Issue 232 by Sledgehammer Communications (M) Sdn Bhd

www.marketingmagazine.com.my

ISSUE 232 END-NOV2018

Jeyapuvan Somasundram Datuk Jake Abdullah

Chief Commercial Officer

Chief Executive Officer

Mark Heng

Ramesh Sankey

Chief Operating Officer

Chief Content Officer

ASTRO A NEW FAN IS RADIO BORN EVERYDAY ISSN 1985-5575

00232 9 771985

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KDN NO. PP15776/03/2013 (033405) RM3.50

MALAYSIAN CMO AWARDS WINNERS 2018 AND CONFERENCE SHOWCASE INSIDE

astro winning partnership series

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When Astro, South East Asia’s top cross-media organization, with direct-to-home satellite TV services in Malaysia, Brunei, Singapore, Indonesia and other parts of the ASEAN region, collaborates with another brand that is seeking communications solutions, the partnership gives desired results. The effectiveness of the campaign is amplified, and the brand’s inherent strength also stands leveraged, driven by Astro’s strategic content input. The ninth case study in the ‘Winning Partnership Series’ discusses how Astro used its vast network of television, digital and social media to jumpstart Anlene as the go-to milk brand for adults of all ages. Anlene often faced this misconception that their brand was only for the elderly, leaving the younger consumers to choose regular milk over Anlene. Therefore, Anlene needed to secure a way to change this perception.

OVERVIEW Anlene needed a brand reappraisal from an old age nutritional drink to a brand that cares for overall movements, strong bones, joints and muscles. Also, the old proposition of bone health and osteoporosis prevention didn’t resonate with younger age consumers due to the irrelevance in their nutritional needs. Astro needed to convince young adults using their own lingo. By engaging thought leaders of their own generation, a digital content series was designed to spark social conversations surrounding Anlene’s movement #WeAreMore. CHALLENGES Anlene needed to dispel the notion of being an elderly brand with bone health and osteoporosis prevention, which young adults perceived as a brand that catered more for their parents or for older age consumption.

ASTRO LED CON STRONG MOVEM HEALTH FOR SE #WEAREMORE C

“COLLABORATION WITH ASTRO HELPED KICK START ANLENE TO GO ON YOUNGER, BOLDER, EDGIER PLATFORMS. WORKING WITH KOLS INTRODUCED BY ASTRO HELPED BRING TO LIFE THE MEANING OF #WEAREMORE IN A LOCALIZED CONTEXT FEATURING FACES WHO ARE INSPIRATIONAL TO MALAYSIANS.” KAREN ONG, MARKETING DIRECTOR, FONTERRA BRANDS (M) SDN BHD

TARGET AUDIENCE Young adults. STRATEGIC FIT Astro’s vast network across television, digital and social media formed the perfect basis for Anlene to jumpstart their movement. Astro then identified six influencers to carry the #WeAreMore narrative through stories captured in digital video formats showcasing #Morethan just their careers, age and looks. This allowed Anlene to strengthen connection with younger audiences by motivating them to break stereotypes and achieve their potential beyond society’s perception. OBJECTIVE The campaign’s main objective was to elevate top-of-mind score amongst

young adults, change their perceptions and encourage daily consumption of Anlene as a nutritious intake to support life in their prime. SOLUTION Astro tapped into its solid media ecosystem spanning from TV to Digital, and deployed its expertise in creating content across platforms to become the ideal communication vehicle to

champion Anlene’s #WeAreMove movement and reach out to younger consumers. Astro needed to convince younger consumers by using their own lingo. By engaging thought leaders of their own generation, a digital content series designed to spark social conversations surrounding Anlene’s movement #WeAreMore was shared across ASTRO channel assets in TV, digital and social media.

CONTENT STRATEGY Anlene’s “We Are More” campaign highlighted people’s social and emotional struggles often characterised through age, outlook, career and life stages. The six influencers who were selected to anchor the #WeAreMore campaign were the epitome of admirable young figures at the prime of their lives, thus giving Anlene’s brand image a younger appeal with a fresh facelift.

The 6 thought leaders are: 1. Stacy Anam - Dancing pop queen and mother 2. Wong Chui Ling Multi-talented host, entrepreneur and life coach 3. Noh Salleh - Rock star musician and avid runner 4. Aidid Marcelo - TV personality, businessman and devoted father 5. Shalma Aina - Sports

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ASTRO WINNING PARTNERSHIP SERIES

NVERSATIONS ON MENT BEYOND BONE ENIORS WITH ANLENE’S CAMPAIGN

athlete and Millennial Entrepreneur 6. Thomas and Jack Malaysian singing and acting duo Based on their persona, ASTRO created a series of edgy and motivational videos to share their stories of inspiration. CONTENT DISTRIBUTION A 2-minute branded capsule

sharing Stacy’s rise to success despite her young age and her staying presence in the industry fuelled by her determination to do more was populated across ASTRO’s top social sharing news sites such as Gempak, RotiKaya and Rojak Daily supported by advertorials to create brand relevance. 30-seconds cut down versions of the capsule were aired across Malay vernacular

channels such as Astro Ria and Astro Prima. The capsules were then further amplified by popularising them through Astro’s top entertainment programs such a Motif Viral and Meletop. To appeal to Chinese consumers, multi-talented host, entrepreneur and life coach Wong Chui Ling’s branded capsule was aired across

Chinese vernacular channels to heighten its visibility. Her story of #MoreThanCareer in a 2-minute digital short was used as an aspirational tool shared across Xuan website, supported by advertorials to drive brand presence and recall. A web content series of 3-minute interstitials featuring other KOLs like Noh Salleh, Aidid Marcelo, Shalma Aina, Thomas and Jack were also produced to cover a wider aspect of the campaign in terms of their careers, looks and parental roles. These videos were then housed on ASTRO’s digital assets like Gempak, Rotikaya and Xuan websites while talk shows like HLIVE, Astro’s entertainment news program, picked up on the series to be featured as special segments within the show.

BRAND ALLIANCE ASTRO-ANLENE MEDIA AGENCY: MediaCom

RESULTS During the campaign which took place from November 2017 to January 2018, Anlene achieved an impressive uptake in its sales. The internal sales uplift recorded a 24% spike when compared to 3 months before the campaign, and the growth was seen higher amongst younger consumers. The Anlene Regular product range targeting aged 19 and above proved a big hit with 27% sales uptake, while the sales for Anlene Gold product range targeting aged 51 and above lifted by 24%. Anlene’s market share in January 2018 increased by 3.4 points, hitting an impressive 48.4 points. The branded advertorials which were shared across Astro Gempak, Xuan, Rojak Daily and Roti Kaya achieved a total reach of 3 million. The KOL story capsule which was aired on Astro TV reached 73% of Malay viewers (7.1 million) and 56% of Chinese viewers (337,000) who viewed the content at least once. Overall, the campaign achieved a total engagement of 702,800 thanks to Astro’s social media assets. “Collaboration with ASTRO helped kick start Anlene to go on younger, bolder, edgier platforms. Working with KOLs introduced by ASTRO helped bring to life the meaning of #WeAreMore in a localized context featuring faces who are inspirational to Malaysians,” said Karen Ong, Marketing Director, Fonterra Brands (M) Sdn Bhd This campaign won a Bronze award under the Best Use of Content Amplification category at the 2018 Spark Awards.

