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V O L . 3 2 0 1 3 Art of Moving FORWARD Invest in Cyberjaya Malaysia
V O L . 3 2 0 1 3
Art of Moving FORWARDInvest in Cyberjaya Malaysia
Happenings inCyberjaya Malaysia
The Pride of Cyberjaya Malaysia:
Since April 2011, more than 47 artists attached to the Cyberjaya-based Rhythm & Hues have spent thousands of hours working on the original footages of Life Of Pi. The movie clinched an Oscar for best visual effects marks an important milestone for the Malaysian studio as it presented the team with an opportunity to prove itself capable of handling complex processes within post-production stage, of creating the visuals that cinemagoers get to see on screen.
The studio is part of a global team that is spread over seven locations, which include Mumbai and Hyderabad (India), Vancouver (Canada) and Kaohsiung (Taiwan), and these studios are not just linked to each other but more importantly, to the headquarters in Los Angeles.
Apart from Life Of Pi, Rhythm & Hues Kuala Lumpur has stamped its mark in 18 films including Snow White And The Huntsmen, Hunger Games and Knight And Day while upcoming films include R.I.P.D, 300: Rise Of The Empire, Black Skies and Hunger Games 2.
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Strategic Partnership:
In bid to grow the District Cooling Plant coverage in Cyberjaya Malaysia, Cyberview Sdn Bhd enters into a partnership with Cofely (GDF SUEZ), where the latter acquires a 49% stake in Pendinginan Megajana Sdn Bhd (“Megajana”).
Megajana is the sole supplier of piped chilled water and the developer of the district cooling scheme for business premises in Cyberjaya Malaysia. To-date Megajana has spent more than RM 160 million for the development of district cooling plants 1 and 2. The two plants are currently supplying chilled water to 37 major buildings providing them 24/7 energy efficient, cost-effective and reliable chilled water to buildings through a 15 km network of underground pipes.
The Joint Venture between Cyberview and Cofely (GDF SUEZ) will cater to the rapid growth of the upcoming development in this premier ICT hub and the corresponding rise in demand for enterprise space. The partnership, in line with the Government’s aspiration to develop Cyberjaya Malaysia as the pioneer township in Green Technology, will play an important role in enabling the economic and complement the strong growth prospects of Cyberjaya Malaysia.
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Malaysia’s First ‘Boutique ICT University’ in Cyberjaya Malaysia:
MALAYSIA’S Minister of Higher Education Dato’ Seri Mohamed Khaled Nordin recently launched Universiti Malaysia of Computer Science and Engineering (UniMy), touted as the country’s first boutique university devoted to specialized computer science and engineering education.
Currently, UniMy operates from a temporary campus in Cyberjaya Malaysia within the premier ICT hub, while plans are underway for its permanent campus to be built within Cyberjaya City Center and to be completed by 2016.
UniMy was established in line with the roadmap of the Higher Education Transformation Program under the New Economic Model, to produce market-ready computing professionals and talent as demanded by industry players.
According to a study by national ICT custodian Multimedia Development Corporation, Malaysia’s demand for IT graduates will experience an annual growth rate of 18.6% between 2010 and 2013 against a supply growth of only 2.7%
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Autoville project to add vroom to Cyberjaya Malaysia:
Emkay Group unit Paradigma Intan Sdn Bhd’s recent launch Autoville aims to add value to Cyberjaya Malaysia residents and workers. Autoville@Cyberjaya is the first and only light industrial development in Cyberjaya Malaysia, earmarked for automotive-related businesses.
With a gross development value of about RM100 million, the project consists of 40 units of detached, semi-detached and terrace factory units, with a total built-up area of 186,780 square feet on a 4ha land. Autoville@Cyberjaya offers four detached units with a built-up area starting 7.157 sq ft, 14 semi-detached units with a built-up area starting from 5,600sq ft, 12 single-storey and 10 double-storey units with average built-up area of 1,060 sq ft and 3,857 sq ft respectively.
