Call to freeze approvals for new malls

KUALA LUMPUR: The Malaysia Retail Chain Association (MRCA) is urging the government to freeze the building of new shopping malls as the vast supply of malls is putting a strain on retailers.
President Datuk Garry Chua said MRCA has brought up this issue in its dialogues with the authorities.
Citing 2015 figures from Henry Butcher, he said there is some 137 million sq ft of lettable space in Malaysia currently and only 82%-83% of it is occupied.
“There is a big gap of unoccupied spaces,” Chua said at the “MRCA Engaging With the Media” event here yesterday.
Deputy president Valerie Choo said the supply of malls is going to double or triple in the next two years, and urged property developers to be extra careful when planning their mixed development.
“As much as we want to expand, sometimes malls close to each other will cannibalise each other’s clientele,” she said.
She cited the example of Indonesia, where the government has frozen approval of permits for shopping malls.
“Too many malls will be tough on retailers,” said Choo.
She also called for the government to provide tax incentives for retailers in Budget 2017, as any expansion will incur heavy investments on the part of retailers, especially when they need to refurbish their outlets every two to three years.
At the event, MRCA and MasterCard announced a five-year collaboration to enhance and accelerate payments capability and technology for members.
The collaboration with MRCA’s 20,000 member outlets will help in the implementation of new payment propositions that will allow merchants to realise the benefits of electronic payments.