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Thursday, October 30, 2008

'Malaysian mall operators, tenants still doing okay'

The number of shopping malls in Malaysia and their total gross area is expected to grow by some 20 per cent by the end of 2010, based on the current projects under development.

This is similar to the 20 per cent growth experienced in the first half of 2008 compared with the same period in 2006, where total number of shopping complexes reached 260 and total gross area was 144.6 million sq ft.

Net lettable area now stands at 82 million sq ft.

Mall development is expected to not only happen in city centres, but also suburban or small towns.

This was revealed by the Malaysian Association for Shopping and Highrise Complex Management (PPK), whose president Joyce Yap said in comparison to other countries in the region, the retail space per capita in Malaysia is still low. This provides an opportunity for further addition.

She was speaking at a press conference following the launch of the Council of Asian Shopping Centres Conference 2008 in Petaling Jaya yesterday.

Meanwhile, Yap said local mall operators and retail tenants are still doing well amid the current global financial crisis.

"Tenants are still (doing) okay. There has been no impact on their sales turnover and visitation," she said.

However, she added that if the situation warrants it, rentals may increase by a smaller percentage compared with previous years when tenancies are up for review.

PPK adviser Datuk Teo Chiang Kok said in the last three years, rentals in shopping malls have increased by up to 15 per cent, depending on the trade and location.

By New Straits Times (by Vasantha Ganesan)

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