Bala: More needs to be done to fund digital education to boost the industry.
PETALING JAYA: Advertising and media industry leaders are urging the government to incorporate various incentives and proposals in the upcoming Budget 2024 that will catalyse the industry to greater heights and be regionally competitive.
IPG Mediabrands Malaysia chief executive officer (CEO) Bala Pomaleh, who is also the Media Specialists Association (MSA) president, said more needs to be done to fund digital education to boost the industry.
He told StarBiz this is a crucial step in aligning with the country’s national goal of driving economic growth through digital transformation.
“Deepening knowledge in this space will allow us to boost innovation and creativity with storytelling opportunities around emerging platforms, drive better cross-industry collaboration between media and tech, and help Malaysia become a more attractive proposition as a global digital marketing hub with cost-effective services,” Bala said
He added digital transformation grants or subsidies can be offered to help agencies build robust talent development programmes, allowing them to adopt advanced digital technologies such as data analytics, programmatic advertising, artificial intelligence (AI) development and virtual reality.
“While agencies like ours already have learning programmes in place, having opportunities to offer scholarships to our talents to hone advanced skills with reputable institutions would hold us in good stead as we look to stay competitive in the digital age,” Bala said.
He said bigger brands and companies are already looking into AI and it would be good for the upcoming budget to provide for more awareness around this theme, to help businesses think about the opportunities available to them with this growing technology.
He said AI business grants can be provided to encourage businesses to invest in AI powered tools for customer service, automation, data application or other specific business uses. He said this could help streamline operations in an increasingly tough economic climate.
Bala said greater transparency on the Single TV Audience Measurement (Stam) should be spelled out in the upcoming budget.
The Malaysian Communications and Multimedia Commission (MCMC) has taken the lead to champion the Stam project, he said, noting that, however, there has not been much progress since the tender was called for.
“This undertaking is extremely essential for restoring confidence in audience measurement and ensuring that brands can make informed decisions regarding their advertising investments.
“To add urgency and move the process forward, greater transparency needs to be in place to fast-track the process, and MCMC can lean on collaboration with associations like the MSA to provide technical expertise as the primary users of the data.
“Consider also benchmarking with international standards on best practices and offering within the budget some incentives or benefits to broadcasters and media companies that actively participate in getting the system off the ground,” Bala added.
Prashant: Timing is perfect for bold commitments matched with brilliant executions.
Entropia founder and senior partner Prashant Kumar said the advertising industry in Malaysia has been relentlessly buffeted by several “forces” in the last five years, which include economic headwinds, the Covid-19 pandemic, skewed taxation, and rapidly shrinking space for local media players.
He said the biggest difference the new budget can make is to focus on getting the national economy in top gear and committing to position Malaysia in the global economy.
Prashant said the timing is perfect for bold commitments matched with brilliant executions as the economic equations and supply chains are evolving fast worldwide. “Great change throws up great opportunities,” he said.
Apart from this, he said the budget needs to seriously consider a strategic policy regime to protect and strengthen the local media and content ecosystem.
“We live in the era of dominant global media platforms and there is very little chance for local media players in this regard.
“Yet, the world needs robust local media and content in order to maintain diversity of cultures, heterogeneity of opinions, data protection and privacy and pride in local identities. People make content but content makes them too,” he said.
As to the current initiatives in the ad industry, Prashant believes there are tax policies in relation to the industry that need a relook to make it fair and reasonable in line with the global norms and conventions.
Otherwise, it may further destroy what’s already a considerably weakened industry, he warned.
Prashant further said: “No country has become a great economy without great brands.
“The premiums that strong global brands arising out of Malaysia can command is an important component of the rise in average national productivity that we seek in order to become a developed nation.
“A sizeable and resilient local ad and marketing industry is necessary towards that.”
Stanislaus: There should be incentives to work towards cultivating MSME brands.
Malaysian Advertisers Association (MAA) president Claudian Navin Stanislaus said it’s high time we viewed the marketing and advertising industry as a vibrant ecosystem. “Think beyond a transient boost –we need a steadfast push towards sustainable growth.
“To this end, there should be incentives encouraging industry stakeholders to passionately work towards cultivating and bolstering micro, small and medium enterprises (MSME) brands, “ he said.
He said this not only ignites the spark of innovation and growth within the burgeoning brands but also expands the advertising terrain, thus creating a robust marketplace ripe with opportunity.
“By infusing Budget 2024 with dedicated support and investment for brand building in the MSME sector, we are not just strengthening the backbone of our economy, but also nurturing the development of diverse, resilient local brands ready to make a mark regionally.
“It’s not merely about weathering a storm, it’s about sowing seeds for a lush, thriving forest, where every tree, every brand, stands tall, rooted in robust support and boundless opportunity.
“MAA hopes the Madani Budget will not just boost the economy, but will be a gradual and consistent turning of its wheels,” Stanislaus added.
"As the buzz for Budget 2024 grows and the principles of 'Ekonomi Madani' echo in the corridors of discussion, let's envision a future that's more than a fleeting sigh of relief. Picture a ‘Green Credit’-like incentive, a tailored catalyst, encouraging industry stakeholders to passionately work towards cultivating and bolstering MSME brands.
"What is needed is initiatives that are more sustainable and not mere ‘shots in the arm’, and this would be achieved only through greater collaboration between all stakeholders, media owners, agencies, the brands and the government."
