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Kuala Lumpur Structure Plan 2020



1 Introduction

2 International and National Context of Growth

3 Vision and Goals of Kuala Lumpur

4 Economic Base and Population
  4.1 Introduction
  4.2 Existing situation and issue
    4.2.1 Economic base
    4.2.2 Employment
    4.2.3 Population
  4.3 Objective
  4.4 Employment and population target
  4.5 Policy and proposal
    4.5.1 Economic base and employment
    4.5.2 An optimum population

5 Income and Quality of Life

6 Land Use and Development Strategy

7 Commerce

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



4.1 Introduction

68. In so far as Kuala Lumpur is the capital of the nation, its economic catchments encompass the entire country. The present range of human activities in the City, its infrastructure and buildings, its parks and monuments, its spectrum of social, spiritual, recreational and entertainment facilities, and its concentration of governmental and nongovernmental institutions, are manifestations of the City’s function as the capital of the nation. With the relocation of federal government administrative functions to Putrajaya, some diminution of this role is likely to be felt, but the City will remain the economic and business centre of the country.
69. At the same time, Kuala Lumpur and its conurbation (KLC) form a region that is the most industrialised and economically the fastest growing in the country. Furthermore, the development of the KLIA at Sepang, the creation of the MSC, which includes Putrajaya and Cyberjaya, and the expansion of Port Klang have reinforced the national and international economic significance of the City.
70. As an international business centre, Kuala Lumpur vies with cities such as Singapore, Bangkok, Manila and Hong Kong for primary position in the Asia Pacific Region. In realising its vision to become A World-Class City, Kuala Lumpur must address the regional, national and international perspectives, embrace the opportunities presented and define its specific role.

4.2 Existing situation and issue
 4.2.1  Economic Base

71. The Gross Domestic Product (GDP) for Kuala Lumpur (at purchasers’ value in 1987 prices) has increased from RM21,157 million in 1995 to RM25,968 million in 2000, an average annual growth rate of 4.2 percent. Malaysia’s GDP average annual growth rate during the same period was 4.7 percent (refer Table 4.1).

Table 4.1: Gross Domestic Product (GDP), 1995 - 2000
72. The per capita GDP for Kuala Lumpur during the period 1995 to 2000 rose from RM22,799 to RM30,727, an average annual growth rate of 6.1 percent. The per capita GDP for Kuala Lumpur was more than twice that of the national average (refer Table 4.2).

Table 4.2: Per Capita Gross Domestic Product (GDP),1995 - 2000

 4.2.2  Employment
 i.  Existing Situation

73. The total current employment in Kuala Lumpur is estimated at around 838,400. The economic structure of Kuala Lumpur and the entire KLC, in terms of broad sectoral distribution of employment is given in Table 4.3.
74. The tertiary or service sector forms the largest component of employment in Kuala Lumpur representing about 83.0 percent of the total compared to 71.0 percent in the KLC. Based on the Eighth Malaysia Plan, it is estimated that Kuala
Lumpur accounts for the major portion or 58.0 percent of the service sector jobs within the KLC. The tertiary sector comprises finance, insurance, real estate & business services, wholesale & retail trade, restaurant & hotel, transport, storage & communication, utilities, personal services and government services.

Table 4.3: Distribution of Employment by Major Sectors in Kuala Lumpur, Kuala Lumpur and its Conurbation and Malaysia, 2000
75. The secondary sector, which comprises manufacturing and construction, represents only 16.0 percent of employment in Kuala Lumpur compared to 26.0 percent in the KLC.
76. The employment to population ratio in Kuala Lumpur is higher at 59.0 percent compared to 41.0 percent in the remainder of the KLC and 40.0 percent in the country as a whole.

 ii.  Issue

77. The manufacturing component of employment has declined to 10.5 percent of total employment in 2000 from 16.8 percent in 1980, leading to a reduction in the range of employment opportunities in the manufacturing sector.

• Decline in employment in the manufacturing sector.

 4.2.3  Population
 a)  General
 i.  Existing situation

78. Based on sources from Department of Statistics and assumptions derived from the existing number of housing units in Kuala Lumpur, it is estimated that the population for Kuala Lumpur in 2000 was 1.42 million people. The KLSP 1984 projected that the population for Kuala Lumpur for the year 2000 was 2.2 million with the employment of 1.4 million.

