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apple developer account(buyappleacc.com):Budget 2022 wish list

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,The Association of Accredited Advertising Agents Malaysia (4As) president Andrew Lee (file pic) said the advertising and marketing industry needed government aid to encourage brands to increase their ad spend as this would revive the country’s economy.

PETALING JAYA: Agencies are calling for the government to incorporate measures under the upcoming Budget 2022 that will raise the bar of the advertising and marketing industry.

Among the measures are a temporary sales and service tax (SST) exemption for advertising spend, measures to strengthen purchasing power, to boost the usage of e-wallet, allowing agencies to draw down on their Human Resources Development Fund (HRDF) and allocating more grants to content houses that produce local content.

They added that such measures would provide a multiplier effect on the economy and put the industry on a higher pedestal.

The Association of Accredited Advertising Agents Malaysia (4As) president Andrew Lee said the advertising and marketing industry needed government aid to encourage brands to increase their ad spend as this would revive the country’s economy.

Lee, who is also Havas Group Malaysia group managing director, said many advertisers had expressed the desire to increase advertising spend, but to do so, some temporary reliefs were required from the government.

“For Budget 2022, we appeal to the government for two key tax reliefs. The first is a temporary SST exemption for advertising spends, and secondly, a double deduction relief of advertising expenditure spent with Malaysian-owned companies to be exempt from claims submission and the extension of the qualifying criteria for a tax deduction.

He told StarBiz that these reliefs would create the desired multiplier effect to the entire value chain of the industry. It would enable brands to increase their advertising activities to encourage consumer spending and, in the process, boost business for advertising agencies, media agencies and media owners as part of the economic recovery.

Mediabrands Malaysia CEO Bala Pomaleh said the Malaysian advertising spend is projected to be at RM5.1bil in 2021, up 15.4% from 2020 based on statistics from Magna.Mediabrands Malaysia CEO Bala Pomaleh

Though this figure is a mere fraction of the nation’s gross domestic product (GDP), it plays a significant role in fuelling and growing the economy. Magna is the centralised IPG Mediabrands resource for intelligence, investment and innovation strategies.

To spur more growth and consumer spending, there needs to be additional measures to strengthen purchasing power of the middle-income group, he noted.

“This could come in the form of a reduction of individual income tax rates and other tax exemptions for the coming year across education, lifestyle and tourism as lockdown measures are eased,” he said.

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