PETALING JAYA: Malaysian retailer associations are appealing to all shopping malls and shophouses’ landlords and owners to give rental rebates by 30% to 50% from February 2020 for the next 6 months to help tenants ride out the effects of the Covid-19 outbreak.
In a joint statement, the Malaysia Retailers Association (MRA), Malaysia Retail Chain Association (MRCA), Bumiputera Retailers Organisation (BRO), Asean Retail-Chains & Franchise Federation (ARFF) and Branding Association of Malaysia (BAM) said retail businesses have been greatly affected since the announcement of the virus outbreak,
“Not just [because] many tourists have cancelled their travel plans, but there is also the double whammy from our very own local people who have become very cautious and staying home, shying away from crowded places like shopping malls,” it said.
Many association members have reported as much as a 50% drop in sales, with some expecting revenue to further drop by more than 80% over the next three months.
Apart from rental reductions, retailers are also appealing to landlords to offer holistic support such as the flexibility to operate shorter store hours, to cut down or reduce unproductive operational hours, free parking for shoppers, complimentary booking of atrium areas, and marketing support for both retailer-driven promotions and mall-wide marketing initiatives.
Meanwhile, in addition to the drop in retail traffic, the associations said retail outlets have had to further incur extra social responsibility costs in engaging more cleaners to wipe down public areas, administration staff to take temperatures, to advise staff and customers on good hygiene practices, as well as providing more hand sanitisers at strategic locations.
“As rent makes up a high proportion of our operational costs, this is the time that landlords and tenants have to be in good partnership, and landlords need to be ‘socially responsible’ to help us to protect jobs and stir domestic consumption for the greater good of the Malaysia economy,” it said.
The associations noted that while there are no closures yet, many retailers and F&B outlets are quite empty as shoppers avoid malls.
“This is despite our Health Ministry announcing that Malaysia is at containment stage and not at medication stage, no fatality thus far, and a few victims have recovered.
“We hope that businesses will bounce back in 6-8 months with the hope that the outbreak will be contained and ended soon,” it said.
