A RACE-BASED quota for retail space will be harmful to the synergistic structure of retailers, said two shopping mall associations.
According to the Malaysia Shopping Malls Association and the Malaysia REIT Managers Association (MRMA), the shopping mall and retail industry has been deeply impacted by the COVID-19 pandemic and many are struggling to revive and recover from the pandemic-fuelled lockdowns.
“However, the industry is confident that shoppers will return to the mall for more experiential shopping, socialising and outings for entertainment and F&B for fun and camaraderie,” they said in a joint press statement.
Their response comes after Putrajaya’s recent proposal of quotas for Bumiputera-owned businesses in strategic locations such as shopping malls as part of efforts to increase the community’s participation in the economy.
Prime Minister Datuk Seri Ismail Sabri Yaakob who is also the chairman of the Bumiputera Prosperity Council (MKB) said on Nov 18 that the quotas would be managed transparently and fairly so that its ultimate goal can be achieved in line with the aspirations of Keluarga Malaysia.
Rather than a fixed quota, Malaysia Shopping Malls Association and the Malaysia REIT Managers Association (MRMA) suggested that it would be more positive and progressive for the Government to provide the requisite assistance to prepare the candidate for the retail business and equip them with the necessary knowledge and management skills before embarking into the venture.
“To give a head start, the Government could acquire franchises of established brands and more importantly, match these with suitably trained and qualified candidates with the correct aptitude and business acumen.
“The sought-after brand will this fit into the brand-mix and tenant-mix and benefit from the synergy of the retail cluster. Starting out with an established brand will inherently give the business a head-start and advantage in brand recognition and attract customers,” they added.
Furthermore, apart from location, the fundamental key to the success of a shopping mall is to position the mall to serve the immediate community first, thence the wider region and wherever available, the tourism industry.
“The curation of a successful mall is both science and an art. The merchandise and service offerings must match the needs and wants of the shoppers for the mall operators’ businesses to be suitable and profitable,” remarked both associations.
“Therefore, the matching of tenant mix and brand mix and pricing spectrum to meet the expectations and standards of the shoppers are critical ingredients for a successful mall operation.”
As such, neither race, religion nor class of any retail candidates matter at all.
“What critically matters is that the merchandise and services being offered are able to accommodate and match the needs and wants of the market (shoppers) and to fit the brand-mix and the tenant-mix within the respective cluster so that there is no anomaly or incongruity,” both associations commented.
“It is important for retailers to understand that businesses need medium to long term to nurture and to constantly evolve to meet continuous changes and challenges in the marketplace.
“In shopping malls and retail, the only constant is change and adaption where businesses who are quick to react to market trends will be able to sustain themselves and succeed.
“While a solid financial foundation is important, it is noted that many business failures are due to insufficient understanding and adaptation and the lack of perseverance, dedication and hard work particularly during the current challenging times.” – Dec 6, 2021
