CBRE Malaysia

ASIA CBRE MALAYSIA

Empowering property development

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Redefining Real Estate

In spite of less certain macroeconomic factors, Malaysia remains competitive.

“The country offers the fourth most competitive leasing costs and second most competitive fit out costs in Asia Pacific, not to mention being the eighth most competitive nation from a facility management cost perspective.

“Couple this with a well educated yet relatively medium wage population

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Leveraging the global reach of CBRE and the local nous of its Malaysian employees, Bala Vijayasingam and his team are empowering property development across the country Writer: Jonathan Dyble Project Manager: Tom Cullum

and Malaysia offers attractive incentives to potential investors when it comes to setting up operations or manufacturing hubs.”

A Malaysian national born and bred, Bala Vijayasingam is a firm believer that the region’s real estate has become a flagship for economic potential and prosperity.

“Indeed, the market in Malaysia has softened this year,” he continues.

“However, we have seen an increased

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appetite to locate manufacturing facilities in Malaysia – perhaps a silver lining as a result of the prolonged China US trade war.”

Heading up the country operations of CBRE, the world’s largest commercial real estate services and investment firm, Bala has witnessed first-hand this changing albeit relatively optimistic climate, noting that the office market in particular remains especially active.

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“The market as a whole is a tenants’ market,” he affirms. “The Klang Valley area in the west, for example, home to Kuala Lumpur, has seen two consecutive years of circa 10 percent increase in the available supply.

“Occupancy rates were previously hovering at 80 percent, while this increased supply places the onus on developers to boost the attractiveness of their offerings to prospective tenants.”

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AI

Associates is an award-winning architectural interior design firm that employs a client centric design approach to help businesses innovate and grow.

Our team at AI Associates is made up of talented professionals from diverse backgrounds and skill sets. We draw on our collective expertise to provide a full selection of architectural interior services. AI Associates work as a single source of contact from project conception through delivery, to offer innovative and productive design solutions.

Singapore | Kuala Lumpur | Jakarta | Shanghai | Beijing | Phnom Penh | Yangon | Ho Chi Minh

Ai Associates offering solution through a range of services including: •

Pre-Lease Services

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Strategic Facilities Planning

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Mechanical & Engineering Services

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Interior Design & Planning Services

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Schedule and Budgetary Planning Services

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Tender Documentation

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Construction Management

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Workplace Safety & Health

Discover us at www.ai-associates.com @ai.associates_

Ai Associates

Ai Associates Pte Ltd

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It is here where CBRE Malaysia has been able to thrive, supporting its clients by filtering the good opportunities from the bad and advising owners on realistic opportunities in order to enhance their assets for the region’s pool of prospective tenants.

Be it technical due diligence, project management or the ever-increasing role of its growing principal business, the company’s full range of real estate services have established it as the goto entity for client support.

Local nous, international expertise

It is this ability to excel on multiple fronts that Bala is quick to highlight, citing it as one of CBRE Malaysia’s key differentiating factors.

“We’re better connected, better resourced to support our clients and committed to growing our presence,” he states. “There are perhaps other companies who operate in our sectors who can stake their own claims to these points, but not to all three.”

The firm’s network of global partners and clients equally is outlined

LEADERSHIP FOCUS

BALA VIJAYASINGAM With a background in civil engineering, Bala Vijayasingam spent the initial years of his career post-graduation at a multi-disciplinary engineering consultancy. During this time, he became chartered with the Institution of Civil Engineers.

“As a young engineer, the focus was primarily on highways and bridges,” he explains. “During this initial period, project management formed an area of competency necessary for chartership and I was able to develop this further by joining a subsidiary of the engineering company that focused on project management.

“It was also active in real estate project management and this is where I cut my teeth on critical infrastructure, office projects and the wide spectrum of real estate.”

From here, Bala worked on projects across Asia and Europe, before relocating more permanently to Southeast Asia in 2012 – a region where real estate project management had become particularly active.

“Following a move to set up our offices in Malaysia back in 2014, I subsequently joined CBRE in 2017, recognised leaders not just in real estate project management but in real estate globally,” he adds.

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as a major asset by the country head, providing a secure, long-term and solid base of works to support the regional division’s ongoing growth.

It is arguably the company’s staff, however, that truly set CBRE Malaysia apart, home to the largest team of talented industry specialists and project managers in the country.

“It is good to take due cognisance of the diversity of our team and the strength it affords us,” Bala Vijayasingam affirms.

“The team is diverse and not just from a gender perspective. We’ve got team members who are relatively new to this industry whilst others have over 40 years of experience! Some are from the Asian sub-continent and others even from outside of Asia.