ISSUE 232/// END-NOV2018 COVER FEATURE

08 WANT TO BUY AN ARMPIT? HOW ABOUT PLAYING FOOTBALL WITH A MINISTER?

EVENTS CALENDAR 28 JANUARY 2019 @4.30PM

CANNES LIONS SCREENING BEST OF 2018 + MC2 AWARDS WINNERS CEREMONY 2018 HALL 5, TGV CINEMA, ONE UTAMA, PETALING JAYA. Regional CEO Professor Harmandar Singh ham@adoimagazine.com Content Officer Reena Sekaran reena@adoimagazine.com Business Development Managers Jarrod Sunil Solomon jarrod@adoimagazine.com Sandesh Singh sandesh@adoimagazine.com Art Director / Designer Chemical Ali ali@adoimagazine.com Designer Lilna Marlina lilna@adoimagazine.com Events & Workshops Ruby Lim ruby@adoimagazine.com

ASTRO WINNING PARTNERSHIP SERIES

CREATIVE CONTENT

ASTRO LED CONVERSATIONS ON STRONG MOVEMENT BEYOND BONE...

Anlene needed a brand reappraisal from an old age nutritional drink to a brand that cares for overall movements, strong bones, joints and muscles. Also, the old proposition of bone health and osteoporosis prevention didn’t resonate with younger age consumers due to the irrelevance in their nutritional needs... EDITOR'S NOTE

02 CREATIVE SURGE

amira@adoimagazine.com

CMO CONFERENCE & AWARDS 2018

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MARKETING magazine is available across 200 selected bookstores in the Klang Valley.

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Web & Digital: Nurul Amira Ibrahim

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DIRECTORS THINK TANK RAJAY SINGH JOINS THE GLOBAL JURY AT ONE SCREEN SHORT FILM FESTIVAL

06 MALAYSIA’S FILM INDUSTRY ENDS 2018 WITH A BANG AT THE BOX OFFICE!

IDEAS: THE YELLOW SUBMARINE RAINWEAR STORY

2018 is definitely a golden year for Malaysia’s film industry as three local films have set all-time new records by raking in more than RM30 million each at the box office! The amount is almost double that of the previous highestgrossing Malaysian film Abang Long Fadil 2 which tallied at RM18.15 million at the box office.Horror film Munafik 2 led the year’s highest grossing local films, minting RM42 million at the box office. Horror-comedy Hantu Kak Limah cashed in second at RM36 million and military action film PASKAL the Movie came in third with RM30 million todate. After the success of PASKAL, we were left wondering if any other local action movie could top the excitement...

At the 2018 Kancil Awards, Graphic Design student Shin walked away with the Idea of the Year and the Student of the Year awards for her final project. Titled Yellow Submarine, the work comprised rainwear made out of used life jackets. I caught up with Shin over coffee, and wondered why a graphic design student is killing it in what is obviously fashion design. “Design is very wide,” said Shin. “Design is everywhere. There is no such thing as no design. Only good design or bad design.” The rainwear was accompanied by posters, postcards and a booklet promoting the products. “What was the brief that led to the work?”

November 16th was a day and night of insights and celebration as MARKETING magazine brought together 300 leading industry players at the Sime Darby Convention Centre for the sixth CMO Conference and the inaugural CMO Awards 2018. With the theme “Goodbye Marketing, Hello Engagement”, this year’s conference was a real game changer as the very definition of “marketing” was called into question...

PRESENTING THE MALAYSIAN CMO CONFERENCE AND THE MALAYSIAN CMO AWARD WINNERS OF 2018!

PEOPLE MOVE

BIG SHOES TO FILL IN AT THE STAR THE successor to Datuk Seri Wong Chun Wai at the Star Media Group (SMG), following his decision to retire as its managing director and chief executive officer, will have big shoes to fill. It will be a tough act to follow, more so when media outlets around the world are facing strong revenue and profit pressures....

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DIRECTORS THINK TANK RAJAY SINGH JOINS THE GLOBAL JURY AT ONE SCREEN SHORT FILM FESTIVAL

CREATIVE CONTENT

CEO at Directors Think Tank (AOI Pro Group) Rajay Singh will join the jury at the 7th annual One Screen Short Film Festival. The One Screen Short Film Festival is a premiere short film festival that celebrates and awards filmmakers from advertising and film. One Screen is part of The One Club for Creativity, the foremost global non-profit organisation celebrating creative excellence in advertising and design. It focuses on all forms and aspects of short films — narrative fiction, comedy, passion projects, commercials, branded content, music videos, spec work, animation, sound, movie poster design, title sequences, etc. The jury is composed of leading film directors, producers, ad agency creatives and heads of production companies. Winners will be announced at the One Screen Short Film Festival awards ceremony and screening in New York in February 2019. “In just its seventh year, One Screen now has the drawing power to attract Oscar winners as both entrants and judges from around the world,” says Jonathan Jirjis, Executive Producer of One Screen. “It’s now a proving ground for promising young talent.” “Having judged in a number of advertising festivals, it is refreshing to judge the One Screen Short Film Festival. After all, it features many types of film-making which should be interesting and different,” adds Rajay. He has judged at ADFEST, Spikes, AD STARS and the Ciclope Festival, and is also behind successful campaigns for brands like Petronas F1, Glenlivet, Sony, Guinness, Google, and Mitsubishi. To spearhead the company’s growth in Asia, Rajay successfully negotiated capital participation by the largest production group in Japan, AOI Pro. — the first in Malaysia to attempt such a feat.

The production company was one of SE Asia’s most awarded production companies in 2017. Within the Directors Think Tank group, there is also a production services company called ‘The Tankers’. Directors Think Tank was also ranked amongst the top 10 production houses across Asia for Campaign Brief’s The Work. It was recently awarded Production House of the Year at the Kancil Awards, where it won a total 25 awards including Gold for Malaysia Airlines ‘Raya Around The World’ and Maxis Communications ‘MAXIS_AI versus MI’, 1 Silver, 16 Bronze and 6 Merit awards. Rajay has directed television commercials that have won accolades across the globe, with wins at Cannes Lions, One Show, AD STARS, Spikes, and ADFEST.

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EDITOR’S NOTE

MALAYSIA’S FILM INDUSTRY ENDS 2018 WITH A BANG AT THE BOX OFFICE! By Reena Sekaran | reena@adoimagazine.com

I’M A FIRM BELIEVER “THAT A POWERFUL GROWTH MARKETER MUST POSSESS 3 KEY QUALITIES: STRONG LEADERSHIP, FOCUS & STRATEGY, AND RELENTLESS IMPLEMENTATION

... JUST FIVE DAYS AFTER ITS PREMIERE, POLIS EVO 2 RAKED IN MORE THAN RM10 MILLION!

”

DATUK WILLIAM NG PRESIDENT, ENTERPRISE ASIA.

FOR ME, THE “SECRET IS IN

CONNECTING YOUR MARKETING EFFORTS WITH THE BUSINESS’ PURPOSE

”

STEPHANIE CAUNTER - GLOBAL DIRECTOR OF MARKETING & COMMUNICATIONS, CATCHA GROUP.

