MALAYSIA FINDINGS
ACTIONS
TRUST MATTERS
Trust is a Manageable Asset, determining:
• Consumer purchasing behaviour
• Proactive recommendations or criticism
• Investment
EDELMAN'S 13TH ANNUAL SURVEY, LARGEST GLOBAL EXPLORATION OF TRUST
3
MARKET COMPARISONS Developed: US, UK, France, Germany and Japan Emerged: Brazil, Mexico, Russia, India and China
ONLINE SURVEY IN 26 COUNTRIES
• 31,000+ respondents
• 5 years in 20+ markets
• 8 years in 10+ markets
GENERAL POPULATION
• 1000 respondents per country surveyed
• Ages 18+
• 2 years of data
INFORMED PUBLICS
• 200 respondents in Malaysia & 24 countries, 500 respondents in U.S. and China
• Ages 25-64
• College-educated
• In top 25% of household income per age group in each country
• Report significant media consumption and engagement in business news and public policy
• 13 years of data
Indicates Global Data
Indicates Malaysia Data APAC SELECT COUNTRIES: China, Japan, India, Malaysia, Singapore, South Korea, Indonesia, Australia, Hong Kong
STATE OF TRUST
STATE OF TRUST 2013
5
TRUST SHIFTS BACK TO NEUTRAL AFTER A TUMULTOUS 2012
GLOBAL 57 China 80
Singapore 76
India 71
Mexico 68
Hong Kong 67
UAE 66
Malaysia 64
Canada 62
Indonesia 62
U.S. 59
Netherlands 59
Brazil 55
Germany 55
France 54
Sweden 54
UK 53
Italy 51
Australia 50
Poland 48
S. Korea 47
Ireland 46
Argentina 45
Spain 42
Turkey 42
Japan 41
Russia 36
2013 2012
DIS
TRU
STER
S T
RU
STER
S N
EUTR
AL
GLOBAL 51 China 76
UAE 68
Singapore 67
India 65
Indonesia 63
Mexico 63
Netherlands 61
Hong Kong 61
Canada 58
Malaysia 57
Italy 56
Argentina 54
Australia 53
Brazil 51
Sweden 49
U.S. 49
South Korea 44
Poland 44
U.K. 41
Ireland 41
France 40
Germany 39
Spain 37
Japan 34
Russia 32
EDELMAN TRUST INDEX: EUROPE MOVES FROM DISTRUSTERS TO NEUTRAL, MALAYSIA NOW 7TH MOST TRUSTING NATION
Composite score is an average of a country’s trust in all four institutions. Informed Publics ages 25-64 in 20-country global total 6
Big Changes from 2012
Germany +16 France +14 UK +12 US +10
2013
7
GLOBAL 57 China 80
Singapore 76
India 71
Mexico 68
Hong Kong 67
UAE 66
Malaysia 64
Canada 62
Indonesia 62
U.S. 59
Netherlands 59
Brazil 55
Germany 55
France 54
Sweden 54
UK 53
Italy 51
Australia 50
Poland 48
S. Korea 47
Ireland 46
Argentina 45
Spain 42
Turkey 42
Japan 41
Russia 36
GLOBAL 48 China 70
India 64
UAE 63
Singapore 63
Indonesia 61
Malaysia 61
Mexico 59
Hong Kong 54
Canada 52
Brazil 51
Netherlands 50
Argentina 48
U.S. 45
Germany 44
UK 43
S. Korea 43
Turkey 43
France 41
Italy 40
Sweden 40
Australia 39
Spain 37
Japan 35
Poland 34
Ireland 33
Russia 30 Composite score is an average of a country’s trust in all four institutions. General population and Informed Publics ages 25-64 in 26 country global total and across 26 countries
Largest Differences between Gen Pop & Informed Publics
Poland, US, Sweden: - 14 points
Singapore, Ireland, Hong Kong,
France: - 13 points
General Population is 9 points lower than
Informed Publics
INFORMED PUBLIC 2013
GENERAL PUBLIC D
ISTR
UST
ERS
TRU
STER
S N
EUT
RA
L
LOWER TRUST AMONG GENERAL POPULATION THAN INFORMED PUBLICS, TRUST HIGH WITH BOTH GROUPS IN MALAYSIA
Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 2 Box, Trust a great deal and Top 4 Box, Trust) Informed Publics ages 25-64
ROBUST RISE IN TRUST IN MALAYSIA, DOUBLE DIGIT GROWTH IN GOVERNMENT AND MEDIA. HOWEVER, IMPORTANT TO NOTE FRAGILITY OF TRUST
TRUST A GREAT DEAL
TRUST IN INSTITUTIONS – MALAYSIA, APAC & GLOBAL
8
GOVERNMENT BUSINESS
MEDIA NGOS
Total: 47%
Total: 60% Total: 66%
Total: 57%
Total: 68% Total: 76%
Total: 68% Total: 63%
Total: 49% Total: 60%
Total: 60%
Total: 48%
Total: 65% Total: 63% Total: 64%
Total: 58%
Malaysia 2012
Malaysia 2013
APAC 2013
Global 2013
21% 21% 24% 16%
11% 15% 22% 17% 20% 23% 25% 22%
16% 23% 20% 17%
85%
82%
81%
81%
79%
78%
76%
76%
74%
66%
56%
Technology
Banks
Energy
Telecommunications
Automotive
Food and beverage
Consumer packagedgoods
Financial services
Pharmaceuticals
Media
Brewing and spirits
TRUST IN ENERGY SECTOR JUMPS, OTHER INDUSTRIES STABLE. MEDIA AND BREWING STILL LEAST TRUSTED, THOUGH DOUBLE-DIGIT INCREASE
9
TRUST IN INDUSTRIES – MALAYSIA
2013 2012
Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 25-64 (only industries tracked from 2012 to 2013 shown)
33%
51%
67%
70%
74%
75%
75%
77%
78%
81%
85%
Brewing and spirits
Media
Energy
Consumer packaged goods
Pharmaceuticals
Automotive
Food and beverage
Financial services
Banks
Telecommunications
Technology
2013 APAC
#1 83%
72%
71%
72%
#2 78%
71%
#3 73%
68%
71%
63%
64%
2012 APAC
#1 85%
69%
#3 70%
63%
67%
#2 76%
67%
66%
65%
62%
57%
CULTURAL DIVIDE - BIG BUSINESS TRUSTED MORE THAN SMALL IN APAC
TRUST IN SMALL BUSINESS VS. BIG BUSINESS
70%
76%
70% 66%
70%
62%
53%
79%
72%
77%
GLOBAL DEVELOPED EMERGING APAC MALAYSIA
SMALL BUSINESSES
BIG BUSINESSES
Q15-17. Thinking about different types of businesses, please indicate how much you trust each type of business to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. {Small Businesses or Companies; Big Businesses or Companies) (Top 4 Box, Trust) Informed Publics ages 25-64 in 26-country global total, Developed Markets (includes US, UK, Germany, Japan, France), Emerging Markets (includes Mexico, China, Brazil, Russia, India) , Malaysia and APAC
10
11
86% 86% 82%
77% 75% 74% 73% 73% 72%
70%
55% 51%
46% 45%
Q26-Q42. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies headquartered in the following countries to do what is right. Use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. Q202A-204A. Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies headquartered in the following countries to do what is right. Use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 box – Trust) Informed Publics Ages 25-64 in Malaysia
DEVELOPED-MARKET HEADQUARTERED COMPANIES MOST TRUSTED – EMERGING MARKETS STILL LAG
MALAYSIA’S TRUST IN COMPANIES HEADQUARTERED IN THE FOLLOWING COUNTRIES
EU, LATAM, North America
APAC countries
Q11-14. [NGOs TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore, Turkey and UAE) and across 26 countries
N/A
50%
NGOS MOST TRUSTED INSTITUTION IN MALAYSIA, TIED FOR 3RD OUT OF 26 COUNTRIES; LICENSE TO LEAD?
TRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS)
2008 67% of markets surveyed have a trust score above 50% 2013 88% of markets surveyed have a trust score above 50%
12
2008 China: 48%
58%
78% 79%
68% 70%
64%
66%
58% 60%
67% 66% 67%
75%
48%
65%
53%
74%
55% 54%
49%
59%
51% 53%
41%
28%
30%
63%
83% 81%
76% 76% 75% 73%
70% 69% 69% 67%
66% 66% 64%
64% 63% 63% 62%
61%
59% 57% 56% 55%
51% 46%
40%
37%
2012
2013
52%
79%
70%
80%
65% 65%
61% 65%
42%
54%
47%
61% 61%
41% 45% 46%
57%
45%
37% 38%
49%
35%
48%
36%
43%
33%
57%
81% 79%
77%
70% 68% 66% 66%
61% 61% 60% 59% 57%
54%
51% 50% 50% 49%
47% 47% 47%
45% 45% 43% 42%
38%
26%
2012
2013
Q11-14. [Media in General TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore, Turkey and UAE) and across 26 countries
N/A
50%
STEADY GROWTH IN TRUST IN MEDIA OVER TIME; RESULT OF DIVERSIFICATION OF OPTIONS AND STRONG COVERAGE OF ISSUES
TRUST IN MEDIA
2008 50% of markets surveyed have a trust score 50% or above 2013 62% of markets surveyed have a trust score 50% or above
13
58% 58%
43% 41% 40%
51% 47%
32% 26%
30%
65% 71%
56% 58% 52%
64% 63%
52% 49% 47%
61%
70%
56% 59% 58%
TRADITIONAL MEDIA ONLINE SEARCH ENGINES HYBRID MEDIA SOCIAL MEDIA OWNED MEDIA
Global Developed Emerging APAC Malaysia
Q178-182. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-point scale where one means that you "do not trust it at all" and nine means that you "trust it a great deal". General Population in 26-country global total, Developed (US, UK, France, Germany and Japan) vs. Emerging Markets (Brazil, Mexico, Russia, India and China); Age breakdown for general population in 26-country global total, Malaysia, and APAC
HIGH TRUST IN ONLINE SOURCES OF INFO UNDENIABLE, TRADITIONAL STILL HAS AN IMPORTANT ROLE TO PLAY
TRUST IN TYPES OF MEDIA SOURCES FOR GENERAL NEWS AND INFORMATION
59% 61%
49% 47% 44%
61% 60%
48% 45% 43%
56% 56%
40% 37% 37%
54% 49%
29% 29% 31%
TRADITIONAL MEDIA ONLINE SEARCH ENGINES HYBRID MEDIA SOCIAL MEDIA OWNED MEDIA
18-29 30-44 45-64 65+
GLOBAL AGE BREAKDOWN
14
SKEPTICISM AND DISPERSION REQUIRES REPETITION
Q165. [TRACKING] Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do you need to be exposed to something about a specific company to believe that the information is likely to be true? (Provide Space to Insert Number) Informed Publics Ages 25-64 in 26-country global total (excludes Don’t Know Responses)
4% ONCE (1)
14% TWICE (2)
64% THREE TO FIVE TIMES
12% TEN OR MORE TIMES (10+)
6% SIX TO NINE TIMES (6-9)
29% FOUR OR FIVE TIMES (4-5)
MAJORITY NEEDS TO HEAR COMPANY INFORMATION 3-5 TIMES TO BELIEVE MESSAGES
35% THREE TIMES (3)
15
CRISIS OF LEADERSHIP
Q1
21 DEC – WIDESPREAD DISTRUST IN MAYANS ! 2
IMAGE OF VIRGIN MARY IN SUBANG, KLCI HITS ALL-TIME HIGH (1688)
LYNAS ALLOWED TO OPERATE / ETP IN FULL SWING YEAR 2
SEX BLOGGER STUDENTS IN SINGAPORE VILLIFIED Q4
PEOPLE-FRIENDLY BUDGET UNVEILED
MALAYSIANS RALLY AROUND PANDALELA AND CHONG WEI
EDUCATION BLUEPRINT POLARISE OPINIONS
Q3
RAPID PENGERANG LAUNCHED / MINIMUM WAGE POLICY ANNOUNCED
BERSIH 3.0 TURNS VIOLENT
JANJI DITEPATI CAMPAIGN LAUNCHED Q2
ERYKAH BADU BANNED / CHUA SOI LEK vs LIM GUAN ENG DEBATE
ANWAR ACQUITTED ON SODOMY II CHARGES
PM REITERATES ‘NAMBIKEI’ CALL FOR INDIANS TO TRUST BN
MALAYSIA 2012 RETROSPECT
17
69%
67%
61%
51%
51%
50%
43%
36%
Academic or expert
Technical expert in thecompany
A person like yourself