“We have engineers, interior designers, ex-contractors, quantity surveyors and architects adding to the pool of skillsets which we’re able to bring to the table for our clients.”

Going above and beyond, these skillsets are bolstered by the business itself in a circular fashion.

Each of its project managers are placed on a mandatory training programme, developed in conjunction with the University of Texas, upon appointment – a scheme that lasts between 10 months and a year.

[Malaysia] offers the fourth most competitive leasing costs and second most competitive fit out costs in Asia Pacific, not to mention being the eighth most competitive nation from a facility management cost perspective”

Q&A with Jeff Choo, Managing Director, AI Associates 1. For starters, can you tell us more about yourself and also about the birth of AI Associates?

I graduated from Temasek Polytechnic School of Interior Architecture and Design with merit. I was also awarded the prestigious Singapore Design Council Gold Medal for being the top graduate in the School of Design. This is a significant milestone for me because it set the path for me to pursue a career in the building and design industry.

After graduation, I completed national service and I was then hired by an international design firm specialising in corporate office interior design.

Although I have a design background and relevant design qualifications, I started off doing quantity surveying and project management before taking on a designer role. This gave me the opportunity to understand the whole process of executing projects from design to project management as well as cost and quality control.

Later on, these came in as necessary skillsets when I decided to start my own firm after six years of being in the industry and having won a few design awards. It was in August 2003 that I established AI Associates in Singapore. This company was incorporated as a onestop shop that offers impressive, creative workspace design as well as quality construction services.

Within the last couple of years, I am proud to see how much AI Associates has grown. Today, we have operations in Kuala Lumpur, Jakarta, Shanghai, Guangzhou, Myanmar and Cambodia. Moving forward, our vision is to have operations throughout Southeast Asia and China in the near future to better service our pool of multinational clients.

2. What distinguishes AI Associates from other businesses in your category?

The distinguishing factor would be the level of service and creative designs generated by our pool of award-winning designers that we can provide

for our multinational clientele. We are also able to leverage on our regional presence to facilitate better communications with clients that are looking to expand their operations in the region as all of our offices maintain the same level of design standards and quality that one will expect from a Singaporean brand.

3. What is your business’ biggest challenge?

The biggest challenge will be maintaining our high standards of first class design with quality construction as AI Associates begins its expansion plans into the rest of Southeast Asia.

4. What was the “big break� that helped AI Associates get recognised?

During the first year of operations, we submitted one of our projects for design competition. We were awarded one of the top three positions which helped us garner quite a lot of attention and publicity. The client was very impressed and gave us a great video testimonial commending us on the outstanding work done for their offices.

5. What do you think will be the most important factors in influencing the future of workspace design?

I think one of the most influencing factors for the future of workspace design will be the communication tools that are forever changing the way we communicate. The workspace is essentially just a space to facilitate that and as communication tools evolve and get more and more advanced, the physical office space could one day be obsolete and become just a part of the space that we live and play in.

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An extensive online module, it provides CBRE’s staff with education on par with that of the globally renowned Project Management Institute (PMI), yet its teachings are more tailored to the sectors and verticals in which the firm operates, be it rainwater harvesting, smart lighting solutions or next-gen façade technologies.

In the eyes of Bala, combining these world class training offerings with an emphasis on hiring a mixture of local and international talent has proven to be invaluable.

He explains: “Hiring locally was at the very forefront of our initial growth plans. I strongly believe that delivering locally requires a strong local team.

“From a cultural familiarity perspective and price, it indeed proved to be a key cornerstone of our local business’s early growth. Subsequently, with volume, we have been able to bring in key hires from outside of Malaysia to expand the breadth of our talent pool.

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“We’ve also been able to support the global mobility of our people through this approach. We would like to think that our global footprint helps support the CBRE family when it comes to relocation, not only boosting the global retention of our talent, but equally acting as a key recruitment driver across multiple regions.”

Partner power

Malaysia is a hot market for office rental

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The merits of this global footprint that Bala references present themselves in a multitude of other ways.

Considering the company’s supply chain operations, for example, CBRE’s international pedigree allows the Malaysian operations to leverage a number of reliable partners that the group works with on a global scale.

The Fusion Programme, part of the firm’s project management business, is a prime example of this, utilising the group’s standing to drive cost reductions and savings by working with qualified service providers and suppliers.

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“What international suppliers bring with them is a certain level of consistency that our global clients are comfortable with,” Bala reveals.

“Through this programme we aim to maintain a consistent output at an attractive price point that serves as an option for our client’s consideration, noting always that CBRE is always open to working with the broader supply chain on the proviso that they best serve the client’s needs and circumstances.”

