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Malaysia’s 30 Most Valuable Brands 2008

Maybank still tops Interbrand study of Malaysia’s Most Valuable Brands

Kuala Lumpur, Malaysia, 25 November 2008 – Jez Frampton, Group Chief Executive of Interbrand, the world’s leading brand consultancy, revealed today the second annual ranking of the Most Valuable Malaysian Brands. The table values the top thirty consumer facing Malaysian brands. The leading brands were honoured at an awards night presided by Tan Sri Amirsham Abdul Aziz, Minister in the Prime Minister’s Department.

The valuation study was commissioned by the Association of Accredited Advertising Agents Malaysia (4As) and The Edge. It was conducted by Interbrand, who pioneered the established methodology of brand valuation and has undertaken more valuation exercises than any other consultancy.

“This study puts Malaysia among the few Asian countries that currently recognise the value of brands as business and economic assets,” 4As President Datuk Vincent Lee said. “The 4As is proud to be able to support such a study. It helps the growth of business and celebrates the true heroes of economic value generation, the brand builders of a nation.”

Frampton in turn expanded on the valuation methodology which “evaluates brands in the same way any other corporate asset is valued—on the basis of how much it is likely to earn for the company in the future. Interbrand uses a combination of analysts’ projections, financial reports, and its own analysis to arrive at a net present value of those earnings.”

Ho Kay Tat, Editor-in-Chief of business weekly The Edge, said “The Edge is proud to be able to support such a study. It creates a platform for discussing the role of brand building, ensuring business health and earnings continuity,” he added.

Top performers in the ranking of 30 brands include six brands that are worth at least USD1 billion, namely - Maybank, Public Bank, CIMB, Genting, Parkson and Celcom.

Maxis is out of the rankings this year as it has been delisted from Bursa Malaysia. One of the qualifying criteria for the study is that the brands must be listed companies as the study is based on publicly available data. Brands must also be consumer facing and Malaysian- owned or originated.

Further key findings included are:
• Further to its aggressive acquisitions in 2006 and its unifying master brand strategy, CIMB has the biggest gain of 83%.
• However, Maybank still leads the study, despite a small loss of 3% in value. Maybank’s acquisitions into Indonesia have not impacted the study as the cut off period was year-end 2007 financials.

Global turbulence in markets has not impacted fully either, except that margins are falling and provisioning in general has increased. Correspondingly so has the brand risk factor, clarified Interbrand.

Iconic local brand Proton has the biggest fall of -37%. It is interesting to see the divergent growth paths of Proton (which plummets to No. 28) and Perodua (at No. 11), as they face open market competition. Perodua has shown strong growth with a brand value that now stands more than 15 times that of Proton.

Another brand that has done exceedingly well with a 35% increase is DiGi, despite a highly competitive and licence restricted marketplace.

The country’s second most valuable food brand, Mamee Double Decker, (second to Dutch Lady) and Bonia have both grown by 8% and 2% respectively in value. Despite not making the table this year, they still remain heavyweights in their categories.

“They remain very close to being within the Top 30. They are still growing and that’s what’s important,” Shehara de Silva, Managing Director of Interbrand Malaysia, clarified.

“Growing brand value is a continuous process. Supporting the drivers of brand value, being relevant to defined audiences, having a clear and intuitive brand architecture, and making decisions that manage the brand as a long term asset, ensure you continuously grow your brand,” added de Silva.

Sin Chew, JobStreet.com and Ogawa have entered the Top 30. With lower operating costs and good margins, online businesses are making their mark. Jobstreet.com for instance has an active user base of 5.3 million, and is a leading online recruiter in many markets such as Malaysia, Philippines, Singapore, and Indonesia.

“Successful brands create a chain of brand experiences that leverage the totality of the brand, from their identity, their environments, their people as well as products and services. Our study shows the real value of getting this right for the business and the brand,” Frampton added.

Download report here

About MMVB
Malaysia’s Most Valuable Brands (MMVB) is a recognition and brand valuation exercise that is a major strategic initiative by the government and private sector that calculates the net present value of the earnings that the brand is expected to generate and secure in the future for its owner. Its objectives includes educating Malaysian companies on the need for substantial marketing and advertising support to build brands as brands generate business and thus economic wealth.

About the 4As
The Association of Accredited Advertising Agents Malaysia (4As) is the representative body of the RM6 billion advertising industry with a membership of over 130 multinational and local organisations involved in brand strategy and communications. It celebrates, encourages and fosters creativity and brand-building ideas that are the core competencies to drive industry value generation.

About The Edge
The Edge is an award-winning and bestselling business and investment weekly newspaper in Malaysia. It provides readers with authoritative, analytical content on the corporate, investment, real estate, technology, management, media and lifestyle sectors. Since its launch in 1994, it has become the weekly staple for corporate executives to keep abreast of business and investment developments in the country. It is distributed nationwide via newsstands and by paid subscription. The Edge is published by The Edge Communications Sdn Bhd.

About Interbrand
Founded in 1974, Interbrand is recognized for being at the forefront of the dialogue on brands and practice of building brands as business assets. Today, Interbrand is among the largest brand consultancies and has grown to include 36 offices in 25 countries. The combination of rigorous strategy and analytics with world-class design creativity help its clients to create and manage brand value in all market dynamics. It is widely respected for its annual study, The Best Global Brands, and for creating a broader platform for the discussion of brands on the Webby-award winning brandchannel.com. For more on Interbrand, visit www.interbrand.com.
Issued for and on behalf of MMVB by 4As, The Edge and Interbrand.