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 MSC status building: a precious prospect

The Edge Malaysia | October 21,2013

Malaysians are still lacking in awareness and understanding on the existence of Multimedia Super Corridor (MSC) programmes as well as the federal government objective of implementing this initiatives. Thus, as a growing MSC consultant, Upnamics Sdn. Bhd. feels a growing responsibility to enlighten the initiatives under MSC. Conceptualized in 1996, MSC Malaysia is a national initiative organised by the Malaysian government to promote both the national ICT industry and to provide a test-bed for the global ICT industry. One of the government efforts in promoting ICT in Malaysia is by granting the MSC Malaysia status to companies, incubators, Institute of Higher Learnings (IHLs) and also buildings, namely MSC Malaysia Cybercity / Cybercentre.

 These days, MSC Malaysia Cybercity / Cybercentre, commonly known as MSC status buildings are highly in demand as most building owner are seeking for what is popularly known as dual-compliant status, which means to comply the outlined standards for both green certification (i.e. GBI, LEED, BCA Green Mark) and MSC status building. Newly constructed building nowadays are developed to be an eco-friendly, triggering the building owner to obtain the green certification for their building. But having green certification only is not enough because to be a dual-compliant building, it must also obtain the MSC status. Building with green certification in point of fact is one step ahead in obtaining the MSC status as compared to normal building by way of automatically complying the fifth parameter in the MSC Malaysia Cybercity / Cybercentre Performance Standard which is a prerequisite requirement.

At present, there are approximately 3,316 MSC status companies and 30 locations have successfully endowed the MSC status. The MSC status for building is granted to those with conducive business environment that provides the ecosystem to attract ICT investors and promote the growth of local ICT companies. This designation and recognition would turn a normal building into a MSC status building. MSC Malaysia Cybercities and Cybercentre are aimed at ensuring Malaysia as a country to benefit from economic growth driven by ICT initiatives.

The rising call

Reckoning a rising call for MSC status among building owners and ICT related companies, two intelligent and experienced specialist have come to an understanding to take hold of the precious prospect. Having the expertise on the process and procedures of designating building in obtaining the influential MSC designation status, Mohd Razifuddin Dato’ Mohammad and Khairul Azmi Ahmad Raslan has mutually founded the idea of providing consultancy service. In the early 2013, they have jointly started up a company, namely Upnamics Sdn Bhd. Their determination can be honoured as they are currently undertaking a number of prominent development projects in Klang Valley.
Upnamics Sdn Bhd are also currently providing advisory and consultancy services in Cybercentre Management to an existing MSC Malaysia Cybercentre in KL City Centre. Upnamics is on target to designate 3 more MSC status buildings by Q1 2014.

Based on a recent research, more multinational companies (MNCs) are coming to Greater Kuala Lumpur by 2020. Therefore, the demand for MSC status buildings are also foreseen to move upwards. The MNCs could come from various industries like business services, oil and gas, agriculture, healthcare, retail and wholesale and E&E sector. Since more MNCs are coming and doing business in the city, dual-compliant buildings would certainly fit their needs and requirements. It is with strong hope that with such investment coming in, it would dignify and assures MSC status building stands out.

Core idea of MSC status building
Being asked on what is the fundamental purpose of designating building with MSC status, Mohd Razifuddin briefly explain that “Building which comply with the Qualifying Criteria as well as the Performance Standards outlined by Multimedia Development Corporation (MDeC) would have the option to apply for the MSC status to add more value to the building in attracting quality and reputable tenants.” According to Mohd Razifuddin, there are a few stages that should be undertaken. Following the successful application, the building owner should deliver the niche value proposition, such as providing a conducive and enabling environment for companies to conduct their business operation, i.e. Incubation and Business Centre (IBC).

 Mohd Razifuddin then added that “The idea of setting up IBC is to facilitate the need of start-up and SME companies to get an affordable office at strategic location to operate their business. This is what the government is trying to exploit”

Concerning about the cost, Khairul Azmi said that the cost of designating the building would highly depending on the physical and technical condition of the building as it is mainly focus on ensuring the building complying the parameters in the performance standard drawn by MDeC, especially compliance to infostructure and electricity supply requirements and also the setup of incubation centre.

 Khairul Azmi also added that “MSC status building enjoy a number of benefits. Other than able to secure valuable prospects and increasing the occupancy rate, MSC status building also has potential tenants coming from MSC status companies that seek to benefit from the Bill of Guarantees (BoGs), especially the financial incentive which require them to locate in MSC status building. The building would also obtain superiority among other building in attracting potential tenants because most MNCs are on the lookout for building of great infrastructure quality. Otherwise, a normal building would only be depending on the rental and occupancy rate in drawing tenants’ attention.”

MSC status building take the lead
Talking about a great quality building, Khairul Azmi further added that MSC status building offers redundancy on utilities and telecommunication services. This is the essential value that MNCs are hunting for as most MNCs operate 24/7. Power and telecommunication outage will significantly affect their daily operation. Having an assurance that they would have an adequate back up power and telecommunication services by locating their business in a building of great quality, MSC status building is definitely a right decision.

 At the present time, occupancy rate in MSC status building is fairly high as it is able to draw big names in the industry to lease the building. It is one of the main reason why building owner and developer go after it.