Written By : Syazmin Adfzar
PETALING JAYA: A recent survey of 94 shopping centres nationwide found that nearly two-thirds of them suffered a 60% to 90% drop in sales during the ongoing lockdown compared to pre-pandemic levels.
The Malaysia Shopping Malls Association said these included shops that were deemed essential and were open throughout the lockdown, which meant that outlets that stayed closed would have seen a higher drop in sales.
Coupled with the inevitable decline in visitors and most outlets staying closed, this forced 80% of the mall operators surveyed to enforce pay cuts of 10% to 20%, as well as the withdrawal of annual bonuses and other benefits.
“Most malls have been offering rental rebates to their tenants who are taking the brunt from the pandemic and implementation of the national recovery plan, with 40% of them offering between 30% and 50% of rebates.
“To assist in cash flow, 14% of the malls have already laid off their employees. The majority have reduced their headcount by 10% to 20% and the percentage of cuts could grow if the business closures persist any longer.
“With such severe limitations in rental income collection, malls found it difficult to preserve cash flow and 32% claimed that they could only sustain for a period of three months or less,” the association said in a statement today.
Pointing out that the retail sector contributed to 34.7% of the nation’s gross domestic product in 2018, it repeated its plea for the industry to be allowed to reopen with SOPs set.
It said Putrajaya’s aid measures have been minimal apart from the 10% electricity discount, which will end by next month, describing the sector as “forgotten”.
“The government must re-strategise and accept that we are in an endemic era and have to adapt to live with the virus safely. Privileges should be made immediately effective for all individuals who have been fully vaccinated.
“Once again, we appeal and urge the government to hear our voices and allow shopping malls and retail businesses to reopen and resume operations urgently as many are on the verge of closing down.”
The survey from July 23 to 30 involved 94 malls, 63% of which were in the Klang Valley and suburban areas. Of the 94 malls, 71% were still under Phase 1 of the national recovery plan while the rest were under Phase 2.
