I agree with the assessment that there are way too many malls in the Klang Valley. This will be the case even with more new developments here in KL. Nope, even if I am staying in a new condo with an integrated mall, it may still NOT save the mall especially if the tenant mix is not those I love and no visitors from outside beyond just the residents. Most of the time, they will struggle, especially if the mall operators are not those experienced ones. With current times, many are really struggling.
However, not all are waiting to close. Many remain healthy and some are so healthy that car parks couldn’t be found during the weekends or even during weekday lunch time. Yes, the car park fees remain HIGHLY standard for these popular ones. So, do you believe having lesser malls would help? Perhaps further new malls so that all the current ones can fare better? I would always advocate for healthy competition. New malls are not the main cause why some malls are not doing well today. Most likely reason is still due to little or no differentiation and even appropriate location.
Reported in NST, the Malaysia Retail Chain Association (MRCA) would like the government to stop issuing licences for new shopping malls temporarily. This will help to lessen the effects from oversupply of retail space. Its Deputy President, Valerie Choo said, “There will be over 50 per cent increase in shopping mall space (once the new shopping malls are ready). “Too many shopping malls can be tough on the retailers as well.” She gave an example of how the Indonesian government’s decision to freeze shopping mall developments has helped to slow the growth of its retail industry.
Choo also asked the government to get more tourists into the country so that these tourists can spend in the malls. I think it’s best that Choo can also ask the locals to stop spreading the negative sentiment because this is by far a better way to ensure the retailers also benefit. In fact, looking at just Facebook comments would see everyone continuously harping on the Ringgit’s depreciation (despite the fact that Ringgit is up this year versus last year). Then, these same people are also asking when is the best time to buy property. Haha. By the way, last year in October 2015, the exchange rate was RM4.46 to US$1. As at today, it is RM4.06 to US$1. Happy buying.
written on 7 Sept 2016
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