Second Finance Minister Datuk Johari Abdul Ghani said developers may still build shopping malls and offices, even as the government has decided to freeze the approvals for offices, shopping complexes and condominiums priced above RM1 million.
However, the developer must be able to justify their projects to the relevant authority, he said.
He noted that eager developers should first evaluate the existing overhang in malls and office spaces, before they embark on any plans.
“Anybody can build an office, provided that you know how to market it,” said Johari at the topping-up ceremony of Menara Prudential at the Tun Razak Exchange (TRX).
The freeze order will not affect plans for buildings within the TRX since the masterplan for the development has already been approved, he said.
Johari also highlighted the success of IJM Corp Bhd in securing Prudential Assurance Malaysia Bhd as the building’s anchor tenant.
“These days, companies want to move to more energy-efficient offices,” said Datuk Soam Heng Choon, Chief Executive Officer and Managing Director at IJM.
To be handed over in Q1 2019, the RM500 million tower is a Grade A, Leadership in Energy and Environmental Design gold-certified office building.
One of the three projects of IJM in TRX, Menara Prudential has secured tenants for 84 percent of its 560,000 sq ft lettable area. The two others are a contract to design and build the new headquarters of HSBC Malaysia and a RM30 million contract to build the substructure and foundation of Affin Bank’s office tower.
Soam revealed that IJM’s orderbook stands at RM2.9 billion year-to-date, or just RM100 million shy of its RM3 billion target for the financial year ending 31 March 2018.