Malaysia’s once-thriving mall culture is showing signs of decay in a nation obsessed with shopping.
Once a glittering testament to consumerism, the country’s retail landscape is now plagued by an oversupply of malls, leaving behind a trail of empty corridors, shuttered shops, and eerie silence.
The numbers paint a grim picture: with over 1,300 malls in a country of just 32 million people, Malaysia has more retail space per capita than any other country in Southeast Asia.
Construction continues unabated, with many new complexes in the pipeline, ready to join the undead.
Industry experts warn that this retail arms race is unsustainable as mall developers continue to build despite the glaring signs of oversaturation.
The result? A graveyard of “dying malls,” where once-bustling atriums now echo with the footsteps of the few remaining shoppers.
The public has taken to platforms like Twitter and Instagram to post photos and videos of deserted malls, highlighting the stark contrast between the gleaming new facilities and their lack of customers.
@anabelle_co Do you think there’s too many shopping malls in Malaysia? Is retail dying or is it evolving into some thing else? A recent visit to Pavilion Damansara Heights was eye opening. On a weekday, the mall was quiet and I was surprised to see half of the lots still empty, despite operating since October 2023. I am sure with the vast strength and reach of Pavilions group, this mall will not fail, due to its strategic location. However at this point, with the mall seemingly half empty (or perhaps I am wrong with the percentage?), shoppers who expect to see the full “Pavilion” feel may be disappointed when they get there. For the food and beverage floor, it was well tenanted out, with some lunch office group traffic. Also, they’re running interesting raffle draw (WIN A TESLA) and some CNY gifting. I am glad to see Pavilion closer to home at Mont Kiara. However I worry there’s too many malls : from neighborhood ones to giant ones, with so little population. Unlike the Philippines which is densely populated , KL will struggle with filling up some of these places… with the emergence of new players like TRX. Consumers are the clear winners of having more malls — which means more choices. For businesses, they may struggle to see ROI back, depending on the concept and brand strength. Just my two cents. VISITED at the end of January 2024. #malls #malaysia #shoppingmall #visit #restaurants #pavilion #damansaraheights ♬ original sound – Anabelle | MOMpreneur 🇵🇭🇲🇾 – Anabelle | EXPAT MOM 🇵🇭🇲🇾
The Haves and Have-Nots in Malaysia’s Retail Landscape
While some of Malaysia’s newest malls, such as The Exchange TRX Mall, have managed to attract large crowds and maintain high occupancy rates, others have struggled to draw in shoppers.
Even in the capital, where occupancies are among the country’s highest, some malls like Pavilion Damansara Heights and Glo Damansara have seen limited footfall.
However, established household names such as Sunway Pyramid continue to thrive and outperform their newer counterparts, highlighting the importance of brand recognition and customer loyalty in the competitive retail market.
I’ve visited all 175 malls in Greater Klang Valley, here’s a tier list from best to worst malls in the region:
A thread 🧵 pic.twitter.com/8jJwdNuJaH
— Slainthayer (@slainthayer) February 18, 2024
These successful malls also prioritize giving back to society through various corporate social responsibility (CSR) initiatives, such as supporting local charities, hosting community events, and promoting environmental sustainability.
Adapting to Survive: Retailers’ Strategies in Struggling Malls
Retailers in these struggling malls have been forced to adapt, with some focusing on corporate clients or offering unique experiences to attract customers.
Malaysia Shopping Malls Association president Phang Sau Lian told Al Jazeera that malls need to constantly adapt to stay relevant and competitive in the face of rapidly changing consumer trends.
The challenges retailers face in Malaysia’s oversaturated market are compounded by the country’s mediocre economic performance and the ringgit’s slide against the US dollar.
Some mall owners have resorted to unorthodox approaches to stay afloat, such as repurposing empty spaces for cryptocurrency mining operations.
Malaysia and our obsession with skyscrapers. Most end up becoming empty malls/offices. Also ruins the city landscape.
When I was in Paris, the Eiffel Tower was one of the few tall structures around and you can see it from everywhere in the city.
Meanwhile, our beautiful and… pic.twitter.com/0F3WWBWdLi
— Leeroy Ting (@LeeroyTing) January 5, 2024
Social Media Highlights the Stark Reality of Empty Shopping Centers
Despite the warning signs, there are few indications that mall construction in Malaysia is slowing down.
Al Jazeera also reported that at least 33 new complexes are being built, indicating that the nation’s retail landscape will become even more crowded in the coming years.
As Malaysia grapples with the consequences of its mall-building frenzy, retailers must adapt or face the prospect of empty corridors and shuttered shops.
Compounding retailers’ challenges, rental rates in many malls continue to rise despite the decrease in foot traffic and sales.
This paradoxical situation puts further pressure on businesses struggling to maintain profitability in an oversaturated market.
Some retailers have reported that high rents and declining customer numbers have forced them to close their stores or relocate to more affordable locations.
