By TANIA LAM
KUCHING: The current oversupply of commercial properties in Kuching is apparent.
Secretary-general of the Sarawak Business Federation (SBF) and secretary-general of the Kuching Chinese General Chamber of Commerce and Industry (KCGCCI) Jonathan Chai Voon Tok said that the issue is noted in other cities as well.
“This is a common phenomenon across the country, due to the prevailing sluggish economy,” Chai told New Sarawak Tribune.
However, there are other contributing factors which may be unique to Kuching itself.
“First of all, our population here is small. That in itself means it cannot support the size of business activities here, especially the retail businesses,” he said.
“Also, unlike places like Kuala Lumpur, Kota Kinabalu or Georgetown, we do not attract enough tourists from overseas. Thus, the local market is not as vibrant,” he added.
In relation to this, Chai opined that not enough resources have been channelled into developing Kuching’s tourism industry.
“We have natural attractions and rich cultures to draw the crowds, but somehow the progress in making things happen has not been satisfactory,” he stressed.
Chai then commented on the shift from traditional to online shopping these days.
“A lot of consumers have now turned to the internet – they prefer to make purchases online.”
He said that Sarawak has ranked among the top in the country in terms of consumers spending online.
Chai tied this back to the issue of prevalent unoccupied commercial lots, explaining that this change in spending habits of consumers has dampened the need to have any premises for operating a business, in addition to lowering the cost of starting a business.
“Undoubtedly, the property sector has seen its boom over the last decade or so. The economy has its ups and downs, and the developers need to reposition themselves by allowing the market to digest their ‘oversupplied stocks’. One of the key concerns now would be the time taken for our economy to turn around,” Chai concluded.
