ISSUE46 Untuk Ahli Sahaja

NewsNetworkPP12389/04/2013 (031984) JUNE 2020

SHOPPING Inside this Issue IN THE NEW NORMAL What’s New Paragon Market Place Evolving into new Bahru habits and the new norm. Page 3

Page 6 Article Shopping and Retail Post MCO/CMCO

Page 5

Survey The Impact of MCO on Scan QR Code Shopping Malls to download this newsletter Page 12 President’s Message

RE-set, RE-boot, RE-focus, and RE-emerge stronger and better!

Dear members,

he whole world, as we know it, has However, more importantly, all malls In every crisis, there are opportunities for been completely turned around have a critical struggle in the attempt change and new prospects so we must over the past three months, to keep cash flows viable over the next always think positive. The entire eco with untold and unimaginable few months, with a significantly reduced system of the shopping industry situation Tdestruction to the global economy and it income coupled with continually increasing is in a state of constant change, even more has certainly been a wild roller-coaster ride operating costs. In addition to electricity so with this unprecedented pandemic, for our shopping malls. discounts, our industry undoubtedly so the key is for malls to be flexible and and desperately needs more substantial adaptable. Online shopping has increased As we cautiously navigate the uncharted financial assistance from the government but we are confident that malls will survive waters of the Covid-19 pandemic and its for which, to date, we are still awaiting. and are here to stay. It is not easy to simply devastating repercussions on businesses, replace visiting malls as part of our lifestyle we can only attempt to adapt and As landlords, malls have been urged to and we are buoyed to note that a new mall transform as the circumstances unravel assist tenants with rental relief but this opened their doors early this month in and develop. From the initial restricted must be concurrent with self-rescue as . form of lockdowns until the current we all need to share the burden and work recovery period, most shopping malls have jointly in order to revive and survive. Now as we begin the journey of recovery, never been entirely closed as we continue Apart from rental adjustments, and more footfall, although increasing gradually, to serve our community with essential importantly, most malls also work with is still below par but it will probably take services. their tenants to offer marketing assistance until end of this year before we achieve and the industry as a whole looks forward pre-pandemic and pre-Movement Control The authorities certainly did not have to collaborate with related government Order levels. any easy decisions, attempting to balance agencies for nationwide programmes between health priorities and a stalled to restart the shopping cycle. Much Just RE-set, RE-boot, RE-focus, and economy but we are glad that the overall needed now is shopping tourism from RE-emerge stronger and better! population as well as businesses have domestic travellers and later on from the generally fared well with compliance of the international arena as the travel industry Thank you. necessary Standard Operating Procedures. recovers. Not surprisingly and out of necessity, we have all suddenly turned into a nation where washing hands and queueing up are the norm, a great improvement from our previous practices.

TAN SRI DATO TEO CHIANG KOK President

2 PPK NewsNetwork

PPK office WHAT’S NEW bearers 2018 - 2020

hONOURABLE mEMBERS oF aDVISORY bOARD

Tan Sri Datuk Eddy Chen YBhg Dato’ Ngeow Voon Yean Mr Kumar Tharmalingam Mr Richard Chan YBhg Dato’ Joyce Yap Mr HC Chan

EXECUTIVE COUNCIL MEMBERS

President YBhg Tan Sri Dato’ Teo Chiang Kok Vice President I Ms Phang Sau Lian The newly opened PMP has ample parking for shoppers Vice President II Ms Kung Suan Ai Honorary Secretary storey building, which has a net lettable Mr MK Foong area of 157,247 sq ft. Our mall offers a Assistant Secretary variety of goods, ranging from household Mr KK Lim Paragon items to fashion as well as food and Treasurer beverages to meet the surrounding Mr Tan Joon Kai communities’ daily needs.” Assistant Treasurer Mr William Tang Market They include nearby residential developments such as Kampung Melayu COMMITTEE MEMBERS Majidee, Taman Gembira, Kampung PR & Publicity Place Ungku Mohsin, Larkin, Taman Damansara Mr Joseph Yeoh Aliff and Bandar Baru Uda. Social Mr Patrick So Research Ir YL Lum opens in Sports Mr Darren Hee Special Project Dato Sri Vincent Tiew JB Training/Seminar he new Paragon Market Place Ms Jenny Chan (PMP), strategically sited at the Technical Mr Vincent Chong commercial area along Jalan Mr Goh Chong Wooi Tampoi in Johor Bahru (JB), Johor Tbraves its soft opening on 6 June with 75% PMP’s anchor tenant Ms Eunice Lim Southern Region Representative occupancy while Malaysia’s Conditional Ms Zahayu Shima Ayub Movement Control Order (CMCO) was still Apart from its anchor tenant, TF Value- Representative on. Mart, which occupies 51,156 sq ft of Datin Christine Ling PMP’s retail space, Tan says, “We are It is a joint-venture project between Joland Representative encouraging both the local small- and Group and Kuopacific Group with the joint- Mr David Lau medium-sized entreprises (SMEs) and venture company known as Chempaka Internal Auditors newcomers to join us. Mr Amos Chew / Mr John Lau Logistik Sdn Bhd. “We hope to boost the local economy and Joland Group Executive Director Dato’ increase employment by opening up such Sri Godwin Tan Pei Poh says although business opportunities to the SMEs.” PMP has secured 90% occupancy from its tenants, the remaining retail units will “We can be accessed via major highways be opening in stages as the CMCO had such as the Tebrau Highway, Pasir Gudang Publisher affected its tenants’ fit-out schedule. Highway, Jalan Skudai and Eastern PPK MALAYSIA (Malaysia Shopping Malls Association) Dispersal Link, which is 15- minutes drive A608, 6th Floor, Block A (Lobby No. 2), In preparation for PMP’s opening, Tan from the JB City Centre,” Tan elaborates. No. 1, Jalan SS20/27, Damansara Intan, assures, “We are strictly adhering to the 47400 Petaling Jaya, Malaysia Tel: 603 – 7727 6202/6232 Fax: 603 – 7727 6203 standard operating procedures imposed Besides being located along the Muafakat Email: [email protected] URL: ppkm.org.my by the National Security Council and the Johor bus route from Terminal Johor Jaya local authorities such as Majlis Bandaraya to Larkin Sentral, the KTM Komuter also Johor Bahru. They include social distancing passes by our mall, whose façade reflects and temperature screening to ensure the a railway station, quips PMP Manager safety and health of our shoppers, retail Cynthia Lim. partners and employees.” “The mall also provides 700 free parking He adds, “We have in total 70 tenants bays for our shoppers,” she adds. taking up 144 of retail units in our three-

