Bursa Malaysia Bhd (KL) is in the final stages of negotiations to relocate its headquarters to The Exchange 106 at Tun Razak Exchange (TRX). This move signifies a strategic shift to one of Kuala Lumpur’s premier financial and business hubs. Currently situated in a 16-storey office building in Bukit Kewangan, Kuala Lumpur, Bursa Malaysia is poised to enhance its operational presence by moving to the iconic TRX.
Confirming the Move
The announcement from Bursa Malaysia confirmed a report by The Edge Malaysia for the week of June 17-23, 2024, which speculated on the exchange operator’s plans to move its headquarters to TRX. According to an email response to The Edge, Bursa Malaysia stated that discussions with the developer of The Exchange 106, Mulia Property Development Sdn Bhd, are still ongoing, with details yet to be finalized.
Potential New Headquarters
If the discussions materialize, Bursa Malaysia is expected to occupy two storeys of The Exchange 106. Mulia Property Development Sdn Bhd, the developer, is majority-owned by the Minister of Finance (Incorporated). TRX, completed in 2019, is conceptualized as the financial and business hub of the Klang Valley with a gross development value of RM40 billion and 2.5 million sq ft of net lettable area (NLA).
Strategic Location
TRX aims to be the financial epicenter of Kuala Lumpur, offering state-of-the-art infrastructure and facilities. By the end of this year, TRX will have an occupancy rate of 57%, leaving approximately one million sq ft of NLA available for rent. The asking rent for office space in The Exchange 106 is estimated to be between RM10 and RM14 per sq ft, the highest in Malaysia according to Knight Frank Malaysiaโs Real Estate Highlights 2H2023 report.
Financial Implications
Bursa Malaysiaโs potential move to TRX reflects a strategic decision to position itself within Kuala Lumpurโs premier financial district. The exchange operator’s share price settled three sen or 0.3% lower at RM8.80, bringing its market capitalization to RM7.12 billion. Year-to-date, Bursa Malaysia’s stock has risen 27%, indicating strong investor confidence in its future prospects.
Conclusion
The relocation of Bursa Malaysia’s headquarters to The Exchange 106 at Tun Razak Exchange (TRX) represents a significant strategic move for the exchange operator. This transition to Kuala Lumpur’s premier financial hub aligns with its long-term growth objectives and enhances its operational capabilities. As discussions continue and details are finalized, Bursa Malaysia is set to benefit from the state-of-the-art facilities and strategic location that TRX offers.
