PETALING JAYA: Coworking space provider WORQ is expanding outside the Klang Valley to Johor and Penang as early as this year to capture the demand for flexible workspaces in Malaysia’s key economic hubs.
WORQ CFO and strategist Andrew Yeow said the team has visited Johor a few times and there is a lot of excitement, especially with the official announcement of the Johor-Singapore Special Economic Zone (JS-SEZ).
“Klang Valley is still the core area for our expansion, but whether it’s up north in Penang or down south in Johor, these are, I would say, the natural next cities we will be exploring. The economy is doing well. So, we try our best to basically capture the growth in that sense,” he told SunBiz in an interview.
Yeow said the company anticipates opening up to four outlets annually, targeting 100,000 square feet of workspace each year. “By 2026, WORQ will likely have established a presence in either Johor or Penang, driven by economic activity and demand for business services in these states.”
WORQ CEO Stephanie Ping said as Southeast Asia benefits from supply chain diversification and rising foreign investment, WORQ aims to be at the forefront of Malaysia’s coworking space revolution to support businesses and foster economic growth.
“There is a clear opportunity for countries such as Malaysia, Vietnam, and Thailand to benefit from this as businesses move away from dependency on a single country like China,” she said.
Ping said Southeast Asia is increasingly attracting foreign investments as these businesses seek to diversify their supply chain. “In this context, Malaysia will benefit from the surge in investment with companies likely to open more workspaces in this region.”
Initiatives such as the JS-SEZ are expected to enhance connectivity and cross-broader economic collaboration.
“This collaboration between Malaysia and Singapore will help address the needs of their growing economies as it is positioned to boost regional development, attract global investors, and create more job opportunities. Businesses are actively looking to establish operations near both Malaysia and Singapore, with sectors like manufacturing, technology, and logistics seeing significant expansion,” Ping said.
She added that tax incentives in Budget 2025 are driving demand for coworking spaces.
With Budget 2025 introducing incentives for flexible work arrangements, inclusivity and workforce diversification, coworking spaces are stepping up to provide tech-enabled, community-driven solutions that align with evolving business needs and macroeconomic trends, Ping said.
“Coworking spaces are responding to this by offering flexible and customisable enterprise solutions that make it easier for multinational companies to establish a presence in Malaysia – with more adaptable membership options and tech-enabled workspaces, these spaces are now better equipped to support the diverse working models encouraged by the government’s new policies,” she added.
Ping said coworking spaces are upgrading their facilities with artificial intelligence-driven solutions, high-speed internet, and smart office solutions to provide a seamless, modern working environment for employees. “These will become commonplace, slowly replacing more traditional office spaces as businesses look to either completely replace or supplement their offices with coworking options.”
Budget 2025 tax incentives include expenses for capacity building and software acquisition, capped at RM500,000 – which are now eligible for an additional 50% tax deduction.
In addition to that, incentives to encourage hiring women returning to work and disabled individuals are introduced. Employers can receive a similar 50% tax deduction on employment expenses for hiring women returning to the workforce for a period of 12 months.
Businesses that hire persons with disabilities will receive an incentive of RM600 per month for three months. These incentives provide further opportunities for businesses to diversify their workforce while benefiting from tax relief. -
