PETALING JAYA: Initiatives introduced under Budget 2026 have potential to boost the advertising and marketing sector, but more strategic, long-term investment in the creative economy is needed, industry leaders say.
President of the Association of Accredited Advertising Agents Malaysia (4As) Tan Kien Eng noted that while the budget included “commendable” measures to stimulate the creative economy and increase consumer spending, many initiatives seem limited in scale and outlook.
“Much of the allocation appears focused on maintenance, stop-gap measures, and short-term interventions,” he said, adding that a budget based on a future-minded, long-term vision would enable Malaysia’s creative and business industries to thrive.
Tan said that the rapidly evolving realities shaped by factors like shifting global trade dynamics and artificial intelligence necessitate a more progressive approach.
“I hope to see the government dedicate more resources towards empowering local entrepreneurs to build strong, homegrown brands – through sustained branding and marketing support – so they can compete more effectively both within Malaysia and on the global stage.”
Meanwhile, IPG Mediabrands chief executive officer Darren Yuen said despite delivering on digital infrastructure and fiscal discipline, the budget misses a crucial opportunity to formalise the creative economy as a national growth engine.
“There is limited structured support in the budget for marketing innovation, marketing tech incubation, and talent upskilling – critical areas that directly fuel brand competitiveness and potential,” he said. Further provisions should be made to nurture growth in arts and culture, as they are the foundation of a vibrant creative economy, Yuen added.
“Incentives for private-sector investment in local content, creative intellectual property, and storytelling technology, alongside support for artistic endeavours, could elevate Malaysia as a leading regional creative and cultural hub.”
Havas Malaysia chief executive officer Nizwani Shahar would like to see stronger recognition of the value marketers bring in shaping culture, innovation, and national identity.
“We talk a lot about building digital infrastructure and start-ups, but creativity is a national asset too. Grants for content creation, training for creative skills, or support for local agencies and independent shops could help strengthen the country’s reputation as a creative centre,” she said.
Nevertheless, leaders are encouraged by the increased commitment towards investing in the local creative ecosystem seen in this year’s budget. A total of RM140mil has been allocated for Malaysia’s creative sector, with a focus on supporting areas like filmmaking, concerts, and digital games and animation.
Dentsu Malaysia chief executive officer Audrey Chong said these moves to build up the creative economy will also positively impact the advertising and marketing industry by providing more runway to tell stronger brand stories, promote national identity, and attract international productions to local shores.
“These initiatives create new opportunities for marketers to invest in richer, more locally rooted brand narratives,” she said.
“Continued focus on building our creative infrastructure, from skills development to digital content ecosystems, will further amplify our global competitiveness, with Malaysia being well-positioned as a centre for world-class content and brand storytelling.”
Additionally, Nizwani also highlights Budget 2026’s emphasis on digitalisation, research and development, and artificial intelligence as a boon for the advertising and creative industry.
“It tells us that the government is serious about moving the country toward a higher value economy, and that’s good for agencies like Havas because it rewards those who can blend creativity with innovation,” she said. The push towards supporting small and mid-sized businesses through grants and loans is also regarded as a positive for the sector, as such business owners are often the most entrepreneurial with marketing and communications, she added.
Looking ahead, advertising industry heads expect 2026 to be a year where strategic creativity and smart allocation will matter most. Nizwani noted that consumers will remain cautious in their spending patterns, with the budget’s social support measures ensuring households keep spending steady in the mid-market segments.
“Brands will need to work harder for every ringgit, and that means agencies need to create more relevant, meaningful campaigns that move people,” she said.
Similarly, Yuen believes the budget’s targeted cash aid and domestic travel incentives will sustain middle-market spending, resulting in active yet intentional consumer demand.
“Marketers should adopt a balanced approach, combining performance marketing to capture conversions with selective brand investments in high-growth sectors like tech, finance, and e-commerce,” he said.
He also expects sharper, more concentrated bursts of advertising activity throughout the year, based on key disbursement and travel windows.
“Ultimately, brand growth will be achieved not through increased spending, but through intelligent allocation, where data-driven insights, precise timing, and contextual relevance define success.”
