Tuesday 28 August 2018

Cyberjaya

This is Malaysia's purpose-built, hi-tech town and science park. At around 30km², tech-enabled Cyberjaya is situated in Sepang, on the outskirts of Kuala Lumpur, anchoring the country's so-called Multimedia Super Corridor.  The town was launched in 1997 with the aim of establishing Malaysia as a go-to/vibrant hub for, well, technology, science, and R&D in ASEAN - and, later on, globally.  (Cyberjaya was created alongside Putrajaya* - a new hub for government.)

Tbh, this seems pretty smart to me. As time has told, tech has become a humdinger in this region (I think moreso than in the West). The agility and speed of nations in SE and E Asia is quite staggering at times; and as they develop and grow, new ideas (tech) are adopted and rolled out quickly. There isn't the cynicism of the West, nor existing alternatives or old ways. Because a lot of these countries are 'new'. So in my view, Malaysia's government (plus McKinsey) was pretty shrewd with the Cyberjaya plan.

But I remember there were lots of jokes locally in the late 90s - heard via my brother who was in KL at the time - about how Cyberjaya would never work. How it was all talk without functionality (and, it certainly seems, local buy-in). Then the place launched, and I kinda heard nothing more. I read that there was a world-class, state-of-the-art 3D movie-making facility there, and a multi-media (now outdated term?) university. But no more news.

About a year ago, a business colleague from the UK had a meeting in Cyberjaya. His feedback: "A bit of a ghost town". And this week I actually joined friends (with a car) for dinner there. In fact we were visiting a new development, which my pals had worked with. And it was pretty nice! Opened only about a year ago, Tamarind Square is a complex of interestingly designed boutique office and shop spaces - I would say mainly catering for SMEs, although there's a larger retail area with a flagship (?) grocer's, 24-hour bookshop, and other stores. The entire space is bound together by gardens and walkways with creepers. There's a great new-community feel to the place, and I can imagine a smart, young crowd working and collaborating there - with hipster cafes, al fresco eateries, and yoga spaces on hand. Currently however - and OK, this place is pretty new (and not entirely complete) - it is a bit of a ghost town too.


So what happened to Cyberjaya? Well, I didn't get to explore the whole area, but from our drive to Tamarind Square, it seems a lot still is under construction. And to be fair, 1997 saw the onslaught of the Asian Financial Crisis - which was tough for many nations and saw this project being propped up by government. There are tax incentives, and almost no restrictions on foreign talent if you set up in Cyberjaya (as a foreign company?) and I've read that many big globals (IBM, Wipro, BMW etc etc) do have a presence there. And the district is apparently profitable. But it still has that ghostly air. 

Kuala Lumpur and suburbs also still suffer from inadequate public transport. And while the cleaner air of Sepang might appeal, it turns out there is currently only one train station to serve both Cyberjaya and Putrajaya. (And it's part of the KLIA Express - a non-interlinked line!) There are limited buses, too, apparently. But it took quite a drive for us to get from KL out to Cyberjaya - and from what I saw, a lot of the new district is quite sparse. Personally, even with a car, I would not be tempted to invest in a swish residential unit there, and would find it a difficult commute for work: it's too isolated, with not enough locally (yet) to make it worth a relocate. If others are thinking like me, then there is a chicken-and-egg situation going on. Retailers etc will move in when there's footfall. But people won't settle without amenities and retail.

My Malaysian friend had an additional explanation: Cyberjaya was too early. The government was smart to think about it, but the rest of the nation (public, workers, businesses) weren't switched on to tech, and didn't have today's fashionable entrepreneurial spirit back in 1997. So I guess the project lost brand momentum. And if anything needs sparky, up-to-date and forward-looking brand momentum, it's probably tech/R&D. There is also national government support for the majority ethnic group in Malaysia, which (it has been argued) discourages the survival instinct which could be applied to other visionary projects in this region - Singapore as a whole country might fall into this category! - and gets the workforce behind national growth and eventual success.

There are probably 110 other things to consider in Cyberjaya's story. But I really hope that it does become a successful R&D hub, or ASEAN Silicon Valley. Two new MRT stations are set to open in the next five years. That would be a (n overdue) great step in the right direction imo. And who knows, maybe today's creative, entrepreneurial, yoga-loving, crowd will be part of the solution, too? 


Here's some blurb: 
Cyberjaya Malaysia
Tamarind Square 


* Jaya in Malay means 'success' and is applied to countless towns, districts (even stores) across the country. I guess for good luck.


1 comment:

  1. PS Wikipedia currently states the Cyberjaya is 3.2km squared, which I've queried as it sounds daft. (Sources generally state it's either 2800 or 3200 hecatres = 10x larger!) They've put up a comment. Let's see if it gets changed.

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