Kuala Lumpur retailers press for rent reduction

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Retailers at Kuala Lumpur International airport (KLIA) have requested reduced rent charges after sales fell up to 30% following the September 11 attacks in the US.

Business has slowed dramatically over the past two months and several outlets have closed, with others struggling. Operators told TRW that most of the airport's 40 retailers had individually appealed for the reduction of their monthly rental by 20% to 30%, to match the fall in sales. But despite the pleas, the airport authority has yet to agree to any rent relief at the airport.

The trade has also been hit by several international airlines pulling out of services from KLIA, including British Airways and more recently Japanese carrier All Nippon Airways. Malaysia's Transport Minister Datuk Seri Dr Ling Liong Sik said this week that the regional economic fallout and the lingering effects of the 1997-1998 crisis have "upset" plans for the airport. "We will face some tough times but the impact of the September 11 attacks will be greater for the US than for Asia. We are trying to get tourists, particularly from West Asia, to look at Malaysia," said Ling.

One leading operator told TRW: "We've recorded a drop of 30% in sales compared to the same period post-September a year ago."