CMOs ARE MORE “INFLUENTIAL IN THE ENTERPRISE OF COMMERCE THAN EVER BEFORE

”

LINDA HASSAN – SENIOR VICE PRESIDENT OF MARKETING, DOMINO’S PIZZA MALAYSIA & SINGAPORE.

Limah cashed in second at RM36 million and military action film PASKAL the Movie came in third with RM30 million todate. After the success of PASKAL, we were left wondering if any other local action movie could top the excitement and adrenaline rush the movie PASKAL, inspired by true events, gave us. Well, it seems it may have a strong contender now in Polis Evo 2 (PE2), the sequel to the crowd favourite Polis Evo, and was released on November 22.

The movie has already received rave reviews and Malaysian audiences are thrilled. Just five days after the premiere, Polis Evo 2 had already raked in more than RM 10 million! There is more... Lee Chong Wei’s biopic movie Rise of the Legend aired on 8,000 cinemas in China, while Pulang was available in 190 countries through an exclusive premiere on Netflix. Deputy Communications and Multimedia Minister Eddin Syazlee Shith said that the year 2018 can be regarded as the most exciting and encouraging year in the country’s film industry especially in efforts to penetrate the international market. With Malaysia’s film industry scoring smashing hits in 2018, 2019 could turn out to be even better with OTT players like Viu going all out to make Malaysian content go global. Plus VOD player dimsum has just launched in Singapore as part of their regional expansion...

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COVER FEATURE

WANT TO BUY AN ARMPIT? HOW ABOUT PLAYING FOOTBALL WITH A MINISTER? Astro Radio always pushes the limits to create the most impactful content for its diverse audience segments!

From left: Dhan Andreas, Content Manager ERA; Rex Musadek, Content Manager LITE; Nisha Sundrum, Content Manager MIX; Subra Veerasamy, Content Manager RAAGA.

As Malaysia’s favourite radio network, Astro Radio is constantly innovating and creating fresh original content to captivate and grow its diverse, vernacular audience segments. In this issue, MARKETING goes behind-thescenes to experience the passion and effort behind four popular campaigns that drove social engagement...

BUY MY BODY Nisha Sundrum Content Manager MIX

What was the inspiration behind the campaign? MIX Breakfast Show host, Rod Monteiro, has two aunties battling breast cancer. In conjunction with breast cancer awareness month, we created a campaign that was aimed at lifting up spirits and celebrating life. We sold spaces on the MIX Breakfast Show hosts’ t-shirts. Every time someone donated, their name went up on the t-shirts. At the end of the campaign, our talent wore them and ran at the KL Car Free Morning. Were there any challenges along the way in executing the campaign? One of the challenges faced was ensuring transparency. People wanted to be assured that the donations would be going through the right channels, so we chose the National Cancer Society of Malaysia. At the start of the campaign, we aimed to raise RM10,000 in 2 weeks. The thought of coming up with RM10,000 in such a short time felt impossible but with great

support, we raised RM12,000. How did you create awareness and hype for your campaign? We used MIX’s reach, influence and social media platforms to raise awareness and drive engagement. This helped create a tipping point towards the end of the two weeks, when one of our listeners heard our efforts on the radio and bought the remaining body parts thus helping us surpass our goal. How was the response towards the campaign? It was a huge triumph. We helped raise awareness for breast cancer while simultaneously increasing engagement between our fans and talent.

YB SYED SADDIQ VS ERA’S DUGONG ALL STARS Dhan Andreas Content Manager ERA

What was the inspiration behind the campaign? It began when we rang up YB Syed Saddiq for an interview, which took five months to organise. We challenged YB via Twitter to play against ERA’s own football team – the Dugong All Stars.YB accepted the challenge and proposed that we play the friendly match in Muar, his home town, the following week. Were there any challenges along the way in executing the campaign? It took five months to book an

interview with YB! Our next challenge was having to organise a football match for 5,000 people in just fiive days. For the football match to be successful, we had to engage celebrities (who all have hectic schedules) to participate, book and get permits for the stadium, etc. How did you create awareness and hype for your campaign? First, we got YB on board with a team of celebrities which was sure to be a crowd pleaser. By hosting the football match in Muar – YB’s hometown – we knew that the locals would be excited to see one of their own in action. We also constructed friendly banter between YB and our JoHaRa Pagi ERA boys on social media. How was the response towards the campaign? The stadium was packed to the brim. We also live streamed the football match on our ERA Facebook page, and that received over 800,000 views.

UNSUNG HEROES Subra Veerasamy Content Manager RAAGA

What was the inspiration behind the campaign? We wanted to find a way to celebrate and pay tribute to the Malaysian heroes who have made notable differences in the lives of others. During this year-long campaign with our valued partner Digi, fans are encouraged to nominate an unsung hero in their community and we then feature shortlisted stories on RAAGA.

Were there any challenges along the way in executing the campaign? The challenge we faced was getting the ball rolling. We had to use our talent to coax the unsung hero stories out. Once we had highlighted a few stories, more just kept rolling in. This meant there are actually plenty of unsung heroes out there. We just needed to give people a platform to show their appreciation. How did you create awareness and hype for your campaign? What really drove the take up of this campaign was our talent, who are seen as pillars in the community. With their encouragement, our fans slowly gained confidence in sharing their unsung hero stories. We also utilised the strength of our brand’s Facebook and YouTube platforms to amplify our message. How was the response towards the campaign? Very humbling. It’s clear that the unsung hero stories have touched our wider audience because the five videos we’ve posted so far have received 461K views and have been shared 873 times.

THE LITE FRONT PAGE Rex Musadek Content Manager LITE

What was the inspiration behind the campaign? Following the recent GE14, we

discovered a growing appetite for current affairs amongst Malaysians. We created a new weekly segment on our breakfast show called The LITE Front Page. In this segment, we featured well known Malaysians debating topics of interest moderated by our LITE Breakfast hosts. Some of our guests included Terence Fernandez and Zurairi AR. Were there any challenges along the way in executing the campaign? The challenge was finding the right guests who are qualified and interested in participating in this sort of content. Fortunately, LITE is an established brand in the market and it has been fairly easy convincing our guests to lend us their time and minds. How did you create awareness and hype for your campaign? Social media is a huge part of our marketing strategy and we’ve found it to be one of the best platforms to share our original video content. In fact, earlier this year, we were recognised for our efforts by receiving Bronze in the d-Awards 2018’s ‘Best Use of Social Media’ category. Therefore, our ongoing awareness strategy is to use both radio and social media hand in hand to drive hype and engagement. How was the response towards the campaign? So far response has been really positive. We’ve managed to spark conversations and have received great feedback from our fans on our social media pages and also on WhatsApp.

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CREATIVE SURGE

IDEAS: THE YELLOW SUBMARINE RAINWEAR STORY

AT the 2018 Kancil Awards, Graphic Design student Shin walked away with the Idea of the Year and the Student of the Year awards for her final project. Titled Yellow Submarine, the work comprised rainwear made out of used life jackets. I caught up with Shin over coffee, and wondered why a graphic design student is killing it in what is obviously fashion design. “Design is very wide,” said Shin. “Design is everywhere. There is no such thing as no design. Only good design or bad design.” Objective The rainwear was accompanied by posters, postcards and a booklet promoting the products. “What was the brief that led to the work?” “There wasn’t a brief to say do this or do that,” replied Shin.

