Sibu transforming into a ‘shopaholic’ paradise

SIBU: Sibu is fast exploding into a busy metropolis with the emergence of two new hypermarkets last year – Star Mega Mall located at Oya Road and The Giant, located at Ling Kai Cheng Road.

This is in addition to its existing supermarkets which, together, offer the people here a host of interesting choices and exciting shopping spree.

Sibu may not yet be a shopping paradise but it is definitely on the road to becoming a shopping hub for the people of Sarawak, especially from the central region.

There were talks of more to come, such as Jaya Jusco, E-mart and also talks of Ta Kiong Supermarket establishing more outlets. All were expected to be set up in the Salim, Bukit Lima and its surrounding areas.

Salim and Bukit Lima are booming areas that have seen many housing and development projects taking centre stage. All these augur well for the development of Sibu, not only in terms of economic development but in the long run, could also help boost the state tourism.

Just about five years ago, Sibu had been written off and portrayed as a ‘dead’ town by the people here. There was little room for expansion and the people were generally living a monotonous life, with few places to go, especially when it came to shopping. All these has changed in recent years, with the government putting in immense efforts to upgrade the town and improve the infrastructure.

However, it was the participation of the private sectors that really helped activate and propel the town into a different dimension.

The completion of Tanjong Manis Road and the Lanang Bridge at Upper Lanang all effectively transformed Sibu into a shopping hub for the people from the rural areas.

Compared with Kuching, Sibu may still be a small player when it comes to being labelled as a shopping paradise but it is definitely a shopping haven in the making.

Whether the mushrooming of these shopping centres will bring about a new change in the economic development of Sibu remains largely to be seen.

The chairman of Daesim Group, Lau Ngie Hua, described the emergence of these supermarkets and hypermarkets as a giant step forward that would spur the economic development of Sibu.

Lau, who carved a name for himself in the business sector, had been literally described as the entrepreneur responsible for making Sibu bubbly and lively.

“The more the merrier as it would help attract more development, in terms of both infrastructure and economic”, he added, referring to the number of supermarkets that were mushrooming in Sibu.

Lau also earned the accolade as a quality entrepreneur whose farsightedness and innovativeness ensured Sibu remained vibrant, despite all the economic downturn that hit the world in recent years. Obviously, a mega project like the setting up of Daesim Group was not done overnight but only through accomplished and comprehensive long-term planning.

The Daesco Hypermarket, a subsidiary of the group, expected a turnover of RM50 million in its first year of operation from August 2011 to August 2012. Declared open by Second Finance Minister Dato Sri Wong Soon Koh in late September, it occupied 160,000 square feet (sq ft) out of 280,000 sq ft allotted for Star Mega Mall.

The mall was constructed at a total cost of over RM40 million. It comprised more than 100 shoplots and only about 15 per cent had yet to be rented out. The construction of the mall started in August 2007 while the completion date was July 29 last year when businesses officially commenced.

Lau, who has more than 30 years experience in merchandise trade, was optimistic when he talked about the economic development of Sibu, saying there was still room for more supermarkets.

He discarded the notion that the economic viability would be affected with the onslaught of so many hypermarkets and supermarkets that cater to a dwindling population of some 220,000.

Lau felt the positive side, saying with more supermarkets and hypermarkets, it would be able to lure the population from the central region to come to Sibu for their shopping sprees.

“With more choices, we would be able to lure some half a million population from the central region to come and do their shopping here. This is definitely a plus factor,” he said.

He said the advantage of doing shopping in Sibu was its cheap prices and its wide range of products.

“Moreover, shoppers from the rural areas also have the advantage to drive freely from one location to another, all within a few minute drive. This is what I call convenient and easy shopping,” he added.

Citing the current location of Star Mega Mall at 4th Mile Oya Road, Lau said the land prices nearby the area had also spiralled since the establishment of his mega company.

Asked whether it had any effects on the business of smaller sundry stores, Lau said it depended on the types of business they were into.