All these units, he said, are aimed at the growing population which will require automotive-related facilities and service which is first of its kind in Cyberjaya Malaysia.
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URL: http://www.emkay.com.my/f4/project-emkay/autoville/autoville-overview/
Verdi ‘ECO-DOMINIUMS’ in Cyberjaya Malaysia
With Cyberjaya Malaysia on the cusp of a property boom, UEM is poised to take the lead
with a high rise condominium offering state-of-the-art home features, unique design and
lush greenery.
Verdi eco-dominiums is part of the 98-acre development of Symphony Hills, an exclusive
residential development and the country’s first Connected Intelligent Community (“CIC”)
offering smart-home features and community connectivity through high-speed broadband.
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URL: http://www.symphonyhills.com.my/verdi.html
Cyberjaya Malaysia in its Prime
Cyberjaya, one Malaysia’s fastest-growing mixed development townships, adds another feather to its cap with the launch of Prima 12.
Prima Properties Management Sdn Bhd announce their next project Prima 12, an integrated development comprising boutique office towers, service apartments of SOHO and commercial area with F&B outlets and alfresco dining , is to be built here in the third quarter of this year. Prima 12 will also encourage sustainable development together with the implementation of green elements.
With a gross development, value of RM180 million, Prima 12 will boast of a minimalist and modern architectural design, with the facade mostly designed with glass.
Prima Properties Management has been present in Cyberjaya Malaysia for more than a decade with Prima 1 and Prima 2 being their first venture in the the area. It has also invested in creating a liveable working environment by building commercial and F&B outlets.
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Cyberjaya Community Sponsors Cyberjaya Police Station
Cyberview Sdn Bhd with Cyberjaya Malaysia stakeholders; Multimedia Development
Corporation Sdn Bhd, Setia Haruman Sdn Bhd, Prima Properties Management Sdn Bhd
and MCT Consortium together sponsored items worth of RM10,000 to the Cyberjaya’s
Police Station to spruce up the station.
According to Cyberjaya’s Police Station’s OCS, Inspector Azirul Nizam Che Wan Aziz
“The sponsorship we received will improve the ambience of the entire station and also help
motivate the police officers and to continue providing efficient services to the public.”
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Visits toCyberjaya Malaysia
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Visit by Big Tent Entertainment New York
Visit by Gyeonggido Uijeongbu City Council Korea
Visit from Politeknik Tuanku Sultanah Bahiyah JPP
Visit from Nigerian Trade Delegation
Visit from Rustam Minnikhanov, President of the Republic of Tatarstan
Visit from Techno Square Japan
January 2013
February 2013
March 2013
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Cyberjaya Malaysia: Office Market Update
General Klang Valley Office Market Observations 4Q12
• The average occupancy rate was generally stable• Some landlords offered longer rent free periods to secure tenants• Limited opportunities with few assets available for sale and some investors remained
cautious about the market
SupplySteady Supply in 2012
As at 4Q12 the existing supply of purpose built office accommodation in Cyberjaya was 7.113 million sq. ft. all of which was prime grade space. Office buildings recently completed include CJ1 (my telephone Data Centre) and Bio–X-Centre, which were issued with Certificates of Completion and Compliance in 2H2012.
Over the past decade Cyberjaya has recorded strong supply growth, with the office stock growing at the highest average annual supply growth rate compared with the other office sub-localities in the Klang Valley, at 18.5% between 2002 and 2012 (inclusive). This was followed by another growth hotspot, the Bangsar / Pantai locality, which is home to KL Sentral.
Of the various office sub-locations in the Outside Kuala Lumpur City (OKLC) area, Cyberjaya has the second largest office stock representing 24% of the OKLC stock, after Petaling Jaya, which accommodates 11.01 million sq. ft. (or 38%) of OKLC office space.