#46 | June 2020 3 COMING SOON INDUSTRY NEWS

35th Annual General Meeting 21 July Building The Mall of the Future Music Rights Malaysia (MRM) Do look out for the new date for our in the New Normal 35th AGM, originally scheduled on 21 Our speaker will be Mr Tim Liew, a serial MRM has announced to member malls March 2020 and subsequently postponed entrepreneur/speaker with over 16 years that they will undergo a members’ due to Movement Control Order (MCO) of experience in the retail design industry voluntary winding-up exercise as part regulations following the Covid-19 and co-founder of Visata Creative Sdn Bhd, of a corporate restructuring exercise to pandemic. We do look forward to meet who will share design trends to ensure be undertaken by them. As PPKM has you and to share your experiences of the that brick-and-mortar presence stays fresh a current agreement with them until current scenario which has and up-to-date to meet customers’ needs, 31 December 2023, we have advised resulted in many new and compulsory as well as complying with current social members to put on hold MRM’s SOPs. distancing requirements. This TTT will also request for mutual termination of cover the current challenges faced by mall malls’ individual agreements pending owners. further verification by our legal advisors. Together with the joint ‘user group’ comprising other like-minded WATCH OUT Regional Meetings 2020 developers, hoteliers and retailers, for our VIRTUAL Out of necessity and expediency, we are we have appealed to the authorities Teh Tarik Talks! now following the current trend of having to retain a single entity for music online meetings, especially for members copyrights and will keep members Yes, we are carrying on and going virtual outside the Valley. Several regional informed of future developments. for our talks including “virtual teh tarik” meetings have been planned as usual for which means you would need to provide 2020, and we had our inaugural online and your own teh tarik :). With our new model combined meeting for Sarawak and Sabah of bringing fresh ideas to the mall industry, malls on 21 May. It was a fruitful meeting Certification Course in Shopping members will be able to join in the online where, with online accessibility, we could Mall Management platform with multiple complimentary also share regional updates from the Due to the current circumstances, we registrations. Northern and Southern regions together have taken the difficult decision to with malls in East Malaysia in one go – postpone all our courses in shopping mall Watch out for our announcements for the altogether in one big happy family! management until next year. Therefore, all following topics which will be on board candidates who have completed Part 1 & 2 soon: Of course, the hot topic was the negative of the various modules and are eligible to impact of Covid-19 and the MCO/CMCO 23 June One Mall One Registration for undertake Part 3 will now be automatically on shopping malls, and as we all felt all Multiple Stores Check-ins accorded an extension of 12 months, along, we are much encouraged to know ie their eligibility period will now be 48 that a recent online survey reinforced the To improve the shopping experience at months (instead of 36 months). So do keep fact that Malaysians felt “malls are here malls and to adapt to the new normal with safe and well, we shall see you again in to stay!” ease, ServeDeck has introduced a ONE April 2021. MALL ONE REGISTRATION solution for check-ins at multiple stores. The manual processes of recording and monitoring PPKM AWARDS 2020 for customers’ and tenants’ data inclusive of body temperature are digitalised, ‘BEST EXPERIENTIAL with specific reports auto differentiated MARKETING’ as customers, tenants or staff. This will We very much regret to inform that due certainly eliminate the hassle of multiple to the extenuating and unprecedented temperature checks etc for shoppers circumstances of the ongoing global at the same mall so they can engage in Meeting attendees included PPK pandemic and the recent MCO/CMCO more productive retail therapy. Keeping President, Tan Sri Teo Chiang Kok, VP1 whereby malls are unable to organise their communities safe at the malls! Phang Sau Lian, members from Kuching, usual marketing events and promotions, , Sandakan, Klang Valley and we have no alternative but to discontinue 8 July enhance Your SOPs with of course, our regional representatives, the above for 2020. Disinfection Stations Sarawak’s Datin Christine Ling, Sabah’s David Lau, Zahayu Shima from Johor and Needless to say that Covid-19 has badly Disinfection Stations can be used as Peter Chan from . While we miss disrupted all on-going programmes but an added preventive measure to stop the local food and camaraderie amongst with the way to recovery being open under the spread of deadly viruses in the new fellow industry practitioners, this may the Recovery MCO from 10 June, we are normal. Simple, safe and easy to use for be the way to go in the new normal of hopeful that the situation will improve from both staff and shoppers, they provide organising meetings. third quarter of this year and to carry on 360 degree total body disinfection as with the PPKM Awards next year. Looking compared to sanitising our hands only. Peeking a little forward, our next regional forward to work with our members on this With the extra protection and prevention meetings will be as follows (subject to event again in 2021! from contracting virus infection, they will confirmation): build confidence on hygiene and sanitation so the public can shop with confidence July Northern Region and peace of mind. November Southern Region

