Press release -
PETRONAS and Celcom remain as Malaysia’s Most Valuable and Strongest Brands respectively in 2018
- Total value of Top 100 Malaysia brands in 2018 has increased to US$50.6 billion, up 11% from US$45.5 billion in 2017.
- PETRONAS continues to dominate the #1 Most Valuable Malaysia Brand 2018 for the 8th year and posting the highest positive value growth of US$905 making it the Most Improved Brand.
- Celcom remains the strongest brand in Malaysia with AAA rating after gaining its spot last year and holding strong. The only Malaysian brand to have the AAA brand strength index (BSI) rating in 2018.
- Top 10 brands contribute 58% of the total value while Bottom 50 brands contribute only 8% of the total value.
- The 4 Telcos (Celcom, Digi, Maxis and TM) have been fighting neck to neck closely for a spot within the top 10 last and this year.
Every year, leading brand valuation and strategy consultancy Brand Finance puts thousands of the world’s top brands to the test, evaluating which are the most powerful and valuable, publishing the Brand Finance Top 100 Malaysia Brands.
Malaysia’s Top 10 Most Valuable Brands
Rank 2018 | Rank 2017 | Brand | Sector | Brand Value 2018 (USDm) | Brand Value 2017 (USDm) | BV/EV 2018 | Brand Rating 2018 | Brand Rating 2017 |
1 | 1 | PETRONAS | Oil & Gas | 11,501 | 10,596 | 21.7% | AAA- | AAA- |
2 | 3 | Maybank | Banks | 3,160 | 2,548 | 14.5% | AAA- | AAA- |
3 | 2 | Genting | Hotels | 3,141 | 3,179 | 23.5% | AA+ | AA |
4 | 4 | Sime Darby | Food | 2,468 | 2,225 | 13.4% | AA- | AA- |
5 | 5 | CIMB | Banks | 1,952 | 1,894 | 14.8% | AA+ | AA+ |
6 | 6 | Tenaga Nasional | Utilities | 1,624 | 1,583 | 6.4% | AA | AA |
7 | 7 | Public Bank | Banks | 1,482 | 1,477 | 8.2% | AA | AA+ |
8 | 9 | Maxis | Telecoms | 1,462 | 1,369 | 11.3% | AA+ | AA+ |
9 | 12 | TM | Telecoms | 1,230 | 1,215 | 18.4% | AA+ | AA+ |
10 | 11 | Digi | Telecoms | 1,228 | 1,244 | 12.9% | AAA- | AAA- |
Brand Finance Asia Pacific released their annual “Top 100 Malaysia Brands” 2018 rankings showing sustained growth in overall brand value by the Malaysian brands.
PETRONAS, Genting & Maybank continue to dominate the top 3 rankings in 2018 once again with a combined brand value of over US$ 18 billion.
PETRONAS continues to stay on top to be the first US$ 10 bn brand in Malaysia. Maybank has managed to oust Genting and climbed the #2 spot with a brand value of US$ 3.16 billion with close chase by #3 ranked Genting which had a brand value of US$ 3.14 billion highlighting the significant gap between the top 2 brands.
The US$ 29.2 billion combined value of top 10 brands make up for 58% of the total value of the top 100. This shows the significant effort required by the brands outside of top 10 in terms of brand strength improvement and revenue growth if they wish to compete in the top 10 space.
Celcom has maintained the title of the strongest Malaysian brand since it attainment of the AAA brand rating and also remains the only brand with the AAA brand rating.
The brand value gap between #1 and #2 in 2018 continues to be an astronomical figure of US$ 8 billion making it hard to displace PETRONAS from their #1 position. PETRONAS also became the most improved brand with an increase of absolute value of US$ 905 million this year.
There are 3 new entrants coming into this year Top 100 rankings namely Berjaya Land, Dialog Group and Bumi Armada.
The highest intangible value brand is DRB-Hicom with a brand value to Enterprise value ratio of 152%, highlighting the role of brand for business success.
