ABANDONED commercial areas are getting a new lease of life, thanks to foreigners who have made these places buzzing with business and activities. 

In the capital, Jalan Tun Tan Siew Sin, formerly known as Jalan Silang, is a prime example of a commercial area in the Klang Valley taken over by foreigners.

The place is now dubbed “Mini Dhaka of the Klang Valley” due to the number of Bangladeshi traders plying a variety of goods, from groceries to clothing.

Similar scenes are playing out in other parts of Malaysia, with older neighbourhoods no longer seen as attractive to locals slowly becoming hubs catering to the needs of the foreign workforce. 

Property expert Siders Sittampalam said properties in such areas were not faring well because of many reasons, such as the lack of parking spaces and narrow shopfronts, before they were taken over by foreigners.

“With the immigrants coming here, they have given them a new life,” he said, adding that growth at these places is still slower than other successful commercial areas.

This is largely because of the immigrant nature of these places, he said.

The PPC International Sdn Bhd managing director said although rental growth at the shophouses in Jalan Tun Tan Siew Sin has picked up, it cannot keep up with the pace of other localities, such as Petaling Street.

“If you’re looking at rental growth, it has picked up a little bit, but not as fast as other landed shop properties. It has grown simply because over time, it grows.”

Malaysians, he said, are generally not keen to invest in properties with a high concentration of foreigners, linking such areas with immigrants.

Immigrants have been running flourishing businesses in areas catering to their community, said Siders.

“The market is there for the immigrants, so that has become a little bit of a commercial centre, and also, it is close to public transport, with LRT and bus stations.”

Businesses in immigrant-concentrated areas are being run in a similar fashion to their country of origin and feature goods from there, he said.

On the valuation of the properties along Jalan Tun Tan Siew Sin, Siders said the shop lots could range between RM5 million and RM5.5 million.

He said the asking price for a certain four-storey shop lot is upwards of RM6.8 million.

Some have bought commercial properties, including budget hotels, he added.

SME Association of Malaysia president Michael Kang said this scenario has been going on for some time.

“It looks like there is another new business community that has already established itself in our country.”

Local small and medium enterprises (SMEs) have not seen any disruption to their businesses, and some of these immigrant-run businesses complement them, he said. – December 29, 2019.