Tun Razak Exchange’s (TRX) entire development has an estimated value of over RM40 billion. Based on the official website, “TRX is an integrated 70-acre development that will be KL’s new CBD and Malaysia’s International Financial District.”
People have been sceptical about the purpose of having most financial institutions in one place. However, in all advanced countries, a financial district exists within the area of a Central Business District (CBD). In Malaysia, it’s scattered all over the place.
You get a definite answer when you Google Central Business District Sydney, Singapore or London. It’s time Kuala Lumpur enjoyed the same.
According to an NST article, Finance Minister Lim Guan Eng has invited investors to take part in the development of TRX.
He said, “This is the best time to be in Malaysia. I encourage you (investors) to take the opportunity to be part of Malaysia’s growth story before it is too late.”
He added, “As they say, the early bird gets the worm. By the time we complete our reforms in three years, you will find it difficult to buy into the best assets Malaysia has to offer.”
He was even more encouraging when he said, “If you have yet to invest in Malaysia by then, I would hate to tell you ‘I told you so’.”
Some of the reforms Lim is talking about include the adoption of open tenders, the establishment of the Tax Reforms Committee, the proposed Government Procurement Act and Fiscal Responsibility Act as well as the ongoing migration towards accrual from cash-basis accounting.
It is hoped TRX puts Malaysia on the map as a world class financial centre.
According to an article in FMT, TRX will be welcoming its first tenant by mid-2019. TRX City Sdn Bhd CEO Azmar Talib said the company will open its doors to tenants in the second quarter of the year.
TRX has also launched a joint venture development known as The Exchange TRX with Australian property developer Lendlease.
As for the glut of office space in the Klang Valley, Lendlease Asia CEO Tony Lombardo said the TRX financial district is different as it’s a niche development and will not be affected.
The project is expected to be completed in 2023.
Charles Tan blogs at property investment site kopiandproperty. He dislikes property speculators and disagrees that renting is better than buying. He thinks it’s either property or poverty. He is presently the CEO of an auction house auctioning assets beyond just properties.
This article first appeared in kopiandproperty.com