“It was pretty open. We had six months to develop the project. First three months was for idea development, next 3 months for execution.” “Was this your first idea?” “No, there were several ideas before this. I remember reading somewhere that all life jackets had expiry dates and wanted to see if I could make something with the product. I liked the material and texture, and it sort of started from there.” Challenge “What was your first thought? What did you think you could make out of used life jackets?” “I think my first thought was: rain boots! It’s not very common here, though. Then I thought, what if we did sofa covers, or a bed cover, or an umbrella maybe? I toyed around with several product design ideas.” “When did you know you

finally hit the sweet spot?” “I looked at the product. It’s a travel product- as such, the upcycled material should be something related to travel. Besides, I’ll need a lot of life jackets just to make one sofa cover.” Truth To bring her idea to life, Shin wrote to AirAsia. As it happens, the airline kept all their used uniforms and life jackets in a giant warehouse in Klang. They were running out of space and were looking for an idea to repurpose the items- instead of throwing them away. Shin prepared a deck (describing her idea), found somebody who knew somebody at AirAsia Foundation, and emailed it over. The airline responded and gave her three life jackets. Around the same time, Shin

had also developed a brand called Submarine, a platform that turns waste into something new and purposeful. And since the lifejackets were yellow, she created a sub-brand for the items called, ‘Yellow Submarine’. Asked whether she’s a fan of the Fab Four, Shin simply replied, “Erh, I like their songs lah.” Answer With three precious life jackets before her, and patterns downloaded from the internet, Shin went to work. “I asked everybody if they knew any good tailors. Didn’t know it was so hard to find one! In the end, I had to recruit family members to help,” said Shin. Altogether, Shin made four products: A Bucket Hat, Shoe cover, Pouch (called Soggy-NoMore) and Raincoat. She made the labels big and placed it outside, as part of the design. The work was launched, as it were, at the Raffles College of Higher Education graduation showcase. It was also submitted to the Kancil x sCooler student awards, where it picked up Gold (for Best Print and Poster campaign), Silver (Best Design, Product) and Merit (Best Idea for Social Good). The work also won Idea of the Year, and Student of the Year awards. The latter award was shared with two other students. Beyond industry recognition, the idea was also picked up by AirAsia Foundation, which has since engaged Nazanin, a social enterprise comprising Afghan refugees in Kuala Lumpur, to produce accessories made from

used life jackets, and old airline uniforms. Soggy-No-More pouches can now be purchased from AirAsia Foundation pop-up stores. The collection currently includes a sling bag, coin purse and cutlery case. Plans are underway to sell the items onboard AirAsia aircraft by next year. Meanwhile, Shin is busy preparing for her Masters in Art and Design in the UK. And how does she feel about her recent awards success, and that her work is being sold by AirAsia? “Very surprised, and grateful to AirAsia for their support. The product range is not entirely the same as mine, but I still like it.” Those of you planning on hiring this young lass will have to wait for a couple of years. After her studies, she plans to freelance in Europe before making her way back to the tanahair. In case of emergency, I am led to understand that her mother is somewhat adept at design too, but that’s another story.

Edward Ong is on a quest to discover and create Malaysia’s best ideas. He is an award-winning Writer and Creative Director, and can be found at IdeasAreBorderless.com

EVERYONE’S COMPLAINT DEPARTMENT

OCCUPATIONAL HAZARD.

IF it’s not already known, I have 2 wives. My first is a wonderful woman who’s given me three wonderful kids. More than a wife, she’s a companion, a friend, a travel buddy and my most ardent supporter who also plays the role of my p.a. My second wife, the lesser known one, is my laptop. And like how marriages are described in scripture – ‘What God has put together, man shall not put asunder’, the laptop and me are also inseparable to the extent that I also sleep with it. Gosh. Here’s a part of our jobs that causes heated debates – work-life balance; where is the separation? I’m all for the separation of work and life, yet I feel it’s an illusion as far as this industry is concerned because ours is not so much a job as it is a mirror of life. I’m not referring to the daily stuff where we bleed and loose our sanity over banner permutations and arguments over word-count on a space 3cm

across or going suicidal because someone in authority insists that bad grammar is the way to go for a social post. I can go on but that’s not the point. I’m talking about life. When I am on a trip, when I am people-watching or having a conversation with my wife and kids, or my dog, when I am alone with my guide on a trek, when I am ordering breakfast in an old kopitiam or even when I am taking a midnight stroll and star-gazing, when there are stars to be gazed upon, life happens and where life is, ideas and insights are aplenty. These are the things that matter. Our chief calling is not to be trend-chasers and snake-oil salesmen. It’s more about presenting a point of view about the experience of being human and to create in our audience, a feeling, ignite a thought and perhaps inspire them to respond. And how do we do this exactly? There is no sure way, I’m sorry. But perhaps we

can start by thinking as a human being instead of a marketer or adman and see work imbedded in life and vice versa. The experience of being a husband and a parent, of being a son and a pedestrian, a traveller,

a fan of the silver screen, a Malaysian, a boss, ahem, has given more insights about life than all the stuff I’ve read and researched on. What is seen as an occupational hazard, I see it as an occupational blessing.

The ‘Everyone’s Complaint Department’ series of comic strips began as random doodles and reflection pieces of Alvin Teoh, ECD of NagaDDB Tribal. These little stories were originally posted on Facebook and are an ongoing tribute to life in Adland.

These are the things that last. One day when I am dead and gone, I hope people will look upon some of the stuff I’ve done and say – ‘hey, there’s soul in that work. I see life. I get it.’ That would be nice.

PRESENTING THE MALAYSIAN CMO CONFERENCE AND THE MALAYSIAN CMO AWARD WINNERS OF 2018!

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CMO CONFERENCE 2018

CMO CONFERENCE REDEFINES R

EVERY DAY IS A CURVE FOR THE

Delegates exchanging opinions at the CMO Conference

MARKETINGâ&#x20AC;&#x2122;s Jarrod makes new friends with open arms

The Knorex team in full parade Schrene Goh , Head of Marketing (Global Market) of Malaysia Airlines and Rishi Pahwa, Head of Marketing, Wipro Consumer Care (LDW) during the panel feedback sessions.

Damien Crittenden, Xaxis APAC VP Client Strategy, kicked off the day

ISSUE232END-NOV2018

ROLE OF MARKETING:

A LEARNING E BRAVE... CMO CONFERENCE 2018

Razaleigh Zainal, VP of Corporate Affairs MDEC has something to share

Timothy Johnson, Senior Vice-President of Marketing Product & Partnerships of INTI International University & Colleges on stage

Malati drove the Spotlight Sessions Professor Harmandar Singh and Dato (Dr.) Hussamuddin Hj. Yaacub, Chairman, CEO & Group MD of Karangkraf Media Group on blunt truths.

