Malaysia ranks higher in intangible assets
KUALA LUMPUR: Malaysia was ranked 23rd in the world last year for intangible assets’ contribution to enterprise value, albeit a steep decline from 43% to 14%, compared with 29th in 2007, says independent brand valuation consultancy Brand Finance plc chief executive officer David Haigh.
He said the total value of Malaysia’s 50 largest brands and brand portfolios was RM61bil for 2008, representing a 5.8% decline from 2007’s figure.
“Petronas retains the title of being the most valuable Malaysian brand for the third year running with brand portfolio value of RM10.7bil, while AirAsia is recognised as the best performing Malaysian brand for 2008,” he said yesterday at the Malaysia’s Performance on Intangible Assets and Brands 2009 study report for Malaysia’s Top 50 Brands.
Star Publications (M) Bhd was among the companies ranked in the top 50 brands last year.
An intangible asset is an identifiable non-monetary asset without physical substance held for use in the production or supply of goods or services, for rental to others or for administrative purposes.
The report also revealed that despite the effects of the credit crunch, Malaysia was slowly and steadily closing the gap with the world’s giants in terms of intangible value contribution.
Haigh said Brand Finance calculated the value of brands based on the “Royalty from Relief” methodology, which assumed that if a company did not own its brand name, the calculation is based on how much it would have to pay to license it from a third party.
He said the value of a brand was expressed as the after-tax royalty savings, discounted to present value at a rate that reflected both the appropriate risk and the expected future rate of growth or decline in the royalty savings.
“Brand Finance has been tracking the value of brands worldwide for a decade. Our recent studies demonstrate the increasing importance to raise the awareness of Malaysian brands globally. The recent...