This strategy forms the core of CBRE’s rigorous supply chain programme, the firm simultaneously operating a transparent procurement platform to ensure its clients benefit from the best solutions providers available in any given market at any given time.

“It is critical to note that project success is only achieved when multiple spokes come together to deliver a successful outcome,” Bala adds.

“Without strong supply chain partners,

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CBRE Malaysia’s operational expertise have unsurprisingly translated into numerous project successes over the years

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ince its inception in year 2005, Artmatrix has become a leading Malaysian office furniture designer and manufacturer, with global operation showrooms established in metropolis of Southeast Asia. Today, Artmatrix has set its global footprint across five continents with market presence in Australia, Canada, India, Mauritius, Qatar, Singapore, Sri Lanka, Tanzania, UAE, UK and many more. Our success is built upon a strategic foundation that focuses on design and innovation, product leadership, modularity, responsiveness to our partners and a commitment to long term relationships for both local and international clients.

Artmatrix has myriad solutions that support the complex integration of people and technology.

Integration in turn provides extreme adaptability for our customers and this gives our customers the ability to be more sustainable. In addition, our unique design point of view is to meet the new generation (Gen Y) futuristic requirements, ease of configuration, facilitate productivity and create an inspirational work space solution for a global marketplace. Therefore, we ensure every product complies with BIFMA standards.

Artmatrix’s extensive and innovative product portfolio encompasses diverse lines of system furniture, mobile desk systems, seatings and storages. We work diligently in delivering our products and services to meet customer’s requirement or standards through the creation of an environmentally friendly and conducive working culture focusing on continual improvement. Hence, we move swiftly to create and customise products to meet customers’ unique work space needs. Entering into digital era, Artmatrix has increased its online presence to better serve our customers through various digital channels.

Social networks, corporate and dealers websites as well as online communication channels have provided 24-seven access to our company and product information across the globe with ease. In 2018, we also moved to business-to-consumer (B2C) commerce by launching our online store “OurShop”, with the aim to providing convenience and timely delivery to customers’ door steps. As we noticed the huge potential in online market, we are expanding our ecommerce to create a fluid customer experience by offering an entire realm of products possibilities.

As a world class manufacturer and corporation that prides itself on being a design centric organisation that cares for its people and environment, we strive to create a unique biosphere that engenders this belief, in everything we do. In 2011, we became the first entity in our industry to achieve Good Environmental Choice Australia (GECA) ecolabel, testament to our compliance with highest standards of environmental care. Given our green policy, Artmatrix converts into a Green Building Index (GBI) certified building which upholds sustainable operations and processes.

Following our environmental accomplishments and leadership, we are honoured with the highest accolade by attaining the Prime Minister’s Hibiscus Award as Notable Achievement in Environmental Performance in 2015.

www.artmatrix.com.my

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PLM

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LM is an interior fit-out specialist that provides a one-stop service encompassing traditional interior fit-out and refurbishment contracting, construction management and turnkey solutions. We are proud to be a preferred delivery partner to CBRE. Since our establishment in 2007 we have continuously evolved to ensure we meet market demands and client expectations with regards to health and safety, project quality and on-time and within budget project delivery.

With a team of around 100 experienced and dedicated project staff supported by a supply chain of reliable vendors and a skilled workforce, we have successfully ‘rolled out’ more that 20 million square feet of office, hospitality, commercial and prime residential interior real estate space.

including some newly established relationships with local suppliers, we cannot succeed.”

Driving diversification

From industry leading expertise to esteemed supply chain strategies, CBRE Malaysia’s operational expertise

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have unsurprisingly translated into numerous project successes over the years.

Recent evidence of this comes in the form of Principal – a relatively new string to the company’s extensive bow being used to deliver turnkey solutions.

“We have not traditionally operated as contractors,” states Bala, “and it is important to distinguish our Principal model from run-of-the-mill solutions offered by contractors or EPC parties.

“Right now, there are different levels of maturity for this model – EMEA has been operating it for a significantly longer period, for example – but in Malaysia we have been delivering Principal as a solution on select projects where the scope is well understood and defined.”

Heavy mechanical component installation and equipment replacement procedures have come under this, Bala citing his pride regarding a particular data centre project for an oil and gas major in the region.

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We are able to service an established list of public and corporate sector clientele via our headquarters in Kuala Lumpur and regional offices in Johor Baru, Kota Kinabalu and Jakarta. Our future aspiration to expand throughout Southeast Asia can be realised through strategic alliances with delivery partners like CBRE.

T +603-4278 4088 F +603-4278 4098 E bd@plmgrp.com

www.plmgrp.com

Interior Fit-Out

Building Refurbishment

Design & Build

M&E Engineering

PLM is an interior fit-out specialist, offering construction services for the fit-out and refurbishment for a wide spectrum of sectors such as offices, hospitality and various others.

