New mall openings complement each other rather than compete, says CEO of KLCCP Stapled Group

New mall openings complement each other rather than compete, says CEO of KLCCP Stapled Group

KUALA LUMPUR (April 24): The surge in new mall inaugurations in the city is far from posing competition for Suria KLCC, as they complement one another, said KLCCP Stapled Group chief executive officer Datuk Md Shah Mahmood.

“If we look into the retail outlets in Malaysia — we see the same brands [in every mall] — so there is no point in competing, but instead we complement each other. I think that will be the spirit,” Md Shah told reporters after the group’s annual general meeting on Wednesday.

Suria KLCC has recently become a wholly owned subsidiary of KLCCP, after the completion of the proposed transaction worth RM1.95 billion with Ocmador (Malaysia) City Retail Centre Sdn Bhd, Port Moresby Investments Ltd and Bold Peak Sdn Bhd.

Of late, Kuala Lumpur has seen a rise in new mall openings, including Pavilion Damansara Heights and The Exchange TRX.

There is also the Warisan Merdeka Mall@118, which is owned by Permodalan Nasional Bhd (PNB), near the vicinity, slated to open by the third quarter of 2025.

Although there will always be concerns when new malls open within a radius, KLCCP believes that Suria KLCC has an established reputation as a premier shopping destination and unique offerings that set it apart.

“I think we don’t see [the new mall openings] as big of an impact [on Suria KLCC]. There was a risk initially, but now it has stabilised. We still do very well in terms of performance and occupancy,” he said.

It was noted that Suria KLCC’s occupancy rate jumped to 98% in December 2023, while footfall rose by 30% compared to 2022.

The mall also achieved its highest moving annual turnover tenant sales, registering a 12% growth in 2023, with 35 new tenants last year.

“The increase in tenant sales was particularly driven by fashion, food and beverages, and general retail,” Md Shah added.

KLCCP settled up four sen or 0.53% higher at RM7.54 on Wednesday, valuing the group at RM13.61 billion.

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