MAHB: Rental model, relief package to help revitalise airport commercial offerings | Malaysian Institute of Estate Agents

MAHB: Rental model, relief package to help revitalise airport commercial offerings

2020-09-02

KUALA LUMPUR, Sept 2 — Malaysia Airports Holdings Bhd (MAHB) will introduce a new rental model as part of its ongoing efforts to retain and attract new business partners.

MAHB group chief executive officer Datuk Mohd Shukrie Mohd Salleh said the airport operator is fully cognisant of the difficulties faced by its partners due to a decline in passenger traffic.

“We are not going to allow the Covid-19 pandemic to disrupt our plans in elevating airport experience and service levels.

“We have to be ready for the time when the airports will return to its normal pace. This new rental model will also help facilitate business recovery for our existing tenants and provide them with some breathing space, while we undergo a gradual recovery in terms of traffic numbers,” he said in a statement today.

Existing tenants who had signed up or are going to sign up under the ongoing airport commercial reset programme will benefit from a rental reduction of up to 30 per cent from the current rate, equivalent to a total annual savings of RM45 million for the participating tenants.

Mohd Shukrie said, since 2018, MAHB had embarked on a commercial reset initiative at its international airports to revitalise the retail experience and this new rental model will ensure the right brands are present at the airport regardless of the impact of Covid-19.

Meanwhile, MAHB had also come up with a RM22 million relief package to help airport retailers weather the impact of Covid-19.

Chairman Datuk Seri Dr Zambry Abd Kadir announced that under the relief package, about 650 retail tenants or 80 per cent of the retailers will enjoy a 50 per cent rental reduction for six months.

They are mainly made up of either small or medium-sized entrepreneurs or small to mid-scale operators who will be able to gain some respite in terms of cash flow so that they can continue operating. — Bernama

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