The two years of various lockdowns imposed due to the Covid-19 pandemic resulted in a spike in online shopping.
However, as Malaysia continues to transition from the pandemic to the endemic phase, more people are returning to malls.
An industry player in the country is confident that the retail industry is on a rebound following the increasing number of visitors to its properties.
“Demand for retail space in our malls has increased as economic activities increase with borders reopening,” said Hektar Asset Management’s chief executive officer, Johari Shukri Jamil.
“We continue to receive leasing enquiries and interest from prospective tenants. However, we are stringently evaluating them against our revised tenancy remixing plans.
“We have also reorganised and strengthened our human resource capital,” he added.
Hektar Asset Management falls under Hektar Real Estate Investment Trust (Hektar REIT). The group recently announced its second-quarter results (ending June 30, 2022), which showed its portfolio of commercial properties experiencing a 58 per cent year-on-year increase in visitor footfall, and a 50 per cent higher vehicle count.
Hektar REIT recorded a revenue of RM29.37 million, an increase of 14.2 per cent, compared to the RM25.71 million recorded in the corresponding quarter of the previous year.
It also registered a net property income of RM13.70 million, an increase of 34.3 per cent compared to RM10.20 million in the second quarter of 2021, while the realised net income was RM6.57 million, a substantial increase of 317.3 per cent compared to the same period in the preceding year.
One of its crown jewels is Subang Parade, which celebrates its 35th anniversary next year. Besides Subang Parade, other commercial properties under the group are Mahkota Parade in Melaka, Wetex Parade & Classic Hotel in Muar, Johor, Central Square in Sungai Petani, Kedah, Kulim Central in Kulim, Kedah, and Segamat Central in Segamat, Johor.
“As part of our sustainable business strategy, we will continue adopting prudent financial management, cost optimisation initiatives, and enhancing our asset efficiencies to help cushion the impact of increasing interest rates and the rising cost of inflation,” said Johari Shukri.
“Furthermore, we continue to increase our engagement with all stakeholders, including tenants, to offer them competitive rental rates to facilitate their recovery.”
To stay relevant, Johari Shukri said the group is keeping an open mind and would work towards ensuring the sustainability of the business.
Separately, Khairul Ariffin Ibrahim, chief operating officer of Hektar Property Services Sdn Bhd, said he was confident Subang Parade would grow in strength following the success of the Merdeka Fiesta held at the mall, which ended on Wednesday.
The first ‘regional’ mall in Selangor and the longest shopping centre in Southeast Asia in 1988, Subang Parade has since pivoted towards being a ‘community mall’ to serve those from nearby neighbourhoods.
“Like other shopping malls, we were affected by the Covid-19 pandemic. But now that the economy has opened up, we have lined up a series of events, including Malaysia Day,” said Khairul Ariffin at the launch of the mall’s Merdeka Fiesta last Saturday.
“There is no point trying to compete with mega malls like Sunway Pyramid, Mid Valley and Pavilion. We are positioning ourselves as a community mall.
“Our tagline is ‘It’s our place’. Subang Parade belongs to the people, and the people belong to the mall.
“It is a place to take your family to chill, as it has a safe environment, is cosy, and affordable.”
He added that Subang Parade plans to organise events with Subang Jaya-based non-governmental organisations, schools, colleges, and universities.
“I did a quick scan of what other malls did for Merdeka, and I can say, we did it differently,” Khairul Ariffin said.
“Our fashion show was geared towards Malaysia and nationalism, as we promoted batik, tenun, and songket. Besides that, we also featured locally-produced merchandise, make-up, and cooking events.”
Besides plans for a Malaysia Day event and religious festivals, Khairul Ariffin said there will be an orchestra at the mall for one weekend in October.
October will also see an ‘International Cat Show’ by the Malaysia Cat Fanciers Club.
“We plan to have more concerts, but ours will not be the kind you find at other malls.
“The performances will be unique. We will not be mainstream. We do not intend to invite K-pop stars,” Khairul Ariffin added.
Khairul Ariffin also said Hektar was doing its best to spruce up Subang Parade.
The biggest complaints have been about the non-working escalators and toilets.
“We had difficulty ordering spare parts during the initial lockdown, but we have managed to address most of the issues regarding the escalators,” he said.
“But if you look around, you can see there are still one or two in need of repair. Shanghai was in lockdown recently. That delayed some of the work we needed to do,” said Khairul Ariffin.
“But other than that, we have upgraded Subang Parade and brought it into the modern age.”