In terms of future supply, the 5 storey Suwah Data Centre (50,000 sq. ft.) and the 10 storey IBM Global Delivery Centre, which forms one of two towers at Quill 18, with a total net area of 522,527 sq. ft., are expected to be completed in the second half of 2013. IBM, which is expected to occupy up to 300,000 sq. ft., selected Malaysia for its “newest facility based on its strong public-private partnership with Malaysia and Cyberjaya, its competitive business model, and the people talent available.”
Shaftsbury Square (Tower D – 22 storeys – 192,000 sq. ft.), sold en bloc to Face ID Worldwide Sdn Bhd, is scheduled to complete in 2014. The construction of Glomac Cyberjaya 2 (176,000 sq. ft.) is currently on hold as the developer is seeking an en bloc purchaser and is therefore expected to complete in 2015.
Star Sentral @ Cyberjaya Phase 1, known as the Corporate Park, comprising 17 eight storey office blocks (approx 544,000 sq. ft.) is also expected to complete in 2015.
Industry Related News & Current Issues
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0.001.002.003.004.005.006.007.008.00
2008
2009
2010
2011
2012
Supp
ly -
Mill
sq ft
0
20
40
60
80
100 Occupancy rate (%
)
Cyberjaya Ss Cyberjaya - Occy
Total Stock and Completions
Source: Jones Lang Wootton Research
Total Completions and Occupancy Rate
Cyberjaya 4Q12 3Q12 4Q11
Total Stock (sq. ft.) 7.113 7.057 6.856
Completions (sq. ft.) 0.560 0 0
0.001.002.003.004.005.006.007.008.00
2008
2009
2010
2011
2012
Supp
ly -
Mill
sq ft
0
20
40
60
80
100 Occupancy rate (%
)
Cyberjaya Ss Cyberjaya - Occy
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0.001.002.003.004.005.006.007.008.00
2008
2009
2010
2011
2012
Supp
ly -
Mill
sq ft
0
20
40
60
80
100 Occupancy rate (%
)
Cyberjaya Ss Cyberjaya - Occy
Demand/Occupancy
Steady demand mainly due to tenants’ expansions and some new set ups
Over the years, a large amount of office take up has been recorded by companies which either expanded within Cyberjaya or new companies (usually multinational companies with MSC - Multimedia Super Corridor - Malaysia status), which set up their operations in Cyberjaya due to the generally lower operational costs available compared with other locations in the region.
Global MNCs such as BMW, Ericsson, Fujitsu, HSBC, RBC Investor Services, HP, IBM and Mahindra Satyam have all located in Cyberjaya. Data centre operators like NTT, CSF, and Basis Bay and multinational shared services and outsourcing centres, such as Dell, DHL and Shell have also set up operations in the city. Panasonic and Microsoft Innovation Centre have set up research and development centres.
Following positive net absorption of 228,585 sq. ft. in 2012, the average Cyberjaya office occupancy rate equated to 70.4%. This has mainly been due to the take-up of space by Shell at Bangunan Lestari Kumpulan Emkay and the Malaysian Administrative Modernisation and Management Planning Unit at MKN Embassy Tech Zone. Company expansions at Cyberjaya have included EDS MSC Malaysia Sdn Bhd and SKMM Academy and new set ups included Miki Shared service Centre and Kirkby International College.
Net Absorption and Occupancy Rate
Source: Jones Lang Wootton Research
Cyberjaya 4Q12 3Q12(q-o-q change)
4Q11(y-o-y change)
Net Absorption (sq. ft.) 57,339 0 1,500
Occupancy Rate (%) 70 70 67
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0.001.002.003.004.005.006.007.008.00
2008
2009
2010
2011
2012
Supp
ly -
Mill
sq ft
0
20
40
60
80
100 Occupancy rate (%
)
Cyberjaya Ss Cyberjaya - Occy
Rents
Stable and competitive rents attract tenants
The average gross rentals for prime office buildings in Cyberjaya were stable during 2012 and range between RM3.50 and RM4.50 per sq. ft per month with the average gross rental being recorded at RM4.38 per sq. ft. per month.