4 PPK NewsNetwork ARTICLE

hawkers, maybe an unusual relief in the few decades of their hawker’s lives, too. Shopping and Retail People are still trying to get used to this new lifestyle of morning take-away for their usual breakfast session and having their roti canai supper or dinner at home Post MCO/CMCO without being physically present at the By Ir. YL Lum mamak stalls. Restaurants & Bubble Tea There are mixed experiences amongst importantly, more men now learned to buy the mainstream restaurants. The ones groceries and finally, started to read expiry primarily selling the dine-in experience dates. would be very much disrupted, and Grocers & Logistics overheads on staffing and real estate could be detrimental. For those who already had Empty racks automatically trigger the menus suitable for take-out or online, they upper stream in the supply chain to still carried on business as usual more expedite production and that, too, went easily, except that they had to acclimatise along with more efficient and aggressive themselves to the new dine-in vs take-out logistic flow. With the MCO and CMCO ratio of 0%:100% instead of the normal On March 16, 2020, Malaysia’s Prime in place, shops, warehouses and delivery 15%:85%. Minister made an announcement to personnel are very much restricted in Everyone from factories, distributors to implement 14 days of Movement Control the usual flexibilities that they used to consumers in the whole supply chain is Order (MCO) but 48 hours later, this enjoy in the past. This prompted further still learning to adapt and change in order was subsequently extended thrice until synergies among stakeholders in the to stay in business during this MCO/ 3 May 2020, a totally unprecedented supply chain to modularise the groceries CMCO period. Whilst no one is sure when government order as a prevention and in packages, market them online and have this will be over, many during this period control of Covid-19. This was followed by them delivered to consumers’ homes or have learned to supply, shop and deliver the Conditional MCO until 9 June which some pre-designated pick-up points. This goods via online and we are all compelled all resulted in a devastating impact on the is not new, but has become vital under the to be tech savvy in order to get things that economy and sociological well-being of MCO/CMCO period, making it an effective we want while staying at home. Traditional the country in whole new ways - it shocked means for grocers to go online. suppliers are now compelled to work the entire system. Grab, Panda & Lazada and more with new forms of e-logistic partners and Buy More payment gateways in order to sell their Besides the medical personnel front- goods and accept e-payments instead of In the beginning, the news prompted many liners, these delivery services are the cash. Some ask, now that more shoppers to start hoarding up on daily essentials – heroes during this MCO/CMCO period, have gotten used to shop online, will that overnight, supermarkets and convenience keeping the blood flowing in the city. impact the brick-and-mortar shopping stores suddenly had booming business and Meals, merchandise and even some daily estates once this MCO/CMCO is over? literally ran out of supplies of most things essentials are still able to be transacted – from dairy products to toilet paper. in the market place and we are very much According to an online survey organised The panic buying extended from brick- thankful to this new era of e-hailing and by The EdgeProp in April/May to gauge and-mortar to online stores. The frenzy e-delivery services. Life still goes on, consumers’ perception towards shopping was mainly founded on the fact that a though not perfectly, but still, things keep malls, it is heartening to note that 82% of large population of Malaysians had never moving instead of being at a standstill. the respondents still want them. Shopping experienced anything close to MCO (the Traditional eateries and cuisine such as trends have definitely changed since the closest thing to it was the curfew during hawker food, roast duck, even steamboat, onset of the global pandemic but one thing May 13, 1969). Added to the confusion too are forced to go online, modularise for sure, malls will evolve yet again to keep over the extent of the “lockdown”, people their offerings and sell online bundles up with their shoppers’ preferences. The just went on buying “everything”, that within the delivery mechanism. impact of Covid-19 will see a definitive resulted in sudden shortage of food shake-up and big changes for retail and supplies from the rack. “Empty racks” Hawkers & Coffee Shops shopping malls, with many current players visuals and posts in social media further On the first day of the MCO, hawkers at being forced to leave the industry for more induced fear amongst consumers to even coffee shops remained open, except they reasons than one. Even as we are now in buy and hoard more without checking if only do “da-bao” (take-away), without any the recovery stage, we are still unable to they can fit so much groceries inside their sit-in dining. Aunties and uncles donned see through the crystal ball, but to touch own refrigerators. After this fiasco, most their masks and carried on preparing their our hearts, the very first thing many may Malaysians have now become more tech curry laksa and kuay teow soup in the want to do right after the MCO is to drive savvy at buying online; besides this, many usual manner; the customers walked in over to our favourite mall and sit down would be more efficient and much more and took their food packs along with their there to have a coffee for in the end, we savvy to know when to buy things in the daily dose of coffee, except in the form of are all social beings. right quantities and the right timing to “ikat-tepi”. Without having the hassle to minimise leaving the house and exposing clean up the crockery and utensils, that is a themselves to the virus. And most whole new experience by many traditional

#46 | June 2020 5 ARTICLE Shopping in the New Normal

ovid-19 is a historic global tragedy still in the making, upending and shaking up the whole world as we know it. For those of us working Cin shopping malls, the business of malls will never be the same again, indeed our entire lives will never go back to the previous ‘normal’, so it is best if we all adapt to the new normal as fast as possible.

The shock waves started to hit our industry as the Movement Control Order (MCO) was announced effective from 18 March when all non-essential services had to close. Movement was severely curtailed but malls remained open, albeit partially, only for essential services like groceries, food & beverage and later on, hardware etc. This resulted in several malls without these essentials having no option but to To manage the required SOPs of temperature checks, hand sanitisation and contact tracing, close, including even those who deemed malls have introduced multiple ways of compliance from basic manual procedures, hand it impractical to maintain almost the sanitation and thermal scanning to technology involving in-house proprietary apps with QR entire mall’s operations for only a small codes which reduce the hassle of checking in for the same procedures at multiple shops percentage of businesses. As it turned within the mall out, the MCO was eventually extended until shopping malls could open more fully from 4 May 2020 under Conditional MCO (CMCO) and here we are today under the Recovery MCO (RMCO} stage.

To enable malls to open for business, there were a whole plethora of Standing Operating Procedures (SOPs) which require strict compliance by mall management, tenants’ shops as well as shoppers for the immediate next few months and much longer. All parties have been most understanding with their close cooperation and collaboration so that To eliminate crowding, social distancing markings are put in place at concourse malls and shops can carry on businesses in seats, customer service counters, ATMs and car park payment kiosks a safe environment, enabling shoppers to shop with peace of mind.

Standing Operating Procedures (SOPs)

We share a pictorial collage of how shopping is now being practised in malls, evolving into new habits and new norms.

With social distancing in mind, the new normal for shoppers now involves queues, queues and queues but for the inveterate shopper, it’s fine, even if it is only for groceries and other essentials!

6 PPK NewsNetwork For food delivery services, there are designated waiting areas for delivery riders where social distancing is enforced and this minimises riders’ close contact with shoppers

At the back-of- house, M&E technicians have enhanced cleaning and sanitation practices for air-conditioning equipment and mechanical ventilation. Using disinfectants and chemical treatment, this ensures a circulation of healthier air quality

The Personal Touch: Social distancing officers remind shoppers in the mall to maintain social distancing

The use of lifts and escalators is also regulated by social distancing principles and are re-configured to keep shoppers at least 1 meter apart. So when you tread onto the escalator - no holding hands, just count 1-2-3 steps

Washrooms are disinfected regularly and deep cleansed after operating hours. The number of shoppers visiting the washrooms is controlled and there is a sweet reminder on the recommended way to wash hands

#46 | June 2020 7 To encourage contactless transactions, shoppers can order, pay online and just pick up their merchandise from designated Most events at stations – an added convenience for malls’ concourse shoppers in a hurry areas have been put on hold except for community-based ones like blood donation drives, Awareness and which were greatly mutual collaboration needed especially are central in during the fasting promoting and Time for creative month just past maintaining hygiene solutions – check out and cleanliness, this very novel idea of both essential to placing mannequins to combat infections lessen available seats at the common area … with fashion items for advertisement at the same time!

