PETALING JAYA, Aug 8 (Sin Chew Daily) — At least 51,000 retail shops ceased operation last year due to the COVID-19 pandemic, whereby 70% to 80% of them are believed to have permanently closed down, said Retail Group Malaysia (RGM) managing director Tan Hai Hsin.

"We estimate that more shops in Kuala Lumpur, Selangor and Johor will close down after the second phase of National Recovery Plan (NRP)," he said.

Shopping traffic in major cities in Selangor, Kuala Lumpur and Johor Bahru has declined by 95%, while supermarkets and small shopping malls selling groceries are not affected. after the movement control order 3.0 and the first phase of NRP, he said.

In an interview with Sin Chew Daily, Tan said traffic at shopping malls in Klang Valley was down by 50% as mini markets, convenience outlets, smart phone accessories shops and hardware shops were also found at the basement of shopping malls.

Currently, Selangor, Kuala Lumpur, Putrajaya, Kedah, Negeri Sembilan, Melaka and Johor are in the first phase of NRP. while Penang, Kelantan, Terengganu, Pahang, Perak and Sabah are in the second phase.

"States which have entered the next phase of NRP do not offer much help to the retail market," he said.

Tan said 60% of total retail sales in Malaysia are in Kuala Lumpur and Selangor. So, it is important for retail shops in Klang Valley to resume business.

The retail shops in tourism spots such as Genting Highlands and Cameron Highlands are unable to recover due to the ban imposed on interstate travels.

"Retail business relying on foreign tourists such as shopping malls in Melaka and Johor Bahru are down for one and a half years. Shopping malls in these states rely on shoppers from Singapore," he said.

Central Market and Petaling Street in Kuala Lumpur are also adversely affected for the past one and a half years in the absence of foreign tourists.

Tan said retail outlets located at cinemas, digital game centers, children's theme parks, hotels, pubs, airports and bus terminals were hit hard by the lockdown and required longer time to recover.