Latest news with #HariRaya


New Straits Times
9 hours ago
- Business
- New Straits Times
Malaysia's 733 malls, retail centres face margin squeeze as costs outpace revenue
KUALA LUMPUR: Malaysia's estimated 733 shopping malls, hypermarkets, supermarkets and market centres are under mounting pressure from rising operating costs and tightening regulations. Findings by the Malaysia Shopping Malls Association's (PPK Malaysia) latest shopping mall industry survey show a widening gap between operating expenses and revenue. The average costs now 27 per cent higher than service and promotional charges collected, up significantly from 13.4 per cent in 2022. The rising cost burden is driven by electricity tariff hikes, increased licensing and compliance fees, and the upcoming Sales and Services Tax (SST) expansion, which now includes rental, leasing and renovation services. Although SST on rental is levied on tenants, PPK Malaysia warns it will reduce rental affordability and compress landlord margins, especially as many mall operators are already subsidising operational expenses. PPK Malaysia urged the government to address these challenges in 2026 Budget, particularly around SST and escalating costs, which are threatening the sustainability and competitiveness of the retail property sector. The association stressed the sector's economic importance, noting that shopping malls directly employ 50,000 to 60,000 people in operations and management. When including retail tenants, contractors and outsourced service providers, the industry supports over one million jobs nationwide. Despite headwinds, the industry remains resilient, though growth has softened from pre-2024 levels, it said. The report noted that today's consumers seek more than just shopping - they're drawn to experiential elements, diverse F&B options, entertainment and sustainability-driven features, pushing malls to innovate and enhance their offerings. According to the Malaysia Retail Industry Report for June 2025 by Retail Group Malaysia, Malaysia's retail sector is anticipated to expand moderately by 2.8 per cent in the third quarter of 2025 (Q3 2025). The report noted that Malaysian retailers remained cautious about retail sales performance for Q2, anticipating a contraction of 1 per cent. This projected contraction may be due mainly to the Hari Raya spending patterns this year compared to the previous year. Meanwhile, the survey by PPK Malaysia, conducted from the fourth quarter of 2024 (Q4 2024) to Q1 2025, captured responses from 61 mall operators across various regions and mall sizes, reflecting a range of service levels and building quality. Malaysia's 733 malls collectively offer 196.2 million sq ft of net lettable area (NLA) and carry an estimated real estate value of RM153 billion. The data underscores a highly fragmented market dominated by smaller retail assets. Malls below 500,000 sq ft account for 81.5 per cent of total establishments and contribute 54.4 per cent of the country's total NLA, highlighting the significance of neighbourhood and mid-sized retail formats in Malaysia's retail landscape. From a regional perspective, the central region remains the retail epicentre, hosting 292 malls (39.8 per cent of the national total) and commanding 46.7 per cent of Malaysia's total retail space. This is followed by the southern region, which has 162 malls, or 22.1 per cent of the country's total; the northern region, with 138 malls, or 18.8 per cent of the country's total; East Malaysia, with 95 malls and 13 per cent of the country's total; and the east coast, with 46, or 6.3 per cent of the country's total. In terms of distribution by NLA, the central region accounted for 46.7 per cent of the total NLA of all shopping malls/retail centres in Malaysia, making up almost half of the total retail space in the country. The southern region had the second largest distribution with 21 per cent of total NLA. This was followed by the northern region, with 16.5 per cent of total NLA; East Malaysia, with 10.8 per cent of total NLA; and the East Coast, with 5 per cent of total NLA. The findings highlight where retail property investments are most concentrated, offering valuable insight for investors, developers, and REIT managers assessing location-specific growth opportunities amid a challenging operating environment.


