KUALA LUMPUR, March 23 (Bernama) -- The Malaysia Shopping Malls Association (PPKM) has urged its members to come up with appropriate and targeted action plans, including rental rebates, on a case-by-case, mall-by mall basis in response to the Movement Control Order (MCO).
“While most malls remain partially open to provide essential services to consumers during the MCO, it is a most trying situation as both landlords and retailers are equally adversely affected but both parties have to collaborate to bear the unprecedented burden and pain together,” it said in a statement today.
PPKM estimated that the shopping mall industry would be faced with a loss of more than RM750 million due to the 14-day MCO, excluding the turnover statistics from the retail sector.
“This estimate takes into account super-regional malls, regional malls, neighbourhood malls, premium outlets and other shops that are allowed to stay open during this period, and excludes stand-alone hypermarket centres or supermarket centres in the street.
“There are also wide differences in the rental structure for different category of tenants and different malls, so each mall will have to create different win-win accommodations between their respective tenants,” it said.
The association said shopping mall operators have always assisted tenants in the past during challenging times, such as during the severe acute respiratory syndrome (SARS) outbreak and the 1997 financial crisis, adding that it would work out a positive way forward with tenants to mitigate the effects of the current scenario.
“Therefore, for sustainability in the long term, we urge all member malls to seek advice from their respective owners, investors and management and work out a practical and urgent solution for tenants with non-essential businesses who have been negatively impacted,” it said.
PPKM also lauded the move by Sunway Malls to waive rental payments from March 18-31, 2020 for tenants who are not providing essential services.
“While we are grateful that they are proactive, we wish to reiterate that such decisions are entirely within their prerogative and does not represent the whole shopping mall industry,” it added.
PPKM, MCO, shopping malls, Sunway, rental, retail