Apps, Apps and More Apps They then developed MyTrace to on the tenant mix in malls. There are already complement MySejatera, tracing contact several well-known overseas retailers that There is a whole slew of apps and QR codes persons who are close to another app have gone into administration, signaling out there, so shoppers are spoilt for choice user who is Covid-19 positive. The alarm bells and definite changes in future to the extent of mild confusion. All these government’s third app is Gerak Malaysia, tenancy mix. apps have been developed for contact essentially used for interstate movements. tracing with being the first mall In view of all these, having a smart mobile For shopping malls and retail in the to launch their proprietary Health QR App phone is more essential than ever. new normal, operational changes now for staff, shoppers and tenants. Once include the heightened use of contactless users have their temperatures checked Other government authorities have also transactions, discontinuation of free taste at the malls’ entrance, they complete the introduced their own apps like Dewan samplings, make-up trials and fittings for online health declaration form and receive Bandaraya (DBKL)’s KLStep; fashion wear. There is also reduction in a Green QR Code which is recognised by state government’s SELangkah capacity necessitated by social distancing shops in the mall. Other malls’ apps work and Penang’s PgCare. SabahTrace operates and density of congregations, leading to similarly, with offering in Sabah and Sarawak has two apps, businesses becoming less viable due to shoppers a Day Pass. For other malls, there CovidTrace and Qmunity. decrease in footfall and sales volume. are vendors out there who have developed generic apps which may be used in malls Patterns of Change On the plus side, we will see more and other buildings. advanced use of technology and Artificial Recent statistics show that consumer Intelligence (AI) for example for robot MySejahtera is the first Covid-19 purchase patterns have changed radically patrols in security and other relevant monitoring app in the country developed since MCO started, with the majority operational areas. by the government where users can spending on essential food and household perform health self-assessment and keep items. This means that retailers need to The only constant in shopping malls is tabs on information and statistics on the adapt and adopt new business strategies change with both malls and shoppers pandemic. and refocus their directions in order to evolving yet again to accommodate the recover and survive, ultimately impacting new normal!

Photos credits: 1 Utama; City Mall, Kota Kinabalu; fahrenheit88; Sunway Malls; The Spring, Kuching

8 PPK NewsNetwork PAST ACTIVITIES

Online Webinars

Following the new normal of online events, our affiliate members from Knight-Frank Malaysia Sdn Bhd and Stratos Consulting 6 MAY | EPISODE #2: Group organised a series of webinars dubbed as Frank Talk! with our collaboration. Post Covid Lockdown Reality in China & UAE Malls

27 APRIL | EPISODE #1: How are things really happening for malls in China and the United Arab Emirates as they respond, recover and reinvent themselves? Back to Business! In Dubai, we learnt there are new limits on trading hours and shoppers which included a cap of 30% capacity while footfall at The first session explored how Malaysian malls will get back to Parkview Green is still in recovery mode but increasing on a daily business after the MCO in consideration of enhanced health basis. SOPs and the next major shift in the mall concept.

Clockwise L to R from top left corner: Clockwise L to R from top left corner: • Tan Sri Teo Chiang Kok, PPK President/Director, 1 Utama • Ashish J., Head of Leasing & Mall Operations, First Choice Shopping Centre Commercial Brokers LLC, UAE • Tina Leong, Managing Director, Stratos Consulting Group • Moderator: Tina Leong, Managing Director, Stratos • Moderator: Ben Ooi, Associate Director of Retail Consulting Group Consultancy, Knight Frank Malaysia • Larry Xu, Sales & Marketing General Manager, Parkview • Yuen May Chee, Associate Director, Knight Frank Property Green FangCaoDi Beijing Management for Sungei Wang, The Shore and Jesselton • Ben Ooi, Associate Director of Retail Consultancy, Knight Mall Frank Malaysia • Kan Ky-Vern, Executive Director, DPulze Shopping Mall For those who have missed the above, you may still access the video link here for both Episodes #1 and #2 : https://bit.ly/2VUPOM4

1 JUNE | The Breakfast Grille

PPKM President Tan Sri Teo Chiang Kok was recently interviewed on air with BFM Radio together with Datuk Seri Garry Chua, President of Malaysia Retail Chain Association. Topics discussed included the current challenges of shopping malls and retailers and how both mall management and retailers are coping with the compulsory Standard Operating Procedures of doing business. The session also explored what more needs to be done to help the industry to recover and survive in the new normal and what the future has in store.

For those who missed it, you can catch up with the podcast here: https://www.bfm.my/podcast/morning-run/the- breakfast-grille/retailers-big-and-small-are-suffering- plead-for-more-govt-help

#46 | June 2020 9 PAST ACTIVITIES

21 MAY | The Covid-19 Learning Experience with China Malls Senior PPKM representatives recently had an invaluable learning experience with China mall industry practitioners from Beijing, Wuhan and Shanghai, learning about their action plan and strategic planning for restarting the economy and shopping malls. These included giveaway shopping vouchers and live streaming sales including for luxury brands with celebrities.