Landlords, particularly of buildings with relatively high occupancy rates, continued to maintain rental rates as supply generally outweighed demand. Landlords with lower occupancy rates were more willing to offer longer rent free periods to secure tenants.
RM3.60
RM3.80
RM4.00
RM4.20
RM4.40
RM4.60
2008
2009
2010
2011
2012
RM
psf
/mth
Source: Jones Lang Wootton Research
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0.001.002.003.004.005.006.007.008.00
2008
2009
2010
2011
2012
Supp
ly -
Mill
sq ft
0
20
40
60
80
100 Occupancy rate (%
)
Cyberjaya Ss Cyberjaya - Occy
Investment Market
Stable Market in 2012
Market Prices in Cyberjaya Malaysia
Despite a total of 17 buildings having been transacted in Cyberjaya between 2006 and 2011, no office investment transactions were recorded in 2012. This was not due to an inactive investor market, but due to the limited stock of buildings (mainly with vacant possession) made available for sale.
The average market price of offices in Cyberjaya is estimated to range between RM450 and RM550 per sq. ft. However, higher prices have been achieved by some of the more recent transactions such as Tabung Haji’s purchase in 2011 of Bangunan Lestari Kumpulan Emkay, which is now fully occupied by Shell, as its Shared Service Centre. The transaction took place at a reported RM740 per sq. ft., reflecting a net yield of circa 7.0%.
With steady investor interest, mainly for income producing assets, from local investors, average net yields for office buildings in the general office market are estimated to range from 6.0% for prime grade offices in prime areas to 8.0% for offices situated in the more secondary areas. This range of net yield provides a general guide and is by no means definitive. Each property asset must be assessed based on the property’s location, physical, economic and financial characteristics / merits and some of the high quality, fully occupied office assets in the Klang Valley could command net yields marginally below 6.0%.
OUTLOOK
Manageable Oversupply
There is a substantial supply of unoccupied office space in Cyberjaya and more space, albeit partly pre-committed, in the medium to longer term is expected to result in a steady average occupancy rate and an effective oversupply scenario will therefore continue.
Several new office buildings have been identified as being at various stages of the planning process, however, prudent research and due diligence is required as speculative office development in Cyberjaya currently carries a high risk and some office building developers will continue to seek pre-commitments before embarking on a project.
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Demand/Occupancy
Competition for tenants will continue
In the immediate term new supply entering the market is limited and although a general supply-demand imbalance scenario prevails and the more recently completed offices take some time to become fully occupied, the occupancy rate is expected to remain around the 70% mark in 2013.
Foreign MNCs and MSC Malaysia status companies, which form a large proportion of Cyberjaya’s target demand, have generally delayed any short term expansion plans. However, steady and stable demand will be driven by tenants’ relocations from older office buildings to newer buildings with better specifications, attractive rentals and incentives.
Rents
Stable rental levels in 2013
Landlords generally have the ability to hold current asking rentals despite the relatively poor occupancy rate in Cyberjaya. Although this may pressure landlords, particularly those with lower occupancy rates, to reduce their rental expectations as tenants continue to be selective, rents in general are expected to be stable during 2013 as landlords of newer offices with superior building specifications, green building certification and in good, accessible locations maintain prevailing rental levels.
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Investment Market
Market prices have upside
The slow global economy, lack of buildings for sale with attractive yields and differences in pricing expectations between vendors and potential purchasers contributed to the lack of investment property transactions in 2012.
Local investors, particularly institutional investors, will continue to dominate the market with objectives of gaining long term investment returns and capital appreciation.
In recent years Cyberjaya has grown from being a relatively isolated township inhabited mainly by ICT employees and university students and many established and reputable property developers are transforming Cyberjaya into a well-planned township which will continue to attract more developers, MNCs, and investors.
In the longer term as Cyberjaya becomes an established “living city”, there will also be opportunities to attract more non MSC Malaysia status companies and escalating land values and construction costs will inevitably result in higher market price expectations of vendors in the future.