TRANSFORMING IDEAS KUALA LUMPUR (HQ) Tel: +603-4278 4088 Fax: +603-4278 4098 Email: bd@plmgrp.com www.plmgrp.com

PLM’s clientele comprises mainly of premium companies with demanding standards, and we have consistently delivered on their high expectations. As professionals, we understand the issues and we are innovative with our solutions.

We always put our clients’ interests first. Our approach with each and every one of our projects is focused on giving our clients the certainty of: highest quality, timely delivery, controlled cost, reduced risk and maximised value.

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PRINCIPAL’S PRINCIPLES The latest arm of expertise being added to CBRE’s extension service portfolio, Principal is a model that the company is currently focused on developing and honing. Bala Vijayasingam explains how it operates in practice: “Right now, we’re pitching our Principal services to more diverse project scopes, including fit-out projects. The model enables our clients to have a single point of contract with CBRE who manage all downstream delivery partners in terms of their performance and their payment through a transparent, open book model.

“In doing this, CBRE would prefer to be engaged as the client’s project manager in the first instance and following our development of their unique brief and strategic delivery model, we would procure the delivery partners in tandem with our clients, providing them with the opportunity to select which party we subsequently contract through CBRE. “Our Principal resources would then become involved, serving a construction management function to coordinate and manage the appointed delivery partners from a scope, quality, time and importantly health and safety perspective.

“The Principal model sees CBRE agree two fee components with our clients – a resource fee for the project and construction management services, with a separate competitive mark-up fee agreed for the contracts we engage to cater for risk and profit.”

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“The entire project, which involved the installation of new UPS (uninterruptible power supply) and CRAC (computer room air conditioning) units, was delivered on time with the highest levels of health and safety observed throughout, without any unplanned disruptions to our client’s business,” he states.

“The nature of the work saw our team deliver the works almost exclusively through night shifts, highlighting the flexibility and dedication of local individuals to support our clients’ goals.”

As the conversation continues, the country head equally cities CBRE Malaysia’s role in the Tun Razak Exchange (TRX) development as one that is particularly exciting.

A site consisting of parcels of land under private development, government infrastructure and a joint venture with an international developer constructing a green roof retail centre, hotel blocks, office towers and residential offerings, the colossal 70-acre plot is expected to deliver 10 million square feet in office space to Kuala Lumpur upon completion.

“We’re very excited about the associated increase in opportunities that this will bring about,” Bala reveals.

“CBRE has been involved on projects in TRX for a number of years, supporting client leasing arrangements, performing valuations, monitoring and controlling base build progress, delivering workplace consultancy services and directing office fit-out projects on real estate for multinational companies with interests there.

“Moving forward, we are also intrigued to explore opportunities to support facilities management services to bring the full scope of our offerings to bear at this new financial centre.

“It’s an area that will emerge as a core hub of the city in years to come.”

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Whilst we focus on other areas, such as the tenant fit out and industrial projects to generate growth, we will be well placed to support future new build opportunities” Maintaining momentum

In truth, the enterprise has a lot to be excited about in the short to medium term.

While CBRE will be looking to consistently meet its annual financial targets much like any other business, diversification and expansion through channels such as Principal pose as equally exciting ventures moving forward.

“We want to do more new build projects, more industrial projects, more Principal projects and maintain our market leading position in the office fit out sector,” affirms Bala.

“Equally, as we look to further

enhance the management structure of our team, our senior figures will be able to step up outside of the project delivery services niche. This will be necessary to develop the managerial capability of our people as well as to provide opportunities for career advancements within CBRE.” Eyeing growth both in terms of its team and its portfolio, Bala once again draws upon his opening optimism, referring to the abundance of opportunities that the Malaysian market is expected to provide moving forward.

He concludes, reiterating these cautious yet buoyant forecasts: “The recent additions to office and retail

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supply here may dampen new build launches for now, but the market has historically been cyclical in Malaysia and these are expected to grow again in the medium term.

“Whilst we focus on other areas, such as the tenant fit out and industrial projects to generate growth, we will be well placed to support future new build opportunities.

“CBRE is here for the long term – we will look to support all our clients, domestic and international, to recognise their real estate ambitions as part of their wider business success in Malaysia.”

CBRE Tel: +60 (3) 7680 2100 www.cbre.com

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Bangunan THK, Suite 2.1, Second Floor No. 2A, Jalan 243, Section 51A, 46100 Petaling Jaya, Selangor, Malaysia Tel: +60(3) 7680 2100 www.cbre.com

www.outlookpublishing.com