Key statistics of the China mall industry during their Covid-19 experience from March – April 2020 include the following:

Decrease in Average Sales Decrease in Average Percentage of Malls Rental Income Percentage of Malls 43% 40% 39% 36%

25% 17%

>80% 50 - 80% <50% >80% 50 - 80% <50%

Decrease in Average Sales % of Malls Decrease in Average Rental Income % of Malls > 80% 43% > 80% 36% 50 - 80% 40% 50 - 80% 39% < 50% 17% < 50% 25%

Decrease in Footfall Tenancy Withdrawals Malls in First Tier Cities (excluding expired tenancies) Malls in Second and Third Tier Cities Percentage of Malls 40% 58% 35% 43% 33% 27% 24% 15% 10% 6% 6% 3%

>80% 50-80% <50%

Decrease in Malls in First Malls in Second Tenancy Withdrawals % of Malls Footfall Tier Cities and Third Tier (excluding expired tenancies) Cities < 10% 40% > 80% 43% 27% 10 - 20% 35% 50 - 80% 33% 58% 20 - 30% 6% < 50% 24% 15% > 30% 6% No Withdrawals 10% Others 3%

10 PPK NewsNetwork Footfall Sales Percentage of Malls Percentage of Malls

55% 49% Achieved 20-50% of the worst monthly Achieved 20-50% of the worst monthly footfall in 2019 sales in 2019

30% 35% Achieved 50-80% of the worst monthly Achieved 50-80% of the worst monthly footfall in 2019 sales in 2019

6% Achieved 80-100% of the worst 6% Achieved 80-100% of the worst monthly footfall in 2019 monthly sales in 2019

5% Exceeded the worst monthly footfall in 7% 2019 Exceeded the worst monthly sales in 2019

4% Similar or exceeded average monthly 3% footfall in 2019 Similar or exceeded average monthly sales in 2019

Footfall % of Malls Sales % of Malls Similar or exceeded average monthly footfall in 2019 4% Similar or exceeded average monthly sales in 2019 3% Exceeded the worst monthly footfall in 2019 5% Exceeded the worst monthly sales in 2019 7% Achieved 80-100% of the worst monthly footfall in 2019 6% Achieved 80-100% of the worst monthly sales in 2019 6% Achieved 50-80% of the worst monthly footfall in 2019 30% Achieved 50-80% of the worst monthly sales in 2019 35% Achieved 20-50% of the worst monthly footfall in 2019 55% Achieved 20-50% of the worst monthly sales in 2019 49%

The participants included the following:

L to R 1st row: • Yang Wen Ting, World City Wuhan • Rachael Tai, Knight Frank Malaysia (coordinator) • Jia Yao Yong, Yue Xing Group

L to R 2nd row: • Eunice, Knight Frank Malaysia (coordinator) • Victor Guo, Mall China • Tan Sri Teo Chiang Kok, President, PPKM/1 Utama Shopping Centre

L to R 3rd row: • Low Shu Yik, Stratos Consulting Group • Song Ruo Jia, Xing Dong Run Group • William Tang, Assistant Treasurer, PPKM/Mall of Malaysia

L to R 4th row: • Phang Sau Lian, Vice President 1, PPKM/Sunway Malls • YL Lum, Committee, PPKM (moderator)

For the above, this was conducted in Mandarin, but the key takeaways have been translated here: http://ppkm.org.my/wp-content/uploads/2020/06/Key-Takeaways-The-Covid-19-Learning-Experience-with-China-Malls.pdf

#46 | June 2020 11 s we begin heading back to normalcy following the Covid-19 outbreak, many Malaysian malls still face The Impact of MCO on the pressure of weathering out the storms from the movement control order (MCO). To support shopping Amalls in Malaysia, PPK Malaysia, together with Stratos Consulting Shopping Malls Group (Stratos), ran a survey to gather relevant data that may assist in furthering dialogues for additional government aid.

A total of 71 malls across Malaysia participated, with the majority June 2020 located in Klang Valley and suburban areas. This survey, which ran from 5 to 13 May, included a fair representation of neighbourhood malls, mid-market and upper mid-malls. A large proportion of participating malls sampled had a net lettable area (NLA) of less than 1,000,000 square feet. Types of Financial Relief Requested by Malls

Respondent Profile of Participating Malls

Source: PPKM, Stratos

With limited cash flow, smaller malls especially found it difficult to Source: PPKM, Stratos preserve cash flow while maintaining their workforce during the With the implementation of the MCO from 18 March, malls were MCO. In fact, 22.5% of the malls could sustain their current cash drilled down to just providing essential shopping services. As a flow for only one to three months, whilst a third could sustain for result, 45% of the malls experienced a dramatic 80% to 90% drop an additional three to six months. Overall, less than half (42%) in shopper footfallcompared to six months before the MCO. This had sufficient cash reserves to persist beyond six months. drop was seen to be relatively consistent across various shopping mall sizes. How Many Months can Malls Sustain their Cash Flow?

Footfall decrease during MCO

Source: PPKM, Stratos

From this survey, other notable suggestions from respondent malls included clearer standard operating procedures (SOPs) for malls and tenants from the government, more rebates and subsidies on utility, rental Source: PPKM, Stratos subsidies from government, To cushion the economic crisis, the Malaysian government came financial assistance to landlords, up with a series of stimulus packages totalling RM260 billion. etc. In general, the consensus However, only 14% of the malls found the stimulus package from malls is that there is still a to be quite helpful while approximately 52% felt that it was substantial need for improvement predominantly unhelpful. As a result, PPKM was quick to appeal in the government’s assistance for additional financial relief from the government on behalf to support the recovery and of shopping malls, supported by the survey respondents, with sustainability of malls in Malaysia. Source: PPKM, Stratos 63% asking for a waiver of statutory payments, and over 50% requesting for unconditional tax relief for rental rebates, and extended wage subsidies for all levels of employees.

12 PPK NewsNetwork To assist their non-essential services tenants, many of whom Apart from rebates, several malls granted tenants with more were obligated to cease operations during the MCO period, the flexible operating hours and assistance in marketing campaigns majority or 81% of the mall operators were found to have granted to assist the many tenants who had been heavily impacted by the or intended to grant rebates on rental. Although rental rebates MCO. Many allowed tenants to start business operations later, gradually declined over the MCO phases, more than 50% of mall after 10 am in the morning. operators were still providing or intended to provide rental relief towards the final phase of the MCO. Notably, this declining trend Although many are hopeful for an accelerated resumption of throughout the MCO phases paralleled with the trend of relief businesses, more than half of the shopping malls thought that it granted for service, advertising and promotion charges. would take six to twelve months before businesses returned to normal after the MCO is lifted. This was again consistent across A lesser 27% had provided or intended to offer rebates on service several regions and various mall sizes. However, about 39% of the charges. Most malls still incurred costs such as electricity, lighting, smaller malls expected businesses to return to normal only after a manpower for security and housekeeping during the MCO as year or more. Many malls foresee a gestation period before a full they had to keep it open for essential trades such as groceries, recovery can begin to take place which is why the support from F&B and pharmacies. Another 22.5% had provided or intend to government is vital in speeding the recovery of malls. offer rebates on advertising and promotion charges during the MCO. When will Shopping Malls Return back to Normal?

