Senior adviser of the Association of Accredited Advertising Agents Malaysia (4As) Datuk Johnny Mun
PETALING JAYA: Although there were no direct incentives for the advertising industry in Budget 2025, industry leaders say the budget on the whole provides an indirect boost to the industry.
They said the measures in the budget would have positive knock-on effects on consumer spending and disposable income, among others, and this would lead to marketers upping their ad spends.
Emphasis on digitalisation and automation would be another indirect booster that would spur digital advertising growth, they concurred.
Senior adviser of the Association of Accredited Advertising Agents Malaysia, Datuk Johnny Mun (pic), told StarBiz Budget 2025 has a number of elements that could positively impact the advertising industry, albeit indirectly.
He said key measures like increasing the minimum wage, providing cash handouts and implementing new grants and incentives for small and medium enterprises (SMEs) are likely to increase disposable income and consumer spending.
“This scenario is promising for brands and businesses that will likely ramp up their advertising to capture new consumer demand. SMEs, in particular, have received a significant boost in the form of grants for automation, digital adoption and training.
“These initiatives may encourage SMEs to enhance their market presence through increased advertising, thereby creating a ripple effect of growth in the advertising sector.
“Moreover, the emphasis on digitalisation and automation provides fertile ground for digital advertising growth,” said Mun, who is also Oxygen Advertising managing director.
He said digital-focused incentives and initiatives, like those aimed at making Kuala Lumpur a global startup hub, would also contribute to the expansion of tech-driven advertising campaigns that target a digitally savvy audience.
In this sense, he said the budget has paved the way for broader technological integration, which indirectly supports the advertising industry.
Overall, Mun said Budget 2025 sets a solid foundation for the general economic growth, increased consumer spending and a more digitally connected business landscape despite the absence of direct measures to steer the ad industry forward.
Measures like the increase in minimum wage to RM1,700, along with cash transfers, RM50mil in matching grants for industrial training and RM3.8bil allocated for automation and digitalisation, as well as the allocation of RM100mil for digital and automation Initiatives, would have positive spillover effects on the ad industry.
Havas Malaysia CEO Nizwani Shahar said the initiatives proposed in Budget 2025 can certainly generate positive spillover effects for the advertising industry.
“When we talk about increased spending on infrastructure, digitalisation, and SME support, these sectors directly translate into opportunities for brands to engage with their audiences in meaningful ways.
“For example, increased support for digitalisation, whether in financial technology, eCommerce, or government services, creates a larger platform for digital and performance marketing to flourish.
“As more businesses adopt digital channels, they will seek to differentiate themselves in an increasingly competitive landscape, fueling demand for strategic creative work and innovation from agencies like Havas,” she said.
Moreover, she said the government’s initiatives to boost consumer spending power and support local businesses would create a more fertile environment for brand-building.
“Brands will be eager to tap into the rising purchasing power, leading to more advertising investment across sectors. Industries such as automotive, telecommunications and even fast-moving consumer goods will likely ramp up their marketing efforts to leverage these trends,” Nizwani noted.
Looking ahead, she said Budget 2025 sets the stage for exciting opportunities in the creative space. She foresees more demand for data-driven insights paired with powerful creative storytelling as businesses aim to connect deeply with increasingly discerning consumers.
“At Havas, our focus is always on making a meaningful difference and as the economy grows, we look forward to driving creative effectiveness that not only builds brands but also moves society forward in a sustainable way,” Nizwani explains.
Malaysian Advertisers Association president Claudian Navin Stanislaus said in theory the budget undeniably offers several lifelines to the advertising and marketing landscape.
But in reality it may prove to be quite different, especially behind the murky “walled gardens” of social media, where much of this budget would likely end up.
Unfortunately, SMEs often face an onslaught of ‘experts’ where most of whom lack real expertise and experience to provide effective marketing strategies that deliver measurable results.
“As a result, a significant portion of this allocation may likely be squandered on ineffective strategies. And that’s the sad fact we can look forward to, if there is no oversight of its utilisation.
“However, Budget 2025’s focus on artificial intelligence offers a unique chance to develop technologies that resonate with our distinct cultural nuances here in the Asean region, something existing solutions overlook or discount, but are critical for us in this region.
“This would be a key area of innovation, leveraging our strengths as a culturally rich and diverse society, to build tools that are more aligned to our needs in this region,” Claudian said.
He said the budget’s real focus should have been on nurturing and building competitive brands that aren’t just geared to survive, but meant to thrive locally, regionally and perhaps even globally.
“Instead of directing investment solely into digital advertising, the focus should have been on giving SMEs’ access to qualified strategies and credible services to truly grow their brands.
Simply handing them a wad of cash, only to have it swept up by some opportunist ‘expert’ around the corner, does little to foster real, sustainable growth,” Claudian added.
