In Malaysia, a wave of new mall construction is sweeping across the country. However, behind this wave of new construction is a severe challenge faced by many existing malls——Insufficient customer traffic and difficult business operations.

Al JazeerarecentlyAccording to the latest data from the Malaysian government, this hasThe country with a population of 33 million already has over 1000 shopping centers, malls, and hypermarkets, with 40% concentrated in the Selangor and Kuala Lumpur regions. What is even more remarkable is that more shopping malls are about to emerge in the future: the National Real Estate Information Center (NAPIC) of Malaysia revealed that at least 33 comprehensive shopping malls are about to be built, adding 1.13 million square meters (about 12 million square feet) of retail space, and at least ten new shopping malls are in the planning stage.

However, in sharp contrast to the prosperous scene of newly built shopping malls, the operating conditions of existing malls are not optimistic.NAPIC's data shows that the retail space utilization rate in Malaysia was only 77.4% last year, lower than pre pandemic levels. With the continuous emergence of new shopping malls, the market environment has become more competitive, and some shopping centers with poor environmental conditions have been marginalized, making it difficult to attract customers to visit.

There are few consumers in several shopping centers in the Kuala Lumpur White Sharo area, even if they are about to beThe well-known Pavillion Square, which opened in October, has not yet attracted widespread attention in the market due to its branch in Baisharoling. This phenomenon not only reflects the fierce competition between shopping malls, but also highlights the diversity and pickiness of consumers in shopping choices.

Faced with this dilemma, the President of the Malaysian Shopping Centers AssociationPhang Sau Lian pointed out that the main reasons for the poor performance of some shopping malls include poor location, inconvenient transportation, and oversaturation of the market. She emphasized that retailers need to work harder to innovate and optimize their services in order to stand out in the fierce market competition.

In recent years, the consumption trend in Malaysia has undergone significant changes. Catering establishments have become the main driving force for foot traffic in shopping malls, and currently occupy a significant portion of the mall space30%, and this proportion is still on the rise. In addition, consumers are no longer satisfied with the shopping itself, but pay more attention to the shopping experience. For example, TRX Shopping Center provides consumers with a richer shopping experience by creating facilities such as public gardens and art and cultural centers.

In order to cope with the difficulties, some shopping malls have begun to try transformation and innovation. Some shopping malls are even willing to introduce innovative elements such as Bitcoin mining farms to attract consumers' attention. At the same time, the mall management is actively taking measures to assist merchants in increasing their business rates, including relocating stores to locations with high foot traffic. However, it remains to be seen whether these efforts can truly save those struggling shopping malls.