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Incentives Move Multinational Companies to Malaysia

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Incentives Move Multinational Companies to Malaysia Emerging Market Report: Kuala Lumpur, Malaysia Incentives move multinational companies to Malaysia By Spring Zhou uala Lumpur, Malaysia’s capital, “Kuala Lumpur is a Malaysia Key Facts is quickly emerging as a cultural, Kfinancial and economic leader burgeoning location POPULATION in the region. Referred to as A City for high-quality service 31.7 million of Opportunity, Kuala Lumpur offers centers and many multiple socioeconomic, security and LABOR FORCE financial incentives for multinational large multinationals 14.5 million companies. are basing their UNEMPLOYMENT RATE Its efforts have started to bear fruit administrative offices 3% as more than 70 Forbes Global 2000 there,” said David companies have used Kuala Lumpur as Enser, founder of The INFLATION RATE their preferred hub to relocate, expand 3% or enter the Asian market. The city’s RES Forum. “A highly standing as a cost-effective peer to educated graduate LANGUAGES typical Asian hubs such as Singapore workforce, combined Bahasa Malaysia or and China also contribute to this trend. with an attractive English for business Much of this recent interest by companies has stemmed from active working location for TIME ZONE government policies under Malaysia’s expats is making Kuala GMT+8 Economic Transformation Programme Lumpur stand out (ETP), launched in 2010. As part of this MAJOR AIRPORTS plan, the government set up InvestKL, among its neighboring KLIA1 and KLIA2 a dedicated investment promotion competitors.” lexiconrelocation.com ©2018 Lexicon Relocation, LLC U.S. DOT No. 2229806 Fla. MB-1 agency, to draw 100 multinational “With construction already in full High quality of life paired with companies to Kuala Lumpur by 2020. swing, the rail-based transportation low cost of living system will integrate with the region’s The Malaysian government has Despite the increased investments existing public transportation systems already put its money (billions of in infrastructure and improved quality and is aimed not only at saving dollars) where its mouth is, investing of life, the cost of living in Kuala commuting time, but catalyzing in a massive infrastructure spurt to Lumpur remains far less than many greater commercial activity,” boost connectivity, communication popular expatriate destinations. networks, and quality of life in Kuala Malaysia’s Economic Transformation Rentals, even in the more Lumpur to offer businesses and their Programme website states. expatriate-friendly neighborhoods employees easy access to major cities, “Fourteen of [Mass Rapid with proximity to international schools, international education and leisure Transit Line 1’s nineteen] stations have stayed affordable at around areas. are strategically located in densely $0.50 per square foot in 2017. This is populated areas, which have never significantly cheaper than Asia’s two been served by any urban rail favorite expatriate destinations, Hong Nearby airports, rail systems services,” said Mass Rapid Transit Kong and Singapore. and a port make travel easy strategic communication and With two major airports in the stakeholder relations director Datuk “Monthly rent for area— Kuala Lumpur International Najmuddin Abdullah. a 900-square-foot Airport (KLIA) 1 and KLIA 2, the latter For instance, the popular upper- furnished residence a low-cost airline hub — Malaysia’s class suburban neighborhood of capital is connected by weekly, and Mutiara Damansara is now only a in an expensive area in some cases daily, direct flights to 30-minute ride away from Tun Razak costs about $2,600 in major cities, including Hong Kong, Exchange, a financial district in Kuala Singapore, while the Dubai, Abu Dhabi, London, Beijing Lumpur’s city center, connecting and Tokyo. expatriates from their homes and equivalent in Hong Kong In addition to easy access to schools to offices quicker than an costs almost $4,900,” flights, Kuala Lumpur is building an hour‘s drive into the city in rush-hour Bloomberg reported in integrated urban mass rapid transit traffic. 2017. system that will connect Kuala Lumpur Greater Kuala Lumpur is also home to Singapore with a high-speed rail to Port Klang, which, thanks to access system. Slated for completion in 2026, to the busy container traffic on the International schools have the high-speed rail will take travelers Straits of Malacca, is the 11th busiest high literacy rate, offer from the heart of Kuala Lumpur’s container terminal in the world and multicultural experiences central business district into Singapore is the fastest-growing port globally Recognizing that a strong within 90 minutes — rivalling the outside of China. 