SINGAPORE: With the digital economy set to contribute around 20 per cent of the nation’s Gross Domestic Product (GDP) by 2020, Malaysia is poised to be the next big digital hub, replete with new and exciting opportunities for publishers and brands, says VML.
VML, a global digital marketing agency, announced in October the opening of its first office in Malaysia, its fifth office in Asia.
VML engineers best-in-class digital experiences for some of the most respected and recognised brands in the world.
In an interview with Bernama, VML Malaysia’s newly appointed Head of Digital, Lee Chin Chuan, said the country has also made some progress on the measurement front.
In February this year, Lee noted that the Malaysian Digital Association (MDA) announced its reappointment of comScore as its official audience measurement currency in Malaysia, alongside a commitment to standardise and endorse a standard measurement platform.
Most recently, the 2017 Malaysia Budget revealed a strong focus on the digital economy.
The government announced that RM162 million has been allocated to the Malaysia Digital Economy Corporation, and unveiled new plans to develop the world’s first Digital Free Zone to facilitate international e-commerce and invigorate internet-based innovation.
Against this backdrop, VML Malaysia is definitely a strategic move, and marks the start of an important chapter, said Lee.
“We are at a time when Malaysia is leading the region in digital adoption – “ be it in mobile penetration or time spent on mobile – “ and embracing investments in digital advertising,” he said.
Citing a recent report providing insights from the top 50 brands in Malaysia, Lee said the estimated average digital ad spend is approximately 20 per cent of media spends.
In Malaysia, Lee said, VML has been gaining momentum, winning seven new clients since its entry.
VML now works with a number of locally-based brands such as Castrol Carama, OCBC Malaysia, Sony Pictures Malaysia and Marigold.
From its office in Singapore, VML has previously worked with both Malaysian and international brands like Sun Life Malaysia, Tune Talk, CIMB, Revlon and Resorts World Genting in Malaysia.
“We are actively seeking to grow our business in Malaysia through our blended digital creative, technology, and consulting capabilities.
“We are looking forward to doing more ground-breaking work for our clients as the opportunities continue rolling in,” Lee said.
As to what extent Malaysia’s office can be the main source of revenue for VML, Lee said that as an agency with on-ground presence in Southeast Asia (SEA) and India, Malaysia is a key market in the overall strategic roadmap.
“Malaysia allows us to build on the excellent results achieved in other SEA markets. We definitely foresee VML Malaysia growing into a significant pillar of our regional presence, both in revenues and capabilities,” he said.
On the challenges ahead from the competition, Lee said there are a handful of challenges in Malaysia, just like in other Asian markets like Indonesia and India.
“The first is the recognition that digital is not just another channel, but can in fact be a game changer for brands. There is an opportunity to educate the industry about that.
“The second key challenge is in finding the best talent and creating a strong team of digital practitioners,” said Lee.
Lee noted that the work VML has done is testament to its commitment towards driving value at every point of the customer journey, with its main differentiator being the ability to bring strategic thought to the table when achieving this.
“Whether it is executing a website brief or a campaign challenge, our expertise lies in understanding the overall digital ecosystem and going beyond just answering the brief.
“This allows us to recommend and deliver solutions that enable our client organisations to fully embrace digital,” Lee said.
Founded in 1992 and globally headquartered in Kansas City, VML has more than 2,300 employees with principal offices in 26 locations across six continents. — Bernama