Samir Dixit, Managing Director of Brand Finance Asia Pacific highlighted that “PETRONAS is in a very strong position and it will continue to grow its brand strength and brand value while the Malaysia brands have grown considerably well overall. It is the brand strength for most brands that remains a concern. Also, the rankings remain very top heavy with 58% of the total brand value contributed by the Top 10 brands and 92% contributed by the Top 50 brands. We would like to see a more diverse mix at the top and more significant value increase at the bottom which means other brands must start focusing on their value and brand strength.”
Samir Dixit also challenged the Malaysia companies to be more brand-driven and not sales or offers-driven. These while help sell in the short term, might destroy the long term value and the strength of the brand. Brand has to be a strategic agenda for the senior management and boards and must be managed like any other business asset and not just a legal trademark.”
The Focus on Brand Strength
The brand strength, measured by Brand Strength Index (‘BSI’), a more accurate measure of brands competitiveness in the market, has remained stagnant for most Malaysian brands and 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 Malaysia market.
Celcom was named the strongest brand as a first timer last year, ousting the strongest competitor and managed to retain its title with the only brand attaining triple-A brand rating. Following closely behind Celcom are brands with AAA- like PETRONAS, Maybank, Digi, Dutch Lady.
Malaysia’s Most Valuable Brands (11-100)
Rank 2018 | Rank 2017 | Brand | Brand Value 2018 | Brand Rating 2018 | BV/EV 2018 | Brand Value 2017 | Brand Rating 2017 |
11 | 10 | Celcom | 1,217 | AAA | 25.2% | 1,273 | AAA |
12 | 8 | YTL | 1,172 | AA- | 10.1% | 1,468 | A |
13 | 18 | AirAsia | 1,011 | AA+ | 16.9% | 535 | AA+ |
14 | 13 | Axiata | 888 | AA- | 5.6% | 875 | AA- |
15 | 15 | Astro Malaysia | 883 | AA+ | 20.7% | 786 | AA |
16 | 14 | Berjaya | 817 | AA- | 34.7% | 825 | A |
17 | 16 | RHB Bank | 659 | AA- | 14.3% | 627 | A+ |
18 | 20 | Hong Leong Financial | 581 | AA- | 13.4% | 472 | AA- |
19 | 19 | IOI | 516 | A+ | 6.4% | 489 | A+ |
20 | 22 | Felda Global Ventures | 505 | AA- | 17.7% | 423 | A |
21 | 21 | KLK | 464 | A | 6.4% | 436 | A- |
22 | 25 | Misc | 458 | AA- | 4.9% | 365 | A |
23 | 29 | U Mobile | 430 | AA- | 32.4% | 301 | AA- |
24 | NEW | Berjaya Land | 428 | A | 24.7% | 410 | A |
25 | 23 | Sunway | 410 | AA- | 12.4% | 398 | A+ |
26 | 24 | AmBank | 405 | AA- | 13.7% | 392 | AA |
27 | 26 | IHH | 389 | AA- | 3.1% | 336 | A- |
28 | 34 | Gamuda | 370 | AA | 9.1% | 238 | A+ |
29 | 27 | IJM | 367 | AA | 9.3% | 326 | A |
30 | 17 | Setia | 342 | AA | 9.8% | 572 | A+ |
31 | 31 | IOI PROPERTIES | 330 | A+ | 7.6% | 243 | A+ |
32 | 33 | Hap Seng | 315 | AA- | 4.7% | 241 | A+ |
33 | 36 | Parkson | 309 | AA | 81.7% | 233 | AA- |
34 | 38 | Batu Kawan | 307 | A+ | 7.5% | 226 | A- |
35 | 39 | Dutch Lady Milk | 292 | AAA- | 29.8% | 226 | AA- |
36 | 43 | Malaysia Airports | 284 | AA | 6.3% | 196 | AA- |
37 | 32 | Eco World | 276 | AA | 15.5% | 242 | A+ |
38 | 30 | Magnum | 273 | AA- | 39.0% | 276 | A+ |
39 | 42 | Padini | 268 | AA | 55.6% | 206 | AA- |
40 | 35 | Bank Islam | 254 | AA- | 15.3% | 233 | AA- |
41 | 28 | Malaysia Airlines | 249 | AA | 0.0% | 314 | A+ |
42 | 45 | Tropicana | 219 | AA | 34.1% | 175 | A+ |
43 | 41 | Proton | 217 | AA- | 14.1% | 212 | A+ |
44 | 44 | Malakoff Corp Bhd | 213 | AA- | 5.3% | 182 | A+ |