Relief that Malls have Given or Intended to Give

Source: PPKM, Stratos

To conclude, it is certainly disheartening to see the effects of the MCO on malls and their respective tenants but it remains a necessity to ensure the safety Source: PPKM, Stratos and health of the people and our nation. As restrictions begin A substantial 64% of the mall operators waived rental (100% to lift, malls need all the support rebate) for their non-essential tenants during the 1st phase of they can get to recover from their MCO (18 to 31 March), whilst 35% to 40% continued doing so loss. Retailers and mall operators until May. need to work together to think of more mutually agreeable When asked about the spread of relief provided to tenants, solutions while our government approximately 28% were willing to give rebates across the board needs to continue their efforts while the majority (53.5%) gave rebates according to business Source: PPKM, Stratos to help malls overcome these categories, and another 18% decided on a case-to-case basis. difficult times. Of course, the current efforts are not without weight; however, more can be and should be done to support malls in weathering out the storms from the MCO.

The above report is prepared by Stratos Consulting Group (Stratos), PPKM’s market research partner.

NETWORKING PARTNERS

Asosiasi Pengelola Pusat Belanja Indonesia (APPBI) Japan Council of Shopping Centers (JCSC) Nordic Council of Shopping Centers (NCSC) Association of Consulting Engineers (ACEM) Korea Building Owners & Managers Association (KBOMA) Pertubuhan Akitek Malaysia (PAM) BBKLCC Tourism Association, Kuala Lumpur Malaysia Crime Prevention Foundation (MCPF) Property Council of Australia (PCA) British Council of Shopping Centres (BCSC) Malaysia Retail Chain Association (MRCA) Quality Restroom Association of Malaysia (QRAM) Building Management Association of Malaysia (BMAM) Malaysia Retailers Association (MRA) Real Estate & Housing Developers Association, Council of Asian Shopping Centers (CASC) Malaysia Green Building Confederation (MGBC) (REDAS) Dewan Bandaraya Kuala Lumpur (DBKL) Malaysian Association of Convention and Exhibition Organisers Real Estate and Housing Developers Association (REHDA) Eastern Regional Organisation for Planning & Human and Suppliers (MACEOS) Shopping Center Council of Australia (SCCA) Settlements (EAROPH), Malaysia Malaysian Association of Hotel Owners (MAHO) Taiwan Council of Shopping Centers (TCSC) FIABCI Malaysia Chapter Malaysian Association of Hotels (MAH) The Associated Chinese Chambers of Commerce and Industry of Fire Prevention Council Malaysia (FIPCOM) Malaysian Association of Travel & Tour Agents (MATTA) Malaysia (ACCCIM) Hong Kong Trade Development Council Malaysian Franchise Association (MFA) The Malaysian Society of Association Executives (MSAE) Institute of Shopping Center Management Ltd (ISCM), Hong Kong Malaysian Tourism Federation (MTF) The Institute of Engineers, Malaysia (IEM) International Council of Shopping Centers (ICSC) Mall China Tourism Malaysia Jabatan Bomba dan Penyelamat Malaysia Middle East Council of Shopping Centers (MECSC)

