Economic News

[snowbird]

In KL, you have 5 major malls which are packed every weekend. Mid Valley, 1 Utama, KLCC, Pavilion, Sunway Pyramid. These are mega malls and it is everything under 1 roof. And all these malls are targetted at mid upper class. And all of them have expensive car parks. But at the same time you have another 100 other malls which are barely surviving and the crowd is missing. I think there is a major glut of malls.

Aeon for example is trying to expand, at the same time fighting itself for the same customer base. It not only open its own Aeon malls, it took over Carrefour and converted it into Aeon Big. Then you have Tesco and of course Giant which is trying to expand day in day out. It is under the same banner as Cold Storage group. After the founders of Giant sold all these to Dairy farm, they set up Hero Supermarket and Jaya Grocer. So in Malaysia, we have this problem. Corporations need to expand to stay relevant. They cannot stay dormant. Try counting how many of these hypermarkets are there in JB vicinity itself. All competing for the same market. In short it is cannibalising itself.

When one is successful, you can bet many others will do the same. One sell yong tow foo, hundreds will sell the same.

And you were talking about KL which has a registered population of about 2 mil.
Then you also have another million of migrant workers from other states and high spender expatriates (plus another unknown amount of illegal workers) and also about 25 million tourists every year to form that consumer base.
While JB's population cannot probably support even half of all those ever growing retail businesses while the "tourists" are mostly shoppers from SG seeking cheaper groceries, food and massages.
The end result is obvious.

 

[Tekkun]

And you were talking about KL which has a registered population of about 2 mil.
Then you also have another million of migrant workers from other states and high spender expatriates (plus another unknown amount of illegal workers) and also about 25 million tourists every year to form that consumer base.
While JB's population cannot probably support even half of all those ever growing retail businesses while the "tourists" are mostly shoppers from SG seeking cheaper groceries, food and massages.
The end result is obvious.

Many years ago, probably many of you guys are very young, there's a chain called Emporium Group. They opened one in almost every state and then it was like an atas shopping mall. They have to open as they need to cover expenses and have sales turnover. In the end, all collasped and this was bought over by Parkson. Even today, Parkson exited the supermarket business. Same goes for Kimisawa Group, Yaohan, etc. These days Carrefour had exited, word had gone around Tesco is looking for suitors.

Retail malls is really cut throat business. It applies to every where, not just JB, it is the same in Singapore too.

 

[snowbird]

Many years ago, probably many of you guys are very young, there's a chain called Emporium Group. They opened one in almost every state and then it was like an atas shopping mall. They have to open as they need to cover expenses and have sales turnover. In the end, all collasped and this was bought over by Parkson. Even today, Parkson exited the supermarket business. Same goes for Kimisawa Group, Yaohan, etc. These days Carrefour had exited, word had gone around Tesco is looking for suitors.

Retail malls is really cut throat business. It applies to every where, not just JB, it is the same in Singapore too.

Sorry friend, you have totally mixed up department stores and mega malls.
All those you mentioned are DEPARTMENT STORES!
Another simple lesson free from me.
Anyway, we are talking about survival of retail businesses.

 

[Tekkun]

Sorry friend, you have totally mixed up department stores and mega malls.
All those you mentioned are DEPARTMENT STORES!
Another simple lesson free from me.
Anyway, we are talking about survival of retail businesses.

You are so clever. I not as clever as you.
I scared to talk to you liao.

 

[snowbird]

You are so clever. I not as clever as you.
I scared to talk to you liao.

Aiyah, don't be so serious lah.
Anyway something lighter to share.

Not too smart politician : The PM was not named, he is not involved lah.
Reporter : But they mentioned "Malaysian Official 1" many times, then who is this person?
Not too smart politician : Don't know what they talking about lah.
Reporter : Can you confirm here that this Malaysian Official 1 they referred to is not the PM?
Not too smart politician : how can I confirm something I don't know.

 

[rotikok]

Last weekend, I visited the Aeon Terbrau Shopping Centre after not going there for about a year.
Then it was rather crowded and most shops were occupied, as usual.
But last weekend, it was not so crowded and I noticed that as much as 30% of the shopping lots were shuttered or boarded up.
Probably those shops had relocated or shut down for good, due to poor business.
I guess this probably the reflection of the retail business climate and the general economy situation.

Amaze with your imagination! Have you noticed only one side of the mall shops had shuttered and boarded up? One side of the shops closes because of renovation and redevelopement with a new theme park called Fanpekka.
http://www.thestar.com.my/business/business-news/2016/06/06/aeon-associate-to-open-theme-park-in-johor-mall/

Wah... if such big shopping malls are seeing fewer crowds and decreasing profits, I think those ulu ones like Mall of Medini will be worse in time to come.

