Starting a business in Kuala Lumpur comes with exciting opportunities, but one of the first major considerations for any SME owner or startup founder is the cost of setting up an office. With KL being Malaysia’s economic hub, office setup costs can vary significantly based on factors such as location, office type, furniture, IT infrastructure, and operational expenses. If you’re looking for a detailed breakdown of office setup costs in Kuala Lumpur, you’re in the rice place. This guide will help you make informed budgeting decisions. This guide breaks into 7 sections:
- Office Rental Costs in Kuala Lumpur
- Office Renovation and Interior Design Costs
- Office Furniture and Equipment Costs
- IT Infrastructure and Office Technology
- Operational Costs and Utilities
- Estimated Total Cost Breakdown
- Cost-Saving Tips for Office Setup in Kuala Lumpur
1. Office Rental Costs in Kuala Lumpur
Types of Office Spaces and Their Costs
The most significant cost in setting up an office is the rental price. The cost depends on the type of office you choose:
- Co-working spaces: Ideal for startups and small teams, offering flexibility and shared facilities. Prices range from RM300 to RM1,500 per space per month, depending on location and amenities. The price also heavily depends on time slot allocations such as morning, afternoon, evening, or all three, depending on arrangement.
- Serviced offices: Fully furnished offices with utilities, internet, and administrative support included. Costs range from RM1,000 to RM10,000 per month, depending on size and provider.
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Traditional office leases: If you prefer a standalone office, rental rates depend on the location:
- KL City Centre: RM6 - RM12 per sqft
- Bangsar/Sentral: RM4 - RM9 per sqft
- Petaling Jaya/Subang: RM3 - RM6 per sqft
- Cyberjaya: RM2 - RM5 per sqft
- For example, a 1,500 sqft office in KL City Centre could cost anywhere between RM9,000 and RM18,000 per month.
Security Deposit and Initial Costs
Most landlords require a security deposit (3 months’ rent) and an advance rental (1 month), plus a utility deposit (1-2 months’ estimated bill). This means if your rent is RM10,000 per month, you may need an upfront budget of RM40,000 to RM50,000.
2. Office Renovation and Interior Design Costs
Basic vs. Custom Renovation
Depending on whether you choose a move-in-ready office or a space requiring customization, renovation costs can range significantly:
- Basic setup (painting, carpeting, partitions): RM30 - RM80 per sqft
- Mid-range (custom furniture, lighting, branding elements): RM100 - RM200 per sqft
- Premium renovation (high-end furnishings, smart office systems): RM300 - RM500 per sqft
Using back the earlier sqft example, for a 1,500 sqft office, a mid-range renovation could cost around RM150,000 to RM300,000.
3. Office Furniture and Equipment Costs
Essential Office Furniture
Equipping your office with ergonomic furniture is essential for productivity. While quality furniture comes at a cost, it is a worthwhile investment with a high return on investment (ROI). Comfortable and happy employees are more productive, ultimately driving business growth. The cost of office furniture varies significantly depending on the brand, materials, quality, and type.
General Price Guide:
- Workstations and Desks: RM500 - RM2,500 each
- Ergonomic Chairs: RM300 - RM2,000 each
- Meeting Tables: RM2,000 - RM8,000
- Reception Desk & Lounge Furniture: RM5,000 - RM20,000
- Pantry Appliances (fridge, microwave, coffee machine): RM3,000 - RM10,000
For a small office setup (10-person team), businesses can expect to invest between RM50,000 - RM150,000 on office furniture.
4. IT Infrastructure and Office Technology
Internet and Connectivity
Reliable internet is a must. When there is no or slow internet, many employees from all fields can easily become idle, and that hinders business growth. Here are typical internet costs:
- Unifi Biz (500Mbps - 1Gbps): RM199 - RM349 per month
- TIME Fibre (100Mbps - 1Gbps): RM99 - RM299 per month
- Business-grade solutions with dedicated lines: RM500 - RM2,000 per month
Computers and IT Equipment
- Laptops/Desktops: RM3,000 - RM8,000 per unit
- Printers and copiers: RM1,500 - RM10,000 depending on the extensive these are needed
- Office phone systems (VoIP solutions): RM50 - RM300 per month per line
- Cloud storage and software licenses (Microsoft 365, Google Workspace): RM10 - RM50 per user per month.
If Adobe Creative Clouds are needed: rounding up to RM200 per user per month. A 10-person office may need RM50,000 - RM100,000 for IT setup.
5. Operational Costs and Utilities
Monthly Utilities
- Electricity: RM500 - RM2,500 (varies based on air-conditioning usage)
- Water: RM50 - RM200
- Cleaning services: RM500 - RM3,000 per month
- Security services (CCTV, guards, access control): RM500 - RM5,000 per month
Business Registration and Licensing
- SSM business registration: RM1,000 - RM3,000 (varies by entity type)
- Trade licenses and approvals: RM500 - RM5,000 (depending on industry and location)
- Accounting & legal setup: RM3,000 - RM10,000
6. Estimated Total Cost Breakdown
The above covers the basic costs required to set up an office. However, if you find it difficult to visualize the full picture, here’s a rough estimate of total setup costs for different office sizes to help you set realistic expectations:
7. Cost-Saving Tips for Office Setup in Kuala Lumpur
After reviewing the cost breakdown for setting up a new office in Kuala Lumpur, it’s understandable that one might feel overwhelmed. The figures provided reflect an ideal office setup, but if the costs seem too high, don’t worry—there are ways to save. Below are some recommendations to help reduce the cost of setting up a new office:
- Choose a co-working or serviced office to lower initial costs. This option eliminates renovation expenses and provides a flexible, commitment-free workspace. You can consider moving into your own office once your company, business, or team has grown and stabilized.
- Rent furniture and IT equipment instead of purchasing. Many businesses opt for this to minimize high startup costs. If you’re launching a sister company, renting is often the preferred strategy to save money. Additionally, utilizing existing resources from a parent company can help you expand gradually with minimal financial risk.
- Leverage government grants (MDEC, SME Corp) for technology adoption. The Malaysian government offers various initiatives to support new businesses, including grants that assist with office setup.
- Opt for energy-efficient appliances to reduce long-term utility costs. While utility bills may not seem like a major concern initially, they become a recurring monthly expense. Over the course of a year, energy savings can make a significant financial difference.
- Buy second-hand office furniture from liquidation sales. Businesses that are closing down, going bankrupt, or restructuring often sell off their assets at discounted prices. Purchasing from these sales allows you to acquire high-quality office furniture at a fraction of the original cost.
Final Thoughts
Setting up an office in Kuala Lumpur requires careful budgeting, but with strategic planning, you can optimize costs without compromising on quality. If you need guidance on office furniture, ergonomic solutions, or workspace planning, AM Office is here to help. With a range of office solutions designed for SMEs and startups, we ensure your workspace is not only cost-effective but also enhances productivity. Looking for expert advice? Contact AM Office today to create your ideal office setup!