The Star
2 days ago
- Business
- The Star
Bargains drive demand as margins face pressure
PETALING JAYA: Growth numbers for the consumer sector could moderate in the second half of 2025, especially for retailers, following a strong start to the year with the Hari Raya celebrations. This was despite the sector providing a defensive shelter amidst the uncertain global macroeconomic outlook, thanks to the domestic-centric earnings base and resilient consumption on stable employment and continuous financial support. In a report, RHB Research said the prospects of subdued consumer sentiment and rising operating expenditure (opex) will cap earnings growth. 'Therefore, we strategically advocate for the liquid large-cap retailers with better earnings visibility, backed by superior operational scale and efficiency. We maintain a 'neutral' call,' RHB Research said. It added that moving past the immediate term, it foresees consumer sentiment staying soft, impacted by elevated inflationary pressures as well as uncertain economic and income outlooks stemming from global trade tensions. 'As such, inflation-weary consumers will continue to spend selectively, prioritising essential purchases and bargain-hunting for value, hence capping discretionary spending,' it noted. RHB Research said it prefers defensive and liquid large-cap names like MR DIY Group (M) Bhd and 99 Speed Mart Retail Holdings Bhd for their ability to capture consumer spending and reasonable valuations versus consumer staple peers. The research house also likes Farm Fresh Bhd for its ambitious drive to penetrate more segments in the dairy industry and favours Guan Chong Bhd for its stellar earnings outlook, supported by forward sales at elevated combined ratios and normalised production volumes. 'We also highlight Focus Point Holdings Bhd 's undemanding valuation, notwithstanding the robust optical sales momentum on the back of the rising myopic population and proactive marketing drive.' On the sales and service (SST) tax, RHB Research said it does not reckon companies will be able to pass on the additional costs considering the demand elasticity and anti-profiteering regulation in place. With that, it opined that margin trends could turn subdued, particularly for retailers like Aeon Co (M) Bhd, Padini Holdings Bhd , Mynews Holdings Bhd and Focus Point, unless there are significant efficiency gains to offset the impact. 'On the other hand, things are turning more favourable for food manufacturers like Nestle Malaysia Bhd , Farm Fresh and Power Root Bhd as easing commodity prices and strengthening of the ringgit should translate to a promising margin outlook.' Risks include a major slowdown in economic growth and a sharp surge of commodity prices. 'We believe they can better mitigate opex inflation owing to their dominant market share, massive scale of operations, and established brand equity,' it said.


Borneo Post
4 days ago
- General
- Borneo Post
Engineering marvel of Sabah's golden mosque
Tan The Sabah State Mosque, known locally as Masjid Negeri Sabah, located at Sembulan roundabout between Jalan Mat Salleh and Jalan Tunku Abdul Rahman in Kota Kinabalu, stands as one of the most iconic landmarks in Kota Kinabalu, the capital city of Sabah. With its grand golden dome, exquisite Islamic architecture, and strategic location overlooking the Likas Bay, it is not only a house of worship but also a marvel of engineering and cultural synthesis. Completed in 1975, the mosque was designed by architect Dato' Baharuddin Kassim and constructed during the tenure of Tun Datu Mustapha, Sabah's first Head of State. It reflects the post-independence era's ambition of uniting religion, heritage, and modernity in a way that resonates with Malaysia's multicultural society. This article delves into the mosque's architectural significance, structural engineering, material usage, sustainability features, and the symbolic integration of religion, culture and science. Architectural and Cultural Significance At the heart of the Sabah State Mosque's design lies a deep reverence for Islamic geometric art, traditional Malay motifs, and modern construction methodologies. The mosque accommodates over 5,000 worshippers at any given time and includes an outdoor prayer space that can hold thousands more during Friday and Hari Raya prayers. The building is strategically oriented towards the Qibla, facing Mecca, which required careful surveying and alignment. The layout follows the traditional Islamic Mosque plan with a large prayer hall, a central dome, multiple smaller domes, and a tall minaret. Key Architectural Features cover the following: • The Golden Dome: Perhaps the most striking feature of the mosque is its massive central dome, gilded in shimmering gold. It represents the spiritual vault of heaven in Islamic cosmology. Surrounding this dome are smaller domes with intricate calligraphy and arabesque designs. • The Minaret: Standing tall at about 215 feet (65.5 meters), the mosque's singular minaret is not only used for the call to prayer (adhan) but also serves as a visual reference point in Kota Kinabalu's skyline. The structural design had to consider seismic activity in Sabah, requiring precise engineering. • Islamic Ornamentation: Calligraphic panels bearing Quranic verses and floral arabesques are incorporated throughout, blending Malay and Islamic influences in artistic harmony. • Grand Archways and Porticos: These not only serve aesthetic purposes but also provide natural ventilation and protection from sun and rain, essential in tropical climates. Structural Engineering Considerations The mosque's construction posed multiple engineering challenges due to its size, architectural complexity, and Sabah's geotechnical conditions. 