Another co-working space provider has made its entry into the Malaysian market with its first location in the heart of Kuala Lumpur slated to open in early 2019.
New York based private company, WeWork, will be launching its first co-working space and the biggest to date regionally at the Equatorial Plaza, which will accommodate 1,900 members across 5 floors.
WeWork Southeast Asia Managing Director, Turochas “T” Fuad, said they chose this location specifically due to its close proximity to public transport and commercial district, to allow ease of doing business.
The company entered into a revenue-sharing agreement with Daman Land Sdn Bhd, who will act as an intermediary to help the company find different locations across Malaysia.
Although he could not disclose any figures, Turochas did say that the new office has seen high demand. One of the first few companies to have signed up include online wealth management platform StashAway.
Entering Malaysia is part of WeWork’s commitment to expand its footprint in South East Asia, Turochas said. The company has grown to 16 locations with more than 11,000 desks across the region in just one year. Other cities with WeWork locations include Singapore, Ho Chi Minh, Manila, Jakarta and Bangkok.
“We do plan on expanding beyond the central area of the city 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 told a media briefing to introduce the co-working space earlier today.
WeWork offers three products such as Hot desks priced at RM950 per month, a Dedicated desk at RM1150 per month, as well as a Private office at around RM1200 per pax per month. All packages are inclusive of the main office amenities such as internet access, printers, phone booths and common areas.
Acknowledging the over-supply of office and commercial spaces in Kuala Lumpur, Turochas said the co-working space model is a good way to bridge the demand where companies are able to lease according to their own specific needs.
“I think that the fact that we provide the flexibility in terms of our desk offerings, allows for companies to properly plan their growth so that they may start small first, before expanding. This allows them to consider this kind of alternate work-space as an option for them,” he said.
Investment wise, the company has secured a US$500 million funding from Softbank, which it will use for the South East Asia and South Korea region.
Founded in 2010 in New York City, WeWork has more than 320,000 members worldwide, across 335 physical locations in 83 cities and 24 countries.