45 | 37 | SapuraKencana | 210 | A | 3.5% | 229 | A |
46 | 49 | KPJ Healthcare | 210 | AA- | 15.4% | 156 | A |
47 | 47 | Top Glove | 194 | AA | 11.6% | 160 | A+ |
48 | 50 | Affin Bank | 188 | AA | 17.1% | 150 | AA- |
49 | 61 | Boustead | 175 | A- | 5.0% | 105 | A- |
50 | 53 | QL Resources | 173 | AA | 7.9% | 137 | AA- |
51 | 58 | Time dotCom | 173 | AA | 14.7% | 117 | A+ |
52 | 52 | IGB | 172 | AA | 15.8% | 143 | A+ |
53 | 51 | UOA Development | 168 | AA- | 16.9% | 143 | A |
54 | 46 | Kossan Rubber Industries | 166 | A- | 15.3% | 161 | BBB |
55 | 40 | Mah Sing | 165 | A | 20.1% | 214 | BBB |
56 | 67 | Umw | 158 | A | 8.5% | 83 | A |
57 | 57 | UEM Sunrise | 155 | A+ | 7.3% | 122 | A- |
58 | 59 | MBSB | 154 | AA- | 9.2% | 106 | A |
59 | 54 | Alliance Financial | 140 | A+ | 9.3% | 126 | A |
60 | 60 | Pos Malaysia | 136 | AA | 15.6% | 105 | AA |
61 | 62 | Takaful Malaysia | 130 | AA | 28.0% | 101 | A- |
62 | 48 | DRB-Hicom | 122 | A+ | 151.5% | 156 | A- |
63 | 66 | OSK | 113 | A | 12.2% | 158 | A |
64 | 74 | Westports | 113 | A+ | 3.5% | 51 | A- |
65 | 56 | UEM Edgenta | 105 | BBB | 24.7% | 125 | A- |
66 | 64 | Press Metal | 103 | A- | 1.8% | 97 | A+ |
67 | 72 | Matrix Concepts | 103 | A+ | 26.3% | 58 | A |
68 | 68 | Gas Malaysia | 102 | AA- | 11.8% | 82 | A |
69 | 63 | Ta Enterprise | 101 | A- | 42.7% | 97 | BB |
70 | 65 | Yes | 100 | A+ | 25.8% | 84 | A+ |
71 | 73 | V.S. Industry | 85 | A | 8.8% | 57 | BBB |
72 | 69 | Cahya Mata Sarawak | 85 | AA- | 8.1% | 69 | A |
73 | 76 | Cagamas | 78 | BBB | 0.0% | 47 | BBB |
74 | 75 | Eastern & Oriental | 77 | A+ | 10.1% | 47 | A |
75 | 130 | Bank Muamalat | 76 | A | 0.0% | - | A |
76 | 71 | Nirvana Asia | 68 | A | 0.0% | 63 | AA- |
77 | 78 | Lpi Capital | 66 | A+ | 4.7% | 42 | BBB |
78 | 87 | Malayan Flour Mills | 63 | A+ | 16.4% | 27 | A |
79 | 77 | Bursa Malaysia | 59 | AA+ | 7.9% | 46 | AA- |
80 | 55 | Star Publications (Malaysia) | 58 | AA- | 20.6% | 126 | A+ |
81 | 70 | Bonia | 56 | A+ | 45.0% | 68 | A+ |
82 | 80 | Kulim Malaysia | 55 | AA- | 17.0% | 36 | A- |
83 | 82 | Kenanga | 53 | A | 54.3% | 33 | A |
84 | 136 | Jaya Tiasa | 51 | AA- | 10.8% | - | A |
85 | NEW | Dialog Group Bhd | 49 | A- | 0.0% | - | - |
86 | 81 | Takaful Ikhlas | 44 | A+ | 60.4% | 35 | BBB |
87 | 83 | Malaysian Reinsurance | 38 | A- | 34.6% | 33 | BB |
88 | NEW | Bumi Armada Bhd | 38 | A | 1.1% | - | - |
89 | 79 | Guan Chong | 37 | A- | 10.9% | 36 | BBB |
90 | 89 | Tan Chong Motor | 31 | A | 5.3% | 22 | A+ |
91 | 84 | Wah Seong | 31 | A | 7.8% | 32 | BBB |
92 | 86 | P1 | 29 | AA | 23.2% | 29 | AA- |
93 | 92 | Msm Malaysia | 27 | AA- | 3.1% | 17 | A+ |
94 | 85 | The Store | 26 | A | 0.0% | 31 | A+ |
95 | 88 | Tune Ins Holding | 23 | A+ | 10.8% | 25 | A+ |
96 | 98 | Mmc | 22 | AA- | 0.6% | 11 | A |
97 | 94 | PPB Group | 18 | AA- | 0.3% | 13 | A+ |
98 | 93 | Southern Steel | 17 | A | 3.8% | 14 | BBB |
99 | 95 | Media Prima | 14 | AA- | 6.0% | 13 | A |
100 | 139 | Kwantas | 14 | AA- | 6.1% | - | A- |
Topics
- Consulting
Categories
- malaysia brands ranking
- malaysia brands
- top 100 malaysia brands
- samir dixit
- brand value
- brand valuation in malaysia
- brand valuation
- brand strategy
- brand rankings
- brand finance malaysia
- brand finance asia pacific
- brand finance
About Brand Finance
