These days, it’s common for tenants to try and ask for a waiver from their landlords. Remember that landlord who reduced his tenant’s rental by 60%? Here’s that article: Let me give you 60% rental reduction Well, it seems that he is not the only one yeah. These are all the malls in Malaysia which are also trying to help their tenants. Please do read this interesting article in FocusMalaysia.my with details of the malls which are doing their best to help their tenants.
Some offer half month of rental waiver for half a month while others were giving up till end of April 2020. The few malls I frequent occasionally include the below:
1) Sunway Group – 14 days
2) Pavilion – 14 days
3) WCT Group – Paradigm Mall – 14 days (to be extended)
4) The Gardens Mall – 14 days (to be extended)
5) Capitaland – 14 days (to be extended)
6) IOI Puchong – 14 days (to be extended)
7) AEON Malls & AEON Big 28 days – April 2, 2020
A full list of all the other malls are inside the article yeah (click to read). Some other interesting views from the article? Malaysian Retail Association (MRA) president James Loke says that retailers are grateful that many landlords and shopping malls owners have responded positively to the association’s appeal for free rental during the MCO period. Of the sales for MRA members, he said, “The sales have dropped by as high as 60% in February. We envisage a 90% drop in March due to the MCO.”
Meanwhile, the Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan said the government really needs to assist retailers to manage three big cost items – rental, payment of wages and payment of statutory contributions. He said, “The government can mediate with landlords and tenants to bring down rentals. The landlords may be incentivised with a lower tax rate or given tax-free status for income derived from rental for 2020.” Please do read the full Article in focusmalaysia.com
I think it is quite inevitable for retail lots within malls to ask for rental waiver because all of them are closed during the MCO and thus revenue will be zero for these days which it is closed. Helping these tenants survive would also help the malls because if half of these do not survive, then even the mall would lose its attractiveness and situation may quickly become worse. Besides that, if these tenants were to close, the mall will need time to find new tenants. Thus a waiver not just help the mall in the long run but it will also build goodwill too. As for how long would the waiver be, all of us would have to look at the the Health Ministry’s decision next week. Happy following.
Next suggested article: The 2 in 1 solution to too many malls?