#46 | June 2020 13 MEMBERSHIP 2020

CORPORATE MEMBERS INDIVIDUAL MEMBERS 1 Utama Shopping Centre The Spring Abdul Aziz b Aman Josephine Lim Kwee Yuen, Saw Chin Chuan, CMOM 1MK Mall Office Tower tHe Spring Abdul Razak Tuah b Othman, CMAM Saw Lee Chuan 1Shamelin Shopping Mall The Starling CMOM Julia Chan Set Hon Foong 3 Damansara KB Mall The Summit Subang USJ Agnes Tan Mee Yoke Junairiah bt Afandi, CMAM Shahrol Azman b Abd Kahar, Alam Sentral Plaza KL East Mall The Waterfront @ Parkcity Aida Azimah Mohamad Abas, Katherine Tan CMOM Alor Star Mall KL Gateway Mall The Weld CMMLM Kenny Chin Chong Huat, Shaifulddin A. Majid, CMM Aman Central Toppen Shopping Centre Ainain Birriyah Binti Zek CMM Sharifah Fairuz Binti Syed Amcorp Mall Kluang Mall Tropicana Gardens Shopping Khairuddin, CMAM Kho Chung Hong, Charlie, Hashim, CMMLM Amerin Mall Kompleks Bukit Jambul Mall Aminudin b Mohd Noah, CMM Sharinah Binti Muhamad Atria Shopping Gallery Kompleks Metro Point Utropolis CMOM Khoo Kah Guan, CMOM Sarep avenue K Kompleks Mutiara Shopping Mall Amos Chew Yee Onn, CMMLM Khor Siak Seng, Vincent Sharon Lee Suit Fong, Bangsar Shopping Centre Kompleks Nafas Mall Vivacity Megamall, Kuching Andrew Ashvin, CMM Koay Poay Shin, CMMLM CMMLM Kompleks Star Parade Wangsa Walk Mall Andrew Jong Nyuk Nang Kok Huei Yuen, CMMLM Siegfried Shaun Dela Pena, BBCC Kompleks Tun Abdul Razak Wetex Parade Shopping Angel Wong Ern Qi, CMMLM Kuan Chuin Seong, CMOM CMMLM Berjaya Megamall (KOMTAR) Centre Ang Khoon Looi, Carol Kuan Hoi Chean Sit Chee Koon, CMMLM, Kuala Kota Raya Complex Zenith Lifestyle Centre Ang Kung San Kung Suan Ai, CMMLM CMAM Lumpur KSL Esplanade Mall Anthony Dylan anak Frankie L Izwan b Abdullah, CMMLM Siti Absah Binti Kamarudin, Berjaya Waterfront Complex KTCC Mall Jurem Larry Tan Teck Lai CMAM BMC Mall Kuantan Parade Aw Ik Qian, CMMLM Lau Chore Yee, John Siti Habsah Binti Rahmat Central i-City Shopping Centre KWC Fashion Mall Aziah bt Ahmad, CMMLM, Lawrence Teh Cheng Poh Rambali, CMAM Central Market Kulim Central CMOM Lee Bee Tieng, CMMLM Siti Zubaidah Binti Zakaria Central Square Sungai Petani Langkawi Fair Shopping Mall Beh Soo Ming Lee Beng Beng, CMM Steve Lim Boon Hoe Affiliate Beh Chin Sien, CMMLM Lee Chee Hoe Soh Shang Ching, Harry Centro M3 Mall Candice Foong May Yee Lee Mun Keong Soon Sheer Jin,CMOM Cheras LeisureMall , Melaka Members Carmen Lee Suet Hoong, Lee Poh Chu, CMMLM Subramaniam Apparow, Citta Mall Maju Junction Mall Individual CMOM Lee Siew Cheng, Karen CMOM City Mall Melawati Mall Carriek Chong Ka Loong, Lee Sze Ying Tan Cheng Guan Cityone Megamall Mesamall Ben Ooi Beng Eong CMOM Lee Shyh Chnan, Peter Tan Chuan Kang Damen Mall Mid Point Shopping Complex Faizal Rahim b Moidunny Chan Chin Meim Lee Tan Tan Tan Gar Peng, Kevin Datum Jelatik Mall Mid Valley Megamall Gan Siew Chain Chan Hong Kong, Peter Lee Wai Leng Tan Hui Swan, Farrer, CMM Dayabumi Mid Valley Southkey Kevin Chiu Zhenwei, CMM Chan Jen Nee, Jenny, CMM Lee Yew Meng, Daric, CMMLM Tan Joon Kai DC Mall Mitsui Outlet Park KLIA Lee Chee Leong Chan Lai Moi Leng Lay Peng, CMMLM Tan King Way Outlet Mall Mydin Mall Lok Chin Lum Chan Pui Li Lew Wen Feng, CMMLM Tan Sri Dato Teo Chiang Kok Dpulze Shopping Centre MyTown Shopping Centre M.Letchumanan Chang Wai Kwan, CMMLM Liew Su Hiung, Michael, Tan Sri Datuk Eddy Chen e @ Curve New World Park Ng Choo Yiew, Thomas Chan Wai Yee CMOM Lok Loi East Coast Mall Nexus Bangsar South Ng Chung Yau Chan You Li Lim Hooi Fung, CMOM Tan Sook Yuen, Charmaine, Eastern Mall Nu Sentral Phan May Ling Chang Loo Wei, CMMLM Lim Fei Yoon CMMLM Ekocheras Mall Pandan Kapital Tay Seow Liang, Victor, CMOM Chee Ken Fah, Daniel, CMM Lim Jenn Foong, CMOM Tan Ting Sin, CMOM Empire Shopping Gallery Paradigm Mall Tee Kok Guan Chee Kok Leong, Danny, Lim Kee Han Tan Yuen Yuen , Sylvia, Encorp Strand Mall Paradigm Mall Johor Bahru Timothy Liew Heng Kwun CMMLM Lim Kok Kheng CMMLM Endah Parade Paragon Market Place Timothy Sangawa Chen Lee Chun Lim Koon Hooi, Cynthia, Tang Chee Weng Paragon Point Shopping Wong Paik Tho Cheng Yew Ong CMMLM Tang You Qing, Eugenie First World Plaza Centre Woo May Foong Cherci Chan Huey Chyn, Lim Lay Hoon, CMOM, Tee Beng Soon, Alex Freeport A’Famosa Outlet Pasaraya Komuniti @ Mart Yasmin Mokhtar CMMLM CMMLM Thee Wei Loong, Dexter, Galleria@Kotaraya Kempas Yew Poh Ling Chew Fei Sean, CMMLM Lim Rong Jiang, CMMLM CMMLM Gamuda Walk YY Lau Chew Siew King, Candy Lim Shoo Wenn Teh Siew Yan, CMAM gateway@klia2 Paya Bunga Square (PB Chew Yien Yien, Doreena, Lim Shing Nie Teoh Ee Ling, CMMLM Genting Highlands Premium Square) CMMLM Lim Su Yi Teoh Eng Chiat, Andrew Outlets Pearl Point Shopping Mall Chia Wen Jun, CMMLM Lim Tek Guan Teoh Song Loon, CMMLM Giant Hypermarket Bandar Pelangi Leisure Mall Chin Wah Sheng, CMOM Lisbet Ling Kiang Hfoong, Tian Keng Swee, CMOM Kinrara Perling Mall Affiliate Chin Zhi Ging, CMMLM CMMLM Toh Kai Wei, Arthur, CMMLM Giant Hypermarket Banting Pernama Kompleks Mutiara Members Chiu Jing Chun, Selwyn, Loh Kwan Jou, CMOM Tun