Latest news with #shoppingmall
Malay Mail
4 hours ago
- Business
- Malay Mail
Shopping mall industry warns of strain from SST expansion, calls for relief in Budget 2026
KUALA LUMPUR, July 23 — The shopping mall industry is urging the government to reconsider the expanded Sales and Services Tax (SST), citing its impact on rentals, leasing and renovation services as operators face rising operational costs and narrowing profit margins. In its latest Shopping Mall Industry Survey 2024–2025, the Malaysia Shopping Malls Association (PPK Malaysia) highlighted a growing imbalance between operating expenses and revenue, warning that the sustainability and competitiveness of malls are under threat. In a statement today, PPKM said that although SST is imposed on tenants, it inevitably affects the entire ecosystem — compressing rental affordability, affecting lease renewals, and straining cost recovery for landlords who are already subsidising daily operations. Rising costs versus limited revenue growth The survey, conducted among 61 malls nationwide between 2024 and 2025, found that average operating expenses are now 27 per cent higher than the average service and promotional charges collected — a sharp rise from 13.4 per cent in 2022. The report attributes this widening gap to escalating electricity tariffs, higher licensing fees, increased regulatory compliance costs, and the expanded SST which now includes property-related services. PPKM stressed that this cost imbalance is occurring in an industry that plays a crucial role in Malaysia's economy — providing over one million jobs, including mall staff, retail tenants, outsourced service providers and contractors. Malaysia's shopping mall landscape currently comprises about 490 malls, offering 167 million square feet of net lettable area (NLA). Including standalone hypermarkets and other retail centres, the figure rises to 733 establishments spanning 196.2 million sq ft — with an estimated real estate value of RM153 billion. Smaller malls and retail centres under 500,000 sq ft account for the majority — 81.5 per cent of total establishments and over half (54.4 per cent) of total retail NLA. While the Klang Valley and central region remain the main retail hubs, malls are increasingly well-distributed nationwide, reflecting the sector's significance across all states. Evolving with the times — at a cost Despite mounting costs, shopping malls continue to adapt to changing consumer behaviour — evolving beyond retail spaces into experiential destinations. Malls that remain competitive now blend retail with dining, entertainment, and sustainability-focused initiatives to stay relevant in a shifting market. But innovation comes at a cost, the statement noted. Operators are investing in enhanced experiences and sustainability features aligned with sustainable development goals — all while operating under shrinking margins and added strain from the SST expansion. The expanded SST, which came into effect on July 1, raised tax rates on several services and items previously taxed at 0 to 5 per cent, with new rates ranging from 5 to 10 per cent. Essential goods remain taxed at lower existing rates. Based on survey findings, PPKM reiterated its call for the government to address these challenges in Budget 2026, particularly by reviewing the SST structure and introducing broader cost relief measures that would enable malls to continue supporting employment, tourism and domestic consumption. While the industry remains resilient, the report notes that growth has moderated compared to pre-2024 levels — and without policy adjustments that reflect current economic realities, the mall sector could struggle to maintain its role as a key pillar in Malaysia's retail and services economy.
Daily Telegraph
a day ago
- Business
- Daily Telegraph
Flagship mall on lower north shore set for big change
A prominent shopping mall in Sydney's lower north shore has been listed for sale in a move that could reshape the local shopping landscape. Located just 5.8km from Sydney's CBD, HomeHQ Artarmon has been described as a 'flagship retail destination' and includes a variety of home appliance and furniture stores, among others. The centre is one of only three within a 10km radius of Sydney's CBD, alongside Moore Park Supa Centa and Alexandria Homemaker Centre. The rarity of the Artarmon centre within one of Australia's most tightly held real estate markets is expected to attract strong interest from domestic and international investors alike. MORE: Epic towers set to reshape Sydney skyline MORE: Crowd pressure home buyer to pay $550k extra Located near the Pacific Highway and M2, the centre services a trade area population of over 678,000. This includes a primary trade area of 235,561 people, with per capita incomes of 48 per cent above the Sydney average, according to details of the sale provided by selling agents JLL and McVay Real Estate. Since its development in 2013, the mall has become home to premium brands including Nick Scali, Provincial Home Living and Oz Design as well as a new food and beverage anchor, Depot Brewery. The centre also provides the opportunity to attract further national tenants. The assets of the sale include multiple loading docks, high clearance and 427 car parks. MORE: Hotel-like student 'skyrise' coming to Sydney's Macquarie Park Nick Willis, executive director of retail investments at JLL, the team managing the sale, said the centre's proximity to the Sydney CBD would likely attract investors seeking a high performing asset. Co-agent Sam McVay of McVay Real Estate said inner-ring large format retail assets of this calibre were consistenly saught after, but rarely came to market. 'Over the past five years, a mere 17 per cent of national LFR centre sales occurred within 10km of a major CBD, and remarkably, only one centre within 10km of the Sydney CBD has traded hands during this period,' he said. HomeHQ is being sold via an international expressions of interest campaign closing August 28.
