Mixed development malls better for economy

KUALA LUMPUR: Mixed development malls such as Sunway Pyramid may be better for the economy than single or stand-alone malls, according to the Malaysia Shopping Malls Association (PPK Malaysia).

“With increasing land costs, we want to have more activities. For a 20 acre (8.1ha) parcel, you could have a shopping mall in the podium, and hotel, office or residential tower,” said HC Chan, president of the Malaysia Shopping Malls Association (PPK Malaysia).

Chan was speaking at the Council of Asian Shopping Centres (CASC) conference themed The Future of Asian Malls, What’s New? held at Sunway Resort Hotel and Spa from Nov 27 to 29.

Chan said more activities would complement one another and make the business more successful.

“Instead of just a shopping experience, there could be many more complimentary activities for the community,” he said.

Mixed development malls, he said,  are already a clear trend with hotels and universities connected to them.

“It may not be the top [trend] but all the hotels and universities and theme parks are adjacent to the mall and it’s still considered an integrated retail development. This trend is picking up” said Chan.

Besides educating and discussing best practices in the retail sector, the conference is also preparing its 340-strong members from Japan, Hong Kong, Australia and other Southeast Asian mall operators to promote shopping in Malaysia.

Chan said the conference was timely to strengthen Malaysia’s position as a top shopping destination after it was ranked second and fourth for top shopping destinations in the world by  The Economist and CNN respectively and allow the industry to leverage what is best for Visit Malaysia Year 2014.

The retail business in Malaysia generated sales of RM18.5 billion in 2012 that constituted 30.7% of all tourist spending. Tourism Malaysia’s sales campaign attracted 25 million tourists last year.


This article first appeared in The Edge Financial Daily, on November 29, 2013.