Arvind Sethumadhavan, Chief Strategy & Innovation Officer, Dentsu Aegis Network (DAN) Asia Pacific

CMO CONFERENCE 2018

NOVEMBER 16th was a day and night of insights and celebration as MARKETING magazine brought together 300 leading industry players at the Sime Darby Convention Centre for the sixth CMO Conference and the inaugural CMO Awards 2018. With the theme “Goodbye Marketing, Hello Engagement”, this year’s conference was a real game changer as the very definition of “marketing” was called into question. Indeed, marketers have never faced a bigger dilemma today given the rise of technologies like Artificial Intelligence, Augmented Reality, Programmatic Advertising, Blockchain and Chatbots. In an effort to bring marketers up to speed with the shifting marketing landscape in Malaysia, the Malaysian CMO Conference gathered an illustrious panel of diverse speakers that came from the media, retail, airlines, telco, academia and more. Among the game-changers who were present onstage, sharing their thoughts on this year’s theme included Damien Crittenden, VP Client Strategy at Xaxis APAC; Dato’ Dr.Hussamuddin Hj. Yaacub, Chairman, CEO & Group MD of Karangkraf Media Group; Rishi Pahwa, Head of Marketing at Wipro Consumer Care (LDW); Kenny Wong, Chief Marketing Officer (CMO) of Sunrise Berhad; INTI International University Associate Professor Dr Lee Kar Ling and local celebrity, diva and entrepreneur, the infamous Datuk Seri Vida. Kicking off the Conference was Damien Crittenden, VP Client Strategy at Xaxis APAC who spoke on how marketers and advertisers need to constantly evolve to remain effective. He emphasised that the use of artificial intelligence will allow marketers to integrate more data and intelligence into every action enabling continual optimization of campaigns. “Given the ever increasing volume of data at an advertiser’s disposal, we believe having AI at the core of their programmatic solutions will be the norm,” said Damien. Next was Arvind Sethumadhavan, the Chief Strategy & Innovation Officer of Dentsu Aegis Network (DAN) Asia Pacific who spoke about the Global CMO Survey 2018 Highlights. Arvind who was involved in DAN’s Global CMO Survey 2018, with 1,000 CMOs and C-level marketing executives across 10 markets and multiple industry sectors, explained that two-thirds of CMOs see driving business growth as their primary role by securing long-term consumer

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CMO CONFERENCE 2018

Daniel Jiang, Chief Operations Officer of Leyard Group and Norsiah Juriani Johari (Juju) VP, Brand & Group Communications, Johor Corp share their views

Srikanth Ramachandran, Director of Moving Walls Sdn Bhd

Surej Kumar, Founder of Contagious Malaysia with INFLUASIA

The team from Moving Walls

Assoc. Prof. Dr. Karling from the Faculty of Business, Communications and Law at INTI International University had the audience in awe with her Gen Y vs Gez Z study

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Professor Harmandar Singh and Dato (Dr.) Hussamuddin Hj. Yaacub, Chairman, CEO & Group MD, Karangkraf Media Group sharing about what makes the Malay consumer tick

relationships and finding new sources of revenue. With Karangkraft publishing over 13 titles including Sinar Harian and as the largest Malay content publisher in Malaysia, its founder Dato’ Dr.Hussamuddin Hj. Yaacub shone a light on the Malay consumer’s psyche. Assoc. Prof. Dr. Karling, LEE from the Faculty of Business, Communications and Law at INTI International University highlighted what marketers needed to know most about Generation Y (Millennials) versus the Generation Z (Digital Natives). She shared with the audience ways on how to communicate with these two unpredictable clusters. This year also saw the return of the highly interactive ‘Spotlight Sessions’ where marketing heads from Malaysia Airlines, Pavilion KL, Munchworld, Johor Corporation and Petronas were put in the spotlight to answer the delegates’ burning questions via mobile Q&A app Mentimeter. Over 200 questions were sent in, and our spotlighters gave their brutally honest and instant answers on a range of subjects including the future of the industry in the next 10 years to how they are winning the war on talent. At the end of the day was Datuk Seri Vida’s performance which culminated with a befitting climax for the conference. Showering her charm, wit and brutal honesty about the state of marketing with delegates, she even ended her session with a short performance from her new song! See you next year again at the Malaysian CMO Conference as we enter 2019 where the unkown is now the norm.

Datuk Seri Dr. Hasmiza Othman (DSV) returned to the stage this year Stan Chew, Country Manager of Knorex and Sean Ter, Regional Strategy Director of Innity

Andreas Vogiatzakis, CEO of Havas Media Malaysia with VMLY&R’s Lisa Hezila

CMO CONFERENCE 2018

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CMO AWARDS 2018

CMO AWARDS 2018:

A NIGHT OF RECOGNIT CELEBRATION FOR TH IT was truly a night of excitement and celebration at the Malaysian CMO Awards 2018. It was also the only major awards show in Malaysia where the awards-programme started at 7pm and ended at 9.30pm! A total of 39 awards were given out during the night including Best Marketer in B2B, Best Marketer in e-Commerce, Best Marketer in Travel & Hospitality and the coveted Malaysian CMO of the Year which went to both Santharuban Thurai Sundaram of Etika Holdings and Eugene Lee of McDonald’s Malaysia. In an effort to recognise tomorrow’s leaders 7 Rising Marketing Star awards were given out, to the most promising young marketers under 30 making waves in the marketing industry. They also received a scholarship each for a cuttingedge digital marketing course from Econsultancy UK. In attendance to officiate the awards was Minister of Communications and Multimedia of Malaysia YB Gobind Singh Deo, who congratulated all winners for helping grow Malaysia’s marketing industry. President of the CMO Awards, Professor Harmandar Singh aka Ham, who was recently inducted into the IAA Malaysia Hall of Fame shared, “It is really weird that there’s a lot of recognition going on with more award shows than pockets and sponsors can sustain in our industry. The quest for fame is fast and furious and will not change. And yet we are starved of talent!” MARKETING magazine’s ‘Go Gobind’ book was also presented at the CMO Awards. Published by Professor Harmandar Singh it is a compilation of thoughts from more than 52 of Malaysia’s leading minds in media, marketing, advertising and digital to help drive the narrative of YB Gobind Singh Deo, Minister of Communications and Multimedia. The contributors included Bala Pomaleh, CEO of IPG Mediabrands Malaysia; Henry Tan, CEO designate of Astro; Jahabar Sadiq, Editor & Chief Executive of The Malaysian Insight, and many more.

Zahid Hasman (grey suit), Digital Director for McDonald’s Malaysia wins at e-Commerce

Amanda Chong, Senior Product Executive of Wipro Consumer Care (LDW) is the Rising Marketing Star in the FMCG category

Karmen Mark, Assistant Brand Manager of Etika Holdings won the Rising Marketing Star award in the F&B category.

Minister of Communications and Multimedia of Malaysia YB Gobind Singh Deo officiating the CMO Awards show

Organised by MARKETING magazine, the CMO Conference & Awards were supported by Directors Think Tank, Moving Walls, Visual Retale, Astro, Knorex, Leyard, Innity, Ipsos, Passionation.co, Mudah.my, RIPPLE, ACE Media Network, Big Tree, FASZZ, IMI Media Group, Viu and KOMACI. Association Partners for the event included IAA Malaysia, 4As, OAAM, MAA, MSA and MDA. Tech media partner was Digital News Asia, while media partners were Malaysiakini, SME Magazine, The Edge Financial Daily and The Edge Business and Investment Weekly. Training Partner was ClickAcademy, and Knowledge Partner R3 Worldwide.

