While retailers are calling on shopping malls to forego their rents during the Movement Control Order (MCO) period, as they will not be making any money during this time and find it hard to pay rent on top of staff salaries, the Malaysian Shopping Malls Association (PPKM) has come up with its own list of demands to help landlords during this period.

The association has called on the government to lend a hand by extending subsidies to ensure the recovery of the shopping mall industry – one of the hardest hit by the MCO. 

In a joint memorandum, PPKM president Tan Sri Teo Chiang Kok says urgent support and assistance is needed to help shopping malls remain afloat following the implementation of the MCO, which has been extended to April 14 to deal with the Covid-19 pandemic. According to previous media reports, Teo said shopping malls could face losses of more than RM2 billion as a result of disruptions caused by the MCO. 

As a result, the PPKM is appealing to the government to subsidise 50% of all rental rebates accorded as landlords bear fixed overheads for mall operations, including salaries and essential operational services such as air conditioning, cleaning and security. The association has also requested the government to subsidise a portion of the salaries paid to employees during the MCO. 

While some of the benefits in the second stimulus package announced by Prime Minister Tan Sri Muhyiddin Yassin — such as the 15% discount on electricity bills for the tourism industry — has provided some relief, Teo asks that the rebate be increased to 50%. 

Additionally, PPKM is appealing for a waiver on statutory deductions and payments until the end of this year. These include deductions for the Employees Provident Fund, Social Security Organisation and the Employment Insurance Scheme, as well as statutory payments such as business licences issued by the local authorities and the assessment tax.

PPKM is also asking for tax relief for employers to rationalise their cash flows. This includes halving their tax rate for the year of assessment 2020, suspending payments for monthly tax instalments until the end of the year, a double tax deduction for paying employees’ salaries and allowing the rents that landlords forgo to be written off as “allowable expenses”. In addition, it is seeking relief for the refurbishment of shopping malls and retail outlets.

That is not all. PPKM also wants tax relief for employees and individuals. It is asking the government to halve their taxes for 2020 and defer payment of monthly tax instalments until the end of the year. 

The association wants a special shopping tax relief to be introduced (similar to the lifestyle tax relief) and a special domestic tourism tax relief as well.