The role of an International Financial Centre (IFC) in driving economic growth can have great influence on a country’s development and reputation. According to the World Alliance of International Financial Centres, an IFC is defined as an intense concentration of a wide variety of international financial businesses and transactions in one location. The success of an IFC is beneficial for a nation’s development, competitiveness, and global standing, and its impact and influence cannot be denied.
Beyond the towering skyscrapers, thriving IFCs are magnets for top-tier talent and investment. The financial ecosystem cultivated in an IFC translates to the availability of skilled workers and facilitates the flow of capital, fosters robust infrastructure, and improves the overall quality of life. It ultimately enhances a city’s appeal as seen in global financial hubs like Hong Kong and New York, known for their economic prowess.
For these reasons, Tun Razak Exchange (TRX) was established as Malaysia’s International Financial Centre. TRX City, the master developer of TRX, was tasked to deliver a 70-acre district that serves as an economic enabler for the nation. With a strategic emphasis on bringing in high-value financial service entities, including insurance firms, banks, and fintech companies, TRX City continues to attract the interest of top players in the financial industry.
In 2019, TRX opened its doors with Menara Prudential, home to insurance giant Prudential. This was followed by Exchange 106, the signature tower that is purpose-built for leasing, and is now where global blue-chips such as Principal Asset Management, Accenture, Huawei and Agoda, have chosen to set base. Affin Bank and HSBC Malaysia have both moved their headquarters to TRX, in their own designated office buildings Menara Affin and Menara IQ.
In February 2024, TRX was officially launched as Malaysia’s IFC by Prime Minister Dato’ Seri Anwar Ibrahim. At present, there are now over 30,000 people working in TRX, of which 20,000 are knowledge workers. District-wide office occupancy is expected to hit 70% this year, with local and global brands seeking to become a part of the TRX community, building on the growing financial ecosystem and creating a vibrant district.
Populating the financial ecosystem with the right set of tenants and investors could not have been achieved without a carefully thought-out Master Plan. The master developer understood the qualities and level of service sought out by investors, with a focus on meeting the needs of the financial industry. TRX as a district is well-connected via road and rail, smart and secure, sustainable, and designed with world-class infrastructure and built environment.
A green development, the district has pedestrian connectivity that links to the city’s only MRT interchange station, along with an on-site water recycling facilities, energy-efficient buildings, and IoT solutions to achieve energy savings and improve operational efficiency for a truly sustainable IFC. All current and future buildings bear the hallmark of environmental responsibility with the endorsement from LEED and/or GBI, which is aligned with the ESG requirements of financial institutions.
TRX City drew valuable insights from well-established IFCs, identifying their strengths to create an environment conducive for business, while also recognising areas for improvement such as having a district that remains active even outside of office hours. It was imperative to create an IFC that is not solely for business, but also for living and enjoyment, with spaces for the residents and public to experience.
A key differentiator of TRX is how it caters to activities outside of work with its ample public spaces and the 10-acre TRX City Park designed for recreation and relaxation. This is further complemented by The Exchange TRX lifestyle hub that provides retail, dining and cultural offerings. The combination of park and lifestyle has shaped a new social heart for Kuala Lumpur. TRX transcends its identity as a bustling financial district – with lifestyle offerings similar to Dubai, the superior quality of offices like Marina Bay, and the diverse tenant mix of Canary Wharf.
Beyond delivering the physical infrastructure and attracting key tenants, the provision of support services is crucial for ease of doing business. In efforts to strengthen its competitiveness, TRX must secure the support of regulators and authorities to streamline processes and operations. The overarching objective remains, which is to continue attracting globally renowned brands who will bring good investment value, talent, and expertise.
TRX has immense potential to become the main driver of economic growth for the country. The milestones achieved over the last decade attest to its commitment and readiness to advance to the next level. The rise of TRX as an IFC signifies Malaysia's strategic pursuit to emerge as a prominent player in the global financial arena.