Industry leaders awaiting the arrival of the Minister

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CMO AWARDS 2018

TION AND HE STARS Stephanie Caunter, Global Director, Marketing & Communications of Catcha Group won Gold in the Best Marketer in B2B Marketing category CATEGORY/DISCIPLINE

WINNER

Best Marketer in B2B

Stephanie Caunter Global Director, Marketing & Communications Catcha Group

Best Marketer in Omni-Channel

Eugene Lee Marketing Director, McDonald’s Malaysia Jean Ler (Special Mention) Chief Marketing Officer, QSR Brands (Pizza Hut)

Best Marketer in Retail & Promotions

Mohamed Adam Wee Abdullah Group Chief Marketing Officer, CIMB Group

Best Marketer in SME

Mohammad Munzir Aminuddin (Special Mention) Marketing Director, Siti Khadijah

Best Marketer in Sustainable Brand

Nizam Sani Senior Vice-President, Marketing and Communications Bank Rakyat

Best Marketer in Millennial Marketing

Jess How Country Marketing Manager, HP Malaysia Joseph Lim (Special Mention) Chief Marketing Officer, TuneTalk

Professor Harmandar Singh giving the Malaysian CMO Awards introductory speech as President of the show

Best Marketer in e-Commerce

Zaid Hasman Director of Digital, McDonald’s Malaysia

Best Marketer in Event & Experiential

Ng Ching Yee Chief Marketing Officer, Trinity Group

Best Marketer in Customer Experience

Ms. Manpreet Singh Managing Director, Head, Group Customer Experience Management, CIMB Christine Ho (Special Mention) Senior Marketing Manager Wipro Consumer Care (LDW)

Best Marketer in Data & Technology

Chayenne Tan Vice-President, Growth Marketing, Consumer Banking CIMB Malaysia Pete Pohlschmidt Head of Digital, Malaysia Airlines

Best Marketer in Festive Communications

Andrew Pinto Head of Marketing, mudah.my

Best Marketer in Loyalty & Engagement

Victor Kaw Chief Commercial Officer, AirAsia Big Loyalty

Best Marketer in Influencer Marketing

Abdul Sani Abdul Murad Group Chief Marketing Officer RHB Banking Group

Best Marketer in Social Media

Linda Hassan Senior Vice-President, Marketing Domino’s Pizza Malaysia/Singapore

Best Marketer in Mobile

Andrew Gnananantham Chief Marketing Officer, Lazada Malaysia

Best Marketer in Travel & Hospitality

Schrene Goh Global Head of Marketing, Malaysia Airlines Izra Izzudin (Special Mention) Vice-President, Marketing & Communications Firefly Airlines

Best Marketer in Education & Training

Ben Foo Group Chief Marketing Officer, Taylor’s Education Group Timothy Johnson Senior Vice-President Marketing, Product & Partnerships INTI Education Group

Best Marketer in Media & Content Partnership

Ben Rynjah Regional Brand Manager, AirAsia

Marketing Trailblazer - Financial Services

Leong Kuan Yew Head of Digital Acquisition, HSBC

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CMO AWARDS 2018

The Malaysian CMO of the Year 2018 award is jointly awarded to Santharuban Thurai Sundaram Vice President of Marketing at Etika Holdings and Eugene Lee, Marketing Director of McDonaldâ&#x20AC;&#x2122;s Malaysia!

Zahid Hasman, Director of Digital of McDonaldâ&#x20AC;&#x2122;s Malaysia wins Best Marketer in e-Commerce Marketing.

Jean Ler, Chief Marketing Officer of QSR Brands (Pizza Hut) wins Best Marketer in Omni-Channel Marketing (Special Mention). Ng Ching Yee, Chief Marketing Officer of Trinity Group wins Best Marketer in Event & Experential Marketing.

Christine Ho, Senior Marketing Manager at Wipro Consumer Care (LDW) wins Best Marketer in Customer Experience Marketing (Special Mention).

Ms Manpreet Singh, Managing Director and Head of Group Customer Experience Management at CIMB wins Best Marketer in Customer Experience Marketing.

Chayenne Tan, Vice-President of Growth Marketing, Consumer Banking at CIMB Malaysia is recognised as Best Marketer in Data & Technology Marketing.

Mohamed Adam Wee Abdullah , Group Chief Marketing Officer of CIMB Group is awarded Best Marketer in Retail & Promotions Marketing

Pete Pohlschmidt, Head of Digital of Malaysia Airlines wins Best Marketer in Data & Technology Marketing.

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CMO AWARDS 2018

Marketing Magazine’s ‘Go Gobind’ book presented to the Minister of Communications and Multimedia of Malaysia, YB Gobind Singh Deo.

Shiv Sahgal, Marketing Director of Foods & Refreshment, Unilever (M) Holdings Sdn Bhd jointly wins Marketing Trailblazer - FMCG category.

Eugene Lee, Marketing Director of McDonald’s Malaysia wins Gold for Best Marketer in Omni-Channel Marketing and also CMO of the Year.

Timothy Johnson, Senior Vice-President Marketing, Product & Partnerships of INTI Education Group won joint Best Marketer in Education & Training.

Linda Hassan, Senior Vice-President Marketing of Domino’s Pizza Malaysia & Singapore wins Best Marketer in Social Media.

Schrene Goh, Global Head of Marketing of Malaysia Airlines won Best Marketer in Travel & Hospitality Marketing

Izra Izzudin, Vice-President Marketing & Communications of Firefly Airlines won Best Marketer in Travel & Hospitality (Special Mention)

Abdul Sani Abdul Murad, Group Chief Marketing Officer of RHB Banking Group is Best Marketer in Influencer Marketing

CATEGORY/DISCIPLINE

WINNER

Marketing Trailblazer - Telco

Lai Shu Wei Vice-President (unifi Marketing & Operations) Telekom Malaysia

Marketing Trailblazer - Digital

Gopal Putrevu Digital Marketing Manager, Kimberly-Clark Malaysia

Marketing Trailblazer - FMCG

Rishi Pahwa Head of Marketing, Wipro Consumer Care (LDW) Shiv Sahgal Marketing Director - Foods & Refreshment Unilever (M) Holdings Sdn Bhd

Marketing Trailblazer - F&B

Santharuban Thurai Sundaram Vice President of Marketing, Etika Holdings

Rising Marketing Star - Media & Entertainment

Narishvin K. Sukumaran Chief Marketing Officer, Gameka

Rising Marketing Star - Financial Services

Khairy Al-Fiqry bin Bakhtiar Nor Assistant Manager, Group Marketing RHB Banking Group

Rising Marketing Star - F&B

Karmen Mark Assistant Brand Manager, Etika Holdings

Rising Marketing Star - FMCG

Amanda Chong Senior Product Executive, Wipro Consumer Care (LDW) Farah Miptah Brand Manager, Campbell Soup Company

Mohammad Munzir Aminuddin, Marketing Director of Siti Khadijah wins Best Marketer in SME Marketing (Special Mention).

