Demand rising for work spaces in Johor Baru

Robust economic development in Johor coupled with the state’s strategic location have significantly boosted demand for offices and co-working spaces, says Senator Datuk Abdul Halim Suleiman.

Abdul Halim, who represented Johor Mentri Besar Datuk Onn Hafiz Ghazi at the launch of a workspace in Johor Baru, said the state had been developing rapidly as a business hub.

“The fact that International Workplace Group (IWG) is opening its second co-working space in Johor Baru is a good indicator of the state’s economic development.

“The state’s strategic location, only a few hours from Kuala Lumpur and an hour to Changi, Singapore, is one of the key factors that has attracted businesses here.

“The cost of doing business is also cheaper in Johor. It is about 30% cheaper compared to Kuala Lumpur and 70% cheaper than Singapore,” he said in his speech.

The state government, he said, was also committed to supporting businesses relocating to Johor through its many initiatives, including Johor Fast Lane.

“The initiative has cut red tape and has been facilitating business in many ways, including in speeding up approval processes with government agencies.”

IWG Malaysia country manager T. Vijayakumar said the company opened its first co-working space under its Regus brand in Johor Baru City Square eight years ago.

“The occupancy rate of our existing co-working space in Johor Baru is 90% and we are still receiving enquiries.

“The demand for workspace has always been high here but robust development of the state, coupled with establishment of the Johor-Singapore Special Economic Zone (JS-SEZ) and Special Financial Zone (SFZ) have driven up demand even further.

“We will be opening our third workspace in the Medini area in September to meet the demand.”

He said the company was also looking into establishing workspaces in areas such as Pasir Gudang, Simpang Renggam and Skudai.

Present at the event were IWG Asia-Pacific senior regional vice-president Paul MacAndrew and PNB Commercial Sdn Bhd head of commercial and facility management Shahrol Azman Abd Kahar.