Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on December 6, 2018

KUALA LUMPUR: Another co-working space provider, WeWork, has made its entry into Malaysia, with its first location in the heart of Kuala Lumpur slated to open in early 2019.

This co-working space will be the biggest in the region for the New York-based private company. It is at the Equatorial Plaza and can accommodate 1,900 members — those who register to use the space provided — across five floors.

WeWork Southeast Asia managing director Turochas “T” Fuad said they chose the location for its close proximity to public transportation and Kuala Lumpur’s commercial district to facilitate the ease of doing business.

The company has inked a revenue-sharing agreement with Daman Land Sdn Bhd, which will act as an intermediary to help it find other suitable locations in Malaysia for its expansion here.

Although Turochas could not disclose any figures, he said the new office has seen high demand. One of the first few companies to sign up with them is online wealth management platform, StashAway.

Turochas said entering Malaysia is part of WeWork’s commitment to expand its footprint in Southeast Asia. The company has grown its presence to 16 locations with over 11,000 desks across the region in just a year.

WeWork is also located in Singapore, Ho Chi Minh City, Manila, Jakarta and Bangkok.

“We plan to expand beyond the central area of Kuala Lumpur and explore places such as Plaza Damansara, Bangsar and so on. Ultimately, in the long term, we will also be looking at expanding to other cities across Malaysia as well,” Turochas said at a media briefing to introduce the co-working space yesterday.

WeWork offers three products: A flexible “hot desk” at RM950 per month, a fixed “dedicated desk” at RM1,150 per month, and a private office at around RM1,200 per pax per month. All packages are inclusive of the use of main office amenities such as Internet access, printers, phone booths and common areas.

Turochas, who acknowledges the oversupply of office and commercial spaces here, said the co-working space model is a good way to bridge the demand gap as the companies will be able to lease according to their specific needs.

“I think that the fact we provide flexibility in terms of our desk offerings allows companies to properly plan their growth so that they may start small first, before expanding. This allows them to consider this kind of alternate workspace as an option,” he said.

Investment-wise, the company has secured a US$500 million (RM2.07 billion) funding from Softbank which it will use for expansion in Southeast Asia and South Korea.

WeWork, founded in 2010 in New York City, has over 320,000 members worldwide across 335 physical locations in 83 cities and 24 countries.

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