He shrugged aside the fear that grocery stores or mini-markets would close shop following the emergence of the hypermarkets.

“Here, we are more into the location factors. The mushrooming of the residential housing estates were all the reasons why these convenient stores still have their own catchment of business. The hypermarkets and supermarkets are only there to provide as back-up,” he added.

Besides the Star Mega Mall that captured the attention of the shoppers here, the country’s major supermarket and retailer chain owner GCH Retail (Malaysia) Sdn Bhd (GCH Retail) also opened its first Giant Hypermarket in early September.

GCH Retail marketing manager Norine Erica Majaman said it was among the three hypermarkets to be opened in the state this year, the latter two were in Kota Padawan and Tabuan Jaya, both in Kuching.

The hypermarket in Sibu was built on a 4.6-acre lot and reportedly cost RM12 million and undertaken by Episo Group of companies.

It was part of the four-phase Swan City project which comprised 16 units of three-storey shop house in two rows under phase two. GCH Retail so far had opened two Giant Supermarkets in the state, the other one was in Miri. It has 12 supermarkets nationwide.

Chief Minister Pehin Sri Abdul Taib Mahmud, speaking at the opening of the Giant Hypermarket said Sibu could do well as it had good relationships with towns such as Kapit, Kanowit, Mukah, Belawai, Sarikei, Meradong and Tanjong Manis.

He said the town’s retail trade had grown by 30 per cent, an indication of its vast potential to serve as a business centre that catered to the needs of the people from the surrounding areas. He also recalled that in the 1950s and 1960s, Sibu was booming because of the rise of the timber industry.

But as years gone by, the decline in the natural supply of timber led many of its people to migrate in search of greener pastures.

However, for dealers and shop operators in the central business district areas, the mushrooming of so many hypermarkets and supermarkets had taken a heavy toll on their businesses. It was not at all rosy for many were contemplating to close shops while some were barely surviving.

The more established ones were also affected by the onslaught of the supermarkets, with monthly business heavily slashed. One of them, shoe operator Johnny Lau said his business had dropped by more than 50 per cent. At times, Lau said he could hardly sell two pairs of shoes per day and the situation was getting rather meekly and awkward.

Lau expected the worst to come and that was why he was making an effort to relocate his business at the shopping mall that offered rental space. “There is not much choice. Either we accept the changes or we will be left behind,” he added.

He attributed it partly to improved lifestyle and as people got affluent, they tended to travel to the outskirts of Sibu, rather than doing shopping in the town centre.

“The majority of the family owed cars these cars and many would drive to the outskirt of Sibu town to do their shopping. Lack of parking spaces in the central business district (CBD) areas was one reason why people are shunning the place.”

Touching on his customer base, Lau said they were restricted to the mainly foreign workers who were staying in areas closer to the CBD.

Lau said it had been like that for the past five years and it was also the fruit of the decentralisation exercise which was advocated by the BN government for the past years.

“It’s good in a way as the town no longer get congested, even during festive season. But the disadvantage is that the business is going downhill.” Sibu Consumer Association chairman Simon Tiong favoured all the intense competition among the respective supermarkets.

He said the competition provided a healthy choice to the people, not only for the locals but also those from throughout the central region.

“Indirectly, it will also help make Sibu a destination for these outstation people. There will never be an oversupply even if it depends on the Sibu market alone,” he said, citing the annual year-end exodus of Sarawakian venturing to Kuala Lumpur for their best buys.

Tiong said the completion of the Lanang Bridge would also be a catalyst to boost Sibu trade as people from Meradong, Sarikei and elsewhere could venture here to do their shopping. “In the long run, it will help improve the domestic cash flow, thus revitalising the domestic market,” he said.

Tiong also concurred that the town centre would slowly be deserted as the core of the business spread towards the outskirt of Sibu.

“However, all is not lost and the town is expected to undergo transformation of sort. A new business trend is bound to emerge and make Sibu a resurgence town.” Still, Tiong said that would have to depend on the private sectors and if they worked together with the government, there were ample of hopes that Sibu would rise again.