KUALA LUMPUR (July 15): Knight Frank Malaysia, in its Real Estate Highlights for 1H2020, anticipates retail sales to gradually improve moving forward with further easing of restrictions during the current recovery phase of the movement control order (MCO).

“We expect to see more creative ideas and trends that embrace technological innovations in the retail industry. The short-term outlook for the sector remains cloudy but there are windows of opportunities in the mid to longer term with the right data, key insights and value,” the real estate consultancy said in its report.

Moving forward, Knight Frank Malaysia foresees more shopping malls and retailers embracing technological innovations, with focus on less contact with surfaces and among people.

“The pandemic has accelerated the sales of consumer goods through online channels with many late adopters of e-commerce trying out online shopping as a means to purchase groceries or essential items during the MCO period,” it said.

According to the report, the Malaysia Digital Economy Corporation (MDEC) has forecasted the e-commerce sector to set a record high 20% growth to RM170 billion this year. “Amid social distancing measures and reduced presence in physical stores, consumers have shifted to online platforms, pushing retailers to adopt e-commerce and increase their online presence,” it added.

Meanwhile, pending the tabling of the Covid-19 Temporary Measures Act to provide relief from legal disputes over certain contractual obligations and financial distress in the post-MCO period, Knight Frank Malaysia advises shopping mall landlords to offer rental rebates or reductions for the next six months to help their tenants brace through the difficult financial recovery period, as seen offered by several mall operators.

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