating costs of doing business in Kuala Lumpur.

Policy
CO 1 : CHKL shall set up a business development body to coordinate the various aspects of commercial development in the City, promote business activities and market Kuala Lumpur as an international commercial and financial centre.
243. In order to maintain a character for the City Centre and the Comprehensive Development Areas consistent with the vision of Kuala Lumpur, the types of businesses and commercial enterprises in these areas should be compatible with and supportive of the City’s status as an international commercial and financial centre.

Policy
CO 2 : CHKL shall ensure that the types of commercial activities undertaken
within the City Centre and Comprehensive Development Areas are compatible with the goal of making Kuala Lumpur an international commercial and financial centre.
 

Photo 7.6: The types of businesses and commercial enterprises especially in the City Centre should be compatible with and supportive of its international commercial and financial role.

 b)  K-economy activities in residential premises

244. The technologies associated with the KEconomy allow economic activities to operate in residential premises. This trend of operation benefits individuals as well as business and administrative bodies as operational overheads and travel demand is lower.
245. The present planning control regulations do not permit residential premises to be used for non-residential activities. In order to allow KEconomy activities in residential premises, planning control guidelines and regulations shall be prepared. The K-Economy activities do not cause nuisance and pressure on the City infrastructure. The activities shall be carried out by occupiers involving the use of ICT and without additional workers.

Policy
CO 3 : CHKL shall permit K-Economy activities in residential premises.

 c)  Provision of an Enabling Infrastructure

246. While cost competitiveness is an important factor, it is not by itself sufficient to attract international businesses to locate their regional offices in the City. For Kuala Lumpur to achieve the status of a world-class city, there must be the enabling infrastructure such as prime office space, a world-class communication network, a wide range of specialised business services, a qualified labour pool and educational and training facilities as well as efficient national and international transport networks.
247. An essential part of the enabling infrastructure is the plentiful supply of office buildings which are fully equipped with the latest technologies and ICT infrastructure. Planning control guidelines will be implemented with regards to the integration of ICT infrastructure into new office and hotel developments. Refurbishment of existing commercial buildings to incorporate ICT infrastructure will be encouraged.

Policy
CO 4 : CHKL shall ensure that the enabling infrastructure is adequately provided so that Kuala Lumpur may attain the status of an international commercial and financial centre.

 7.4.2  Shopping
 a)  Shopping zones

248. Shopping development in Kuala Lumpur is in transition and appears therefore to be dislocated and haphazard. A sense of order needs to be established so that shopping areas or zones rather than shopping complexes become the focus of retail activity.
249. There are shopping areas known for special retail items such as electronic components along Jalan Pasar, computer accessories in Imbi Plaza, garment accessories in San Peng, sewing accessories in Jalan Masjid India that need to be
formally recognised as specialized shopping precincts. A variety of shopping zones, which identifies and enhances the character of certain shopping areas, shall be established.

Policy
CO 5 : CHKL shall designate a variety of shopping zones in Kuala Lumpur.

 b)  World-class shopping precinct

250. A main shopping spine will be established in the City Centre as a world-class shopping precinct with a national and international reputation.

Policy
CO 6 : CHKL shall designate areas in the City Centre to form a premiere shopping spine and determine appropriate strategies to develop the area to attract major national and international retailers.

 7.4.3  Hotels and service apartments

251. Policies relating to hotels are covered in Chapter 8: Tourism.
252. As the number of international businesses locating in Kuala Lumpur increases, sufficient service apartments must be provided in convenient locations to cater for the needs of expatriate businessmen.

Policy
CO 7 : CHKL shall ensure that there is adequate provision of service apartments with convenient access to the main business areas.

 7.4.4  Hawkers and petty traders

253. CHKL shall continue to regulate hawking activities and ensure that adequate premises are provided for them. Sufficient hawker premises must be made available so as to limit the expansion of unlicensed hawkers.
254. CHKL requires the private sector to provide hawker premises within mixed-use complexes. In addition, CHKL will continue its policy of relocating street side hawkers in properly designed hawker centres where all associated facilities can be provided in a hygienic environment.

Policy
CO 8 : CHKL shall monitor the provision of hawker and petty traders premises
and develop additional premises where required.
CO 9 : CHKL shall require private sector commercial development to incorporate hawker and petty traders’ premises.
 

Photo 7.7: CHKL requires the private sector to provide hawker premises within mixed-used complexes.
255. The professionalism in hawking and petty businesses needs to be improved based on good practices. These practices can be inculcated through rules and guidance on personal hygiene, cleanliness, food preparation and handling and courteous service. The design and cleanliness of premises, equipments and utensils and personal hygiene of operators and workers must be emphasized. In addition the operators and workers must undergo regular medical examination in order to ascertain good state of health.
256. Quality of food and its preparation need to be emphasised on its garnishing, freshness, nutritional value and taste. Customer service must be courteous, friendly and efficient and fast. Besides, specialisation of food, financial support, enforcement and appreciation to hawkers and petty traders need to be given more attention. Small traders,
operators and assistants must stress on aspect of cleanliness and attractive layout of their premises.

Policy
CO 10 : CHKL with the relevant agencies and authorities, shall improve the professionalism of hawking and petty trading in accordance with good
practices through rules and guidance emphasizing on aspects of health, hygiene and cleanliness, quality of food and customer services.
 

Photo 7.8: The professionalism in hawking and petty businesses needs to be improved based on good practices.

 7.4.5  Balanced commercial development

257. Dispersal of commercial facilities to outside the City Centre is part of CHKL’s policy of creating a more balanced overall development strategy for Kuala Lumpur. Businesses that do not require to be in the City Centre such as sub-regional offices of private businesses will be encouraged to move to office development outside the City Centre.
258. Similarly, convenience shopping centres, with sufficient parking facilities, shall be encouraged in district centres that are well served by public and private transportation.

Policy
CO 11 : CHKL shall ensure that commercial facilities are dispersed to the areas
outside the City Centre according to the development strategy.
CO 12 : CHKL shall promote the establishment of sub-regional offices for private businesses and convenience shopping centres in the district centres.

7.5 Future requirement

259. There are a number of issues that may affect future employment in the commercial sector. These include the performance of the national economy and the growth of urban centres and activities outside Kuala Lumpur.
260. Projected future requirements are based on employment figures for the targeted residential population of 2.2 million by the year 2020. The distribution of commercial facilities reflects the strategy of moderate growth in the City Centre and a more even distribution over the other strategic zones according to their residential populations. Projected hawker requirements are distributed evenly over the six strategic zones (Refer Table 7.2 and Figure 7.5)
 


Table 7.2: Projected Commercial Floor Space Requirement, 2020
 

Figure 7.5: Projected Hawker Stalls Requirement, 2020