MONEY SPECIALIST

If you have a long weekend and want a refreshing new way to spend it, fly to Bandung, Indonesia. It makes for a great getaway!

Horse carriage is common at outskirt of Bandung city

Our first stop was Kampung Daun restaurant for lunch. The restaurant reminded me of traditional village settings that created a soothing ambiance. We had a fantastic view of flowing stream from where we sat. The air was most refreshing indeed.

Next up was a spot of shopping so we made our way back to the Bandung outlet malls. A trip to Bandung wouldn’t be complete, like nasi lemak without sambal belacan, if we didn’t spend a few hours at the malls on Jalan Dago and Jalan Riau. My favourites were Rumah Mode, Heritage and Cascade – there were many smaller ones but I felt these offered a good selection of discounted branded clothes, shoes and bags.

Shopping outlets at Bandung

Several hours later, several shopping bags heavier, and several hundred ringgit poorer – we emerged from the shops smiling. Satisfied with our purchases, we checked into the hotel for much-needed rest!

The breathtaking view of Tangkuban Parahu

The next day we embarked on a journey to see the active volcano Tangkuban Parahu. The name in Sundanese means “upturned boat” and it comes from a local legend of an unfortunate woman and her son. In the legend, the sun apparently kicked the unfinished boat and this resulted in severe flooding and the upturned boat transformed into a mountain.

Up-close of an active volcano

It was my first time near a live volcano and I could almost feel the heat emitting from it. I had been curious about live volcanoes since learning about them in geography classes years ago and looking into the huge crater now was an amazing experience – so beautiful, yet so dangerous. This place was also great for souvenirs and so-called volcanic rock bracelets that were quite a bargain! We grabbed a couple of key-chains and local crafts to take back for friends. On the way back, we stopped by a hot spring for relaxing dip.

Bandung is great not just for the shopping, but it’s also a fabulous way to take time out to taste the strawberry, fresh from the farm! And we certainly did that during our getaway.

Malaysia is now emerging from the economic downturn. The retail market in Malaysia had picked up in the fourth quarter of 2009, estimated to have grown 0.8% for the whole year. Industry observers are cautiously optimistic that the local retail market is expected to see some growth this year, but it won’t be spectacular.

There are indications that the retail market could be in for good times. Better tourist arrivals and spending are expected this year largely because of low-cost carrier travels. Rental rates of downtown shopping centres (namely Suria KLCC and Pavilion in Kuala Lumpur) and suburban shopping centres (like Midvalley in Kuala Lumpur, One Utama and Sunway Pyramid in Selangor) have been holding steady for a while.

Malaysian Association for Shopping & Highrise Complex Management forecasted that retail rental rates are likely to hold steady, adding that the sub sector would probably experience single-digit growth due to the improved economic conditions and improved consumer sentiment. Rent for average prime space at downtown and suburban shopping centres are averaging between RM50 to RM60 per sq ft and RM35 psf respectively the past couple of years. Even in the downturn areas, rates have remained steady.

Despite better days ahead, there would not be an oversupply of retail space, especially within the Klang Valley area as it is already over-populated. There are over 130 shopping stores in the Klang Valley alone. However, not many new malls are expected to be built this year. Among the shopping centres that completed and opened in the Klang Valley last year include Bangsar Shopping Centre Phase 3, USJ 19 City Mall, IOI Mall Phase 2, Wangsa Walk, Solaris Dutamas, Subang Avenue, Plaza RAH and Giza Dataran Sunway.

New retail supply within the Klang Valley dipped to 1.4 million sq ft in 2009 versus 1.7 million in 2008. New retail supply is estimated to grow to 4.4 million sq ft this year. The local retail market is expected to grow less than 5% this year, with growth from existing malls within the Klang Valley. New malls would not contribute to growth because they needed to “struggle” initially to build their business and attract consumers.

The health of the local retail market is dependent on the level of consumer spending. In the last three months of 2009, retailers saw good growth due to pent up demand from 2008 to early 2009. There was also a notable tourist increase during that period. This momentum could be carried into 2010. Despite improved sentiments, there are still underlying worries that the Malaysian economy may be less competitive or the possibility of a double-dip recession in the global economy.

Retail outlets selling essential goods could continue to perform well, even in times of inflation. Despite a spike in inflation in 2008, these sectors did well. Going forward, sectors like mainstream fashion could be affected by newer, affordable types of fashion.

The Klang Valley remains the key driver of retail sales for the entire Malaysia. They account for about 40% of the total retail sales in Malaysia. The average occupancy rate of shopping centres in Klang Valley last year was 86%.