Find Professional Space in Malaysia

Published on October 5, 2025 and written by Cyril Jarnias

Malaysia, with its dynamic economy and strategic position in Southeast Asia, is attracting an increasing number of foreign entrepreneurs looking to establish their businesses there. Whether you’re seeking commercial space, an office, or a warehouse, this guide will help you navigate the process of finding and leasing professional space in Malaysia.

Secrets to Finding the Perfect Commercial Space in Malaysia

Finding the ideal space for your business in Malaysia requires a methodical and well-informed approach. Here are some effective strategies to assist in your search:

1. Utilize Online Platforms Commercial real estate websites like PropertyGuru Commercial, iProperty, and Mudah.my are excellent resources to begin your search. These platforms offer a wide range of commercial properties for rent or purchase throughout Malaysia.

2. Engage Local Real Estate Agents Local real estate agents possess in-depth knowledge of the Malaysian market and can help you find properties that match your specific needs. They can also guide you through the intricacies of the leasing or purchasing process.

3. Explore Industrial and Commercial Zones Malaysia has numerous well-developed industrial and commercial zones, particularly in the Klang Valley, Penang, and Johor regions. Visit these areas to get a sense of available options and market prices.

4. Networking and Recommendations Join local chambers of commerce or foreign business associations in Malaysia. These networks can be excellent sources of information and recommendations for finding commercial spaces.

Essential Agencies for Your Real Estate Search

To facilitate your search for commercial space in Malaysia, it’s recommended to engage reputable real estate agencies. Here’s a list of key agencies you can rely on:

1. Knight Frank Malaysia This international agency has a strong presence in Malaysia and offers a comprehensive range of commercial real estate services, including leasing and sales of offices, retail spaces, and warehouses.

2. CBRE Malaysia CBRE is one of the world’s largest commercial real estate services firms. Their Malaysian office provides advisory and transaction services for all types of commercial properties.

3. JLL Malaysia Jones Lang LaSalle (JLL) is another renowned international agency with a strong presence in Malaysia. They offer comprehensive services for leasing and purchasing commercial properties.

4. Rahim & Co International This well-established local agency has deep knowledge of the Malaysian real estate market and can help you find commercial properties throughout the country.

5. Henry Butcher Malaysia With over 30 years of experience in the Malaysian market, Henry Butcher offers a full range of commercial real estate services, including leasing and sales of offices and industrial spaces.

Essential Documents to Finalize Your Lease

Leasing commercial space in Malaysia requires preparing several important documents. Here’s a list of the main documents required:

1. Proof of Identity For foreigners, a valid passport is generally required. For local companies, business registration documents will be necessary.

2. Business License A copy of your business license or company registration certificate in Malaysia will be required to prove the legality of your operations.

3. Bank References Recent bank statements or a reference letter from your bank may be requested to prove your financial solvency.

4. Business Plan Some landlords may request an overview of your business plan to ensure your operations are compatible with their property and viable long-term.

5. Rental Guarantee It’s common in Malaysia to provide a rental guarantee, typically in the form of a security deposit equivalent to 2-3 months’ rent.

6. Letter of Intent A formal letter expressing your intention to lease the property is often required before preparing the lease agreement.

7. Lease Agreement The final lease agreement, detailing all terms and conditions of the lease, will need to be signed by all involved parties.

Leasing Costs: What You Need to Know

Commercial space leasing costs in Malaysia can vary significantly depending on several factors, including location, size, and property type. Here’s an overview of costs you can expect:

1. Monthly Rent – Class A offices in Kuala Lumpur: RM 5.50 – 7.50 (€1.10 – 1.50) per square foot per month – Retail spaces in shopping malls: RM 15 – 30 (€3 – 6) per square foot per month – Industrial warehouses: RM 1.50 – 3 (€0.30 – 0.60) per square foot per month

2. Security Deposit Typically equivalent to 2-3 months’ rent.

3. Real Estate Agent Fees Usually paid by the landlord, but sometimes shared. They typically represent one month’s rent.

4. Legal Fees For preparing and reviewing the lease agreement, budget approximately RM 1,000 – 3,000 (€200 – 600).

5. Stamp Duty Lease agreement stamp duty is calculated based on annual rent and ranges from 1% to 4% of the annual rent.

6. Common Charges For offices and commercial spaces in buildings, monthly service charges are typically billed, ranging from RM 0.50 to 1.50 (€0.10 – 0.30) per square foot.

Malaysian Cities Offering the Best Low-Cost Opportunities

While Kuala Lumpur is Malaysia’s economic center, other cities offer interesting opportunities for businesses seeking more affordable costs. Here are some cities to consider:

1. Johor Bahru Located at the Singapore border, Johor Bahru offers significantly lower rental costs than the capital, while benefiting from proximity to the Singaporean economic hub. The city is experiencing rapid development, particularly with the Iskandar Malaysia project.

2. Penang Known as the “Silicon Valley of the East,” Penang is a major center for the electronics and manufacturing industries. Costs are generally lower than in Kuala Lumpur, while offering excellent quality of life.

3. Melaka This historic city is attracting more businesses due to its competitive costs and growing development in tourism and service sectors.

4. Kota Kinabalu Capital of Sabah state on Borneo island, Kota Kinabalu offers interesting opportunities in tourism and service sectors, with generally lower rental costs than in Peninsular Malaysia.

5. Kuching Capital of Sarawak state, Kuching is experiencing rapid development and offers opportunities in various sectors, including information technology and renewable energy, with attractive operational costs.

Government Support to Facilitate Your Establishment

The Malaysian government has implemented several initiatives to encourage foreign investment and facilitate business establishment. Here are some of the main available supports:

1. Malaysian Investment Development Authority (MIDA) MIDA offers a range of services to help foreign investors, including information on investment opportunities, assistance with license and permit applications, and advice on available tax incentives.

2. Tax Incentives Numerous tax incentives are available for foreign businesses, including income tax exemptions for pioneer companies in certain sectors, capital expenditure deductions, and tax reductions for businesses based in specific regions.

3. MSC Malaysia Status Information and communication technology companies can apply for MSC Malaysia status, which offers benefits such as tax exemptions, enhanced intellectual property rights, and no restrictions on hiring foreign workers.

4. Malaysia My Second Home (MM2H) Program Although primarily intended for individuals, this program may interest foreign entrepreneurs looking to settle long-term in Malaysia, offering long-term visas and certain tax benefits.

5. Local Support Some states and municipalities offer additional incentives to attract businesses, such as reductions in property taxes or subsidies for training local employees. It’s recommended to inquire with local authorities in the region where you wish to establish.

Conclusion

Finding the ideal space for your business in Malaysia may seem challenging, but with the right resources and information, this process can be greatly simplified. Malaysia offers a variety of options for all types of businesses, from startups to multinationals, with generally competitive costs compared to other countries in the region.

By using services from reputable real estate agencies, exploring secondary cities for lower-cost opportunities, and leveraging available government support, you can find the perfect space to help your business thrive in this dynamic Southeast Asian country.

Remember to thoroughly research legal and tax aspects related to leasing commercial space in Malaysia, and don’t hesitate to engage local professionals to guide you throughout the process.