Strangely it is near to Legoland but for the past 3 times I went there, the place felt deserted. I don't know how the shops there survive.

Doing well actually, sufficient to survive, KFC, burger king, secret recipe, Shih lin, Absolute Thai, Almigo, old town.... 2 small convenient store and one sport wear store. Those shops complement well with the theme park and lego hotel, targeting on the ease of tourists...so the direction of not being shopping cluster is correct.

 

[rotikok]

Many years ago, probably many of you guys are very young, there's a chain called Emporium Group. They opened one in almost every state and then it was like an atas shopping mall. They have to open as they need to cover expenses and have sales turnover. In the end, all collasped and this was bought over by Parkson. Even today, Parkson exited the supermarket business. Same goes for Kimisawa Group, Yaohan, etc. These days Carrefour had exited, word had gone around Tesco is looking for suitors.

Retail malls is really cut throat business. It applies to every where, not just JB, it is the same in Singapore too.

Parkson was fortunately to have venture into China, but now also facing stiff competition from online. There asset in china is worth much more than their business. Tesco is almost beaten to the ground by Aldi in UK, Tesco share price diving until very deep.

 

[RedsYNWA]

Aeon Tebrau is undergoing a massive expansion exercise. That's why many affected stores are closed lah... its the same if you go Vivocity or Tiong Bahru Plaza now. The malls' are being revamped to add more capacity, not because of poor business!

 

[snowbird]

Aeon Tebrau is undergoing a massive expansion exercise. That's why many affected stores are closed lah... its the same if you go Vivocity or Tiong Bahru Plaza now. The malls' are being revamped to add more capacity, not because of poor business!

Huh?
When the landlord renovate or revamp the mall, it should be "business as usual" for all the existing shops!
Why would retailers closed shop when the business is good and at the same time, the landlord losing his rental collection in hundreds of thousands $$$ monthly?
Go and take a good look first, the shop lots or shuttered ones are here and there and ALL OVER the mall, on all floors.

 

[RedsYNWA]

Huh?
When the landlord renovate or revamp the mall, it should be "business as usual" for all the existing shops!
Why would retailers closed shop when the business is good and at the same time, the landlord losing his rental collection in hundreds of thousands $$$ monthly?
Go and take a good look first, the shop lots or shuttered ones are here and there and ALL OVER the mall, on all floors.

These shops need to do reinstatment because of the revamp lah... Big players like Zara, TWG, SPAO are coming into Aeon Tebrau. Aeon Tebrau together with City Square are the 2 top malls in JB, and Aeon Tebrau will only get better when Ikea opens by end 2017.

 

[FHBH12]

These shops need to do reinstatment because of the revamp lah... Big players like Zara, TWG, SPAO are coming into Aeon Tebrau. Aeon Tebrau together with City Square are the 2 top malls in JB, and Aeon Tebrau will only get better when Ikea opens by end 2017.

You guys know the ground better. I only share news and TCSS here :p

 

[snowbird]

The US DoJ filing of civil suit last week is only the beginning of the grand saga of 1MDB.
Already, people were named and a certain "Malaysian Official 1" was grossly implicated as a character who facilitate the "grand theft of the century".
After this civil suit, which was conducted under the Kleptocracy Act, which confiscate the assets, criminal charges will follow soon after to punish the criminals at least for money laundering crime.
And don't forget that investigation is also being carried out in many other countries besides the US, including the Switzerland, Singapore, UK, Luxembourg, the UAE, etc.
Will these countries announce their final investigation findings and press charges soon?
Already the US, Singapore, UAE and the Swiss had seized assets, frozen bank accounts, amounting into US$ billions, the next action will be pressing charges.
Malaysian Official 1 will be in deep trouble, at home and all over the world............look out for the latest development.

 

[snowbird]

The latest development on the 1MDB scandal.

The Police Chief, the IGP just announced that they will not take any action on the US DoJ's lawsuit because it is a civil matter.
That is despite billions were alleged stolen from the country.
And he also said NO to the proposed "Bersih 5" public rally to demand "Malaysian Official 1" to be sacked.

So, if a rally really do take place, the people can be arrested, chaos!
Also, the Red Shirt had also announced that they will have same rally if Bersih 5 takes place to counter.............can you imagine a more chaotic scenario?
Who are the Red Shirts and who are their sponsors is no secret.
All it takes is some paid gangsters to cause some bloody clashes, some mysterious molotov cocktail thrown at the crowd or some arson attack blaming the terrorists, then the new National Security Act may be imposed.............