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Source: Jones Lang Wootton Research
Cyberjaya Malaysia: Retail Market Update
General Klang Valley Retail Market Observations 4Q12
• The Klang Valley retail market recorded stable leasing activity• Rental rates increased at select prime retail centre but generally remained stable,
marginal rental growth is expected in 2013• Market prices and yields remained stable, as strong local and foreign investor interest
prevailed, with some upside expected in 2013
SupplyMulti-level, purpose built retail centres in the pipeline
Historically the majority of retail accommodation in Cyberjaya has been provided in the single storey Street Mall or the lower floors of the three to five storey shopoffices in CBD Perdana phases 1 and 2. More recently, however, a few mixed use developments have incorporated retail “lifestyle” shoplots. Shaftsbury Square has, for example, incorporated 145 shoplots (equivalent to 214,000 sq. ft.) over 6 levels within the mixed development and the Place@Cyberjaya has incorporated 59 shoplots below two residential tower blocks. The shop lots within both these developments have not been retained by the developer but sold on strata to individual investors.
There is currently no multi level, purpose built retail centre in Cyberjaya and the closest operational centre is Alamanda, a 693,200 sq. ft. (net floor area) family retail / entertainment centre, which opened in 2004, in the neighbouring city of Putrajaya.
Over recent years the growing number of students and working population plus an expanding middle to high income population has resulted in more opportunities for retail development in Cyberjaya and its vicinity and four purpose built retail centres are currently at various stages of the development pipeline.
These centres are: d’Pulze, an estimated 240,000 sq. ft. (net), 4 level retail centre scheduled by D’Pulze Ventures Sdn Bhd (a subsidiary of Beach Capital Sdn Bhd) for completion at the end of 2013. IOI City Mall Putrajaya, is a 1.35 million sq. ft. (net), 4 level centre scheduled by IOI Properties for completion in 2014, Centrus Mall, a 69,800 sq. ft. (net), 3 level centre is scheduled by Setia Haruman Sdn Bhd (MK Land) for completion in 2015 and The Gallery, a 500,000 sq. ft. (net), 4 level retail centre in the Pan’gaea@Cyberjaya project, to be developed by Wawasan Rajawali (OSK Property), is expected to complete post-2014. Skypark @ Cyberjaya is undergoing ground works and the three storey retail centre is estimated to provide 500,000 sq.ft. net of retail floorspace post 2015. All of these retail centres are expected to be fully retained by the developer and form part of a larger mixed development project.
Industry Related News & Current Issues
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0200,000400,000600,000800,000
1,000,0001,200,0001,400,0001,600,000
2013 2014 2015 Post 2015
Ret
ail S
uppl
y (s
q.ft.
)
Source: Jones Lang Wootton Research
Future Supply of Retail space
There is also a considerable amount of retail space in the development pipeline, which is not considered to be “purpose built” retail centre space. Such space is not just being developed in conventional shop offices but also in projects with new alfresco layouts and designs such as Viva Shops, which will be built in ten blocks. The 97 lots, with a duplex layout, will have an upper ground level fronting an “elevated road”.
Demand/Occupancy
Slow demand expected until Cyberjaya becomes an established shopping destination
Brand awareness among modern consumers continues to grow and more international retailers are seriously considering venturing into Malaysia’s retail sector. Historically retailers were local based enterprises in the F&B and convenience goods trades but as Cyberjaya emerges as an “international” city with a growing resident population more local chain retailers and foreign retailers are setting up outlets in Cyberjaya. Shaftsbury Square, for example, has attracted “retailers” such as: Starbucks, Watsons, Guardian, Kenny Rogers, Subway, O’Briens, Celcom, Maxis, Digi and numerous local F&B retailers and has become a popular location for dining and the cafes, restaurants and fast food outlets have created a welcome addition to the variety of food choices available for the local population.
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The 4-storey entertainment and leisure podium at D’Pulze is currently under construction and the retail outlets which will feature a wide range of amenities such as restaurants, cafes, entertainment outlets, a Cineplex, a food court and Karaoke outlet are available for lease. Secured tenants include: TGV, Village Grocers, Coffee Bean, and The Loaf.