Photo 4.1: ... it is estimated that the population for Kuala Lumpur in 2000 was 1.42 million people.
79. Population and employment have not grown as fast as projected by the KLSP 1984. However, the ratio of employment to population has increased from 46.9 percent in 1980 to 59.0 percent in 2000.
80. Figure 4.1 indicates the changing trends in the migration. There has been a reversal in net inmigration of about 9,000 persons per annum between 1975 to 1980 to a net out-migration of about 4,280 persons per annum for the period 1991 to 1997. The out-migration is clearly not a result of lack of employment opportunities but is partly due to the shortage of affordable housing. Kuala Lumpur has experienced a movement of people to the suburbs and outlying towns, who, nonetheless, commute daily back into the City to work. While the KLC grew rapidly, the City itself experienced a slower population growth.

Figure 4.1: Net Migration in Kuala Lumpur, 1975 to 1997

 ii.  Issue

  • The high rate of net out-migration and low population growth rate.

 b)  Age Structure
 i.  Existing Situation

81. The continuing decline in the birth rate for Kuala Lumpur has resulted in the decline in the proportion of young people below 15 years old from 33.0 percent in 1980 to slightly less than 27.0 percent in 2000. Commensurately, the working
age group of 15-59 increased from 63.0 percent in 1980 to 67.0 percent in 2000. The old age group, 60 years old and above has increased from 4.0 percent in 1980 and 1991 to 6.0 percent in 2000 (refer Table 4.4)

 ii.  Issue

82. By looking into the age structure of the city population, it needs special policy and approach on aspects related to housing, facilities and opportunities for all ages including the teenager, youth and aged.

• Impact of young population and the increasing proportion of aged population.

Table 4.4: Composition of Population by Age Structure, 1980 - 2000

 c)  Ethnic Structure
 i.  Existing Situation

83. The KLSP 1984 projected an increase in the proportion of Bumiputera population from 28.0 percent in 1980 to 34.5 percent in the year 2000. However, based on the census of the Department of Statistic, the actual percentage of Bumiputera population was 33.0 percent in 1980 and increased to around 38.0 percent in 2000 (refer Table 4.5). This was higher than anticipated.
84. Another phenomenon has been the increase in the presence of ‘others’ and ‘non-citizens’ in Kuala Lumpur, who now constitute about 9.0 percent of the City’s population.

Table 4.5: Population by Ethnic Groups, 1980 - 2000

 d)  City Centre
 i.  Existing Situation

85. The City Centre population has decreased from 156,980 in 1980 to 128,720 in 2000. During the same period, and the percentage of the City’s population living within the City Centre compared to the City as a whole has dropped from 17.1 percent to 9.0 percent. This has set back the optimisation of the infrastructural investment put in place over the last two decades.

 ii.  Issue

  • Decline in the population of the City Centre.

4.3 Objective

86. In order to create an economic framework for the City which will enable it to achieve its vision to be A World-Class City, CHKL aims to:

• enhance the City’s global and regional economic role as a leading centre of the Knowledge-Based Economy;
• attain a strong and well diversified economic base;
• integrate with and complement the activities within the Multimedia Super Corridor; and
• attain an optimum population size and distribution.

4.4 Employment and population target

87. Kuala Lumpur needs to attain employment and population sizes that are optimum in relation to its economic activities, land resources, infrastructure and community facilities. To this end, an employment of 1.4 million and a population of 2.2 million are targeted for the year 2020 (refer Table 4.6).

Table 4.6: Population and Employment, 2000 - 2020

4.5 Policy and proposal
 4.5.1  Economic base and employment
 a)  A leading centre of the knowledge-based economy

88. Being part of the MSC, Kuala Lumpur can anticipate that it will attract many multinational and local enterprises involved with information and communication technology.

EC 1 : CHKL shall implement measures to develop Kuala Lumpur as a centre of the Knowledge-Based Economy.

 b)  An international commercial & financial centre

89. To enhance the role of Kuala Lumpur as an international commercial and financial centre, it is important for the City to enhance its attractiveness to international businesses.

Photo 4.2: ... Kuala Lumpur as a centre of the Knowledge- Based Economy.
EC 2 : CHKL shall implement measures to attract international organisations and business entities.

 c)  An attractive tourist destination

90. In Kuala Lumpur, as in other major cities, the tourism sector plays an important part in its economic life, providing income, employment and expanding business opportunities. The tourism industry requires a very wide range of services and facilities provides employment across all sectors of the population and helps to diversify the City’s economy. The potential of tourism sector therefore must be developed and promoted as a major economic generator.

