Malaysia Airports Holding Berhad (MAHB) has, effective July, reached 50% ‘completion status’ in its commercial reset programme after improvements were made at Kota Kinabalu International Airport (BKI).

As reported, MAHB embarked on a significant commercial repositioning exercise in 2018 to transform its airports estate into premier lifestyle destinations.

This includes the upgrading of tax free retail, fashion, entertainment and F&B propositions.

MAHB recently announced a new rental model for tenants in a bid to retain and attract business partners and revitalise commercial offerings.

SHOPMYAIRPORTS LAUNCHES

As of January 2021, it will offer retailers discounts of up to 30% on current rates while simultaneously buffering the development of the commercial reset programme.

At KKIA, more than 30% of the retail area is occupied by Malaysian retailers.

“In 2019, BKI will handle 9.4 million passengers and more than 82,000 aircraft,” said Dato’ Mohd Shukrie Mohd Salleh, Group Chief Executive Officer, Malaysia Airports. “We expect the post-Covid-19 passenger increase to recover in stages. Therefore, this upgrade will benefit BKI to be better prepared to face this increase.”

Separately, Malaysia Airports this week launched what it says is the country’s first travel retail commerce platform.

ShopMYairports permits retailers to broaden their merchandising reach beyond the airport, while offering travel exclusive and duty-absorbed products available for customers to purchase online and receive via home delivery.

Beauty, cosmetics, fashion, electronics and food and beverage are available to purchase from Eraman Duty Free, Gebr. Heinemann, Karyaneka, Nooodles, Retail One, Sama-Sama Hotel, and Sprint-Cass.

Phase one of the rollout will focus on local travellers and home shoppers, with plans in the pipeline to introduce a click-and-collect service from designated counters at the airport.

Malaysia Airports is also working on delivering concierge services enabling purchases to be delivered to the gate or to seats inflight.

BOOMING E-COMMERCE POTENTIAL

The new platform was unveiled at a launch event officiated by YB Datuk Seri Ir Dr Wee Ka Siong, Malaysia’s Minister of Transport, Dato’ Mohd Shukrie Mohd Salleh and other officials.

During the launch, Dato’ Mohd Shukrie Mohd Salleh explained that the introduction of shopMYAirports forms part of a wider Airports 4.0 plan.

This dovetails with a digital transformation initiative to enhance the retailing and passenger experience to boost recovery efforts against the coronavirus (Covid-19).

The launch is the latest in a series of sustainable measures designed to support retail partners.

Malaysia Airports has already offered rental payment deferrals, extended credit terms, lengthened the tenures of newly signed contracts and organised airport-wide sales to clear inventory.

“The launch of shopMYairports is an important step in our journey to make our airports future-ready,” said Dato’ Mohd Shukrie Mohd Salleh.

“As Malaysia’s main airport operator, we have to ensure that we remain agile and relevant while navigating within a fast-changing consumer landscape.

“Malaysia’s e-commerce contribution to the digital economy is expected to see a growth projection of 20% in 2020 and this means that there is significant potential growth for Malaysia Airports and our retail partners.”

For a limited period, shopMYairports is offering free delivery with a minimum spend of RM300/US$72.

The platform accepts a variety of payment methods and these are being steadily expanded.