IOI City Mall, which is planned as a regional mall, will house a small number of anchor retailers and with a regional target market, will mainly focus on food and beverage outlets and entertainment.
Centrus mall, at planning stage, is planned to complement the retail outlets within the CBD Perdana development and is likely to be designed and built with a “Digital Mall” concept.
Rents
Competitive rents to attract “pioneering” tenants
At D’Pulze, gross monthly rentals of between RM15 and RM25 per sq ft per month are being asked by the developer.
The rentals of the shoplots at Shaftsbury Square are in the range of RM4.50 to RM6.00 per sq. ft. per month.
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Investment Market
Strong investment market interest
Average market prices in the Klang Valley were relatively stable and due to stable rents and prices market yields remained stable.
The average price range of prime retail centres remained stable in 3Q12 at between RM320 per sq. ft. to RM600 per sq. ft. in the suburban sub-localities of the Klang Valley. However market prices for certain high quality and well managed Prime A grade buildings are substantially in excess of RM600 per sq. ft. in the suburbs.
Malaysian retail REITs are currently a popular form of investment and those such as Pavilion REIT and CapitaMalls Malaysia Trust have recorded strong returns, largely driven by resilient private consumption and good mall management practice. Furthermore, retail REITs have benefited from a positive demographic profile, increasing affluence, greater tourist spending and government initiatives to promote the retail sector.
These factors also augur well for Cyberjayas’ retail market, as the working and resident populations continues to increase. Initially growth is expected to be slow as retailers tend to be more cautious in locations which are not “fully tested” and well established, however as the city evolves the longer term growth potential is good.
Limited detailed transactional evidence has resulted in continued difficulties in assessing a benchmark for yields. However, with many retail assets displaying solid fundamentals such as high occupancy rates and sustainable rental growth, it is estimated that average retail net yields generally range between 7.0% (for prime assets) and 10.0% (for secondary assets). This range of net yield provides a general guide and is by no means definitive. Each property asset must be assessed based on the property’s location, physical, economic and financial characteristics / merits and some of the top performing retail centres in the Klang Valley would command net yields below 7.0%.
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OUTLOOK
Supply
Steady supply trend in 2013
A number of new Suburban malls in the Klang Valley are currently in the development pipeline and supply is expected to increase steadily in the short to medium term.
Developers seem to increasingly prefer standalone and mixed use development formats as an alternative to large scale regional malls. Developers are expected to continue to build “lifestyle concept centres” to suit changing lifestyles which seek more entertainment and create more recreationally orientated retail destinations, as existing retail centres are more focused towards providing basic retailing needs. Cafés and al fresco or outdoor F&B areas are the trend that follows a growing café culture and an increasing preference for making dining a recreational and leisurely experience.
Demand/Occupancy
Retailers to become more selective about expansion
Retailer demand for Suburban retail space in 2013 is expected to sustain, and the average occupancy rate is expected to continue on an increasing trend underpinned by a number of retailers pre-committing to occupy space in the soon to be completed retail malls.
In terms of purpose built retail centres (malls) demand will be concentrated on strategically located and well-designed malls which are professionally managed but good demand will also prevail for retail outlets within mixed use, integrated developments.
The average occupancy is however expected to shift into a decreasing trend in the longer term as more new supply enters the market.
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Rents
Marginal rent increases in 2013 and beyond
Landlords of prime retail centres will continue to revise rentals as local retailer sentiment remains relatively buoyant and positive. This trend is expected to continue over the short to medium term with no downward pressure on rents over the next few years.
Investment Market
Foreign and local investor interest expected to sustain
The REITs sector is expected to still drive the investment market, and continued interest is expected from fund managers to acquire prime retail assets.
Limited prime assets available in the market and both local and foreign investors taking strong and keen interest in Malaysia’s retail sector, are expected to underpin further increases in market prices.
