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.

Contacts

Samir Dixit

Press contact Managing Director, Asia Pacific Management Consulting +65 9069 8651