Rising Marketing Star - Digital

Steff Yong Manager, KFC Marketing

Rising Marketing Star - Telco

Nabil Fauzy Marketing Communication Specialist (Prepaid) Maxis

MALAYSIAN CMO OF THE YEAR AWARD 2018

Santharuban Thurai Sundaram Vice President of Marketing, Etika Holdings

MALAYSIAN CMO OF THE YEAR AWARD 2018

Eugene Lee Marketing Director, McDonald’s Malaysia

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BIG SHOES TO FILL IN AT THE STAR PEOPLE MOVE

CONTINUES AS GROUP ADVISOR AND RETURNS TO HIS TRUE PASSION FOR WRITING By Harmandar Singh

THE successor to Datuk Seri Wong Chun Wai at the Star Media Group (SMG), following his decision to retire as its managing director and chief executive officer, will have big shoes to fill. It will be a tough act to follow, more so when media outlets around the world are facing strong revenue and profit pressures. Chun Wai, who helmed SMG for the past six years has managed to keep the company profitable as its competitors ran into losses. He was one of the earliest to create new revenue streams from innovative events such as the Anak Anak Malaysia Walk, Ride For Malaysia and Raise The Flag, which have become brands. The #StandTogether” campaign, with SP Setia, won international recognition at WANIFRA in Hong Kong last month. It was the first for a Malaysian news media company to win a branded content award internationally. Wong has cleverly carried out these campaigns without strong commercial overtones and yet be seen as part of CSR. He also branded himself as a moderation advocate and managed to pull together big names to join his campaign. The moderation campaign resonated well with Malaysians, and The Star was the first media house to use the term before politicians jumped onto the bandwagon .

He has also managed to grow the number of unique visitors of The Star Online to 8 million, the highest of any Malaysian news portal, with an estimated RM27mil in annual revenuse. The e-paper of The Star also crossed the 100,000 mark, making the paper’s digital replica of the print copy a success. But Chun Wai, who has been one of the longest serving MD of the Star, is probably the only one who has worn many hats. He was known for his hands on approach, took part in business decisions, wrote columns, broke news exclusives, struck deals and even found time to teach at Universiti Utara Malaysia as an adjunct professor. Wong remains the only Malaysian to be elected into the Paris-based World Editors Forum. He was also chairman of the Bangkok-based Asia News Network. Last month, he was picked to be an Exco member of WANIFRA’s Asia Pacific council. Chun Wai was known for his ability to do the balancing walk on the political tight rope when dealing with powerful political forces. Unlike other CEOs of public listed companies, he had to take on many fronts. He had a job that no one envied with the tremendous pressures and yet he held on well.

He was the one that editors turned to each time the newspaper ran into trouble, especially with the Home Ministry. “He was the go-to man. All he needed to do was make a few phone calls and the issues were resolved.” Unknown to many, Chun Wai made the decision to retire on Dec 24, 2017, and he had informed the board of directors of his plans. A close colleague said he made the decision during an overseas trip, “which changed him profoundly with a new philosophy on life.” The colleague adds that Chun Wai, who often regarded himself as a city man, also began making trips to the forests and the seas. Another reporter said he plans to be involved in some missionary work with the Penans in Long Lamai in Sarawak. The newspaper owner, the MCA, which holds 43% of the company shares, was informed of his decision. “Yes, I told Liow Tiong Lai, who was then MCA President and Wee Ka Siong, then deputy president, of my decision. They told me to continue, as my contract only ends in 2020.” “I wanted the transformation plan to continue. It was not just about moving from print to digital but also succession planning and bringing in new talents and new skills.”

Liow was a university mate of Wong at Universiti Kebangsaan Malaysia and both were contemporaries. He said he was asked to hold on to his plans until after the general election was concluded and the board finally granted his wish last month. The official announcement was made without his successor being named. Chun Wai will officially step down on Jan 1, 2019. He confirmed that he had proposed his successor but he was not at liberty to reveal it as the ultimate decision lies with the Board of Directors. “I am sure the BOD will use their wisdom to make a correct decision, and that they will make the decision at an appropriate time,” he said. The media industry has been abuzz with speculations following last week’s announcement as no successor was named, in its filing to Bursa. Chun Wai has accepted the post of Group Advisor, where he is expected to use his wealth of editorial and corporate contacts to assist the company. It is understood he will be allowed to take up directorship outside SMG, as part of the deal. But it won’t be the last we hear of him as he said he would continue writing his hugely popular “On The Beat” column every Sunday.

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21 PEOPLE MOVE

“DESPITE THE CHANGE IN GOVERNMENT, HE WAS ALSO THE ONE WHO ARRANGED FOR INTERVIEWS WITH THE NEW MINISTERS,” SAID A REPORTER, WHO SPOKE ON ANONYMITY.

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INFLUENCER MARKETING

ROCKETFUEL ENTERTAINMENT’S HARVINTH SKIN GIVES JD SPORTS SALESMAN A SCARE!

EVER dreamt of putting on those gorgeous pair of shoes and running straight out of the store? Malaysia’s favourite influencer Harvinth Skin has got you covered there... In an 45-second video, Harvinth is seen trying on a pair of shoes in Pavilion’s JD Sports branch The shoes seemed to be the Puma RS-X Toys in white colour. He then gets up on the pretext of checking if the shoes were comfortable, a quick bounce around and takes a few steps to see if the sneakers were a good fit. Then Harvinth does the unthinkable, he runs straight out of the store. The salesman who was assisting him runs after him, box in his hand! The salesman is confused when Harvinth turns around and runs back to the store. The salesman gave a huge look of relief when he realises it was all a prank. Harvinth posted the short clip with the caption, “I had to give it a try? Yo! @jdsportsmy give this man a raise! I’m sorry I gave you a heart attack my bro @martin_ lcf. Do not try this!” The video which went viral got a whopping 8.1 million views, 140K impressions, 38K comments, 276K shares within 12 hours. As of November 26, the video has already amassed 50 million views and 1.5 million shares on Facebook. The video has also received worldwide attention: news portals in Chile and France have shared the clip and lifestyle sites like Complex New York and viral sites such as LADbible have joined in sharing the video. Netizens also praised the salesman at JD Sports sharing that he showed responsiblility when he chased after Harvinth.

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132.9 points) did not last. During the third quarter of this year, Consumer Sentiment Index (by MIER) retreated to 107.5 points. Nevertheless, it was still above the 100-point threshold level of confidence. Unemployment rate during the third quarter of 2018 increased slightly to 3.4%.

TABLE 1

Compiled and written by Retail Group Malaysia

YEAR ON YEAR PERCENTAGE CHANGE IN RETAIL SALES (WEIGHTED), 2017/18 TYPE

PERIOD

% GROWTH

Retail sales

Jul-Sep 2017

-1.1

Jan-Mar 2018

2.6

Apr-Jun 2018

2.1

Jul-Sep 2018

6.7

Jan-Sep 2018

4.3

TABLE 2

Source: MRA/ Retail Group Malaysia

COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS, 2018 ECONOMIC INDICATOR

1ST QTR

2ND QTR

3RD QTR

GDP (%)

5.4

4.5

4.4

Inflation rate (%)

1.8

1.3

0.5

Private consumption (%)

6.9

8.0

9.0

Retail sales (%)

2.6

2.1

6.7

Consumer Sentiment Index

91.0

132.9

107.5

Unemployment rate (%)

