KUALA LUMPUR – Managements of shopping malls nationwide have come to feel that their situation under the current conditional movement control order (CMCO) is worse off than during the lockdown imposed in March.
Malaysia Shopping Malls Association president Tan Sri Teo Chiang Kok said this is because they have yet to recover footfall and sales turnover to pre-MCO levels.
He said layoffs from direct employment and of retail staff, excluding those in head offices and supply chains, are estimated to affect up to 68,000 employees.
Footfall has plunged since the CMCO was reimposed last month to between 10% and 25% of pre-MCO levels.
This is in stark contrast to the uptrend shown in August when shoppers regained confidence, resulting in traffic reaching 70% to 90% of pre-Covid-19 times.
Once a hive of activity, the nation’s shopping centres have become desolate buildings with barely any visitors in sight.
“The imposition of the CMCO is devastating to the economy, further compounded by the expansion of the CMCO to many more states,” Teo told The Vibes recently.
“This sent a message of the situation’s supposed severity and removed all of the public’s confidence, causing undue panic and fear.”
He said the association foresees more retailers closing down over the next six months, with a 5% to 10% increase in outlet vacancies in the next 12 months.
“After the earlier eight months of struggle, most operations have depleted their reserves and are running on day-by-day business volumes to survive.”
He said Budget 2021 does not address the retail and shopping industry, which is in need of critical assistance.
Extending the moratorium on business loans, electricity rebates and tax relief are among the suggestions to help malls and retailers cope.
Teo said with Covid-19 affecting household incomes, purchasing power and people’s livelihoods, malls are showing a low sales turnover of between 20% and 30% nationwide, and just 10% to 15% in CMCO areas.
“This is largely due to wary shoppers and the current CMCO, which limits the movement of people amid reports of hefty fines due to unclear SOPs.”
While consumers’ fears with regard to safety at malls mount, one shopping centre has assured that it is abiding by all SOPs.
Responding to a query from The Vibes, a spokesman for The Curve said the health of patrons, employees and the surrounding community “remains a priority”.
“We continue to have temperature screening stations and scanning with the MySejahtera app at the entrance points and at all mall outlets.
“No one is allowed entry without a mask on.
“The entire mall is cleaned, and surfaces are disinfected several times each day, with hand sanitiser dispensers set at various high-traffic locations.”
The spokesman said the mall management has closed off children’s play areas, baby changing rooms and surau as an added precaution during the CMCO period.
“We urge the public to heed the authorities’ call to take all necessary safety precautions, so that we can protect ourselves and each other, together as a community.” – The Vibes, November 20, 2020
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