60-minute flights between KLIA and education system is vital to attracting Changi airports currently. businesses and their employees, Malaysia’s government set a goal to Kuala Lumpur’s investment have 87 international schools by 2020 proposition is amplified with the and has already surpassed this with completion of the Mass Rapid Transit 106 schools in the region. Line 1 in 2017, which significantly boosted urban connectivity. The city “This [project] aims to position has two additional Mass Rapid Transit Malaysia as a destination of choice lines planned for 2022 and 2025. for parents seeking foreign education for their children. At the same time, The three Mass Rapid Transit lines Port Klang, Kuala Lumpur [it] will allow Malaysia to benefit from add an additional 142 kilometers the foreign exchange income earned With the launch of the world’s to the already massive integrated from international school student first Digital Free Trade Zone in 2016, rail system within the Greater Kuala spending,” according to Malaysia’s Port Klang is expected to benefit Lumpur area, which includes the Economic Transformation Programme. capital and several popular suburban further from a spurt in intracontinental residential districts that surround it e-commerce trade and Kuala Lumpur’s Malaysia leads Southeast Asia that account for a population of more historical role as the preferred logistics in terms of students enrolled in than seven million. gateway to Asia. international schools with English as its teaching language in addition to lexiconrelocation.com ©2018 Lexicon Relocation, LLC U.S. DOT No. 2229806 Fla. MB-1 a 94 percent literacy rate. Another advantage of international schools is that expatriates’ children mingle and adapt to local cultures, typically learning multiple languages from other students (most Malaysians speak three to four languages, including English). “Most international schools in Malaysia, if not all, are comprised of students from around the world as they have diverse student bodies compared to public schools. I strongly believe this would expose the students to a culturally Sultan Abdul Samad Building, River Of Life Project diverse environment, and Sultan Abdul Samad and Masjid A relocation partner makes it simultaneously help them Jamek, and developing surrounding easier to enjoy benefits areas in an effort to spur economic broaden their horizons,” For many years, expatriates have investment in the area. said a parent. praised Kuala Lumpur for its dynamic, The River of Life project is multicultural city life, low cost of living, There are more than 50 80 percent complete, with full high degree of regional connectivity international schools in Kuala Lumpur, completion targeted for 2020. For the and wealth of things to see and do. offering diverse national systems project alone, it is estimated that by Malaysian investment promotion such as British, English, German 2020 it will deliver one million square agency InvestKL, which is driving the and Japanese education, for those meters of commercial space and effort to attract 100 multinational expatriates planning to return home in create more leisure spaces for locals, companies by 2020 into Greater Kuala several years. as well as the more than 12 million Lumpur, has been ensuring support annual visitors. for expatriates and their families Different cultures of Malaysia As the 10th most visited city in throughout the process of relocation can be seen, heard and tasted the world, Kuala Lumpur tourists are since 2011. drawn to its rich heritage landscape With the increased livability Another important factor to of colonial-era buildings and cultural standards and spurt in projects to attracting families is entertainment villages such as Little India, Chinatown boost connectivity, it is no wonder and lifestyle. and Kampung Baru — representing that an InterNations survey of 8,000 “The River of Life (RoL) project the three major cultures of Malaysia: expatriates living in 40 countries aims to transform specific areas within Indian, Chinese and Malay. around the world revealed Kuala Kuala Lumpur facing the Klang River As a result, the food, lifestyle Lumpur to be the fourth best city into a vibrant waterfront with high and entertainment scene in the for expatriates, and the top Asian economic and commercial value,” capital offers an eclectic mix of destination. according to Malaysia’s Economic tastes reflecting the melding of As more expatriates enter Malaysia Transformation Programme. these cultures seamlessly with it is important to establish a good The project will include bringing a Western influences, allowing limitless foundation of assignee support 110-kilometer stretch of the river to experiences that continue to make in areas including cross cultural recreation standards, beautifying the Kuala Lumpur a favorite of the global readiness, housing and settling-in river, specifically around landmarks expatriate community.
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