Smaller banks in Malaysia are stepping up their pace post-pandemic by posting double-digit increases in brand value and improving their rank positions by at least 10 places, according to Brand Finance’s Malaysia 100 2023 report which ranks the nation’s 100 most valuable and strongest brands.
Bank Rakyat (brand value up 49% to US$382.73 million), also the fastest growing brand in Malaysia in our rankings, jumped up the rankings by 10 spots to 25th position. Stronger financing growth in both its retail and business financing segments flourished, contributing to the increase in brand value. Alliance Bank (brand value up 48% to US$240.3 million) rose 15 spots in our rankings to 36th position. Propelled by a higher net interest margin and client-based fee income, the brand posted a 2.5% year-on-year increase in revenue to achieve an impressive RM1.25 billion (US$274 million). Bank Muamalat’s (brand value up to 26% to US$82.41 million) ranking saw a boost of 11 places to claim the 66th position among Malaysia’s most valuable brands. The brand is one of Malaysia’s leading Islamic banks and specialises in aligning its products and services with Islamic values.
PETRONAS retained the title of Malaysia's most valuable brand for the 13th consecutive year with its brand value dipping slightly by 7% to US$12.7 billion. In addition, the oil & gas brand now lays claim to being Malaysia’s strongest brand with a Brand Strength Index score improvement of 1.7 points to 89.4 with a corresponding brand strength rating of AAA. PETRONAS continues to demonstrate resilience in the oil and gas sector despite experiencing an erratic year amidst a macroeconomic climate marked by geopolitical tensions and economic uncertainty. With travel restrictions lifted, Malaysia is expected to host 9.6 million travellers in 2023 and PETRONAS anticipates a surge in demand for fuel across the various sectors – aviation, hospitality, food, beverage and transport.
PETRONAS aims to lead the nation towards achieving national sustainability goals. Through the operation of various carbon reduction programmes, the brand reported a 19% decrease in greenhouse gas emissions from its upstream operations in the third quarter of 2022, as compared to the previous year. Moreover, PETRONAS continues to bolster Malaysia’s reforestation efforts through its tree planting initiatives and keeps a lookout for the nation’s underprivileged communities, providing almost RM1 billion (US$222.30 million) in assistance to 1.5 million beneficiaries.
Bank Rakyat is Malaysia’s fastest growing brand with an impressive brand value increase of 49% to US$382.73 million. With this growth, the banking brand soared 10 places past its counterparts in our rankings to be placed as the nation’s 25th most valuable brand with a corresponding brand strength of AA+. Bank Rakyat saw its core operating income rise by 3.42% to RM5.90 billion (US$1.30 billion) at the end of 2022 from RM5.71 billion (US$1.26 billion) the previous year. This was driven by the stronger financing growth in both its retail and business financing businesses. The brand’s total assets grew 1.98%, from RM115.06 billion (US$25.43 billion) in 2021 to RM117.33 billion (US$25.93 billion). This sustained growth was propelled by the increase in gross financing and net growth in treasury assets, which aligned with the brand’s business strategy for the year.
Bank Rakyat aims to realise the nation’s vision of fostering a robust digital economy in the banking and finance industries. The brand also remains dedicated to its sustainability efforts as it actively promotes the adoption of renewable energy to its customers via its environmental initiatives.
Alex Haigh, Managing Director – Asia Pacific of Brand Finance, commented:
“Smaller bank brands have been the big winners in Brand Finance's 2023 Top 100 Malaysian brands ranking. They have charted an impressive growth this year, expanding their digitalisation to meet the growing needs of customers, increase service breadth and capacity all the while dealing with a very different interest rate environment. In the face of global economic uncertainties, these brands are successfully securing and expanding their core businesses further while strengthening the perceptions that customers have of them at the same time.”
 Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. The full ranking, additional insights, charts, more information about the methodology and definitions of key terms are available in the Brand Finance Malaysia 100 2023 report.
 Brand Finance determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 150,000 respondents in 38 countries and across 31 sectors.