BT : Rebranding KL will take much work

Business Times - 16 Aug 2010

MALAYSIA INSIGHT
Rebranding KL will take much work

Traffic congestions, unrestrained building hampering efforts

By PAULINE NG
KL CORRESPONDENT

THERE are growing calls to rebrand Kuala Lumpur. The Malaysian capital is looking dull and jaded, provincial in contrast to bustling and 'happening' Hong Kong, Bangkok and Singapore. Even Jakarta is attracting admirers, its new vibrancy so palpable it is infectious, say Indonesia watchers.

Malaysia wants to rebrand the city under the Greater KL initiative - one of a handful identified under a federal government programme to focus on potential key drivers of the economy.

Part of the exercise is to ensure that Kuala Lumpur moves up the livable city rankings, so that it will attract multinational companies and skilled labour to invest and set up shop.

Improving the quality of life - more parks, affordable housing, better basic services and public transport - is also part of the equation.

One current focus appears to be unlocking choice government landbank in and around the city centre by transforming them into attractive mixed development projects that can lure tier-one investors, which would bring its own knock-on effect.

A choice plot is the mega 400 acre site on which the Royal Malaysian Airforce base is currently located. Given its location at the fringe of the city, it has enormous potential to be a landmark development. Many people would like a good proportion of the area to be left as open areas or converted into public parks given the lack of such amenities in the city.

One major concern relating to the unlocking of state lands is the potential for a huge oversupply given the private sector's own plans to add 14 million to15 million square feet of office space over the next four years.

Given the average annual take-up rate of two million square feet - at best 2.5 million - many property players believe the concerns ought not to be dismissed.

Foreign investors have been slow on the uptake, and should the hoped-for entry of these investors not match the additional supply, yields could be seriously depressed.

Malaysia's investment policies also need to be sufficiently competitive to attract investments in services it desires in areas such as oil and gas, banking and finance, tourism, education and IT. Indeed, the property sector is banking - perhaps overly - on new investments and the demand for office space to meet the additional supply.

That aside, adding millions of square feet without the corresponding infrastructure will only worsen the congestion nightmare that is often KL. International property buyers are reportedly put off by the thought that the city sees an annual rise of 70,000 vehicles.

In the interim Malaysia is contemplating a mass transport system (MRT) at a cost of about RM40 billion (S$17.2 billion) as better public transport is desperately needed since only 12-13 per cent of the people use public transport in the city. The situation in other cities is as dire, owing to the government's prioritization of the national car project.

But even if approved by next year, the MRT system is expected to take at least 10 years to complete.

Because the state has been slow to step up the pace of infrastructure development while not restraining private developers from erecting new buildings, efforts to transform KL into a place to work and live have gained little traction.

Many people avoid going into the city if they can help it. Which is a pity because KL has a lot to offer - it is colourful, has a fantastic range of food and cultures, a decent nightlife, historical landmarks as well as modern ones, and some great shopping.

The challenge is to make it all easily accessible and a pleasurable experience.

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