1. Foundation and Soil Conditions Sabah lies in a tropical zone with areas prone to soft clay, high water tables, and occasional seismic activity. The site of the mosque was selected for its relatively stable strata, but deep foundation systems — such as bored piles and raft footings — were employed to support the enormous weight of the central dome and tall minaret. 2. Dome Engineering The golden dome, with a diameter of over 20 meters, is an engineering feat. Unlike traditional brick domes, the Sabah Mosque dome utilizes a reinforced concrete shell, a technique that allows for thin, strong curved surfaces. The construction involved: • Designing for uniform stress distribution to avoid cracking. • Incorporating expansion joints to handle Sabah's high humidity and heat fluctuations. • Applying aluminium composite panels with gold anodized finish, which give the dome its brilliant shine while reducing maintenance requirements. 3. Minaret Stability The minaret's slender profile makes it susceptible to wind and minor tremors. Engineers had to balance slenderness ratio and wind load resistance by using shear walls and central reinforced concrete core for rigidity, installing vibration damping systems to minimize sway and anchoring the base with deep piles and integrating it into the mosque's foundation system. Materials and Construction Methods The mosque combines traditional craftsmanship with modern materials. This hybrid approach ensures durability while retaining cultural authenticity. • Concrete and Steel: The main structural materials, used for their strength and cost-effectiveness. • Marble and Tiles: Imported white marble was used for interior flooring and columns, while mosaic tiles with Islamic patterns adorn the walls and domes. • Timber Accents: Locally sourced hardwood, such as meranti, was used for doors, window screens (mashrabiya), and ceiling elements. • Glass and Light: Stained glass windows reflect coloured light into the main prayer hall, symbolizing spiritual enlightenment. Acoustic and Environmental Design Mosques are designed to amplify the spoken word, especially the Imam's recitations. Sabah State Mosque incorporates smart acoustic planning: • The main prayer hall has a large open span with minimal columns, enabling sound to travel unimpeded. • Domes and semi-domes act as sound reflectors. • Carpeted floors and soft interior finishes reduce echo and improve clarity. In terms of environmental adaptation, the mosque features: • Cross Ventilation: Large archways and open corridors allow fresh air to circulate, reducing reliance on air conditioning. • Rainwater Harvesting: The curved roofs channel rainwater into underground storage, used for ablution and irrigation. • Solar Orientation: The building minimizes east and west exposure to reduce thermal gain. Maintenance, Restoration, and Engineering Longevity Since its completion in 1975, the mosque has undergone periodic renovations and restorations to ensure structural integrity and aesthetic preservation. Engineering teams face challenges including: • Concrete degradation due to tropical moisture. • Surface staining and corrosion on metallic elements. • Upgrading to modern standards, especially for fire safety, lighting and disabled access. Notably, during its 40th anniversary, a major restoration project was launched: • Dome and minaret surfaces were re-cladded. • A modern PA system with acoustic modelling was installed. • LED lighting replaced conventional fixtures, enhancing energy efficiency and beauty during night prayers. Engineering Lessons and Innovation The Sabah State Mosque provides multiple engineering lessons: 1. Contextual Engineering: Tailoring designs to local climate, materials, and cultural context leads to resilient and harmonious structures. 2. Dome Construction: Demonstrates how thin-shell concrete can be both strong and aesthetically stunning. 3. Seismic Adaptation: Despite not being a high seismic zone, the mosque's design anticipates movement and ensures long-term safety. 4. Blending Aesthetics with Function: Islamic architecture teaches engineers that structural beauty and spiritual purpose can coexist. Community and Educational Impact The mosque is more than a physical structure; it's a community hub and an educational beacon. Adjacent facilities include the following • An Islamic library and Quranic centre. • Classrooms for religious studies and language courses. • Event halls and offices for religious leaders. For engineering students, it serves as a case study in multidisciplinary design, integrating civil, structural, electrical and environmental engineering with architecture, theology and history. In Conclusion: A Mosque for the Ages The Sabah State Mosque is a timeless expression of spiritual devotion, cultural pride and engineering ingenuity. It stands not only as a religious landmark but also as an enduring symbol of how science and faith can coalesce in the service of beauty, function and human flourishing. In the years ahead, this mosque will continue to inspire architects, engineers, worshippers, and tourists alike — reminding us that great structures are not merely built with concrete and steel, but with vision, values and wisdom.