Asharq Al-Awsat
4 days ago
- Asharq Al-Awsat
Six Local Officials Detained Over Iraq Deadly Mall Fire
Iraq has detained six local officials and suspended other public employees following a fire that killed 61 people at a shopping mall earlier this week, authorities said Saturday. The blaze broke out late Wednesday in a newly opened shopping mall in the eastern city of Kut. After an initial investigation, the interior ministry said "there was clear negligence among several officials and employees" in Kut, located around 160 kilometers southeast of Baghdad. It added that three local officials, including the head of civil defense in Kut, had been detained, and 17 employees suspended from work until further notice. The Commission of Integrity, an anti-graft body, said later that security forces had detained three more officials "over the violations that led to the fire" at the Corniche Hypermarket Mall, including the head of the violations department at Kut's municipality. Officials say their investigation is ongoing, and the number of detainees may change. The cause of the mall fire was not immediately known, but one survivor told AFP an air conditioner had exploded on the second floor before the five-story building was rapidly engulfed in flames. Several people told AFP they lost family members -- and in some cases whole families -- who had gone to shop and dine at the mall days after it opened.
Khaleej Times
4 days ago
- Khaleej Times
Iraq mall fire: 6 local officials detained, 17 employees suspended over deadly blaze
Iraq has detained six local officials and suspended other public employees following a fire that killed 61 people at a shopping mall earlier this week, authorities said Saturday. The blaze, which broke out late Wednesday in a newly opened shopping mall in the eastern city of Kut, is the latest fatal disaster in a country where safety regulations are often ignored. After an initial investigation, the interior ministry said "there was clear negligence among several officials and employees" in Kut, located around 160 kilometres (100 miles) southeast of Baghdad. It added that three local officials, including the head of civil defence in Kut, had been detained, and 17 employees suspended from work until further notice. The Commission of Integrity, an anti-graft body, said later that security forces had detained three more officials "over the violations that led to the fire" at the Corniche Hypermarket Mall, including the head of the violations department at Kut's municipality. Officials say their investigation is ongoing, and the number of detainees may change. Safety standards in Iraq's construction sector are often ignored, and the country — its infrastructure weakened by decades of conflict — frequently experiences fatal fires and accidents. Fires increase during the blistering summer as temperatures approach 50 degrees Celsius (122 degrees Fahrenheit). The cause of the mall fire was not immediately known, but one survivor told AFP an air conditioner had exploded on the second floor before the five-storey building was rapidly engulfed in flames. Several people told AFP they lost family members — and in some cases whole families — who had gone to shop and dine at the mall days after it opened.
Al Arabiya
4 days ago
- Al Arabiya
Six officials detained over deadly mall fire in Iraq
Iraq has detained six local officials and suspended other public employees following a fire that killed 61 people at a shopping mall earlier this week, authorities said Saturday. The blaze, which broke out late Wednesday in a newly opened shopping mall in the eastern city of Kut, is the latest fatal disaster in a country where safety regulations are often ignored. After an initial investigation, the interior ministry said 'there was clear negligence among several officials and employees' in Kut, located around 160 kilometers (100 miles) southeast of Baghdad. It added that three local officials, including the head of civil defense in Kut, had been detained, and 17 employees suspended from work until further notice. The Commission of Integrity, an anti-graft body, said later that security forces had detained three more officials 'over the violations that led to the fire' at the Corniche Hypermarket Mall, including the head of the violations department at Kut's municipality. Officials say their investigation is ongoing, and the number of detainees may change. Safety standards in Iraq's construction sector are often ignored, and the country -- its infrastructure weakened by decades of conflict -- frequently experiences fatal fires and accidents. Fires increase during the blistering summer as temperatures approach 50 degrees Celsius (122 degrees Fahrenheit). The cause of the mall fire was not immediately known, but one survivor told AFP an air conditioner had exploded on the second floor before the five-story building was rapidly engulfed in flames. Several people told AFP they lost family members -- and in some cases whole families -- who had gone to shop and dine at the mall days after it opened.
