Saturday June 16, 2012
MMVB: Strong national brands good for economy
By EUGENE MAHALINGAM
KUALA LUMPUR: The organisers of this year's Malaysia's Most Valuable Brands (MMVB) believe that having strong national brands are vital for the creation of a commanding economy.
“We believe that strong brands create value, both emotional and financial. They contribute tremendously to the changing economic profile of our country (and) build a powerful economy,” said MMVB organising chairperson Jennifer Chan at the launch of the MMVB awards yesterday.
The MMVB awards is an independent evaluation of public-listed companies based on financial analysis, brand analysis and brand strength.
A total of 30 brands will be shortlisted for this year's awards, which is scheduled for October. The event is organised by the Association of Accredited Advertising Agents Malaysia (4As) and Media Prima. The organisers are collaborating with Interbrand, a global leader in brand consultancy, to undertake the brand valuation process.
“The advantage of having a brand evaluated is that we will be able to place a tangible worth to it,” said Chan.
4As president Tony Savarimuthu said the 30 brands at the previous year's MMVB awards were collectively worth RM57bil in 2007, RM62bil in 2008 and RM54bil during the downturn in 2009.
“The question is, how much will the top 30 brands be worth in the last financial year?
“Most importantly, what are the factors which will govern the new valuation. As much as the valuation is a science based on rigour and methodology, there are no finite answers.
“What the valuation will do is to act as a key platform for discussion and strategy in boardrooms and especially in the media,” he said in his speech at the launch yesterday.
Tony added that brand development was “the lifeblood of economic growth.”
“The value of our brands must be exponentially higher than the cost of the product in order for us to build revenues, improve job opportunities, drive innovation and creativity and increase the overall contribution of the service sector and consequently gross national income,” he said.
The MMVB awards is also supported by the Malaysia External Trade Development Corp (Matrade).
Matrade deputy chief executive officer Datuk Mohamad Kamarudin Hassan the MMVB awards was a good move to help showcase Malaysian brands at the global level.
“This effort of profiling Malaysia's brands would contribute to making our products and exports more competitive in the global marketplace,” he said.
Separately, Chan said MMVB's organisers will have various promotional activities leading up to the awards.
“Next month we will have a forum on how building brands enhances the financial value of businesses,” she said, adding that the discussion is expected to attract some 150 chief executive officers, chief marketing officers and chief financial officers from public listed and privately held companies.