The Sun
6 days ago
- Business
- The Sun
Bank Negara likely to maintain OPR at 2.75% for rest of year: AmBank chief economist
KUALA LUMPUR: AmBank Group expects Bank Negara Malaysia (BNM) to maintain the Overnight Policy Rate (OPR) at 2.75% for the remainder of the year, citing current economic conditions as supportive of the existing rate. AmBank Group chief eonomist Firdaos Rosli said the current OPR level is appropriate and no adjustments are anticipated in the near term. 'We believe the current OPR of 2.75% is adequate. Given the prevailing economic landscape, we do not foresee any changes in the coming months. It is likely to remain unchanged through the end of 2025,' he told reporters at the National Economic Forum 2025 today. However, Firdaos cautioned that the outlook for 2026 may differ, depending on external developments. 'There is still considerable uncertainty surrounding economic conditions in the United States and other key markets. The situation could evolve in ways that impact our projections,' he noted. On Malaysia's economic performance, Firdaos said that second-quarter gross domestic product (GDP) growth may moderate slightly to the lower end of the 4% range, following a decline in the Industrial Production Index (IPI). Malaysia's IPI grew by just 0.3% year-on-year in May, a notable slowdown from the 2.7% expansion recorded in April. 'Given the slowdown in industrial output, GDP growth for Q2 could come in closer to 4%, although still within the targeted range. External trade has remained relatively resilient, which supports overall performance,' he said. He attributed this resilience to front-loading activities, particularly among exporters shipping goods to the United States and other international markets ahead of potential trade disruptions. Firdaos pointed out that the strong 4.4% GDP growth recorded in the first quarter was likely boosted by early festive spending, some of which carried into the second quarter. 'Consumer spending has remained stable, especially with the Hari Raya period falling within the quarter,' he said. AmBank's full-year GDP forecast stands at 3.8%, slightly below the World Bank's projection of 3.9%. 'We are anticipating a general economic slowdown, primarily driven by external headwinds. Consumer and investment confidence remain somewhat subdued, and we expect this trend to continue in the near term,' Firdaos said. While not attributing the slowdown to any specific policy or shock, he emphasised the broader sentiment-driven nature of the deceleration. 'It's a general, broad-based slowdown – not due to any one specific factor such as tariffs – but rather an accumulation of uncertainty in the external environment,' he said. Tariffs, however, remain a key area of concern. 'In my view, tariffs continue to pose a significant uncertainty in the global trade landscape. The United States is taking a bilateral approach, and it's still unclear how other Asean countries will be treated under this policy direction,' he said. Firdaos noted that countries such as Vietnam and Indonesia have already received official communication from the US, while Singapore has not. Malaysia, he said, has also received such correspondence, with negotiations ongoing and expected to continue until August. 'There is a possibility that the negotiation deadline could be extended, which keeps sentiment cautious among businesses and investors,' he added. In light of this uncertainty, Firdaos said, companies may accelerate trade activities to hedge against potential tariff hikes. 'This cautious sentiment is a key reason behind the expected slowdown. Businesses and consumers are taking a more conservative stance amid unresolved global issues.'


New Straits Times
16-07-2025
- Business
- New Straits Times
HLIB: Consumer sector outlook positive on margin gains, stronger Ringgit
KUALA LUMPUR: Malaysia's consumer sector is expected to maintain its positive momentum, supported by potential margin improvements from lower raw material costs and a stronger ringgit. Hong Leong Investment Bank Bhd (HLIB) said in a recent note that the sector continues to draw strength from a stable macroeconomic environment, underpinned by a robust labour market, fiscal support measures and resilient retail spending. Seasonal factors in the second half of 2025, alongside a continued rebound in tourism, are also expected to lift demand, while attractive valuations provide an added cushion for investors. The research house highlighted that the sector recorded a solid performance in the first quarter of 2025 (1Q25), bolstered by elevated festive spending as Chinese New Year and Hari Raya celebrations coincided during the period. It added that earnings across its coverage universe largely met expectations, with eight companies performing in line. These include 99 Speedmart, Aeon, DKSH, Focus Point, Mr DIY, Nestle, Panasonic and QL Resources. HLIB said only two companies posted weaker-than-expected results, with Berjaya Food continuing to be affected by the consumer boycott of Starbucks and Oriental Kopi experiencing softer-than-expected sales traction. "This reinforces our view that domestic consumption fundamentals remain robust, and retail-exposed counters are capturing the benefits of seasonal demand and sustained spending momentum," it said. Meanwhile, HLIB said commodity price trends have broadly stabilised, with key inputs such as sugar, wheat, coffee, and palm oil trending lower. It noted that this supports margin recovery for food and beverage (F&B) players. "The potential for operating leverage is significant, especially for companies that undertook pricing actions over the last two years," it said. Additionally, HLIB also said that a stronger ringgit would benefit consumer staples, as most raw material costs are denominated in US dollars. It added that the improving currency trend provides a buffer against input cost volatility and could enhance import cost efficiency for staples and retailers. On the impact of the expanded sales and service tax (SST), HLIB said retailers with a significant presence in shopping malls may face moderate effects. However, the firm believes the impact will be manageable, as rental accounts for a small portion of expenses, recent price adjustments offer a buffer against the added rental tax, and key staples like rice, vegetables, flour, poultry, and sugar remain SST-exempt, helping to limit consumer price pressures and sustain sales volume. Overall, HLIB has maintained an "Overweight" call on the consumer segment, adding that the Budget 2026 tailwind and tourism uplift are key catalysts. The firm's top picks are 99 Speedmart, Aeon and Focus Point, given their earnings, backed by their expansion plans and brand equities.