|| 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 citys 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.
|| 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.
|| 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.
situation and issue
|| 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.
|| 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
floor space situated in Kuala Lumpur declined from 57 percent to 50
percent of the total for the KLC.
||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.
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.
|| 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
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,
Table 7.1: Commercial Floor Space by Status, 2000
||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.
|| 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
|| 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
|| 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
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.
|| 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.
|| 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.
|| 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,
and service apartments
|| The existing situation
and issues pertaining to hotels is covered in Chapter 8: Tourism.
|| 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
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.
|| Increasing demand
for service apartments.
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.
and petty traders
|| 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 Malaysias
|| 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.
||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.
|| 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
|| 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
||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.
|| 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.
|| In order to enhance Kuala
Lumpurs 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
create a technologically advanced city especially in the fields
of building technology and design as well as information and communication
enhance the City Centre as an international shopping and entertainment
||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.
international commercial and financial centre
||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
|| 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 Lumpurs 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.
|| 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.
|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.
||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 Citys status as an international commercial and financial
|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.
activities in residential premises
||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.
|| 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.
|CO 3 :
||CHKL shall permit K-Economy
activities in residential premises.
of an Enabling Infrastructure
|| 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.
||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.
|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.
|| 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
||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
formally recognised as specialized shopping precincts. A variety of
shopping zones, which identifies and enhances the character of certain
shopping areas, shall be established.
|CO 5 :
||CHKL shall designate a variety
of shopping zones in Kuala Lumpur.
|| A main shopping spine will
be established in the City Centre as a world-class shopping precinct
with a national and international reputation.
|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.
and service apartments
|| Policies relating to hotels
are covered in Chapter 8: Tourism.
|| 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.
|CO 7 :
||CHKL shall ensure that there
is adequate provision of service apartments with convenient
access to the main business areas.
and petty traders
|| 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.
|| 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.
|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
Photo 7.7: CHKL requires the private sector to provide hawker
premises within mixed-used complexes.
|| 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.
|| 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.
|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
Photo 7.8: The professionalism in hawking and petty businesses
needs to be improved based on good practices.
|| Dispersal of commercial
facilities to outside the City Centre is part of CHKLs 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.
|| Similarly, convenience
shopping centres, with sufficient parking facilities, shall be encouraged
in district centres that are well served by public and private transportation.
|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.
|| 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.
|| 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