Malaysian Movement Restrictions Extended Until Year-End... Shopping Mall Industry 'Sighs'

Partial Easing of Economic Restrictions
Maintains Slight Sales Recovery Trend
Full Lift Expected This Month
But Unrelenting COVID-19 Crisis
Movement Restrictions Extended for 4 More Months

[Asia Economy Kuala Lumpur Correspondent Hong Seong-ah] The Malaysian shopping mall industry, which showed a slight recovery from June, is showing signs of shrinking again due to the persistent COVID-19 pandemic.

According to local media such as the Malay Mail on the 8th, the Malaysian government recently decided to extend the deadline for the eased movement control order (MCO) from the end of August to the end of this year, extending it by four months. Malaysia, which implemented the lockdown movement control order (MCO) on March 18, introduced a recovery movement control order from June that allowed most economic activities on the condition of mandatory mask-wearing, and announced that it would maintain the current policy until the end of the year.

In response to this policy, local retailers are showing reactions that it will be difficult to expect additional sales increases. In particular, the decision to continue restricting the entry of foreign tourists is analyzed to be a significant burden on the industry. In Malaysia, where tourism income accounts for a large portion of economic activity, the decision not to accept tourists until the end of the year is bound to be a direct blow to the economy. In 2018, 25.83 million tourists visited Malaysia, and shopping by tourists accounted for the largest share.

Offline retailers such as One Utama, Malaysia's largest shopping mall, Suria KLCC, and Pavilion Shopping Mall raised expectations for sales recovery as some economic activity restrictions were lifted from June. According to the Malaysia Shopping Mall Association (PPKM), 95% of shopping mall stores resumed operations from July, and during this period, shopping mall visitors increased to 80% of pre-COVID-19 levels. Sales at these malls also reached about 75% compared to before COVID-19. The related industry expected sales recovery to become more prominent from this month when the movement control order is completely lifted.

Following this policy, the shopping mall industry has begun to prepare survival strategies such as upgrading and diversifying handled brands or strengthening contactless services. Suria KLCC attracted the luxury brand Givenchy cosmetics store to offset poor performance, and the Japanese shopping mall operator Aeon started a 'Click and Collect' service, where customers order online and pick up at offline stores, to provide contactless services. This service allows customers to check grocery stock via social media and increase contactless payments. In addition, contactless shopping environments are being built through personal shoppers, home delivery services, and online malls, and recently, a drive-thru style product purchase service has been operated.

This content was produced with the assistance of AI translation services.