Mohd Afindi b Yusof Giant Hypermarket Batu Armada CMOM Loh Mun Wei, Ken CMMLM Wan Ainon Binti Abd Aziz, Caves Pertama Complex CORPORATE Choo Kok Keong Loo Ai Leen, CMMLM CMAM Giant Hypermarket Bayan Plaza Angsana Fair Star Shopping Sdn Bhd Choo Wan Da, Desmond Loo Hoey Theen Winnie Sam Min Wah, Baru Festival City Sdn Bhd Chong Min Fui, Vincent, CMM Loong Jee Yung CMMLM Giant Hypermarket Cheras Plaza Merdeka Golden Mayflower Sdn Bhd Chow Heng Wah, CMM Lum Youk Lee Wong Chan Fai, Eric Giant Hypermarket Kemuning Plaza Metro Kajang IFCA MSC Bhd Christine Ling Mei Hui Ma’amur Gadafy b Abdul Wong Kong San Utama Plaza Pelangi Kingsmen Sdn Bhd Christopher Stanley, CMMLM Rashid Wong Sook Voon, CMMLM Giant Hypermarket Klang Plaza Salak Park ‘SPARK’ Mandrill Tech Sdn Bhd Chu Chia Siong, CMM Mabel Tan Mui Pow, CMMLM Wong Woei Ming, Michael, Giant Hypermarket Klang Plaza Shah Alam (ServeDeck) Chua Qin Wei, CMMLM Maheran bt Hamdani CMAM, CMOM Sentral OCK Telco Infra Sdn Bhd Chua E Fun, CMMLM Marilyn Chuah Siu Ching, Wong Yoke Ping Giant Hypermarket Kota Publika Shopping Gallery Pinnacle Analytics Sdn Bhd Chua Eng Neo CMMLM Woo May Shee, CMMLM Damansara R&F Mall Johor Bahru Prominent Excel Sdn Bhd Chua Jenny Michael Poh Oon Howe Yakob Haron, CMOM Giant Hypermarket Kuala Riverwalk Village Selangor Dredging Sdn Bhd Chuah Ying Huey, CMMLM Michelle Chin Mee Ching Yap Weei Kee, CMMLM Terengganu SL Group Design Sdn Bhd Chuang Chew Loon, Alvin, Mira Rahman Yap Yin Yee , CMMLM Giant Hypermarket Kuantan Mall Stratos Consulting Group CMOM,CMAM Mohamad Khalid Bin Idross, Yap Yoke Lan, Rachel Giant Hypermarket Plentong RCMC Sdn Bhd Sdn Bhd Darren Chear CMOM Yeap Chin Chong, CMM Giant Hypermarket Putra SACC Mall The Hot Shoe Show & Dato Sri Dr. Vincent Tiew Mohamad Nazri b Mohd Yeap Huey Ling, CMMLM Heights Sarawak Plaza Company Sdn Bhd Soon Thung Mokhtar, CMOM Yeo Yee Yean, CMMLM Giant Hypermarket Senawang SB Mall The Lot Associates Sdn Bhd David Lau Hing Luong, CMM Mohamad Amirudin b Abu, Yew Joo Heng, CMOM Giant Hypermarket Seri Segamat Central Shopping Visata Creative Sdn Bhd Dayal a/l MK Prabhakaran CMAM Yew Su San Kembangan Centre Dr. Alvin Lim Boon Yew Mohd Helmi Bin Mohd Yeoh Keong Shyan Giant Hypermarket Shah Sejati Walk Eddie Ng Hing Loi Affendi, CMOM Yong Yuet Lan, CMMLM Alam Semua House Edison Yeoh Weei Yih, Mohd Nizam b Abdul Rahman Yuen Chew Yung Giant Hypermarket Subang Seremban Prima CMMLM Mohd Rafiz Azwan bin Zainab bt Abd Kadir Jaya Ee Huey Fang, Jyne, CMMLM Hashim Zahayu Shima bt Ayub, Giant Hypermarket Taiping Setia City Mall HONORARY Emyriza bt Mohamed Mohd Taufiq Hidayah b CMMLM Giant Hypermarket Tampoi Shaw Parade KL MEMBERS Eric Tee Lai Keong Ahmad Zawawi, CMOM Zulkahar b Khamis, CMOM Giant Hypermarket Ulu Klang Eugene Khoo Ng Bee Fong, Samantha, Dato’ Ngeow Voon Yean Giant Mall Kelana Jaya South City Plaza Esmei Eng Shih Mei, CMMLM CMOM, CMMLM Dato’ Joyce Yap, CMM Giant Superstore Tunjung Star Avenue Lifestyle Mall Eva Hew, CMMLM Ng Kuan Yee, Selina HC Chan, CMM Giant Setapak Evelyn Lo, CMM Noor Salehah bt Wahid, Giant Superstore Jerteh Retail Marina Fazrul Isham b Mohd, CMMLM Giant Superstore Kangar CMMLM Nor Hayati bt Nawawi Suri, Giant Superstore Kuala Pilah Fern Tan Feng Ching CMMLM, CMAM Giant Superstore Prima Sunshine Tower Foong Meng Khum, CMM Norlian bt Md Tahir, CMAM Saujana (Kajang) Sunway Big Box ASSOCIATE Gan Lip Lin Norbaiyah bt Mohd Yusof Glo Damansara MEMBERS Goh Boon Ooi Nurshaheera Binti Othman GM Klang Wholesale City Sunway Citrine Hub Goh Chong Wooi Nurul Azuin Binti Adnan, Mall Sunway Giza Mall Ng Hean Yin Hau Chee Seng CMMLM Great Eastern Mall Hee Yaw Hoong, Darren, Ong Eng Hin, CMM Green Heights Mall CMMLM Ong Hui Ling Sunway Velocity Heng Chin Ing, CMMLM Ooi Boon Shya, CMMLM, Suria KLCC Herbie Tan Kim Whatt CMOM Harbour Mall Sandakan Shopping Mall Hing Yi Xin Padma Prian @ Padman s/o Hartamas Shopping Centre Sutera Mall Hirdawati Mohd Nasir, CMAM Maniam Imago, KK Times Square Taiping Mall Ho Wai Hoong, CMMLM Patrick So Kee Whuay Intermark Mall Tasek Central Hoe Chee Seng Pearly Lim Meng Li, CMMLM LEGEND IOI City Mall Terminal Larkin Sentra How Siew Choo Phang Sau Lian CMMLM IOI Mall Bandar Putra Kulai Terminal One Shopping Hok Wai Khuin, CMMLM Phoon Kin Kheong, CMM Certified Mall Marketing & IOI Mall Puchong Centre Ishraqi Shah b Abu Bakar, Rajashegaran a/l Leasing Manager IPC Shopping Centre The Curve CMMLM, CMOM Ramakrishnan CMOM The Exchange TRX James Chin Onn Soon, CMAM Rashidan b Ismail, CMOM Certified Mall Operations Jason Chin Teck Seng Richard Chan Chee Keong, Manager Island Plaza The Linc CMAM ITCC Mall The Gardens Mall Javed Irshad Sani CMM Certified Mall Administration The Main Place Jeffrey Soon Jun Yann, CMAM, Ronald Ling Ing Han, CMMLM Manager Jetty Point Duty Free Complex The Mines CMMLM Samantha Ooi Suii Liin CMM Johor Bahru City Square The Shore Shopping Gallery Joseph Teo Fang Yih, CMM San Wei Hwa, Wivien Certified Mall Manager

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