SHAH ALAM: Malaysia now faces the growing risk of so-called “dead malls,” particularly among community shopping centres where occupancy rates in some complexes have dipped below 70 per cent.
Associate Professor Dr Muhammad Najib Razali, specialist in Property Economics and Finance, attributes this declining trend to overdevelopment, poor locations, intense competition, and shifting consumer habits.
He said that Malaysia boasted over 1,000 shopping complexes in 2023 — a sharp rise from just about 100 in the late 1980s.
Yet, some community malls now suffer from weak management and a lack of commercial appeal.
“In property retail terms, a community mall is a moderate-sized centre between 150,000 and 300,000 sq ft,” Muhammad Najib said.
“They are intended to serve local communities within a three to 5km radius. Anchor tenants typically include supermarkets like Giant, Mydin or Lotus’s, along with pharmacies, basic clothing outlets and simple food and beverage services.”
He added that these malls are particularly vulnerable to e-commerce disruption and competition from modern malls offering entertainment and international brands.
“This isn’t a problem unique to Malaysia—it’s a global phenomenon,” he said, citing examples from the United States and China, including the ‘New South China Mall’ in Dongguan, which has remained mostly vacant for over a decade.
To counter this trend, Muhammad Najib advocated creative solutions rather than demolition.
“Repurposing underperforming malls for alternative uses—such as community centres, healthcare facilities, private educational institutions, or youth hubs — can reinvigorate these spaces. This strategy has been successfully implemented in Europe,” he said.
He said that such adaptive reuse not only avoids wasteful demolition but also delivers community value.
Muhammad Najib urged stakeholders in the retail industry to be more nimble, responding proactively to market changes and consumer behaviour.
“Without this flexibility, many community malls will become derelict and pose economic burdens on both businesses and their surrounding communities,” he added.
© New Straits Times Press (M) Bhd