 

[Manhattan]

Why so many theme parks?

http://www.thestar.com.my/business/...re-theme-parks-planned-for-iskandar-malaysia/

 

[Frodo]

Why so many theme parks?

http://www.thestar.com.my/business/...re-theme-parks-planned-for-iskandar-malaysia/

If these theme park operators are persuaded to set up shop here, it will mean good news for us all.

 

[snowbird]

If these theme park operators are persuaded to set up shop here, it will mean good news for us all.

Have you been to some of the theme parks mentioned - Hello Kitty Theme Park @ Puteri Harbour and Angry Birds Theme Park @ JBCC?
If you've been, any comments and will you go again?
Those are also known as "theme park", but as a crowd puller, they had failed miserably.
If the LEGOLAND, which was built @ US$200 mil still have problems pulling in crowd and that's the kind of "theme park" that these people are building, then good luck to them.
Anyway, no harm just talking about.

 

[winnipegjets]

The US DoJ filing of civil suit last week is only the beginning of the grand saga of 1MDB.
Already, people were named and a certain "Malaysian Official 1" was grossly implicated as a character who facilitate the "grand theft of the century".
After this civil suit, which was conducted under the Kleptocracy Act, which confiscate the assets, criminal charges will follow soon after to punish the criminals at least for money laundering crime.
And don't forget that investigation is also being carried out in many other countries besides the US, including the Switzerland, Singapore, UK, Luxembourg, the UAE, etc.
Will these countries announce their final investigation findings and press charges soon?
Already the US, Singapore, UAE and the Swiss had seized assets, frozen bank accounts, amounting into US$ billions, the next action will be pressing charges.
Malaysian Official 1 will be in deep trouble, at home and all over the world............look out for the latest development.

Sinkapore will be implicated. Look out for a minister flying to US soon or even Pinky himself.

 

[winnipegjets]

Have you been to some of the theme parks mentioned - Hello Kitty Theme Park @ Puteri Harbour and Angry Birds Theme Park @ JBCC?
If you've been, any comments and will you go again?
Those are also known as "theme park", but as a crowd puller, they had failed miserably.
If the LEGOLAND, which was built @ US$200 mil still have problems pulling in crowd and that's the kind of "theme park" that these people are building, then good luck to them.
Anyway, no harm just talking about.

If they open Pokemon park, sure make money one.

JB becoming theme park hub is an excellent idea.In mudland, execution is always the problem as everyone wants a piece without doing anything.
The royal family can make it happen if it intervenes.

 

[snowbird]

Sinkapore will be implicated. Look out for a minister flying to US soon or even Pinky himself.

Singapore ALREADY got implicated, and seriously too.
The statement from MAS said that this 1MDB scandal saga had dented SG's reputation as a clean and trusted international financial centre.
One off-shore bank, BSI, had been closed and now several other banks were also found involved in the money laundering activities including DBS, StandChart and UBS.
MAS now vows to enhance controls against money-laundering and will take swift action against banks following damaging findings that financial institutions in the SG handled money flows linked to 1MDB.

Perhaps SG had very much earlier found those banking "irregularities" involving 1MDB but made no announcement, always say "investigation in progress".
Every time someone make an announcement, SG follow immediately after.
When the Swiss made an announcement, SG followed and closed BSI, when the US filed the law suit, SG announced the assets seizure.

 

[winnipegjets]

Singapore ALREADY got implicated, and seriously too.
The statement from MAS said that this 1MDB scandal saga had dented SG's reputation as a clean and trusted international financial centre.
One off-shore bank, BSI, had been closed and now several other banks were also found involved in the money laundering activities including DBS, StandChart and UBS.
MAS now vows to enhance controls against money-laundering and will take swift action against banks following damaging findings that financial institutions in the SG handled money flows linked to 1MDB.

Perhaps SG had very much earlier found those banking "irregularities" involving 1MDB but made no announcement, always say "investigation in progress".
Every time someone make an announcement, SG follow immediately after.
When the Swiss made an announcement, SG followed and closed BSI, when the US filed the law suit, SG announced the assets seizure.

PAP government pretends that it is the banks' fault when it is the PAP government deciding to close an eye. This is the quid pro quo to Najib for resolving the longstanding issues between the two countries. That's why Najib is hated so much by Mahathir; Najib betrayed the country for his personal gain.