Malaysia’s 4A speaks out on Tourism Malaysia dispute

KUALA LUMPUR - The Association of Accredited Advertising Agents of Malaysia (4As) has spoken out against accusations made by ISC founder and president Austen Zecha that the industry body has not championed member agencies’ interests.

Tourism Malaysia has just selected five agencies for its advertising business
Tourism Malaysia has just selected five agencies for its advertising business

Zecha also felt that there was a conflict of interest between Datuk Vincent Lee's position as current 4A’s president and his former agency Naga DDB pitching for the Tourism Malaysia account.

His comments were made following lSCs withdrawal from the tender process for Tourism Malaysia's advertising and promotions contract for the 2011 to 2013 cycle.

The RM600 million (US$198 million) business was subsequently awarded to Naga DDB for ASEAN; Smascom & Designs for North and East Asia; Sen Media for South Asia, West Asia and Africa; M & C Saatchi for Europe, America and Oceania; and Impact Creations for Domestic and Events.

Describing Zecha’s comments as “clearly misdirected” 4A’s vice-president Tony Savarimuthu said that any allegations of corruption are a matter for the MACC (Malaysia Anti-Corruption Committee) to investigate.

"From a professional perspective, the 4As cannot get involved with any trade disputes between Zecha and his former client," explained Savarimuthu. "He is, however, welcome to contribute ideas, or even serve on the council. TBWA-ISC, appointed through the prerogative of the president under the rules, has a seat on the council.”

Savarimuthu added that he was surprised to hear Zecha's reported claim that he has not attended a single 4As meeting in his entire professional career in Malaysia. “l'm sure he has benefitted immensely from the Malaysian advertising industry,” he said.

However Savarimuthu did call for more transparency in the process for government pitches to attract the best talents and the best ideas in promoting the country.

"Perhaps now is the time for the government to consider using professional pitch consultants to avoid such disputes in the future."

The 4A’s also points out that in January 2006, it instituted mandatory pitch fees - the only country in the world to have successfully introduced this requirement - to protect the intellectual property and interests of its members.

"By encouraging credentials and pitches based on the specific requirements of clients, we believe we have successfully reduced the number of arbitrary pitches and wasted man-hours in an industry already facing severe a talent shortage and brain drain," said Savarimuthu.

"While government-linked companies (GLC's) fall under the mandatory pitch fee rules, government ministry campaigns aimed at altering people's behaviour and perceptions are exempted. Our members continue to serve many GLCs and government agencies with dedication and we believe that many of them enjoy fruitful relationships with their client partners."

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