Unhealthy trend in the ad space

PETALING JAYA: There is an unhealthy trend in the ad space where some advertisers are abusing their dominant position to impose extended payment terms on agencies, resulting in the latter increasing their borrowings and incurring higher costs.

Borrowing under high-interest rates is expensive and harmful to the long-term sustainability of agency businesses as it drives higher costs and risk profiles of the agencies, said the Association of Accredited Advertising Agents Malaysia (4As) chief executive officer Khairudin Rahim.