3.3

3.4

Source: Bank Negara/ Department of Statistics/ MIER/ Retail Group Malaysia

TABLE 3

COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS For the third quarter of 2018, Malaysia national economy recorded a sustainable growth rate of 4.4% (Table 2, at constant prices), as compared to 6.7% for retail sales (at current prices). Domestic demand was the main driver of growth during this quarter. On the other hand, public sector investment declined by 5.5% during this period. Nett export also suffered a major drop of 7.5% during this latest quarter. The average inflation rate during the third quarter of 2018 slowed down significantly to 0.5%. The inflation rates during July, August and September were 0.9%, 0.2% and 0.3% respectively. The major slowdown in consumer prices was due to zero GST (Goods & Services Tax) during the 3 months’ period. One of the main contributors to the increase in CPI was transportation cost. Prices of foods, beverages and retail goods remained low during this period. Private consumption continued to climb higher by 9.0% during the third quarter of 2018. Overall household spending increased due to a one-in-alifetime reduction of GST from 6.0% to 0.0%. A record rise of consumers’ confidence level during the second quarter of 2018 (at

RETAIL MARKET REPORT

NOVEMBER 2018

YEAR ON YEAR PERCENTAGE CHANGE IN RETAIL SALES BY RETAIL SUB-SECTOR, 2018 RETAIL SUB-SECTOR

1ST QTR

2ND QTR

3RD QTR

Department store cum supermarket

2.6

3.8

8.9

Department store

4.6

-4.2

2.5 -4.1

Supermarket and hypermarket

-3.8

-7.9

Fashion and fashion accessories

2.8

3.2

6.4

Pharmacy and personal care

9.2

5.9

11.8

Other specialty retail stores

3.3

11.5

18.3

Source: MRA/Retail Group Malaysia

TABLE 4

LATEST RETAIL PERFORMANCE For the third quarter of 2018, Malaysia retail industry achieved an encouraging growth rate of 6.7%, as compared to the same period in 2016 (Table 1). This latest quarterly result was above market expectation. Members of MRA projected the third quarter growth rate in September 2018 at 6.1%. The remaining 2 months of tax break, before Sales and Services Tax (SST) was reintroduced from 1 September 2018, boosted the retail sales during this quarter. Bulk of the purchases was made during the last week of August. This was especially so for high value-added retail goods. Malaysian consumers rushed to retail stores to buy more in order to save more. For the month of September, many retailers maintained their prices in order to attract shoppers to buy. For the first 9 months of this year, the retail sale growth rate was 4.3%, as compared to the same period a year ago.

MALAYSIA RETAIL INDUSTRY REPORT

3-MONTH RETAIL SALES FORECAST BY RETAIL SUB-SECTOR, OCTOBER-DECEMBER 2018 RETAIL SUB-SECTOR

% GROWTH RATE

Overall (weighted)

4.7

Department store cum supermarket

2.0

Department store

8.4

Supermarket and hypermarket

-5.1

Fashion and fashion accessories

10.3

Pharmacy and personal care

8.9

Other specialty retail stores

9.5

Source: MRA/Retail Group Malaysia

TABLE 5

Members of Malaysia Retailers Association (MRA) were interviewed on their retail sales performances for the second half of 2018. This year is the 20th anniversary of Malaysia Retail Industry Report. This report was first published in 1998 during the Asian financial and economic crisis.

MALAYSIA RETAIL INDUSTRY QUATERLY GROWTH RATE 2018 QUARTER

% GROWTH RATE

First

2.6

Second

2.1

Third

6.7

Fourth

(e) 4.7

Whole year

(e) 4.4

(e) - estimate Source: Retail Group Malaysia

RETAIL SUB-SECTORS’ SALES COMPARISON Despite 2 months of zerorated GST during the third quarter of 2018, not all retail sub-sectors benefitted from it (Table 3). Department Store cum Supermarket sub-sector enjoyed strong sale during the third 3 months of this year with a growth of 8.9%. After a disappointing performance in the previous quarter, Department Store subsector rebounded with a growth rate of 2.5% during the third quarter of 2018. In spite of a period with zero GST, the Supermarket and Hypermarket sub-sector reported poor result during the latest quarter. For the third quarter of 2018, retail sale of this sub-sector dropped by 4.1%. This is the worst performing retail sub-sector during this quarter. Fashion and Fashion Accessories sub-sector managed to attract more buyers during the third quarter of 2018. As compared to the same period a year ago, the business of fashion retailers climbed higher with a growth rate of 6.4% during this latest quarter. During the third 3-month period of this year, sale of Pharmacy and Personal Care sub-sector recorded a promising growth rate of 11.8%, as compared to the same quarter a year ago. The Other Specialty Stores sub-sector (including photo shop, toys store, sporting goods store, second-hand goods’ store, TV shopping channel as well as baking ingredients’ store) reported another double-digit growth rate of 18.3% during the third quarter of 2018, as compared to the same period last year. This is the best performer among the retail sub-sectors during the third quarter of 2018. NEXT 3 MONTHS’ FORECAST With the re-introduction of SST, most members of the retailers’ association remain optimistic on their businesses in the next 3 months. They estimate an average growth rate of 4.7% during the fourth quarter of 2018 (Table 4). The department store cum supermarket operators are expecting their businesses to slow down considerably during the last quarter of this year with a growth rate of 2.0%.

On the other hand, the department store operators look forward to their businesses to bounce back strongly with a growth rate of 8.4% for the last 3-month period of this year. Supermarket and hypermarket operators do not anticipate their businesses to return to black anytime soon. Their businesses will remain in the red with a -5.1% growth rate for the fourth quarter of 2018. The business of retailers in the Fashion and Fashion Accessories sub-sector is expected to continue their growth momentum. For the last quarter of 2018, they expect to achieve 10.3% growth in retail sale. Retailers in the Pharmacy and Personal Care sub-sector are expecting to maintain their growth at 8.9% during the fourth quarter of 2018. Retailers in Other Specialty Stores sub-sector (including photo shop, toys store, sporting goods store, second-hand goods’ store, TV shopping channel as well as baking ingredients’ store) expect their businesses to normalise in the coming months. For the last 3-month period of 2018, this sub-sector expects its business to expand by 9.5% as compared to the same period a year ago. THE REST OF YEAR 2018 With consideration of the better performance achieved during the third quarter and expected moderate growth in the fourth quarter, Retail Group Malaysia (RGM) revised its annual growth forecast upwards from 4.1% to 4.4% (Table 5) for Malaysia retail industry in 2018. This is the third revision since end of last year. Based on this latest revision, the total sale turnover for Malaysia retail industry in 2018 will be RM 104.2 billion. For the last quarter of this year, the retail growth rate has been revised upwards slightly from 4.3% (estimated in September 2018) to 4.7%. School holiday, Double Eleven shopping festival, Black Friday sales, Christmas and new year will contribute to better retail sale performance during this period. YEAR 2019 Retail Group Malaysia projects 4.5% growth rate in retail sale for 2019. For next year, the government will continue to distribute one-off monetary incentives to Malaysians. Increment of minimum wage by RM50.00 will also lessen the financial burden of B40 group. Better economic prospect next year will stimulate consumers’ spending. For more information, please write to tanhaihsin@yahoo.com.

BEST OF 2018 S C R E E N I N G & C R E AT I V E F O R U M +MC2 AWARDS WINNERS CEREMONY 4 . 3 0 p m | 2 8 J A N 2 0 1 9 | H A L L 5 , T G V C I N E M A , O N E U TA M A