Sunway Malls focuses on expansion despite retail headwinds

KUALA LUMPUR: Sunway Malls remains cautious about global and domestic headwinds, including unresolved trade tensions, prolonged price volatility and rising costs, which could continue to weigh on business and consumer confidence.

Its group managing director H.C. Chan said cost pressures and intensifying competition from both physical malls and e-commerce platforms would continue to put pressure on margins and profitability across the retail industry.

"While our foundation is strong, we remain fully cognisant of global and local headwinds. The unresolved Straits of Hormuz closure will continue to come at a cost for the rest of the world. Higher and prolonged volatile prices are expected.

"This will continue to weigh on business and consumer confidence," he said on Tuesday.

On the broader national front, Chan said cost pressures and an influx of competition from both physical malls and the online e-commerce platform will continue to exert heavy pressure across the industry.

"These cross currents will weigh heavily on margins and profitability. Yet, our long-term outlook remains resolutely optimistic," he said.

Despite these setbacks, Chan said Sunway Malls remained optimistic about its long-term prospects and was set to expand its portfolio to 16 malls over the next three years.

The mall operator currently owns and manages 11 malls, with five more in the pipeline scheduled to open within the next three years.

Chan said Sunway Malls' growth over the past 29 years has been underpinned by three key drivers - close relationships with business partners, an ability to respond swiftly to changing market dynamics, and a relentless focus on innovation.

"These core drivers have enabled us to consistently deliver strong performance and maintain our market leadership position," he said.

In the first half of 2026, Sunway Malls recorded 5.0 per cent year-on-year growth, outperforming the 3.1 per cent industry growth reported by the Malaysia Retailers Association (MRA) and Malaysia Retail Chain Association (MRCA).

Chan described the performance as a strong achievement, crediting its business partners and stakeholders for contributing to the group's continued growth.

He said recent momentum was supported by strong performances across key retail segments, particularly at Sunway Carnival Mall and during the first quarter, which benefited from major festive celebrations.

Chan said while the current climate presents challenges, it also offers opportunities for those who are willing to adapt, innovate, and lead.

Among the emerging trends is the rapid expansion of Chinese brands, particularly in the food & beverage sector, into the Malaysian market.

Chan said Chinese F&B brands were gaining an increasingly prominent presence globally, alongside the country's strength in electric vehicles, solar panels and artificial intelligence (AI).

He added that Chinese F&B brands were expected to become an increasingly significant feature in Malaysian malls.

To sustain its growth trajectory and strengthen business resilience, Chan said Sunway Malls is adopting a longer-term strategy centred on three key thrusts.

The first is strategic retail space refurbishment, with about 300,000 sq ft of retail space across Sunway 163, Sunway Pyramid, Sunway Wangsa Mall and Sunway Kluang Mall scheduled for progressive refurbishment.

He said the upgrades were aimed at supporting the Sunway Group's next phase of growth by creating retail spaces that could accommodate new and fresh offerings.

Chan said closer collaboration between landlords, retailers, suppliers and other business partners would be critical to driving sustainable growth.