Photo 4.3: The tourism industry requires a very wide range of services and facilities, provides employment ...
EC 3 : CHKL shall develop and promote tourism as an important economic sector.

 d)  An international shopping centre

91. Enhancing and developing Kuala Lumpur as an international shopping centre is based on a sound foundation as Kuala Lumpur is already the premier shopping centre of the country.
92. Modern retail formats including mega malls, duty-free shopping outlets and discount stores have been developed which have enhanced the attractiveness of Kuala Lumpur as a shopping centre. Building on its wide variety of shopping facilities, Kuala Lumpur has the opportunity to become an international ‘shopping paradise’.
EC 4 : CHKL shall enhance and develop Kuala Lumpur as an international shopping centre.

Photo 4.4: ... Kuala Lumpur has the opportunity to become an international ‘shopping paradise’.

 e)  A major meetings, incentives, conventions and exhibitions centre

93. Business and conference tourism has expanded in recent years and is becoming a very important component of the industry. As a strategy in developing the tourism sector, more state-ofthe- art Meetings, Incentives, Conventions and Exhibitions Centre (MICE) facilities will be provided. In addition, there shall be concerted efforts among the government and non-governmental organisations to organise and host international MICE events in Kuala Lumpur.

EC 5 : CHKL shall promote the development of MICE facilities and encourage the holding of international events in the City.

 f) A dynamic cultural and entertainment centre

94. Culture and entertainment not only help to make an attractive living environment but can also be developed as important economic goods in their own rights. Cities like London, New York, Sydney and Frankfurt have succeeded in making music, theatre and art as viable commercial activities and by such success are very attractive to international
tourists and investors.
95. Within the context of the overall KLC, Kuala Lumpur continues to serve as the principal cultural and entertainment centre where the best restaurants, nightclubs, theatres, concert halls and art galleries are located.
96. To make Kuala Lumpur an international centre for culture and arts entertainment, it is pertinent to build upon its multi-racial, multi-religious and multi-cultural character in line with the National Cultural Policy. The anticipated influx of expatriates to Kuala Lumpur and its conurbation in response to the various development strategies and programmes, will also provide a stimulus for increasing the variety of cultural and arts entertainment facilities in the City.

EC 6 : CHKL shall encourage and facilitate the development of cultural and entertainment facilities.

 g) A regional educational and health centre

97. Education and health services are becoming increasingly important economic activities and are being promoted aggressively as major commercial services for the local and export markets. To promote the development of educational and health services, more and improved facilities need to be provided.

EC 7 : CHKL shall encourage, promote and facilitate the development of education and health as commercial services.

Photo 4.5: ... health services are becoming increasing important economic activities and are being promoted aggressively as major commercial services for the local and export markets.

 h) A revitalised manufacturing sector

98. In order to provide a balance in the City’s economic base, a strong manufacturing component must be retained. Existing and new manufacturing industries that meet the criteria of being clean and non-polluting industries shall be selectively retained or encouraged. In step with the development of the MSC, knowledge-based industries including
those concerned with software development need to be promoted without neglecting traditional industries that are skill intensive.

EC 8 : CHKL shall facilitate the restructuring and sustenance of the manufacturing sector in favour of knowledge-based and high skills industries.

 4.5.2  An Optimum Population

99. In order to reach an optimum population of 2.2 million in the year 2020, a population growth rate that is faster than that attained in the last decade needs to be achieved. Measures must be implemented to attract more people to live in the City.

EC 9 : CHKL shall implement measures to reverse the declining population growth rate in order to achieve an optimum population by the year 2020.
100. There is a need to increase the residential population of the City Centre not only to optimise the infrastructural investment, but also with a view to making the City Centre a more vibrant and dynamic place which can attract local and international businesses.

EC 10 : CHKL shall implement measures to attract more people to live in the City Centre.
101. The increase in the population of the teenager, youth and aged and the growth of expectations for a better standard of living require that greater attention be given to the needs of the teenager, youth and aged in terms of the quality and range of accommodation and other facilities.

EC 11 :  CHKL shall take into consideration the needs of the teenager, youth and aged population in all aspects of planning and development.