Financial or industry analyst
NGO representative
Regular employee
CEO
Government official orregulator
EXPERTS AND PEERS ARE STILL MOST TRUSTED, CEO & GOVERNMENT OFFICIAL LESS CREDIBLE. THIRD PARTY VALIDATION BECOMES IMPORTANT
CREDIBLE SPOKESPEOPLE GLOBAL VS MALAYSIA
29%
38%
46%
50%
50%
65%
66%
68%
Government official orregulator
CEO
Financial or industry analyst
NGO representative
Regular employee
A person like yourself
Technical expert in thecompany
Academic or expert
2013 2012
Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/ Extremely Credible) Informed publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore, Turkey and UAE) (only spokespeople tracked from 2012 to 2013 shown) 18
71%
73%
69%
63%
54%
43%
55%
48%
2013
26%
10%
13%
15%
34%
32%
18%
64%
37%
42%
50%
68%
67%
50%
Malaysia
France
Germany
US
India
China
Global
Trust in Business Trust Business Leaders to tell the Truth
21%
8%
6%
10%
20%
24%
13%
59%
33%
38%
38%
55%
71%
41%
Malaysia
France
Germany
US
India
China
Global
Trust in Government
Trust Government Leaders to tell the truth
LEADERSHIP TRUST GAP GAP IN TRUST IN INSTITUTION VS. TRUST IN LEADERSHIP
Q11 -14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust); Q144A-147A. [“To Tell the Truth Regardless of how Complex or unpopular it is”] How much do you trust business leaders to do the following? Q144B-147B. [“To Tell the Truth Regardless of how Complex or unpopular it is”] How much do you trust government leaders to do the following? (Top Box, Trust A great Deal) General Population
-32
-35
-34
-35
-27
-28
-47
-35
-28
-25
-29 -32
19
-38 -38
30% 35%
29% 26%
SOLVE SOCIAL OR SOCIETAL ISSUES CORRECT ISSUES WITHIN INDUSTRIES THAT ARE
EXPERIENCING PROBLEMS
MAKE ETHICAL AND MORAL DECISIONS
TELL YOU THE TRUTH, REGARDLESS OF HOW COMPLEX OR UNPOPULAR
IT IS
CRISIS IN LEADERSHIP – TRUST IN ETHICS AND MORALITY VERY LOW MALAYSIANS’ TRUST BUSINESS AND GOVERNMENT LEADERS TO DO THE FOLLOWING:
27% 25% 28% 21%
SOLVE SOCIAL OR SOCIETAL ISSUES CORRECT ISSUES WITHININDUSTRIES THAT ARE
EXPERIENCING PROBLEMS
MAKE ETHICAL AND MORALDECISIONS
TELL YOU THE TRUTH, REGARDLESSOF HOW COMPLEX OR UNPOPULAR
IT IS
GOVERNMENT LEADERS
20
BUSINESS LEADERS
Q144A-147A. [SPLIT SAMPLE] How much do you trust business leaders to do the following? (Top Box- Trust A great Deal) General Population in Malaysia
TRUST BUILDING
16 ATTRIBUTES TO BUILDING TRUST
COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS
LISTENS TO CUSTOMER NEEDS AND FEEDBACK
TREATS EMPLOYEES WELL
PLACES CUSTOMERS AHEAD OF PROFITS
INTEGRITY (58%)
TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS
HAS TRANSPARENT AND OPEN BUSINESS PRACTICES
HAS ETHICAL BUSINESS PRACTICES
PURPOSE (47%)
OPERATIONS (39%)
DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS
HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP
RANKS ON A GLOBAL LIST OF TOP COMPANIES
PRODUCTS & SERVICES (54%)
IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS
OFFERS HIGH QUALITY PRODUCTS OR SERVICES
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
ADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESS
CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY
PARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIES TO ADDRESS SOCIETAL NEEDS
ENGAGEMENT (59%)
Edelman Trust Barometer research reveals 16 SPECIFIC ATTRIBUTES which build trust.
