Sunway Malls projects 6.5% sales growth for 1H 2024

This forecast follows a robust 11% growth in Q1 2024.

Malaysia’s Sunway Malls is expecting a 6.5% year-on-year (YoY) sales growth in the first half of 2024. 

This forecast follows a robust 11% growth in Q1 2024, outperforming the national GDP growth of 4.2%.

Key drivers include strong performances from Sunway Carnival, resilient F&B sales, and double-digit growth in jewellery and health and personal care sectors. 

“Our strategy in focusing on the northern region apart from our traditional stronghold of central region is certainly paying off,” said HC Chan, CEO of Sunway Malls and Theme Parks.

“The expansion of Carnival in 2023 paved the way for better contribution in terms of sales growth,’’ he added.

Sunway Carnival led sales during the Raya festive period, with further growth expected from a refreshed tenant mix following a 500,000 square foot refurbishment. 

Additionally, F&B sales grew by 6% YoY, jewellery by 14%, and health and personal care by 25%.

Sunway Malls, which operates seven malls with a combined 5 million square feet of net lettable area, said it plans to optimise costs and enhance its malls through a RM550m asset enhancement initiative (AEI) for 800,000 square feet of retail space in Sunway Pyramid and Sunway Carnival. Both projects have achieved a 90% leasing rate.

Amidst challenges like dampened consumer sentiment and higher living costs, Sunway Malls remains optimistic.  

The group said it plans to expand its portfolio through pipeline developments (1.5 million NLA) and acquisitions (1.5 million NLA).

Upcoming projects include Sunway Square (300,000 sq ft., Sunway City Kuala Lumpur, completing in 2025), Sunway Pier (350,000 sq ft., Port Klang, completing in 2027), and Sunway Ipoh Mall (1 million sq ft., Sunway City Ipoh, completing in 2027). 

Recent acquisitions by Sunway REIT, including six giant retail complexes and Kiara 163, will also be operated by Sunway Malls.

With these additions, Sunway Malls' portfolio will grow from seven to 17 retail developments. 

“In the long run, you can understand why Sunway Malls is so highly optimistic about our growth story – we are building from a position of strength,” said Chan.