Brand Finance is the world’s leading valuation and strategy consultancy, with offices in over 20 countries. We provide clarity to marketers, brand owners and investors by quantifying the financial value of brands. Drawing on expertise in strategy, branding, market research, visual identity, finance, tax and intellectual property, Brand Finance helps clients make the right decisions to maximise brand and business value and bridges the gap between marketing and finance.
Methodology
Definition of Brand
In the very broadest sense, a brand is the focus for all the expectations and opinions held by customers, staff and other stakeholders about an organisation and its products and services. However when looking at brands as business assets that can be bought, sold and licensed, a more technical definition is required. Brand Finance helped to craft the internationally recognized standard on Brand Valuation, ISO 10668. That defines a brand as “a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos and designs, or a combination of these, intended to identify goods, services or entities, or a combination of these, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits/value.”
However, a brand makes a contribution to a company beyond that which can be sold to a third party. ‘Brand Contribution’ refers to the total economic benefit that a business derives from its brand, from volume and price premiums over generic products to cost savings over less well-branded competitors.
Brand Strength
Brand Strength is the part of our analysis most directly and easily influenced by those responsible for marketing and brand management. In order to determine the strength of a brand we have developed the Brand Strength Index (BSI). We analyse marketing investment, brand equity (the goodwill accumulated with customers, staff and other stakeholders) and finally the impact of those on business performance. Following this analysis, each brand is assigned a BSI score out of 100, which is fed into the brand value calculation. Based on the score, each brand in the league table is assigned a rating between AAA+ and D in a format similar to a credit rating. AAA+ brands are exceptionally strong and well managed while a failing brand would be assigned a D grade.
Approach
Brand Finance calculates the values of the brands in its league tables using the ‘Royalty Relief approach’. This approach involves estimating the likely future sales that are attributable to a brand and calculating a royalty rate that would be charged for the use of the brand, i.e. what the owner would have to pay for the use of the brand—assuming it were not already owned.
The steps in this process are as follows:
1 Calculate brand strength on a scale of 0 to 100 based on a number of attributes such as emotional connection, financial performance and sustainability, among others. This score is known as the Brand Strength Index.
2 Determine the royalty rate range for the respective brand sectors. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database of license agreements and other online databases.
3 Calculate royalty rate. The brand strength score is applied to the royalty rate range to arrive at a royalty rate. For example, if the royalty rate range in a brand’s sector is 0-5% and a brand has a brand strength score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand specific revenues estimating a proportion of parent company revenues attributable to a specific brand.
5 Determine forecast brand specific revenues using a function of historic revenues, equity analyst forecasts and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Brand revenues are discounted post tax to a net present value which equals the brand value.