Justification needed to build offices and malls

Previously, Datuk Johari Abdul Ghani has announced the ban on building high rise units over RM 1 million, including offices and malls. He recently came out with a new statement which allows developers to build offices and malls.

However, developers need to justify their projects to the relevant minister to get the approval.

He also urged, before embarking on any plans, developers must take stock of the existing overhang in office spaces and malls.

“Anybody can build an office, provided that you know how to market it,” he added.

The projects which were approved before the announcement won’t be affected as well.

The second Finance Minister also emphasize on the success of IJM Corp Bhd to secure the building’s anchor tenant, Prudential Assurance Malaysia Bhd.

Datuk Soam Heng Choon, Chief Executive Officer and Managing Director at IJM also said: “These days, companies want to move to more energy-efficient offices”.

The tower which worth for RM 500 million is a grade A, Leadership in Energy, and Environmental Design gold-certified building.

Menara Prudential is one of the three projects of IJM in Tun Razak Exchange (TRX). It has secured tenants for more than 84% of its 560,000 square feet lettable area.

The new headquarters of HSBC Malaysia are in a contract with two other projects. RM30 million contract is also gained to construct the substructure and foundation of Affin Bank’s office tower.

Datuk Soam Heng Choon also exposed that IJM’s order book stands at RM2.9 billion year to date or just lack of RM 100 million of its RM 3 billion target for the financial year ending 31 March 2018.