[Al-Jazeera International] … will broadcast from one of four studios throughout the day, following the sun to deliver the news in turn from Kuala Lumpur, Doha, London and Washington …
… There were also problems over where to locate the four main hubs … the Chinese government could not guarantee freedom from editorial pressure in Hong Kong so Kuala Lumpur was chosen for Asia. (Media Guardian via Positive Solutions)
Well that’s what Al-Jazeera says – so it must be true.
UPDATE:
Asia Times (December 3, 2004):
Hong Kong and Singapore were also in the running for the station, but insiders said Kuala Lumpur ultimately was chosen because its operational costs are lower and it is a stable Muslim country boasting adequate infrastructure.