Opinion

Letter – Govt, please mitigate catastrophic scenario in retail industry – Teo Chiang Kok

If sector not allowed open in July, more shops will close, staff laid off and local, international brands exit market

Updated 5 years ago · Published on 23 Jun 2021 10:20AM

Letter – Govt, please mitigate catastrophic scenario in retail industry – Teo Chiang Kok
With the closure of cinemas, gyms, spas, as well as dancing and entertainment centres, opportunities to congregate are now non-existent. – The Vibes file pic, June 23, 2021

THIS open letter to Prime Minister Tan Sri Muhyiddin Yassin represents the view of the following associations representing shopping malls and the retail industry nationwide:

- Malaysia Shopping Malls Association (PPK);

- Malaysia Retailers Association (MRA);

- Malaysia Retail Chain Association (MRCA);

- Bumiputra Retailers Organisation (BRO); and,

- The Selangor & Wilayah Persekutuan Electrical Home Appliances Dealers’ Association (SWEDA).

The extension of the full movement control order (FMCO) from June 1 to 28 for the entire country is drastically and tragically damaging to businesses and the economy.

The announcement of the National Recovery Plan based on the threshold of the number of Covid-19 cases is too broad-brushed and imprecise resulting in unnecessary losses.

With the upcoming deadline to review the next course of action, we appeal to the federal government to judiciously research the data and incidences of Covid-19 cases by economic sector and locality.

Health Ministry data reveals that the retail industry has contributed only 0.8% of all coronavirus cases last month, prior to the FMCO. This extremely low figure is proof of the industry’s strict adherence to standard operating procedures, and it should not be unduly penalised with an operation ban.

Thus, we believe the retail sector should be immediately reopened to provide essential and other services to the community.

Firstly, activities that are unable to comply with crowd control and social distancing rules have been listed on a “negative list”.

With the closure of cinemas, gyms, spas, as well as dancing and entertainment centres, etc, opportunities to congregate are now non-existent. All promotional events that may attract crowds normally held in concourses and halls are also banned.

The public is also conscious to not linger and browse products, and the duration of their visits at shopping malls have significantly reduced from the normal three to four hours to only one to two hours. Shoppers diligently practise social distancing and mask wearing at all times.

Shopping malls allow entry of only those whose MySejahtera status is “low risk” and body temperature does not exceed 37.5 °C.

Thus, these centres are safe spaces and serve as avenues for both physical and mental relief to shoppers.

We appeal to the government to take all these positive factors into account in the upcoming review and allow the immediate reopening of all trades in shopping malls (except for those on the negative list).

Currently, some 20% to 30% of shops in malls have closed due to the adverse conditions of the past 16 months, and with 30% of staff being laid off, this amounts to 300,000 workers.

We foresee that in the event the retail industry, including street-front shops, are not allowed to open by beginning of next month, another 50% of shops will be closing their doors for good, including local and international brands, and more employees will be at risk of being laid off.

Once these international brands exit our country, it will be difficult to attract them to return.

With these massive lay-offs and shop closures, the entire retail industry will be critically damaged, and need extensive efforts and time to rebuild the ecosystem of shopping malls or the premises themselves will permanently shut, and the retail supply chain deeply fractured.

Any prolongation in reopening will cause irreparable damage to the industry, which may not recover in the next few years, leaving us far behind in the economic recovery process.

Therefore, we seek the government’s urgent consideration to mitigate the catastrophic but possibly real scenario as predicted above. Lives and livelihoods matter. – The Vibes, June 23, 2021

Tan Sri Teo Chiang Kok is Malaysia Shopping Malls Association president

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