Latest Brand Finance ASEAN 500 report: Double win for PETRONAS

• PETRONAS tops the ASEAN 500 ranking as the most valuable brand ranked in the region at $14.6 billion 
• PETRONAS leads with the highest Sustainability Perceptions Value and highest positive gap value   
• ASEAN food & hospitality brands: A beacon of growth 

Malaysian oil and gas giant PETRONAS has achieved a landmark recognition this year as the brand ranks as the region’s most valuable brand and leads with the highest Sustainability Perceptions Value (SPV).

PETRONAS’ brand value surged 15% to reach USD14.6 billion, reinforcing its role as a key pillar of ASEAN’s economic landscape. Brand Finance finds that PETRONAS’ financial performance remains robust, driven by strategic shifts towards increased trading activities in crude oil and petrochemicals, which have contributed to substantial revenue increases.  

Also ranked as Malaysia’s most valuable brand earlier this year, PETRONAS recorded a strong Brand Strength Index (BSI) score of 87.8 points of 100, accompanied by a stellar AAA brand strength rating.  

Brand Finance also utilises its Global Brand Equity Monitor (GBEM) research to compile a Sustainability Perceptions Index. The study determines the role of sustainability in driving brand consideration across sectors and offers insight into which brands global consumers believe to be most committed to sustainability. The 2024 Sustainability Perceptions Index finds that among ASEAN brands ranked, PETRONAS has the highest SPI value of USD1.3 billion, and also the highest positive gap value of USD87 million among brands in the rankings.

“PETRONAS’ remarkable brand value underscores its pivotal role in ASEAN’s economic framework and reinforces its position as the region’s leading brand. PETRONAS stands out as a brand that not only delivers robust financial performance through strategic shifts in oil and petrochemicals trading but also leads in sustainability perceptions.

This dual strength reflects PETRONAS’ commitment to a forward-thinking, resilient, and sustainable energy future.”

Alex Haigh, Managing Director of Brand Finance, Asia Pacific

Brand Finance’s ASEAN 500 2024 report reveals that the region’s food, retail, hospitality, and leisure & tourism sectors are spearheading regional economic growth, driven by rising post-pandemic consumer spending and digital innovation.  

Other highlights in relation to Malaysian brands from report include: 

• Maybank (brand value down 14% to USD3.4 billion), ranks as the 15^th most valuable ASEAN brand. It is also among the top 10 banking brands in ASEAN. 

• Genting (brand value down 2% to USD3.5 billion), Berjaya (brand value up 21% to USD540 million), and Magnum (brand value up 21% to USD158 million) rank as the 2^nd, 3^rd, and 4^th brands respectively in the region’s leisure & tourism sector. 

• Four conglomerate brands from the country - Sime Darby (brand value up 3% to USD2.2 billion), IOI (brand value up 13% to USD767 million), Sunway (brand value down 5% to USD485 million) and Boustead (brand value up 23% to USD219 million) – are ranked as the 1^st, 3^rd, 4^th, and 5^th respectively within the region’s diversified sector rankings. 

• New to Brand Finance’s ranking this year, Etiqa (brand value USD585 million), is among the top four insurance brands in the region, in addition to being the 109^th most valuable brand among ASEAN’s top 500.  

About Brand Finance

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.

Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.

Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.

Definition of Brand

Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.

Brand Strength

Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.

Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.

Brand Valuation Approach

Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.

The steps in this process are as follows:

1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.

3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.

4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.

5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.

6 Apply the royalty rate to the forecast revenues to derive brand revenues.

7 Discount post-tax brand revenues to a net present value which equals the brand value.

Disclaimer

Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.

The data presented in this study form part of Brand Finance’s proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.