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Source: Jones Lang Wootton Research
Industry News
1Thriving Office Market in Cyberjaya Malaysia
A large amount of office take up has been recorded by companies which either expanded within Cyberjaya or new companies (usually multinational companies with MSC - Multimedia Super Corridor - Malaysia status), which set up their operations in Cyberjaya due to the generally lower operational costs available compared with other locations in the region. Global MNCs such as BMW, Ericsson, Fujitsu, HSBC, RBC Investor Services, HP, IBM and Mahindra Satyam have all located in Cyberjaya. Data centre operators like NTT, CSF, and Basis Bay and multinational shared services and outsourcing centres, such as Dell, DHL and Shell have also set up operations in the city. Panasonic and Microsoft Innovation Centre have set up research and development centres.
Cyberjaya recorded strong supply growth, with the office stock growing at the highest average annual supply growth rate compared with the other office sub-localities in the Klang Valley, at 18.5% between 2002 and 2012 (. Of the various office sub-locations in the Outside Kuala Lumpur City (OKLC) area, Cyberjaya has the second largest office stock representing 24% of the OKLC stock, after Petaling Jaya, which accommodates 11.01 million sq. ft. (or 38%) of OKLC office space.
In recent years Cyberjaya has grown from being a relatively isolated township inhabited mainly by ICT employees and university students and many established and reputable property developers are transforming Cyberjaya into a well-planned township which will continue to attract more developers, MNCs, and investors. As Cyberjaya becomes an established “living city”, there will also be opportunities to attract more non MSC Malaysia status companies and escalating land values and construction costs will inevitably result in higher market price expectations of vendors in the future.
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2Cyberjaya Malaysia : Retail Market Update
Majority of retail accommodation in Cyberjaya Malaysia has been provided in the single storey Street Mall or the lower floors of the three to five storey shop offices in CBD Perdana phases 1 and 2. More recently, however, a few mixed use developments have incorporated retail “lifestyle” shoplots. Shaftsbury Square has, for example, incorporated 145 shoplots (equivalent to 214,000 sq. ft.) over 6 levels within the mixed development and the Place@Cyberjaya has incorporated 59 shoplots below two residential tower blocks. The shop lots within both these developments have not been retained by the developer but sold on strata to individual investors. There is currently no multi-level, purpose built retail centre in Cyberjaya and the closest operational centre is Alamanda, a 693,200 sq. ft. (net floor area) family retail / entertainment centre, which opened in 2004, in the neighbouring city of Putrajaya.
With the growing number of students and working population plus an expanding middle to high income population has resulted in more opportunities for retailing in Cyberjaya and its vicinity and four purpose built retail centres are currently at various stages of development.
Brand awareness among modern consumers continues to grow and more international retailers are seriously considering venturing into Malaysia’s retail sector. Retailers were local based enterprises in the F&B and convenience goods trades but as Cyberjaya emerges as an “international” city with a growing resident population more local chain retailers and foreign retailers are setting up outlets in Cyberjaya. Shaftsbury Square, for example, has attracted “retailers” such as: Starbucks, Watsons, Guardian, Kenny Rogers, Subway, O’Briens, Celcom, Maxis, Digi and numerous local F&B retailers and has become a popular location for dining and the cafes, restaurants and fast food outlets have created a welcome addition to the variety of food choices available for the local population.
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Global News
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Malaysia Ranked at 25th in Global Competitveness Report 2012-2013
WEF has moved Malaysia up the stage of development to be in the transition stage towards innovation-driven stage from efficiency-driven stage. The Global Competitiveness Report 2012-2013 (GCR 2012-2013) by the World Economic Forum (WEF) based in Geneva, also upgraded Malaysia’s transition stage of development from Efficiency-Driven Stage towards Innovation Driven Stage of Development. This upgrade was accorded as Malaysia’s GDP per capita had increased to US$9,700 from US$8,423 previously. At this new stage of development, new weightage is placed on the computation of Malaysia’s competitiveness index; with more weight put on Innovation and Sophistication factors, to prepare the country to move towards being innovation-driven.
