Foreign businesses fuel demand for prime locations in Kuala Lumpur
An influx of newcomers into some of the Malaysian capital’s most sought-after neighbourhoods is boosting commercial activity and changing the retail landscape.
Foreign businesses are driving demand for prime commercial real estate in Kuala Lumpur's upscale Solaris Mont Kiara neighborhood, located northwestern of the capital city. The area, often called "Little Korea" due to its sizable Korean expatriate community, is home to restaurants, premium grocery stores, beauty clinics, and hair salons owned by Korean companies.
Han Yong Jae, commercial attache at the Republic of Korea Embassy in Malaysia, attributes the attraction of Korean businesses to Malaysia to the familiarity with Korean culture, particularly K-drama and K-pop. Korean companies are seeking to introduce products like halal food and cosmetics to the Malaysian market, believing success in Malaysia could lead to success in other ASEAN countries.
The influx of affluent foreign businesses, including those from China, has intensified competition for prime locations, with newcomers willing to pay significantly above prevailing rents. This has raised landlords' expectations of property values, creating unrealistic expectations for Malaysian SMEs. As a result, some local tenants have been forced to seek cheaper premises on upper floors or vacate their spaces entirely.
The changing commercial landscape highlights a dilemma for Kuala Lumpur as it seeks to attract foreign businesses and investment, while also encouraging expansion beyond the capital to spread growth opportunities.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