These can be grouped into FIVE PERFORMANCE CLUSTERS listed here in rank order of importance.
22
24%
31%
27%
34%
27%
31%
30%
33%
27%
29%
32%
32%
30%
36%
42%
37%
40%
42%
45%
46%
47%
49%
50%
50%
54%
55%
56%
58%
58%
59%
59%
60%
PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESSSOCIETAL ISSUES
RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS BEST COMPANIESTO WORK FOR OR MOST ADMIRED COMPANIES
HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP
IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS
DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS
CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY INWHICH THE COMPANY OPERATES
ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
TREATS EMPLOYEES WELL
COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITSBUSINESS
TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS
HAS TRANSPARENT AND OPEN BUSINESS PRACTICES
PLACES CUSTOMERS AHEAD OF PROFITS
HAS ETHICAL BUSINESS PRACTICES
OFFERS HIGH QUALITY PRODUCTS OR SERVICES
LISTENS TO CUSTOMER NEEDS AND FEEDBACK
23
-23
-17
-23
-28
-26
-24
-26
-27
-17
-20
-18
-20
-12
-18
-11
-16
Q80-Q96. [TRACKING] How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/ Extremely Important) General Population in Malaysia(excludes ‘Don’t Know’ responses Q114-Q129. Please rate [INSERT COMPANY] on how well you think they are performing on each of the following attributes. Use a nine-point scale where one means they are performing “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box, Performing Very/ Extremely Well) General Population in Malaysia
TRUST BUILDING ATTRIBUTES – LARGE GAP IN EXPECTATION VS. PERFORMANCE BUSINESS IMPORTANCE VS. COMPANY PERFORMANCE – MALAYSIA
Gap
Importance Performance
24
THE NEW DYNAMIC – DIAMOND OF INFLUENCE: INCLUSIVE MANAGEMENT
PYRAMID OF COMMUNITY (Horizontal)
PYRAMID OF AUTHORITY (Vertical)
Traditional ACTION CONSUMERS
EMPLOYEES
G E N E R A L P O P U L A T I O N
SOCIAL ACTIVISTS
CEO
BOARD OF DIRECTORS
GOVERNMENT OFFICIALS
ACADEMICS
TECHNICAL EXPERTS
ELITE MEDIA
Search & Content
TO 2013 FROM 2000
FEW MANY
DICTATE CO-CREATE
FIXED FLEXIBLE
MONOLOGUE DIALOGUE
CONTROL EMPOWERMENT
LESSONS FOR ALL LEADERS
25
Observe re-ordering of authority
Old values are not sufficient
Clear opportunity for collaboration
Trust is fragile and perceived behaviors are an anchor
On the cover credits: HSBC: REUTERS/ Bobby Yip; UBS: REUTERS/Luke MacGregor; Bob Diamond: REUTERS/ Luke MacGregor; Bo Xilai: REUTERS/ Cheryl Ravelo ; Lance Armstrong: by Sebastian David Tingkæ r; Angela Merkel: REUTERS/ Sebastien Pirlet; Rajat Gupta: REUTERS/ Brendan McDermid; George Entwistle: Associated Press/ Rex Featu