The most notable advantages are found in Malaysia’s efficient and competitive market for goods and services (11th) and its remarkably supportive financial sector (6th), as well as its business-friendly institutional framework. In a region where many economies suffer from the lack of transparency and the presence of red tape, Malaysia stands out as particularly successful at tackling those two issues.
Malaysia Regional Leader in Corporate Governance
Malaysia has been recognised as a regional leader in corporate governance, and has made substantial progress in improving the legal and regulatory framework in relation to corporate governance according to World Bank in its Corporate Governance Report on Observance of Standards and Codes 2012 (ROSC). According to the report, Malaysia’s overall scores are higher than the average scores of countries within the Asian region. The report also acknowledges that Malaysia has a large capital market, strong institutions, sophisticated participants and high quality accounting practices.
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In the Corporate Governance Watch Report 2012, a biennial report by the Asian Corporate Governance Association in collaboration with the CLSA Asia Pacific Markets, Malaysia had also moved two notches from the sixth position it held in 2010, to the fourth position.
Out of the six OECD Principles for Corporate Governance examined in the CG ROSC report, Malaysia scored highest in term of equitable treatment of stakeholders, enforcement and institutional framework, as well as disclosure and transparency.
5Malaysia Ranks Fourth in Asia as a Destination forInvestment by MNCS
According to 2013 Asia Business Outlook Survey (ABOS) has been ranked fourth in Asia as a destination for investment by global multinational companies (MNCs). The survey, done annually by The Economist Corporate Network, revealed concern about under-investment by global companies in Asia.
The survey stated that just over 40 per cent of global multinational companies plan to raise their investment in Malaysia in 2013, making the country the fourth most popular investment destination in Asia.
Other key points highlighted by the survey are:
• Although non-Asian companies may be under-investing in Asia, they are gradually shifting management focus towards Asia. Thirty-eight per cent now have a board member in the region, double the percentage in 2008. More than half now have at least one global business unit head in Asia.
• The Association of Southeast Asian Nations (Asean) bloc is being taken more seriously; 45 per cent of respondents now have an Asean strategy.
• The way that global MNCs run their Asia Pacific operations is changing. One important trend is a realisation that Asia is becoming too big to manage as one region.
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Q & A Column
How many banks are there in Cyberjaya Malaysia?
Are there any new hotels/accommodation services in Cyberjaya Malaysia?
• To ease your banking needs, Cyberjaya Malaysia now has a total of 6 local & foreign banks
• Yes. Check out the first of its kind project in Cyberjaya ready for occupation since January 2013. The seven-floor Primera Suite consists of 101 suites with room sizes ranging from 340 sq ft to 700 sq ft. Some 20% of the units are SOHO suites. Primera Suite is also equipped with 24-hour front desk, gym, cafe and meeting rooms. The daily rack rates for the rooms are from RM400++ to RM650++ while the promotional rates are from RM188++ to RM388++. Log on to http://www.primerasuite.com.my/ for more details.
Located at Prima AvenueMohamad Feno bin Md Yasin+603 - 8318 9744
Located at Prima AvenueOthman bin Abdul Manan+603 - 8706 2198
Located at ShaftsburyMohd Naufal Nafis+603 - 2182 5933
Located at ShaftsburyEdmund, Tang Siong Hor+603 - 8318 1960
Located at CBD 2Edmund, Tang Siong Hor+603 - 8318 1960
Located at Glomac CyberjayaUmmu Hani Binti Din+603 - 8318 1614
Located at ShaftsburyMohamad Feno bin Md Yasin+603 - 8318 2341
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Fun Facts
GO LARGE• One of Cyberjaya’s best-hidden secrets is the colossal curry puffs, fondly know as
‘Karipap Lori’. This is the brainchild of a 19 year old Mohd. Nasirudin Ayasyi Amr. The ‘Karipap Lori’ kiosk is located at NeoCyber and has is now a favourite teatime special in Cyberjaya Malaysia.
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