Page 7 - Berita Sunway - Issue 69

A RECOVERING CREATING SAFE SPACES FOR ALL
ECONOMY Sunway Malls & Theme Parks CEO HC Chan to non-essential retailers for 14 days during
said that the group has seen a recovery of 60% Phase 1 of the MCO amounting to RM20 million.
The COVID-19 outbreak has adversely to 70% in footfalls and tenants' sales have
impacted the Malaysian economy and the recovered by 30% to 40%. Chan estimates “In the short-term, the sustainability of the
economic welfare of Malaysians. According footfall recovery to hit 75% to 85% by year-end, retail sector depends on how we can manage
to Department of Statistics Malaysia, and tenants' sales projected to recover 50% the revival of economic activity and the safety of
almost 47% of self-employed workers have to 60% as more sectors such as leisure and our communities. In the longer run, the industry
lost their jobs and for those who still keep entertainment reopen for business under strict will need to alter the mall business model. What
their jobs, 35.5% reported a decrease in compliance to SOPs. we will be seeing is the increasing prominence
income by over 90%. co-sharing, be it profit, risk or resources
“Prior to the RMCO, shoppers’ visits were more between mall operators and retailers. The new
The overarching challenge for businesses frequent, shorter, and focused. Interestingly, maxim is one of shared prosperity and shared
is weak or falling demand, as consumers shoppers are no longer confined to visiting burden. Rental will largely be on percentage of
spend less due to layoffs, reduced wages malls only on weekends. There were sales,” Chan elaborated.
and earnings, as well as virus infection times when our footfall on weekdays
fears, said Professor Dr Yeah Kim Leng, were higher than weekends – a new "Post MCO, Sunway Malls will be focusing
Professor of Economics at Sunway trend seen across all our malls,” on value retailing, with more tactical
University Business School and Director of Chan added. campaigns. Events will take a backseat
the Economic Studies Programme at the and will be evaluated on a case-by-case
Jeffrey Cheah Institute on Southeast Asia. In May, Sunway Malls launched its basis to ensure strict adherence of new
“Your Safe Space, Our Safe Space” SOPs," he added.
With lower domestic and overseas campaign to protect the safety and “The move towards digital
demand, affected businesses are cutting security of Sunway employees,
costs, adjusting workforce size, or delaying visitors, and the community. is seen to be intensified and
growing in importance too with
investment and expansion plans to survive the new normal. Post MCO
the shutdown during the MCO period. “We have to brace for a new will release some pent-up
normal post MCO. Until there is demand as the opening of non-
However, Yeah is optimistic that Malaysia, absolute certainty that the virus
with its diversified structure, well-developed is completely eradicated, social essentials will see a degree of
pickup. Much however will be
resource and manufacturing base and distancing will be heightened. driven by economic outlook
strong financial system, is well-equipped That is singularly the most both globally and domestically.
to weather the looming global recession important consideration,” he Post COVID-19 will reveal new
relatively intact. said. business opportunities, or
perhaps enable businesses to
“Domestic tourism, hospitality and retail Recognising the economic deliver differently,” Chan said.
sectors are recovering as businesses and impact of the MCO on retailers,
consumers adjust to public health safety Chan said the group waived rent HC Chan,
requirements mandated by the Ministry of Sunway Malls & Theme Parks
Health. Some businesses could experience CEO
pent-up demand as younger consumers
unleash spending that had been held
back,” Yeah said. TAPPING INTO NEW BUSINESS OPPORTUNITIES
Due to the pandemic, ‘stay at home’, ‘work from home’ and social distancing have
The economic
Professor Dr Yeah Kim Leng, recovery pace will depend become part of the new normal. “Movement restrictions have led consumers
Sunway University Business to migrate in greater numbers to online shopping, mobile banking, and a
School Professor of on the nation’s ability to avoid whole gamut of digital services – home exercises, home cooking and online
a virus resurgence following the
Economics and Economic lifting of movement restrictions as entertainment,” Yeah added.
Studies Programme
well as the discovery of an effective
Director at the vaccine or treatment, both of which Businesses are presented with the opportunity to innovate and prosper
Jeffrey Cheah Institute in the ‘new normal’ environment, as there has been an accelerated shift
on Southeast Asia are expected within the next six to towards digitalisation.
12 months. In turn, the pace of
economic recovery will shape Besides e-commerce and online services, firms could leverage on Industry
business, job, and income 4.0 technologies that include robotics, automation, and artificial intelligence
growth prospects.
to reduce the threat of pandemics and other systemic shocks, said Yeah.
(Turn to Page 12 to find out more about jumpstarting a business’ online presence)
“Businesses could also take advantage of COVID-19-induced
changes in work practices to enhance organisational
effectiveness, staff productivity and business profitability
through virtual meetings, online sales channels, ICT-
integrated supply chains and global-local sourcing networks
that are less prone to disruptions,” he said.
"If there is one lesson that businesses could learn from
the pandemic, it is to maintain capital buffers and
precautionary savings to guard against unexpected
shocks such as COVID-19," Yeah said.

BERITA SUNWAY | JUL—SEP 2020 | 7