6/12/2018 – New York-based co-working space operator WeWork will be entering Malaysia with its first location in the city centre of Kuala Lumpur slated to open in early 2019.
Entering Malaysia, according to WeWork, is part of the startup’s commitment to expand its footprint in the region as it seeks to grow to 16 locations with more than 11,000 desks in Southeast Asia within a year.
The new co-working space is a five-story workspace located in Equatorial Plaza, Kuala Lumpur which has been selected due to its convenient access to public transport, eateries, business services, and entertainment areas.
“With Malaysia experiencing a sustained and strong outlook for its future growth, the country has made it an exciting market for us to enter,” WeWork’s Southeast Asia Marketing Director Turochas Fuad said.
This co-working space will be the largest WeWork office in Southeast Asia to date, having the capacity to accommodate 1,900 members across five floors.
It will offer three products, namely:
– Hot desk at RM950 per month (approx. US$228.10)
– Dedicated desk at RM1,150 per month (approx. US$276.36)
– Private offices from RM1,200 per month (approx. US$288.37)
Besides, WeWork will also partner with Daman Land through a revenue share agreement, who will act as an intermediary to help the startup scout for different locations across Malaysia.
“There is no timeline set just yet,” said Fuad. “But we will definitely look at expanding. We have also formed partnerships with local companies across various industries like food and beverage, furniture makers, and general contractors.”
WeWork is also looking to expand into other places in Malaysia aside from the CBD area of Kuala Lumpur, targeting other parts of Kuala Lumpur such as Bangsar and Damansara over the next few months and years.
“We provide a one-stop solution in terms of design, build out to management and leveraging out brand value, global footprint, and strong member base. We look forward to partnering with landlords as we further build our presence in Malaysia and beyond,” he added.
Founded in 2010, WeWork now has over 320,000 members across 355 worldwide locations in countries including Singapore, Ho Chi Minh City, Manila, Jakarta, Bangkok, and more. The office space varies from country to country and members can book their services on the network mobile application.
Meanwhile, WeWork’s Chinese rival, Ucommune, has recently raised a $200-million Series D by end of the year, paving the way for an IPO early next year, this portal had reported. Another industry player, MyDreamPlus, had also raised $120 million.
When asked about other co-working companies, Fuad commented, “we don’t see them as direct competition, WeWork has been around for eight years and what we are doing – especially in the global network – is one thing that sets us apart very far from everyone else.”
“Not only are we trying to help companies around the world enter Malaysia, we are also looking at how we can work closely with the government and other partners around Malaysia to help expand globally. With the WeWork network – 335 physical locations and 320,000 members around the world – that is one of the big feature that sets us apart other similar co-working spaces out there.”
In related news, the startup will be opening its first location in the Philippines this month.
This news is published on Reuters.