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Petronas, Maybank & Genting atop Malaysia's most valuable brands

New Straits Times logo New Straits Times 27/10/2020 NST Business
a sign on the side of a building: The Petroliam Nasional Bhd. (Petronas) logo is displayed at the Petronas Twin Towers (KLCC). Photographer: Goh Seng Chong/Bloomberg © Provided by New Straits Times The Petroliam Nasional Bhd. (Petronas) logo is displayed at the Petronas Twin Towers (KLCC). Photographer: Goh Seng Chong/Bloomberg

KUALA LUMPUR: Petronas, Maybank and Genting continue to dominate Brand Finance Asia Pacific's list of Malaysia's 100 most valuable and strongest brands this year.

The three dominated with a combined brand value of over US$22 billion, while the remaining seven brands in the top 10 maintain their position following minimal movement in the ranking.

Petronas maintains the top spot for a 10th consecutive year, with a brand value of US$15.2 billion, the only brand to break the US$10 billion mark in Malaysia.

Maybank retains 2nd position (brand value US$3.9 billion) followed by Genting (brand value US$3.4 billion).

The brand value gap between first and second has widened further to US$11 billion, showcasing just how dominant the oil and gas giant is.

Petronas posted a healthy and positive brand value increase of 14 per cent this year.

In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, customer familiarity, staff satisfaction, and corporate reputation.

Alongside revenue forecasts, brand strength is a crucial driver of brand value.

According to these criteria, Petronas has overtaken Digi to clinch the title of Malaysia's strongest brand, with a Brand Strength Index (BSI) score of 86.3 out of 100 and a corresponding AAA brand strength rating.

Digi's BSI score is 86.1 and Maybank follows just marginally behind with a BSI score of 86.1 also.

Brand strength, a more accurate measure of brand competitiveness in the market, has remained stagnant for most Malaysian brands.

While they may be doing well locally, they have been losing out to some of the key competitors in the region as they lack competitiveness outside of their home market.

The top 10 account for 64 per cent of the total brand value in the Brand Finance Malaysia 100 2020 ranking, while the bottom 50 brands contribute only seven per cent of total brand value.

This highlighted the significant effort required from brands outside the top 10 should they wish to rise to become genuine competitors across the nation, Brand Finance said.

There are five new entrants in this year's ranking: Malaysia Airports, Scientex, UEM, Serba Dinamik and United Plantations.

The brand with the highest intangible value continues to be Padini with a brand value to enterprise value ratio of 65 per cent and Bonia at 63 per cent, highlighting the role of brands in business success, especially in the retail sector.

Samir Dixit, managing director of Brand Finance, said the ranking remained very top heavy this year.

"We would like to see a more diverse mix at the top and more significant brand value increases at the bottom. To do so, brands must start to focus on building both brand value and strength, rather than being sales and offers driven.

"These tactics will help in the short term but might destroy the long-term value and strength of brands. It is the brand strength for most Malaysian brands that remains a concern – these have remained stagnant this year," he added.

© New Straits Times Press (M) Bhd

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