PETALING JAYA: In a turn of events, underperforming shopping malls across the country are experiencing a revival, breathing new life into the retail industry.
Developers, retailers and consumers are rejoicing as these once desolate and struggling centres are being transformed into vibrant hubs of activity. One example is Sungei Wang Plaza.
Situated in the heart of Kuala Lumpur, it now showcases diverse retail offerings, artisanal vendors and interactive experiences that have become an attraction for visitors.
Similarly, Harbour Place, which is located in Klang and was once closed, will soon reopen.
Prabakaran Tangarajan, 37, who lives near Harbour Place, said the mall suffered from declining footfalls for years, with empty storefronts and dimming prospects.
“It closed about three years ago. But with innovative strategies and a renewed focus on meeting evolving consumer demands, the mall will be reopened with a vast array of shops, eateries and entertainment options.”
Malaysia Shopping Malls Association president Tan Sri Teo Chiang Kok said despite the challenges that shopping malls have faced, they have begun to experience a strong recovery after the Covid-19 pandemic ended.
“Malls offer more than just shopping. They provide spaces for socialising, family outings and entertainment.”
To attract larger numbers of visitors, Teo said malls are diversifying their offerings and employing mall ambassadors, personal shoppers and shopping valet services.
He said key states such as Kuala Lumpur, Selangor, Putrajaya, Penang and Johor are witnessing rapid growth in shopping malls.
These include Pavilion Damansara Heights, The Exchange TRX and Sunshine Mall in Penang, which is scheduled to open by the end of the year.
“The industry recognises the importance of staying ahead of the curve by continuously adopting new ideas and concepts, and incorporating activities beyond traditional shopping experiences.”
However, Teo said not all malls are performing well as the ever-rising operational expenditure poses a serious challenge.
“The growing popularity of Japanese and Korean dramas as well as the K-Pop phenomenon has attracted new international brands from Japan, Korea and China to enter the market.
“The presence of more international brands in shopping malls would benefit tourists and local vendors as it will lead to healthy competition among vendors,” he said.
Teo said due to the relatively small population, efforts must be made to increase tourist arrivals and attract more global brands into the country.
He added that shopping malls must incorporate new attractions and trends into sectors such as food and beverage, entertainment, sports, culture and arts to draw more visitors.
He also said the involvement of local governments is crucial in ensuring the sustainable revival and recovery of the industry.
He said some local authorities have introduced licensing fees and procedures that hinder business operations.
The rising cost of doing business increases risks and decreases chances of survival for mall operators.
“But despite these challenges, shopping malls have been experiencing a strong recovery since the end of the pandemic.
“The association is actively engaging with the Tourism, Arts and Culture Ministry and Domestic Trade and Consumer Affairs Ministry, apart from the relevant departments to boost tourist footfall and promote Malaysia as a shopping haven.”
Teo added that the government should take a holistic approach in facilitating business operations in retail, food and beverage, and entertainment sectors through lower taxes and duties to generate revenue.
He said the shopping mall industry needs to embrace adaptability and incorporate new ideas and activities.
“The proactive involvement of the government, industry players and local authorities is crucial for the continuous growth and success of Malaysian shopping malls.”
